ExxonMobil’s third-quarter 2026 results highlight a strategy built around growing production, improving recovery and reducing costs through technology. The company reported $15.4 billion in earnings and $25.7 billion in operating cash flow, while advancing investments in Permian drilling automation, Guyana production, LNG and refining infrastructure.
OilGasLeads’ analysis of Exxon/XTO’s U.S. drilling dataset identifies 702 well records from January 1 through October 26, 2026, including 641 in the Permian Basin—91.3% of the total. Activity is concentrated in the Midland Basin, with 485 records, followed by the Delaware Basin with 156. H&P leads the identified drilling contractors with 453 well records. Combined with ExxonMobil’s plans to expand automated drilling and improve resource recovery, this activity highlights opportunities for oilfield suppliers supporting drilling, completions, production optimization and field infrastructure.
Q3/2026 transcript summary:
- Strong financial results: ExxonMobil reported $15.4 billion in earnings and $25.7 billion in operating cash flow in Q3 2026. It invested $7 billion in the business and returned $9.4 billion to shareholders.
- Higher shareholder distributions: The company increased its dividend per share by 4%, marking 44 consecutive years of annual growth. It plans $20 billion in share repurchases in 2027, subject to reasonable market conditions.
- Permian growth and efficiency: Production reached the company’s year-end target ahead of schedule. Management emphasized capital efficiency, better well productivity and technology deployment as priorities.
- Automated drilling expansion: ExxonMobil has three automated drilling rigs operating in the Permian. It expects automation to cover approximately 25% of its Permian rig fleet in 2027 and 50% by 2028.
- Improved resource recovery: The company continues pursuing its ambition to double recovery from Permian resources, including through lightweight proppant and improved development practices. Management expects secondary recovery to contribute more materially after 2030.
- Guyana remains a major growth engine: Cumulative Stabroek Block production exceeded 1 billion barrels. The fifth development, Uaru, is expected to start production in Q4 2026.
- LNG portfolio expansion: ExxonMobil agreed to increase its interest and assume operatorship in Papua LNG, and to increase its operated interest in Rovuma LNG in Mozambique to 50%.
- Golden Pass construction milestones: Train 2 is expected to be substantially complete by December 2026, followed by commissioning. Train 3 is targeting mechanical completion in mid-2027.
- Refining investments: Planned Gulf Coast upgrades are expected to increase distillate yield by approximately 100,000 barrels per day. Work begins at Baytown, with further investments planned at Baton Rouge and Beaumont.
- Continued cost reductions: Structural cost savings since 2019 reached $16.9 billion, toward a target of $20 billion by 2030. Expected annual Pioneer acquisition synergies have increased from $2 billion to $4 billion.
- Carbon capture progress: ExxonMobil started CCS operations for Nucor, received approval for the Rose carbon storage project, and reported approximately 11 million tonnes per year under contract across eight customers.
- Middle East disruptions: Management described continued LNG constraints in Qatar and shipping limitations affecting UAE sales. It expects supply disruptions to take time to resolve.
- Implications for oilfield suppliers: The plans indicate opportunities in drilling automation, completion technology, recovery optimization, LNG infrastructure, refinery upgrades and carbon capture. ExxonMobil’s emphasis remains on technologies and services that improve productivity and lower costs.
Wells Drilled US YTD
Total record count: 702 Exxon/XTO U.S. well records, with Activity Dates from January 1 to October 26, 2026. All 702 licence numbers are unique.
Record count by Province/State
State / jurisdiction Records Share Texas 496 70.7% New Mexico 155 22.1% North Dakota 48 6.8% Federal Offshore Gulf (“FO GULF”) 2 0.3% Wyoming 1 0.1% Total 702 100.0%
Record count by play/basin
The following is a geographic grouping of counties. Specific producing formations are not confirmed by this grouping. The Permian subdivisions follow Midland and Delaware basin geography. Enverus
Play / basin or operating region Counties / offshore areas included Records Permian — Midland Basin Midland, TX (184); Martin (109); Upton (89); Glasscock (73); Reagan (30) 485 Permian — Delaware Basin Eddy, NM (155); Loving, TX (1) 156 Williston Basin — Bakken region Williams, ND (40); McKenzie (6); Mountrail (2) 48 Texas Gulf Coast Jefferson (4); Brazoria (2); Liberty (2); Galveston (1); Newton (1) 10 Gulf of Mexico offshore Alaminos Canyon (1); East Breaks (1) 2 Southwest Wyoming — LaBarge area Lincoln (1) 1 Total 702
The Permian accounts for 641 records, or 91.3% of total activity. Midland Basin represents 69.1% of the full dataset, and Delaware Basin represents 22.2%.
Top 10 contractor–rig combinations by record count
There is a five-way tie for 10th place, so all tied rigs are shown.
Rank Contractor and rig Records 1 H&P 429 25 2 H&P 640 23 3 H&P 604 22 4= H&P 463 21 4= H&P 545 21 6= Ensign T135 20 6= H&P 532 20 6= H&P 552 20 6= Nabors X12 20 10= Ensign T142 19 10= H&P 417 19 10= H&P 439 19 10= H&P 549 19 10= H&P 650 19
Record count by contractor
Contractor Records H&P 453 Nabors 100 Ensign 91 Pinnergy 3 Sevan 2 Not provided 53 Total 702
These counts measure well records associated with each rig, rather than the number of currently active rigs. 53 records (7.5%) have no contractor–rig value.
ExxonMobil is advancing drilling automation and recovery technology in the Permian Basin to increase production and lower costs. OilGasLeads’ Exxon/XTO dataset contains 702 U.S. well records through October 26, 2026, with 641—91.3%—in the Permian, highlighting opportunities for drilling, completions and production optimization suppliers.
Author: phinds