Exxon designs SEC probe on asset valuation of Permian Basin



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The Securities and Exchange Commission has opened an investigation into Exxon Mobil Corp. after an employee filed a whistleblower complaint last fall, alleging that the energy giant was overvaluing one of its most important oil and gas properties, people familiar with the matter said.

Several people involved in valuing a key asset in the Permian Basin, currently America’s most productive oil field, complained during an internal valuation in 2019 that employees were being forced to use unrealistic assumptions about the how quickly the company could drill wells there to get there. a higher value, according to a copy of the complaint, which was reviewed by the Wall Street Journal.

At least one of the employees who complained was laid off last year, according to a person familiar with the matter. The Journal previously reported that there had been internal disagreements over the assessment.

The SEC began investigating the allegations after receiving the complaint, people familiar with the matter said. The current status of the investigation is unknown. An SEC spokesperson declined to comment.

Exxon spokesman Casey Norton declined to comment on the existence of an investigation. He said if authorities asked him about the 2019 assessment, Exxon would provide information showing that Exxon’s actual performance exceeded drilling estimates. Mr Norton also said that Exxon does not comment on employee performance.

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