Why XOM's Permian & Guyana Operations Could Drive Long-Term Returns
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AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA Stocks Why XOM's Permian & Guyana Operations Could Drive Long-Term Returns December 11, 2025 — 07:04 am EST Written by Nilanjan Banerjee for Zacks-> Exxon Mobil Corporation XOM 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-quarterearnings 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 PermianDiamondback Energy Inc. FANG and ConocoPhillips COP 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 & EstimatesShares 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 ResearchThe Zacks Consensus Estimate for XOM’s 2025 earnings has seen no revisions over the past seven days. Image Source: Zacks Investment ResearchExxonMobil currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Free Report: Profiting from the 2nd Wave of AI Explosion The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives. Investors who bought shares like Nvidia at the right time have had a shot at huge gains. But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies. Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exxon Mobil Corporation (XOM) : Free Stock Analysis ReportConocoPhillips (COP) : Free Stock Analysis ReportDiamondback Energy, Inc. (FANG) : Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Tags StocksInvesting Zacks Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com. More articles by this source-> Stocks mentioned XOM COP FANG More Related Articles This data feed is not available at this time. Data is currently not available • Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.