ExxonMobil's Permian Push: Here's What Investors Should Know

Core Insights - Exxon Mobil Corporation (XOM) generates significant revenue from exploration and production, primarily in the Permian Basin and offshore Guyana, characterized by lower emissions and production costs [1] Production Growth - In the Permian Basin, XOM achieved record production of 1.8 million oil-equivalent barrels per day in Q4 [2][8] - The company is utilizing a new lightweight proppant to enhance hydraulic fracturing efficiency, with plans to deploy it in 50% of new wells by 2026 [2] - XOM does not anticipate a near-term peak in Permian production and aims to increase output to 2.5 million oil-equivalent barrels per day beyond 2030 [3][8] Competitive Landscape - ConocoPhillips (COP) has a strong position in the Permian Basin, with a break-even cost as low as $40 per barrel WTI and recent acquisition of Marathon Oil enhancing its asset base [5] - Chevron Corporation (CVX) boasts a high-quality asset portfolio in the Permian, contributing to leading organic growth and maintaining industry-leading profit margins [6] Financial Performance - XOM shares have increased by 34.2% over the past year, outperforming the industry average increase of 23.8% [7] - The company's trailing 12-month EV/EBITDA ratio is 9.43X, above the industry average of 5.72X [10] - Recent upward revisions in earnings estimates for 2026 indicate positive market sentiment [12]