ExxonMobil delivered another milestone quarter in the Permian Basin, setting a new production record of nearly 1.7 million BOE/d while deepening its position in the Midland Basin with an acquisition of 80,000+ high-quality acres. Backed by proprietary technology—like lightweight coke-based proppant and advanced Cube development—the company continues to separate itself from peers who are shifting into harvest mode. Exxon’s Q3 2025 results make one thing clear: the Permian remains the growth engine of the portfolio, and Exxon is doubling down.
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Permian Basin – What Exxon Said
Record Production
- Exxon set another production record in the Permian Basin:
~1.7 million BOE/day in Q3 2025 — a new all-time high.
Growth Outlook
- Exxon expects Permian production to continue growing well into the next decade.
- They emphasized that, unlike competitors shifting to “harvest mode,” Exxon sees multi-year growth ahead because of its technology stack, Cube development model, and deep inventory.
Technology Advantages
Exxon highlighted several competitive advantages driving Permian outperformance:
- Lightweight Proprietary Proppant
- Made from low-cost refinery coke.
- Penetrates deeper into fracs → up to +20% higher recoveries.
- Third-party validation from Wood Mackenzie.
- Expected usage:
- 25% of wells in 2025
- ~50% of wells by end of 2026
- Cube Development + Tech Pipeline
- Multi-zone, multi-well simultaneous development for maximum recovery.
- Additional technologies under testing aimed at doubling resource recovery.
- Operational Efficiency
- Improved capital productivity and well performance across multiple levers, not a single factor.
Capital Productivity
- Exxon noted they are getting stronger capital efficiency in the Permian, contributing to outperformance vs. their prior production guide.
Midland Basin – What Exxon Said
New Acreage Acquisition
- Exxon acquired 80,000+ net high-quality acres in the Midland Basin from Sinochem Petroleum.
Strategic Rationale
- The new Midland acreage provides:
- Control of additional drilling locations.
- Ability to deploy Exxon’s proprietary technologies (Cube design, lightweight proppant, advanced completions).
- Boosted returns through integration into Exxon’s large Permian development machine.
Portfolio Synergy
- Exxon positioned the acquisition as a “1 + 1 = 3 or more” addition—meaning:
- Combining Exxon’s tech + scale + cost structure with these assets creates outsized value.
Two-Sentence Summary
Exxon reported record Permian production of nearly 1.7 million BOE/d, driven by technology, Cube development, and operational efficiency. In the Midland Basin, they expanded their footprint with 80,000+ new acres, which they expect to enhance using Exxon’s proprietary proppant, drilling, and completion technologies.
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