Forced Frenzy, Exxon and Chevron are on a forked path as booming Permian leaders
The big oil giant at the top of the Western Hemisphere, Exxon Mobil and Chevron There are also top producers in the booming Permian Basin, but they are committed to going on a very different path in the future.
While Exxon, a production leader in West Texas, aims to surge by an additional 50% over the next five years and continue to grow beyond 2030, Chevron has adopted a “plateau” approach and focuses on free cash flow.
The companies reported their revenues on August 1, just two weeks after they were forced to be reluctant partners When a ruling from a controversial arbitration fights Courtesy of Chevron, the company was able to terminate its $53 billion acquisition Hess And that Crown Jewel is a 30% stake in Exxon’s oil discovery off Guyana. This is perhaps the biggest oil discovery of the century.
But for both companies, the Permian is a major foundation for a large amount of oil and gas. In fact, the Permian represents almost half of the nation’s national, with 13.4 million barrels of crude oil per day. Exxon reported an increase of 1.6 million barrels of oil per day, including natural gas, but Chevron achieved its 2025 target of 1 million barrels daily in the second quarter.
Chevron aims to keep Permian output relatively stable.
“We are very pleased to have such a large shale portfolio. At one point, growth is less of an objective than free cash flow, we are approaching that point,” Chevron Chairman and CEO Mike Worth said in a revenue call.
Meanwhile, Exxon aims to hit 2.3 million barrels per day in the Permian by 2030. Exxon’s chairman and CEO Darren Woods said he “absolutely” disagrees with the idea of “peak” Permian oil production in a weaker priced, mature basin. Exxon also found himself in an enviable position after last year’s $60 billion acquisition of Permian leaders. Pioneer Natural Resources.
“We’re long ball hitters. Everyone in the unconventional (shale) space plays a short game,” Woods said. “So, the predictions we have after 2030 are upwards and we’ve increased our confidence to continue growing.”
Woods said Exxon is even open to more acquisitions in the future. It’s just not growing to grow. Any transaction requires you to prove that “one plus one equals three.”
“It’s the magic of the success of the acquisition and what we’re looking for,” Woods said.
Exxon and Chevron both provided quarterly beats, but revenues have declined in a lower oil price environment. Exxon’s quarterly net income was $7.1 billion, down 23% year-on-year from $9.2 billion. Chevron’s $2.5 billion net profit immersed 43% year-on-year from $4.4 billion.
A passionate and anticipated ruling
In Guyana, the much-anticipated ruling from the Arbitration Committee, overseen by the International Chamber of Commerce, decided on July 18 that Hess’s acquisition of Chevron did not violate Hess’s first right to reject Guyana’s shares.
While most industry observers expected Chevron to win, Woods said the ruling was “surprising.”
“We were very confident in our position,” Woods said. “I co-authored the contract and understood its intent and believed that the contractual language conveyed it. Unfortunately, the court interpreted it differently. With disappointment, we respect the process and the judgment.”
Woods said that shared Guyana production should amount to at least 1.3 million barrels of oil every day by 2030.
For Chevron, the acquisition of Hess and Guyana has helped offset the global oil and gas exploration outcomes that have been “disappointing” in recent years. The company was leaning towards US land volume, cost reductions and long cycles of international development during development, Wirth said.
He said. “But overall, our reputation for our MO (Modus Operandi) or capital discipline remains.”