XOM's Guyana Push: Unlocking 11B Barrels and a Decade of Growth

Exxon Mobil Corporation XOM, a U.S.-based integrated energy firm, has a strong presence offshore Guyana, particularly in the Stabroek Block. The company stated that its Guyana reserves are one of its most advantaged assets, containing almost 11 billion barrels of resource. Furthermore, it is the largest discovery made in the oil and gas industry in the past 15 years.

Exxon Mobil is consistently investing in increasing production from Guyana. The company has recently started production at Yellowtail, which is its fourth development in the Stabroek Block. The other three developments that are currently operational have a combined production of approximately 650,000 gross barrels per day. The fourth development is expected to bring the total installed capacity from Guyana to more than 900,000 barrels of oil per day. The fifth and sixth developments in Guyana, namely Uaru and Whiptail, are expected to begin production in 2026 and 2027, respectively. Furthermore, XOM has recently taken a final investment decision on the Hammerhead project, which is the seventh development in Guyana.

The Guyana deepwater development is expected to be one of the most successful developments to date. The oil boom has positioned Guayana as the fastest-growing economy globally. The country’s low-cost production assets should support XOM’s long-term production growth and cash flow profile, enhancing profitability. The company’s low-cost production profile in Guyana also enables it to maintain a competitive edge among international oil majors.

Industry Majors With a Low-Cost Production Profile

ConocoPhillips COP and EOG Resources, Inc. EOG are two other energy firms that boast a low-cost resource base in the shale basins of the United States.

ConocoPhillips is involved in the exploration and production of crude oil, natural gas liquids, bitumen and natural gas. The company boasts a strong asset base in the shale basins of the United States, including the Delaware Basin, Midland Basin, Eagle Ford and Bakken shale. These assets support low-cost production, which enables ConocoPhillips to maintain its profitability and generate free cash flow even during periods of low oil prices.

EOG Resources is a leading independent exploration and production company with operations focused on the prolific acres in the United States as well as several resource-rich international basins. EOG boasts a high-return, low-decline asset base and stands out among the low-cost producers in the United States. The company’s focus on maintaining a resilient balance sheet and lowering production costs should enable it to weather oil price volatility.

XOM’s Price Performance, Valuation & Estimates

Shares of ExxonMobil have risen 1.6% over the past year compared with the 6.3% improvement of the composite stocks belonging to the industry.

From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 7.35X. This is above the broader industry average of 4.34X.

The Zacks Consensus Estimate for XOM’s 2025 earnings has not seen any revisions over the past seven days.

XOM, COP and EOG each currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research