• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 18 hours Reality catching up with EV forecasts
  • 2 days Famous author Michael Crichton talks about the "Climate Change Religion" aka Feudalism 2.0
  • 7 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 13 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
ZeroHedge

ZeroHedge

The leading economics blog online covering financial issues, geopolitics and trading.

More Info

Premium Content

Big Oil Watches In Fear As SEC Probes Exxon's Permian Valuation

Having soared in recent days, rising 21% YTD on the back of the gamma squeeze discussed yesterday, and coupled with a barrage of analyst upgrades, most recently from Barclays and JPM, Exxon stock dropped as much as 4% this morning, after the WSJ reported that the SEC has launched a probe of the energy giant after an employee "filed a whistleblower complaint last fall alleging that the energy giant overvalued one of its most important oil and gas properties."

According to the WSJ, in the latest amusing "whistleblower complaint", several people involved in valuing a key asset in the Permian Basin, currently the highest-producing U.S. oil field, "complained during an internal assessment in 2019 that employees were being forced to use unrealistic assumptions about how quickly the company could drill wells there to arrive at a higher value."

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

ADVERTISEMENT

Which is great... the only problem is that absolutely every other US E&P and shale company, and in fact every energy company period, uses a similar "unrealistic" approach to valuing assets. In fact, one can argue that Aramco is the biggest offender of all, although there may be other "considerations"  there.

ADVERTISEMENT

The news was enough to hammer the stock, which dropped as low as $48.3 before rebounding as traders realized that Exxon isn't doing anything that all of its peers aren't also doing.

By Zerohedge.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage


ADVERTISEMENT


ADVERTISEMENT



Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News