Exxon Mobil is facing the consequences of a 2009 acquisition that’s gone horribly wrong.
In 2009, the company paid a staggering $41 billion for XTO Energy, a natural gas company.
But natural gas peaked in 2005, and is now worth half of what it was when the XTO deal was completed.
Mobil announced the reckoning in a recent earnings, taking a non-cash charge of up to $20 billion on its natural gas business.
According to CNN Business, it’s likely the largest writedown in the company’s history.
One analyst referred to the deal as “an epic failure.”
Meanwhile, Exxon is assuring investors that its focus is on developing oil resources and cutting costs.
This included reinforcing its pledge to cut 14,000 jobs by the end of next year.