4 Oil Giants Stand Tall as Permian Basin Fuels U.S. Growth

The Permian Basin remains the powerhouse of U.S. oil production, fueling both growth and efficiency. With rising volumes, stronger technology, and proximity to Gulf Coast refineries, it anchors energy security. Companies with deep roots in the region — EOG Resources (EOG), ExxonMobil (XOM), Diamondback Energy (FANG) and Chevron (CVX) — are strategically placed to harness its potential, reinforcing their status as prime names for investors to track.

According to the Energy Information Administration (EIA), U.S. crude oil output is projected to reach 13.44 million barrels per day in 2025, led by gains from the Permian. Output is expected to climb 220,000 barrels per day this year from 2024, making up nearly half the nation’s supply. Efficiency improvements, infrastructure strength, and drilling innovation continue to extend the basin’s long-term profitability for leading operators.

Energy Giants Tapping the Permian’s Potential

EOG Resources, ExxonMobil, Diamondback Energy and Chevron are among the key players to watch. These companies have extensive operations in the Permian and are well-equipped to capitalize on its potential.

EOG Resources commands a strong position in the Delaware Basin, where advanced drilling technology drives consistent growth. In the second quarter of 2025, EOG’s Permian wells delivered 3% oil growth and an 8% lift in total volumes. By relying on proprietary methods and self-sourced materials, EOG maintains one of the lowest breakeven levels in the sector, translating into robust free cash flow and competitive shareholder returns.

ExxonMobil continues to expand aggressively in the Permian, with production reaching 1.6 million barrels of oil equivalent per day. ExxonMobil has improved well recoveries by up to 20% through technology-driven designs and plans to extend these methods across more wells. Supported by the $59.5 billion Pioneer Natural Resources acquisition, ExxonMobil is targeting 2.3 million barrels by 2030, more than doubling output since 2019.

Diamondback Energy has carved out a leadership position in the Permian by perfecting its “acquire and exploit” approach. The integration of Endeavor nearly doubled the company’s size, yet execution remained seamless. Diamondback now controls around 859,000 net acres and some 9,600 economic drilling locations. With a sizable royalty footprint and cost-efficient operations, Diamondback Energy stands out as a premier pure-play operator in the basin.

Chevron has also made the Permian central to its portfolio. The company achieved its milestone of producing more than 1 million barrels of oil equivalent per day right on schedule, a goal set five years ago. Chevron is now pivoting from rapid growth to efficiency, lowering capital outlays while delivering $1.5-$2 billion in annual structural savings. With ~$2 billion in free cash flow expected from the basin by 2026, Chevron remains well-positioned for durable returns.

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

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