In recent earnings calls, Exxon Mobil Corporation has been clear that the future of its Permian growth is not about finding new geology. Instead, it’s about Cube development — a disciplined, section-scale approach that maximizes recovery by stacking known benches inside mature core acreage.
Rather than chasing step-outs or exploratory risk, Exxon’s Permian strategy centers on developing entire sections as integrated units, applying technology, spacing, and execution consistency across multiple intervals. The goal is simple: extract more value from acreage they already understand extremely well.
What Exxon Means by “Cube Development”
While Exxon doesn’t always use the term explicitly, their description is consistent across calls:
- Development is section-based, not single-well driven
- Multiple known benches are targeted within the same development unit
- Growth comes from recovery improvement and inventory depth, not new pay discovery
- Technology is layered across wells to improve outcomes over time
In practice, Cube development is how Exxon converts mature Permian acreage into a long-cycle manufacturing asset.
COON-BEND: Cube Development at the Permit Level
You can see this strategy clearly in XTO’s recent permits on the COON-BEND lease in Block 38T2S.
The COON-BEND lease marks a new section entry within XTO’s mature Block 38T2S position, expanding inventory inside a proven core block rather than stepping into new acreage. Two permits — COON-BEND 9C and COON-BEND 9D — illustrate how Cube development shows up operationally.
- COON-BEND 9C targets an upper/alternate Spraberry bench
- COON-BEND 9D targets a shallower Spraberry interval
- Projected depths remain tightly clustered within XTO’s established Spraberry range
This is not an exploration signal. There is no material depth step-change and no indication of a new pay zone. Instead, the permits confirm stacked but known inventory being developed deliberately within a single section.
Why This Matters
COON-BEND is a textbook example of what Exxon describes at a corporate level:
- New section entry → inventory expansion inside core acreage
- Stacked benches → vertical development of known pay
- Consistent depths → derisked geology and repeatable execution
This is Cube development doing exactly what it’s designed to do: extend runway, improve recovery, and support long-term production growth without increasing geological risk.
The Bigger Permian Signal
Exxon has repeatedly emphasized that its Permian upside comes from how it develops acreage, not where it drills next. Cube development allows the company to:
- Sustain growth well beyond 2030
- Apply “stackable” technologies across multiple intervals
- Treat sections like manufacturing units rather than one-off drilling locations
COON-BEND fits squarely within that framework. It’s a quiet but important signal that Exxon/XTO is still unlocking value inside mature blocks by methodically stacking inventory, one section at a time.
Bottom Line
Exxon’s Cube development strategy is not theoretical — it’s visible in the permits. The COON-BEND lease in Block 38T2S shows how a mature Spraberry position continues to generate new drilling inventory through stacked, derisked development. This is recovery-driven growth, not exploration, and it’s exactly what Exxon has told the market to expect from its Permian program.
