Exxon Mobil Corporation XOM has a strong foothold in the Permian Basin, one of the most prolific oil and natural gas resources in the United States. Following the acquisition of Pioneer Natural Resources, ExxonMobil holds approximately 1.4 million net acres in the Permian Basin. The basin's low-cost operations enable XOM to generate higher margins even during lower price environments.
The Permian Basin’s stacked geology allows ExxonMobil to develop multiple productive wells from the same surface location, improving efficiency and lowering production costs. The company is deploying advanced techniques such as cube development, which enables simultaneous development of multiple reservoirs and enhances resource recovery. This approach enables XOM to develop large, productive areas much faster, boosting output while reducing drilling and completion costs
ExxonMobil anticipates that these operational efficiencies will drive long-term growth in both production and cash flow, with the company targeting a Permian Basin output of 2.5 million barrels of oil equivalent per day (MMboe/d) by 2030. The company is investing in Gulf Coast infrastructure to process, transport and market growing Permian volumes more efficiently. Together, these investments strengthen cash flow generation, support higher future production and reinforce the Permian Basin's role as a cornerstone of ExxonMobil’s long-term growth strategy.
Are FANG & COP Gaining From Strong Permian Basin Presence?
Diamondback Energy, Inc. FANG and ConocoPhillips COP also have a strong footprint in the Permian Basin, one of the most prolific basins in the United States.
Diamondback Energy has approximately 890,496 net acres as of March 31, 2026, supporting its long-term production growth. FANG acquires and develops unconventional onshore oil and natural gas reserves in West Texas. Through targeted horizontal drilling in key formations like Wolfcamp, Spraberry and Bone Spring, FANGmaximizes resource recovery and operational efficiency.
ConocoPhillips maintains a strong presence in the Permian Basin within the Lower 48 region. COP significantly expanded its Permian footprint after the acquisition of Marathon Oil Corporation. ConocoPhillips' Lower 48 produced 1.453 MMboe/d in the first quarter of 2026, accounting for nearly 63% of total company output.
XOM’s Price Performance, Valuation & Estimates
ExxonMobil shares have gained 43.9% over the past year compared with 39.8% growth of the industry.
From a valuation standpoint, XOM trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 9.89X. This is above the broader industry average of 6.3X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM's 2026 earnings has remained unchanged over the past seven days.
Image Source: Zacks Investment Research
XOM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Exxon Mobil Corporation (XOM): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).