Exxon Mobil tumbled as much as 6%, to $47.29, on Friday following a report from the Wall Street Journal that the SEC launched an investigation into the oil giant regarding its valuations of one of its most important oil and gas properties.- People involved in valuing the property complained that employees were forced to use unrealistic assumptions about how quickly Exxon could drill wells there to arrive at a higher value, the Journal reported.
- The investigation comes after Exxon's stock suffered its worst annual performance in 40 years in 2020 as oil prices collapsed.
- Watch Exxon Mobil trade live here.
Shares of Exxon Mobil tumbled as much as 6% during intraday trading on Friday following a report from the Wall Street Journal that the SEC launched an investigation into the oil giant concerning it's asset valuations.
Exxon is being investigated by the SEC after a whistleblower complaint from an employee who alleges that the oil giant overvalued a key oil and gas property in Texas' Permian Basin.
Several people involved in valuing the asset complained during a 2019 internal assessment that employees were being forced to use unrealistic assumptions about how quickly Exxon could drill wells there to arrive at a higher value, the Journal reported, citing a copy of the complaint.
The current status of the
The investigation comes after Exxon's stock suffered its worst annual performance in 40 years in 2020 as oil prices collapsed.
Shares of Exxon fell to as low as $47.29 shortly after the Friday opening bell. Exxon had notched a positive start to 2021 before Friday's sell-off. As of Thursday's closing price, it was up 22 % since the start of the year. The stock has now tumbled roughly 27% over the past 12 months.