ExxonMobil (XOM) remains committed to growing Permian volumes, with a new 20-year integrated midstream agreement with Targa Resources (TRGP) supporting its long-term growth targets, UBS Securities said in a Monday note.
The agreement covers additional natural gas gathering, processing and treating, while adding new dedicated acreage and extending existing gathering and processing agreements in the Midland Basin through 2046, the note said.
UBS said ExxonMobil's decision to partner with Targa Resources is "strategically sound" and enhances the company's ability to execute on its growth targets while securing access to critical infrastructure.
The firm also noted that ExxonMobil's Permian technology portfolio continues to outperform expectations, with more than 40 technologies being deployed across the basin to improve recovery rates, reduce well counts and enhance capital efficiency.
UBS maintained its buy rating and $174 price target on ExxonMobil.
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