The Securities and Exchange Commission has launched an investigation into Exxon Mobil Corp. after an employee filed a bell last fall claiming that the energy giant overvalued one of its key oil and gas properties, according to people familiar with the matter.
Several people involved in valuing a major asset in the Permian Basin, currently the best-producing U.S. oil field, complained during an internal evaluation in 2019 that employees were being forced to use unrealistic assumptions about how quickly the company could well. a higher value, according to a copy of the complaint, which was reviewed by The Wall Street Journal.
According to a person familiar with the matter, at least one of the employees who complained was fired last year. The Journal reported earlier that there were internal disagreements over the valuation.
The SEC has begun investigating the claims after receiving the complaint, people familiar with the matter said. The current status of the investigation is unknown. A SEC spokesman declined to comment.
Exxon spokeswoman Casey Norton declined to comment on the existence of an investigation. He said Exxon, if asked by authorities about the 2019 assessment, would provide information showing that Exxon’s actual performance exceeded drilling estimates. Mr. Norton also said Exxon did not comment on employee performance.