ExxonMobil expects to double production from the prolific Permian basin by the end of the decade on the back of technology improvements and efficiency gains.
The US major's output from the region is likely to advance to around 2.5mn b/d of oil equivalent (boe/d) over that timeframe from 2024 levels. That would also represent an increase of 200,000 boe/d from what the company expected a year ago.
ExxonMobil is counting on the Permian for growth well into the next decade. The company aims to double recovery rates from the region, using new technology such as a patented lightweight proppant to squeeze more resource out of the basin. It has also upped expected cost savings from last year's acquisition of shale giant Pioneer Natural Resources.
Booming Permian output — as well as contributions from other so-called advantaged assets such as Guyana and LNG — are helping the company to increase anticipated earnings and cash flow to 2030.
ExxonMobil now expects to achieve $25bn in earnings growth and $35bn in cash flow growth by 2030 compared with 2024, an increase of $5bn for both metrics at constant prices, without any increase in capital spending.
"We are more profitable than we were five years ago, and we expect that to continue as the advantages we've unlocked position us for even greater opportunities in the years ahead," chief executive officer Darren Woods said in prepared remarks ahead of a presentation.
The major said it is on track to buy back $20bn of shares this year, and plans to maintain that pace through 2026 assuming reasonable market conditions.
Total production is seen increasing to 5.5mn boe/d by 2030, with the company's advantaged assets accounting for 65pc of that boost.
ExxonMobil lifted a target for structural cost savings by $2bn to $20bn by 2030 compared with 2019 levels.
Capital spending for next year was pegged in a range of $27bn-$29bn, with overall production reaching around 4.9mn boe/d.
