Exxon Mobil Corporation XOM has reached a milestone by completing 1,000 horizontal wells in the New Mexico Delaware Basin since 2017. This achievement highlights the company's dedication to safe, efficient and innovative energy production, enhanced by its advanced technology and expertise in the Permian Basin.

ExxonMobil’s Completion of 1,000 Wells

Since commencing operations in the New Mexico Delaware Basin, ExxonMobil’s team has demonstrated exceptional commitment and collaboration. The accomplishment highlights the efforts of thousands of professionals, spanning engineering, administration and other crucial functions, all aligned with the company's core values of safety and operational excellence.

XOM Leverages Technology and Scale of Operations

ExxonMobil’s success in the Permian Basin is rooted in its use of advanced technology and strategic operational efficiencies. A key innovation was the completion of 4-mile horizontal laterals in Poker Lake. These extended wells, paired with low-emission central vessel batteries and fully electrified compressor stations, reduce surface footprints and align with the company’s commitment to achieving net-zero emissions in Delaware-operated assets by 2030.

Horizontal drilling is central to ExxonMobil’s approach. By drilling through reservoirs laterally, ExxonMobil can access hard-to-reach resources, boosting resource recovery while reducing environmental impact.

ExxonMobil has also embraced cube drilling, an approach involving the simultaneous drilling of multiple wells within a single section of land. This technique optimizes resource recovery while reducing the logistical challenges and costs associated with moving rigs and equipment between sites.

Here’s Why the Permian Basin is Central to XOM’s Strategy

The Permian Basin’s abundant resources and ExxonMobil’s contiguous acreage provide a significant competitive edge. The recent acquisition of Pioneer Natural Resources has more than doubled ExxonMobil’s Permian footprint, solidifying its position as an industry leader in unconventional oil and gas development. This expanded acreage not only enhances ExxonMobil’s ability to deploy advanced technologies but also unlocks greater scale and operational synergies.

With a focus on technological innovation, operational excellence and environmental stewardship, ExxonMobil continues to shape the future of the Permian Basin while contributing to global energy security.

XOM’s Zacks Rank & Key Picks

ExxonMobil currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like TechnipFMC plc FTI, FuelCell Energy FCEL and Nine Energy Service NINE, each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry, with a focus on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.

FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position the company for growth in the long run.

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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report

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