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.
Will ExxonMobil's Guyana & Permian Assets Power Its Upstream Business?
Read MoreHide Full Article
Key Takeaways
ExxonMobil prioritizes Guyana and the Permian Basin to expand low-cost upstream production and profitability.
Guyana's fifth FPSO is set for a fourth-quarter 2026 startup, adding 250,000 BPD of production capacity.
XOM targets about 2.5 MMBoe/d from the Permian by 2030, helping lift total upstream output to 5.5 MMBoe/d.
ExxonMobil Holdings Corporation (XOM - Free Report) is a global integrated energy giant with a large upstream business focused on oil and natural gas production. Since upstream contributes significantly to the company’s revenues, expanding production from high-return assets remains a major strategic priority. Guyana and the Permian Basin play a key role in this effort because XOM identifies both as advantaged assets that support higher production and improved unit profitability.
The strength of these assets lies in their low-cost production economics. In Guyana, ExxonMobil has highlighted its industry-leading cost competitiveness and execution capabilities, supported by the “design one, build many” approach, artificial intelligence (AI)-enhanced drilling and strategic partnerships. The company is using these advantages to expand production, with the fifth Guyana Floating Production Storage and Offloading ("FPSO") scheduled to start operations in the fourth quarter of 2026 and add 250,000 barrels per day (BPD) of capacity.
XOM is advancing a ninth FPSO toward a 2031 startup and has identified four additional opportunities through AI-powered exploration. Guyana free cash flow is expected to double by 2030 from the 2025 level, further strengthening the asset’s contribution to the upstream business.
The Permian provides another major source of low-cost production growth for ExxonMobil. Second-quarter 2026 production has already exceeded 1.8 million oil-equivalent barrels per day (MMBoe/d), while the company plans to increase output to about 2.5 MMBoe/d by 2030, in line with a planned 9% compound annual growth rate. Supported by growth from Guyana and the Permian, ExxonMobil plans to raise total upstream production to roughly 5.5 MMBoe/d by 2030, with advantaged assets accounting for about 65% of output. This growing exposure to lower-cost assets is expected to support stronger upstream earnings and cash flow over time.
CVX & OXY Stand to Gain From Key Upstream Basins
Apart from ExxonMobil, Chevron Corporation (CVX - Free Report) and Occidental Petroleum Corporation (OXY - Free Report) stand to benefit from their exposure to prolific upstream regions.
Chevron has meaningful exposure to the resource-rich Guyana and Permian regions, giving CVX access to two major growth areas that can support production and cash generation over time.
Occidental Petroleum, meanwhile, has a significant operating presence in the Permian Basin, which remains central to its upstream strategy. OXY continues to rely on its scale, technical capabilities and resource base in the basin to support efficient development and lower full-cycle costs.
Thus, alongside XOM, CVX and OXY remain well-positioned to capitalize on sustained development across the Permian Basin.
XOM’s Price Performance, Valuation & Estimates
ExxonMobil shares have gained 50.5% over the past year compared with the industry’s 46.4% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, XOM trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 9.21X. This is above the broader industry average of 5.91X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM's third-quarter and fourth-quarter 2026 earnings has remained constant over the past seven days. Meanwhile, estimates for full-year 2026 earnings have seen upward revisions.
View the Zacks #1 Rank List
Image: Bigstock
Will ExxonMobil's Guyana & Permian Assets Power Its Upstream Business?
Key Takeaways
ExxonMobil Holdings Corporation (XOM - Free Report) is a global integrated energy giant with a large upstream business focused on oil and natural gas production. Since upstream contributes significantly to the company’s revenues, expanding production from high-return assets remains a major strategic priority. Guyana and the Permian Basin play a key role in this effort because XOM identifies both as advantaged assets that support higher production and improved unit profitability.
The strength of these assets lies in their low-cost production economics. In Guyana, ExxonMobil has highlighted its industry-leading cost competitiveness and execution capabilities, supported by the “design one, build many” approach, artificial intelligence (AI)-enhanced drilling and strategic partnerships. The company is using these advantages to expand production, with the fifth Guyana Floating Production Storage and Offloading ("FPSO") scheduled to start operations in the fourth quarter of 2026 and add 250,000 barrels per day (BPD) of capacity.
XOM is advancing a ninth FPSO toward a 2031 startup and has identified four additional opportunities through AI-powered exploration. Guyana free cash flow is expected to double by 2030 from the 2025 level, further strengthening the asset’s contribution to the upstream business.
The Permian provides another major source of low-cost production growth for ExxonMobil. Second-quarter 2026 production has already exceeded 1.8 million oil-equivalent barrels per day (MMBoe/d), while the company plans to increase output to about 2.5 MMBoe/d by 2030, in line with a planned 9% compound annual growth rate. Supported by growth from Guyana and the Permian, ExxonMobil plans to raise total upstream production to roughly 5.5 MMBoe/d by 2030, with advantaged assets accounting for about 65% of output. This growing exposure to lower-cost assets is expected to support stronger upstream earnings and cash flow over time.
CVX & OXY Stand to Gain From Key Upstream Basins
Apart from ExxonMobil, Chevron Corporation (CVX - Free Report) and Occidental Petroleum Corporation (OXY - Free Report) stand to benefit from their exposure to prolific upstream regions.
Chevron has meaningful exposure to the resource-rich Guyana and Permian regions, giving CVX access to two major growth areas that can support production and cash generation over time.
Occidental Petroleum, meanwhile, has a significant operating presence in the Permian Basin, which remains central to its upstream strategy. OXY continues to rely on its scale, technical capabilities and resource base in the basin to support efficient development and lower full-cycle costs.
Thus, alongside XOM, CVX and OXY remain well-positioned to capitalize on sustained development across the Permian Basin.
XOM’s Price Performance, Valuation & Estimates
ExxonMobil shares have gained 50.5% over the past year compared with the industry’s 46.4% growth.
From a valuation standpoint, XOM trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 9.21X. This is above the broader industry average of 5.91X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM's third-quarter and fourth-quarter 2026 earnings has remained constant over the past seven days. Meanwhile, estimates for full-year 2026 earnings have seen upward revisions.
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.