Home Business Exxon reportedly investigated by the SEC over valuation of key asset

Exxon reportedly investigated by the SEC over valuation of key asset

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A view of the Exxon Mobil refinery in Baytown, Texas.

Jessica Rinaldi | Reuters

Shares of Exxon slipped greater than 5% on Friday after The Wall Street Journal reported that the Securities and Trade Fee opened an investigation into the oil large over the way it valued a key asset within the oil-rich Permian Basin.

The whistleblower grievance, filed by an worker, alleged that Exxon pushed workers towards inaccurate forecasts together with the speed at which wells might come on-line, in response to the Journal, which reviewed a copy of the complaint.

The report follows a tough yr for Exxon, and the oil and fuel business extra broadly. In December, Exxon mentioned that it’s going to write down the worth of its belongings by as much as $20 billion within the fourth quarter.

With the pandemic wreaking havoc on oil costs in 2020, Exxon underwent an aggressive cost-cutting technique, including reducing its workforce.

Wall Road analysts imagine that a few of these initiatives will finally repay, and have not too long ago turn out to be bullish on the inventory.

Barclays upgraded the inventory to an obese ranking on Thursday, saying “an ideal storm of a extra constructive macro outlook and structural repositioning of capex/prices is offering a stable springboard for materially improved monetary metrics which are not possible to disregard.”

Earlier within the week JPMorgan and Morgan Stanley every upgraded the inventory to a buy-equivalent ranking.

Shares of Exxon are up 15% yr so far, however are down greater than 30% over the past yr.

Exxon didn’t instantly return a request for remark.

To read the full report from The Wall Street Journal click here.

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