ExxonMobil's Permian Basin Production Breaks Records with Strong Outlook Ahead

ExxonMobil has reported its highest ever oil and gas production from the Permian Basin, with 1.6 million barrels of oil equivalent per day. The company projects a ramping up of production to 2.3 million barrels by 2030. Chevron and Diamondback Energy also produce significant volumes from the Permian. ExxonMobil's shares have declined 4.7% over the past year, and the company trades at a trailing 12-month enterprise value to EBITDA of 6.93X.

ExxonMobil Corporation (XOM) has achieved a significant milestone in the Permian Basin, reporting its highest ever oil and gas production of 1.6 million barrels of oil equivalent per day (MMBoE/D). This record production marks a substantial growth for the company, which has been leveraging innovative technologies to maximize extraction from the basin. ExxonMobil's production projection for 2030 is a further 2.3 MMBoE/D, indicating a robust outlook for the region [1].

The company's success in the Permian Basin is attributed to advanced techniques such as the use of lightweight proppant to keep underground cracks open, thereby boosting recovery rates to 20% from 15% in recent months. This technological prowess has enabled ExxonMobil to extract more oil from existing wells, demonstrating a solid production outlook for the future [1].

Chevron Corporation (CVX) and Diamondback Energy, Inc. (FANG) also have substantial operations in the Permian Basin. Chevron, with over 2 million net acres of land and a presence dating back over a century, is another major player in the region. Diamondback Energy, a pure-play Permian operator, showcases a solid production outlook with a significant inventory of oil and gas wells [1].

Despite ExxonMobil's impressive production figures, its stock performance has been mixed. Over the past year, shares of XOM have declined by 4.7%, while the industry has seen a 4% rise. From a valuation perspective, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.93X, which is above the broader industry average of 4.31X [1].

ExxonMobil's latest earnings report, released on August 1, 2025, showed a drop in second-quarter profits due to lower crude prices, despite production growth in core oil and gas holdings in Guyana and the Permian Basin. The company reported profits of US$7.1 billion, down 23.4% from the year-ago period, and revenues fell 12.4% to US$81.5 billion [2].

The Permian Basin's geology, with multiple layers of shale rock containing oil and natural gas, makes it one of the most prolific fields in the world. According to Wood Mackenzie, nearly 70% of oil production from the lower 48 states is projected to come from the Permian Basin by 2040 [3].

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/XOM/pressreleases/33966614/exxonmobils-bold-bet-on-the-permian-basin-massive-growth-ahead/
[2] https://www.businesstimes.com.sg/companies-markets/energy-commodities/exxonmobil-reports-23-4-drop-profits-lower-crude-prices
[3] https://www.chevron.com/newsroom/2025/q3/explainer-what-is-the-permian-basin