Chicago-based firm, Zacks Investment Research, known for its independent investment analysis and the Zacks Rank system, has highlighted Exxon Mobil Corporation’s (XOM) success offshore Guyana as the foundation of what it calls a durable upstream moat (economic power).
In an analysis published on September 5, Zacks said ExxonMobil has built this advantage through capital discipline and advantaged assets, with Guyana now at the center of its growth strategy. The report noted that in the second quarter of 2025, ExxonMobil began production at its fourth offshore mega-project, Yellowtail, which pushed Guyana’s capacity past 900,000 barrels per day and put the company on a “clear path to 1.7 million barrels of oil equivalent per day by 2030.”
According to Zacks, ExxonMobil’s competitive strength in Guyana is rooted in “ultra-low lifting costs, robust reserve growth, and a record of delivering projects ahead of schedule and under budget.” The firm said this upstream focus now drives 80% of the company’s net earnings and underpins durable free cash flow even during fluctuations in commodity prices. Zacks added that ExxonMobil’s capital discipline supports “resilient dividends, sector-leading returns and the ability to reinvest heavily in future projects while maintaining strong financial flexibility.”
The analysis also compared ExxonMobil’s position to its peers. Chevron Corporation (CVX), which completed its US$53 billion acquisition of Hess earlier this year, secured a 30% share in Guyana’s Stabroek Block, one of the most prolific oil discoveries of the past decade. The firm posits that this acquisition transforms Chevron’s deepwater portfolio into a “credible, high-margin growth stream,” reshaping its risk profile and competitive standing.
British oil major BP plc (bp) was described as pursuing a different strategy, leaning on global balance and disciplined exploration rather than blockbuster frontier plays. Zacks pointed to BP’s recent Argos Southwest Extension project and the Bumerangue discovery in Brazil as examples of its strengths in flexible project allocation and geographic risk balancing.
The company is targeting production of 2.3 to 2.5 million barrels of oil equivalent per day by 2030, but its Guyana exposure remains relatively limited. Zacks said BP delivers reliable cash flows and innovation but relies on “scale, agility and broad-based exploration, not dramatic low-cost surges or landmark market share gains.”
Zacks concluded that ExxonMobil’s combination of Guyana prowess, cost control and upstream diversification “sets the sector’s bar for sustainable competitive moats.” It said Chevron’s bold bet on Guyana ensures direct rivalry in the basin, while BP’s diversified approach reflects a contrasting model of upstream advantage in a rapidly transforming global energy landscape.
- ’Moat’ is a business and investment term that refers to a sustainable competitive advantage that protects a company from rivals, much like a physical moat protects a fortress.
