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The Permian Basin continues to be the heartbeat of the U.S. oil industry, driving growth and efficiency across the sector. With steady production gains, technological advancements and strategic positioning near Gulf Coast refineries, the region remains a crucial pillar of energy security. Companies with a strong foothold in the Permian, including EOG Resources EOG, Diamondback Energy FANG, ExxonMobil XOM and Chevron CVX, are well-positioned to capitalize on its potential, making them standout investment opportunities.
According to the Energy Information Administration (“EIA”), U.S. crude oil production, largely driven by the Permian, is expected to reach 13.6 million barrels per day (bpd) in 2025 and 13.8 million bpd in 2026. With Permian output set to grow by 350,000 bpd this year from 2024 and an additional 210,000 bpd in 2026, the region will account for nearly half of the nation’s oil supply, solidifying its role in the energy market. This surge in production is backed by record-breaking rig efficiency, robust infrastructure and continued investments in drilling innovations, ensuring long-term sustainability and profitability for key players in the region.
4 Permian-Focused Stocks to Watch
EOG Resources, ExxonMobil, Diamondback Energy and Chevron are some of the key players to watch. These companies have extensive operations in the Permian and are well-equipped to capitalize on its potential.
EOG Resources holds a dominant position in the Delaware Basin, utilizing advanced drilling techniques to maximize well productivity and returns. In 2024, its Permian assets drove 3% oil production growth and an 8% increase in total volumes. By leveraging proprietary technology and self-sourced materials, EOG maintains a breakeven price in the low-$50s, ensuring consistent free cash flow and attractive shareholder returns.
ExxonMobil has doubled its Permian production since 2019, further solidifying its presence with the $59.5 billion acquisition of Pioneer Natural Resources. This move strengthens ExxonMobil’s long-term growth prospects, adding premium acreage and unlocking synergies expected to generate more than $3 billion annually.
Diamondback Energy, with more than 490,000 net acres in the Permian, continues to expand through strategic acquisitions. Its purchase of Double Eagle acreage enhances its drilling inventory, boosting efficiency while lowering operational costs.
Chevron, a major player in the Permian, has grown production by 18% year over year, reaching 1 million barrels of oil equivalent per day. With a strong presence in both the Midland and Delaware basins, Chevron continues to optimize drilling techniques, ensuring long-term capital efficiency and output growth.