We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why XOM's Permian & Guyana Operations Could Drive Long-Term Returns
Read MoreHide Full Article
Key Takeaways
XOM posts record 1.7M boe/d and expands Midland acreage, boosting its upstream outlook.
Record 700,000 bpd from Guyana and low breakeven costs help XOM endure weaker oil prices.
XOM shares rose 10.7% in a year and trade at 7.76X EV/EBITDA with steady 2025 estimates.
Exxon Mobil Corporation (XOM - Free Report) is among the largest integrated energy companies, but generates the majority of its earnings from upstream operations. The energy giant has a strong presence in the Permian, the most prolific oil and gas resource in the United States, and offshore Guyana. Thus, XOM’s upstream business outlook seems bright.
On the third-quarter earnings call, ExxonMobil stated that it has generated another record production of 1.7 million oil-equivalent barrels per day. Following its strategic push on broadening its presence in advantageous assets, XOM mentioned its acquisition of more than 80,000 premium acres in the Midland, a sub-basin of the broader Permian, from Sinochem Petroleum.
ExxonMobil also highlighted that it has achieved record production of more than 700,000 barrels per day from Guyana. Notably, ongoing operations in advantageous assets like Permian and Guyana seem profitable since breakeven costs are low. Therefore, XOM can manage the business environment even when oil prices fall.
FANG & COP Also Have Footprint in the Permian
Diamondback Energy Inc. (FANG - Free Report) and ConocoPhillips (COP - Free Report) also have a strong presence in the Permian. FANG is a Permian pure-play player with sufficient drilling inventory to sustain its production for more than 10 years.
ConocoPhillips’ assets in the Lower 48 comprise resources in the prolific Delaware and Midland basins. The Delaware Basin contributes considerably to COP’s Lower 48 production. Thus, both FANG and COP can sail through low oil prices.
XOM’s Price Performance, Valuation & Estimates
Shares of XOM have gained 10.7% over the past year compared with the 9% improvement of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 7.76X. This is above the broader industry average of 4.82X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM’s 2025 earnings has seen no revisions over the past seven days.
Image: Bigstock
Why XOM's Permian & Guyana Operations Could Drive Long-Term Returns
Key Takeaways
Exxon Mobil Corporation (XOM - Free Report) is among the largest integrated energy companies, but generates the majority of its earnings from upstream operations. The energy giant has a strong presence in the Permian, the most prolific oil and gas resource in the United States, and offshore Guyana. Thus, XOM’s upstream business outlook seems bright.
On the third-quarter earnings call, ExxonMobil stated that it has generated another record production of 1.7 million oil-equivalent barrels per day. Following its strategic push on broadening its presence in advantageous assets, XOM mentioned its acquisition of more than 80,000 premium acres in the Midland, a sub-basin of the broader Permian, from Sinochem Petroleum.
ExxonMobil also highlighted that it has achieved record production of more than 700,000 barrels per day from Guyana. Notably, ongoing operations in advantageous assets like Permian and Guyana seem profitable since breakeven costs are low. Therefore, XOM can manage the business environment even when oil prices fall.
FANG & COP Also Have Footprint in the Permian
Diamondback Energy Inc. (FANG - Free Report) and ConocoPhillips (COP - Free Report) also have a strong presence in the Permian. FANG is a Permian pure-play player with sufficient drilling inventory to sustain its production for more than 10 years.
ConocoPhillips’ assets in the Lower 48 comprise resources in the prolific Delaware and Midland basins. The Delaware Basin contributes considerably to COP’s Lower 48 production. Thus, both FANG and COP can sail through low oil prices.
XOM’s Price Performance, Valuation & Estimates
Shares of XOM have gained 10.7% over the past year compared with the 9% improvement of the composite stocks belonging to the industry.
From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 7.76X. This is above the broader industry average of 4.82X.
The Zacks Consensus Estimate for XOM’s 2025 earnings has seen no revisions over the past seven days.
ExxonMobil currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.