Exxon is a major player in one of the hottest oil plays in the world right now: the Permian Basin.
Right now, nearly 3 million barrels of oil is extracted from the Permian Basin on a daily basis, making up almost one-third of our total output.
So the fact that Exxon doubled its Permian acreage in 2017 and plans on boosting output in the play by 600,000 boepd makes that temptation to buy grow a little more.
That is, until you look at the rest of the field.
Take a closer look at Diamondback Energy (NASDAQ: FANG), for example.
Not only has it outperformed analyst expectations quarter after quarter for last two years, but itâs also trading at a fraction of Exxonâs market cap.
And itâs one of several smaller players that will put Exxonâs performance to shame. Since the last major bottom in oil in February of 2016, the returns havenât even been close:
This is the kind of buy-and-hold investment that still has enormous growth potential.
Over the next few weeks, weâre going to shine the spotlight on a few other oil stocks worth a second look.
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Lots of interest in âupstartâ oil and gas companies in the Permian and Delaware basins. The situation in the southern and western Delaware will only get hotter.
BTW, in Reeves and Loving counties near Orla, another âupstartâ oil company is drilling wellsâŚBlackMountain. And, their stablemate Eclipse Midstream Svcs is running infrastructure pipelines all over that area.
