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How ExxonMobil and Chevron can hit their Permian targets
Report summary
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
-
What exactly did they say?
- ExxonMobil
- Chevron
- What does Anadarko bring to the table in the Permian?
-
Wood Mackenzie’s view – how can they do it?
- ExxonMobil
- Updated Base case
-
What will it take to bridge the gap?
- 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:
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