ExxonMobil Accelerates Permian Growth, Aims for 2.3M Barrels by 2030

Core Insights - Exxon Mobil Corporation (XOM) is significantly increasing its upstream production, primarily driven by major projects in the Permian Basin and offshore resources in Guyana, achieving record production levels of nearly 1.7 million barrels of oil equivalent per day (boe/d) in the Permian [1][8] Production and Technology - The company is utilizing low-cost refinery coke as a new lightweight proppant, enhancing the efficiency of hydraulic fracturing and improving well recoveries by almost 20% [2] - ExxonMobil plans to increase Permian production volumes from 1.6 million barrels to 2.3 million barrels by 2030, supported by a deep inventory of high-quality acreage and innovative technologies [3] Acquisitions and Growth - In the latest quarter, ExxonMobil acquired 80,000 net acres in the Midland Basin from Sinochem Petroleum, allowing greater control over drilling locations and the application of proprietary technologies [2][8] Competitive Landscape - ConocoPhillips (COP) and Chevron Corporation (CVX) are also key players in the Permian Basin, with COP having a break-even cost as low as $40 per barrel WTI and CVX being the largest mineral owner in the region, benefiting from high profit margins [4][5][6] Market Performance - ExxonMobil's shares have increased by 7.8% over the past year, outperforming the industry average increase of 6.5% [7] - The Zacks Consensus Estimate for XOM's 2025 earnings has seen four upward revisions in the past week, indicating positive market sentiment [9] Valuation - ExxonMobil trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 7.76X, which is above the broader industry average of 4.85X, suggesting a premium valuation compared to peers [11]