How ExxonMobil and Chevron can hit their Permian targets

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During its 2019 Analyst Day – five weeks before announcing its US$50 billion acquisition of Anadarko – Chevron unveiled an ambitious plan to organically grow Permian output to 900,000 boe/d by 2023. The same week, ExxonMobil announced plans to increase its Permian production five-fold over the same time period. The scale of the revisions took us by surprise. We looked under the hood of our models and asked ourselves: how might they do it?

Table of contents

  • Executive Summary
    • ExxonMobil
    • Chevron
    • What does Anadarko bring to the table in the Permian?
    • ExxonMobil
    • Updated Base case
    • Well Productivity – dropping bad (expensive) habits is the best way forward
    • Rig efficiency – drilling faster means spending faster
    • What advantages can ExxonMobil leverage?
    • Chevron
    • Updated Base case
    • What will it take
    • Well Productivity – are higher intensity completions still on the table?
    • Rig efficiency – drilling faster vs adding rigs
    • What advantages can Chevron leverage?
    • How do the two compare?

Tables and charts

This report includes 10 images and tables including:

  • ExxonMobil guidance
  • Chevron guidance pre-Anadarko
  • Wood Mackenzie vs. ExxonMobil guidance
  • Wood Mackenzie sensitivity
  • Wood Mackenzie vs. Chevron guidance
  • Chevron sensitivity
  • Wood Mackenzie – capex outlook
  • Wood Mackenzie – cash flow outlook
  • Chevron and ExxonMobil – Permian unconventional valuations

What's included

This report contains:

  • Document

    How ExxonMobil and Chevron can hit their Permian targets

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