The Securities and Exchange Commission initiated an investigation into Exxon Mobil Corp. after an employee filed a whistleblower complaint alleging that the energy giant overestimated one of its most important oil and gas properties, according to people familiar with the matter.
Several people involved in the valuation of a key asset in the Permian Basin, currently the most productive U.S. oil field, complained during an internal evaluation in 2019 that employees were forced to use unrealistic assumptions about the how quickly the company could drill wells there to reach 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 previously reported that there had been internal disagreements over the valuation.
The SEC began investigating the claims after receiving the complaint, people familiar with the matter said. The current state of the investigation is unknown. An SEC spokesman declined to comment.
Exxon spokesman Casey Norton declined to comment on the existence of an investigation. He said that if the authorities asked him about the 2019 assessment, Exxon would provide information showing that Exxon’s actual performance exceeded drilling estimates. Norton also said Exxon makes no comment on employee performance.