A view of the Exxon Mobil refinery in Baytown, Texas.
Jessica Rinaldi | Reuters
Shares of Exxon slipped greater than 5% on Friday after The Wall Street Journal reported that the Securities and Exchange Commission opened an investigation into the oil big over the way it valued a key asset in the oil-rich Permian Basin.
The whistleblower grievance, filed by an worker, alleged that Exxon pushed workers towards inaccurate forecasts together with the price at which wells may come on-line, in line with the Journal, which reviewed a replica of the grievance.
The report follows a troublesome 12 months for Exxon, and the oil and fuel trade extra broadly. In December, Exxon stated that it’ll write down the worth of its property by as much as $20 billion in the fourth quarter.
With the pandemic wreaking havoc on oil costs in 2020, Exxon underwent an aggressive cost-cutting technique, including lowering its workforce.
Wall Street analysts imagine that some of these initiatives will finally repay, and have lately develop into bullish on the inventory.
Barclays upgraded the inventory to an obese ranking on Thursday, saying “a perfect storm of a more constructive macro outlook and structural repositioning of capex/costs is providing a solid springboard for materially improved financial metrics that are impossible to ignore.”
Shares of Exxon are up 15% 12 months to this point, however are down greater than 30% over the final 12 months.
Exxon didn’t instantly return a request for remark.