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Exxon Mobil Quickly Sheds $1 Billion In Market Cap Amid SEC Probe Allegations

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Exxon Mobil Quickly Sheds $1 Billion In Market Cap Amid SEC Probe Allegations

Shares of Exxon Mobil Corporation (NYSE: XOM) are trading down about 1 percent on Tuesday.

According to informed sources, the U.S. Securities and Exchange Commission is investigating the way in which the company has valued its assets in a backdrop of tumbling oil prices, according to The Wall Street Journal.

Apparently, the institution is also evaluating Exxon’s accounting practices, especially those related with the estimation of future value in a world where climate change regulations continue to expand.

Related Link: Exxon Says, 'We Don't Do Write-Downs'; NY Attorney General Investigating Whether Or Not They Should

This isn't the first probe in relation to this issues that the energy company has come across. Last year, New York Attorney General Eric Schneiderman began a similar investigation, and how now shared his findings with the SEC.

“Exxon is the only major U.S. energy producer that hasn’t taken a write-down or impairment charge since oil prices plunged two years ago,” WSJ explained, as they looked into the reasons behind the SEC probe. Conversely, industry peers like Chevron Corporation (NYSE: CVX) have trimmed their valuations by a combined figure of $50 billion.

Exxon declined to comment on both the SEC and New York Attorney General investigations, same as its auditor, PricewaterhouseCoopers LLP.

Posted-In: PricewaterhouseCoopers LLP SEC Wall Street JournalNews Commodities Legal Markets Media Best of Benzinga

 

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