XOM
SEC probes Exxon over Permian Basin asset valuation - WSJ
- Exxon Mobil (NYSE:XOM)-2.5% pre-market following a *WSJ* report that
the SEC has launched an investigation after an employee filed a
whistleblower complaint last fall alleging the company overvalued its
Permian Basin properties.
- According to the report, several people involved in valuing a key
asset in the Permian Basin 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,
and at least one of the employees who complained was fired.
- Some Exxon managers in 2018 initially pegged the net present value of
the company's assets in the Delaware Basin - considered the most
promising
area of the Permian - at ~$60B, but some employees involved in Exxon's
annual development planning reportedly estimated during summer 2019 that
the area's net present value was closer to $40B.
- In November, Exxon pulled back from an ambitious plan by CEO Darren
Woods to boost its overall oil and gas production by 1M bbl/day by 2025,
but has maintained that the Permian Basin is essential to its plans.
|Today, 8:41 AM|36 Comments
SEC probes Exxon over Permian Basin asset valuation - WSJ
- Exxon Mobil (NYSE:XOM)-2.5% pre-market following a *WSJ* report that
the SEC has launched an investigation after an employee filed a
whistleblower complaint last fall alleging the company overvalued its
Permian Basin properties.
- According to the report, several people involved in valuing a key
asset in the Permian Basin 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,
and at least one of the employees who complained was fired.
- Some Exxon managers in 2018 initially pegged the net present value of
the company's assets in the Delaware Basin - considered the most
promising
area of the Permian - at ~$60B, but some employees involved in Exxon's
annual development planning reportedly estimated during summer 2019 that
the area's net present value was closer to $40B.
- In November, Exxon pulled back from an ambitious plan by CEO Darren
Woods to boost its overall oil and gas production by 1M bbl/day by 2025,
but has maintained that the Permian Basin is essential to its plans.
|Today, 8:41 AM|36 Comments
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