Exxon Attracts SEC Probe Over Permian Valuation

The Securities and Alternate Fee launched an investigation of Exxon Mobil Corp. after an worker filed a whistleblower grievance final fall alleging that the power big overvalued one in every of its most necessary oil and fuel properties, in line with individuals aware of the matter.

A number of individuals concerned in valuing a key asset within the Permian Basin, at present the highest-producing U.S. oil discipline, complained throughout an inside evaluation in 2019 that staff have been being compelled to make use of unrealistic assumptions about how rapidly the corporate may drill wells there to reach at a better worth, in line with a duplicate of the grievance, which was reviewed by The Wall Avenue Journal.

A minimum of one of many staff who complained was fired final 12 months, in line with an individual aware of the matter. The Journal beforehand reported that there had been inside disagreements over the valuation.

The SEC started investigating the claims after receiving the grievance, individuals aware of the matter stated. The present standing of the investigation is unknown. A SEC spokesman declined to remark.

Exxon spokesman Casey Norton declined to touch upon the existence of an investigation. He stated that if requested by authorities in regards to the 2019 evaluation, Exxon would supply data that exhibits Exxon’s precise efficiency exceeded the drilling estimates. Mr. Norton additionally stated Exxon doesn’t touch upon staff’ efficiency.

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