Scott Ellis on New SEC Reporting Plan and Implications for the Energy Sector
Foley & Lardner LLP partner Scott Ellis is featured across the media discussing the U.S. Securities and Exchange Commission’s (SEC) proposed shift from a quarterly to a semiannual earnings reporting schedule for public companies.
Ellis told Law360, a key concern is the need to renegotiate contracts requiring quarterly updates. “You might have situations where you have contracts that require some credit-worthiness — if the contracts require a company to provide the quarterly filings, what happens when the quarterly filings aren’t required, at least to the government?”
He noted that many oil and gas companies — particularly those operating across multiple states — will still be required to meet quarterly reporting requirements imposed by various state regulators.
In the S&P Global article, Ellis emphasized that “in terms of what they have to do on a day-to-day basis to satisfy contractual and lending requirements, I don’t think they’re looking at this as saving time.” He added that power purchase agreements also “have very strict and detailed reporting requirements that often match a quarterly reporting cadence.”
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