The Securities and Exchange Commission launched an investigation into Exxon Mobil Corp. after an employee filed a complaint last fall, claiming 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 major asset in the Permian Basin, currently the highest-producing oil field in the U.S., complained during an internal assessment in 2019 that employees were being forced to use unrealistic assumptions about how quickly the company could drilling wells there to reach a higher value, according to a copy of the complaint, which was analyzed by The Wall Street Journal.
At least one of the complaining employees was fired last year, according to a person familiar with the matter. The Journal previously reported that there were internal differences over the assessment.
The SEC began investigating the allegations 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 spokesman Casey Norton declined to comment on the existence of an investigation. He said that if questioned by authorities about the 2019 assessment, Exxon would provide information that shows that Exxon’s actual performance has exceeded drilling estimates. Mr. Norton also said that Exxon does not comment on employee performance.