Oil companies accused of massive accounting fraud in New Mexico

A recently unsealed lawsuit claims ExxonMobil and others underreported debts by $194 million, calling it “a playbook” for how companies dump old wells and expenses on states.

By: Jerry Redfern, Capital & Main

Outlets: Source New Mexico

Published: April 7, 2026

Words: 2,754

Last Updated: 3 months, 3 weeks ago

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Oil companies ExxonMobil, Empire Petroleum and their subsidiaries engaged in accounting fraud that could cost the state nearly $200 million, a lawsuit filed in New Mexico District Court alleges. If successful, plaintiffs say the case could change how old oil and gas assets are sold, leading to fewer orphan wells in the future.

The case stems from the sale of several hundred old wells from ExxonMobil subsidiary XTO Energy to Empire Petroleum subsidiary …

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