Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Exxon Slides After SEC Launches Probe Into Permian Basin Valuation

Courtesy of ZeroHedge View original post here.

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 prove 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.

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.

The SEC began investigating the claims after receiving the complaint, people familiar with the matter said. The current status of the investigation is unknown according the WSJ.

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.


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!