Can Permian Connection Brighten XOM, CVX & COP's Outlook?

The Permian is the most prolific oil and natural gas play in the United States. With multiple layers of shale rocks, the basin has significant potential for oil and natural gas resources. Integrated energy giant Chevron Corporation CVX noted that, according to Wood Mackenzie, known for providing services related to energy research and consultancy, the Permian will account for roughly 70% of the Lower 48’s oil production before 2040. Hence, energy majors like Chevron, Exxon Mobil Corporation XOM and ConocoPhillips COP with significant Permian footprints secure a bright outlook.

3 Permian Stocks: CVX, XOM & COP

Chevron stated on its second-quarter 2025 earnings call that it has been producing in the most prolific basin for approximately a century, with operations spanning 2 million net acres. On 75% of the land, CVX owns mineral interests, and hence, it will not have to pay big royalties like many upstream players, thereby securing a cost advantage. In the Permian, CVX has been producing record oil equivalent volumes, aiding its upstream business.

ExxonMobil’s core upstream assets comprise the Permian and offshore Guyana. In the Permian, XOM has highly productive acres, where operations could be significantly economical. By the end of this decade, XOM expects its Permian production to grow to 2.3 million oil equivalent barrels. Also, XOM stated on its latest earnings call that it has a huge inventory of well locations to sustain production for decades.

ConocoPhillips has operations in the Lower 48, which comprise the Permian, the most prolific basin in the United States. In the second quarter of 2025, Permian was responsible for roughly 56% of the Lower 48’s total production, clearly suggesting the importance of the most productive basin for backing COP’s bottom line.

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