Exxon Mobil Corporation XOM has a strong foothold in the Permian Basin, one of the most prolific oil and natural gas regions in the United States. The Permian Basin’s low-cost production profile enables ExxonMobil to generate higher margins while supporting long-term growth. Leveraging its deep-rooted presence in the Permian Basin, XOM continues to drive operational efficiency and scale advantages across its Permian operations.
Following the acquisition of Pioneer Natural Resources, ExxonMobil now holds approximately 1.4 million net acres across the Delaware and Midland sub-basins within the Permian Basin. The basin’s stacked geology, featuring multiple high-quality formations such as Wolfcamp, Bone Spring and Spraberry, supports efficient multi-well development and makes the basin highly productive and cost-competitive. Consequently, XOM reported record Permian production of 1.6 million barrels of oil equivalent per day (Mboepd) in 2025, an increase of about 0.4 Mboepd year over year.
The energy giant continues to enhance Permian performance through scale, integration and technology, including its cube development approach and proprietary proppant solutions. These innovations are likely to drive industry-leading capital efficiency and cost performance, supporting XOM’s target to increase Permian production to around 2.5 Mboepd by 2030.
ExxonMobil is also investing along the Gulf Coast to leverage export infrastructure and maximize the value of its growing production from the Permian Basin. With strong execution, technological innovation and disciplined capital allocation, XOM is well-positioned to translate its Permian leadership into sustained cash flow growth and long-term shareholder value.
Are FANG & CVX Gaining From Their Strong Footprint in the Permian Basin?
Energy players like Diamondback Energy, Inc. FANG and Chevron Corporation CVX also have a strong footprint in the Permian Basin, one of the most prolific basins in the United States.
Diamondback Energy had approximately 1,097,846 gross acres (869,036 net acres) as of Dec. 31, 2025, supporting its long-term production growth. FANG focuses on acquiring, developing and exploring unconventional onshore oil and natural gas reserves in West Texas. FANG’s operations are centered on horizontal drilling across key formations such as Wolfcamp, Spraberry and Bone Spring, enabling efficient resource extraction and maximizing recovery from its acreage.
Chevron maintains a strong presence in the Permian Basin, with more than 1.75 million net acres in the Delaware and Midland sub-basins. In 2025, CVX produced about 1 Mboepd from the region. This contributed to CVX’s total global production of approximately 3.7 Mboepd for the year.
XOM’s Price Performance, Valuation & Estimates
XOM shares have gained 42.1% over the past year compared with 45.5% growth of the industry.
From a valuation standpoint, XOM trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 9.69X. This is below the broader industry average of 6.63X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM's 2026 earnings has seen upward revisions over the past seven days.
Image Source: Zacks Investment Research
XOM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).