The New York Attorney General’s Office is reportedly looking into ExxonMobil’s accounting practices.
According to the Wall Street Journal, New York Attorney General Eric Schneiderman is investigating why Exxon has yet to writedown the value of its assets despite two years of low oil prices.
An Exxon spokesperson declined to comment on the matter but told the Journal that the company adheres to all rules and regulations.
According to the Wall Street Journal, Exxon is the only major oil firm that hasn’t taken writedowns on the value of its assets following the crude price rout in late 2014.
Exxon officials have previously stated that the firm reduces exposure to potential writedowns by sticking to conservative estimates when booking potential asset values and ensuring projects can operate amid low commodity prices.
Despite the lack of writedowns, Exxon’s bottom line has been squeezed by the commodity price rout.
According to Marketwatch, Exxon fell two spots this year to become the sixth largest U.S. company on a market capitalization basis after its stock price tumbled 3 percent.
Exxon’s market capitalization currently stands at about $356 billion.
ExxonMobil reported a 59 percent year-over-year earnings decline in the second quarter.
The company reported $1.7 billion in second quarter earnings, or $0.41 in earnings per common share, down from $4.19 billion in earnings in the year ago quarter.
Second quarter revenues fell to $57.69 billion from $74.11 billion in the prior year quarter.
Schneiderman’s office is also conducting a probe into whether Exxon misled the public and investors about the potential business impacts of climate change.
Exxon confirmed in November that it received a subpoena from Schneiderman’s office for documents “relating to climate change.”
The New York Attorney General’s Office has not commented on the climate change probe.
Exxon has denied any wrongdoing and has noted that it has included information about climate related business risks for many years in its 10-K, Corporate Citizenship Report, and in other reports to shareholders.
Reports of the probe first emerged after InsideClimate News and the L.A. Times published investigations that alleged Exxon used climate data to make operational decisions while working to publicly downplay the science on global warming.
Exxon has denied any wrongdoing had has called the reports “inaccurate and deliberately misleading.”