Exxon’s Permian Valuation as Big Oil Watches SEC in Fear



Rising in recent times, the 21% YTD is rising on the back of Gamma Squeeze in the discussion yesterday, and coupled with a barrage of analyst upgrades, most recently from Barclays and JPM, Exxon stock WSJ this morning at 4% As Much as Fallen reported that the SEC has launched an energy investigation alleging an eventual fall after an employee “filed a whistleblower complaint,” alleging that the energy giant had one of its most important oil and gas properties Uprooted one. “

According to the WSJ, in the latest recreational “whistleblower complaint”, many are involved in valuing a major asset in the Permian Basin, currently the highest-producing US oil field, “During an internal assessment in 2019, a complaint was made that employees were being forced to use unrealistic assumptions about how quickly the company could drill wells to arrive at a higher price. “

According to a person familiar with the case, at least one of the employees was fired last year. The Journal previously reported that there was an internal disagreement on the evaluation.

Which is great … the only problem is that every other American E&P and Shell company, and indeed every energy company period, uses a similar “unrealistic” approach to valuing assets. In fact, one could argue that Aramco is the biggest culprit of all, although there may be other “ideas”.

The news was enough to hammer the stock down to as low as $ 48.3 before rebonding as traders realized that Exxon is doing nothing that all its peers are not even doing.

By zerohedge.com

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