Occidental's Board Approves Spin-Off Of California Unit


HOUSTON, Oct 2 (Reuters) - Occidental Petroleum Corp said on Thursday its board of directors has approved the spin-off of its California oil and natural gas business to its shareholders.

Occidental, which has been moving its headquarters from Los Angeles to Houston, said about 80 percent of the outstanding shares of California Resources Corp will be distributed to its shareholders on Nov. 30.

Wall Street analysts said the California unit, which is the largest natural gas producer in the state, could be worth $19 billion to $22 billion. Occidental has increased its focus on production from fields in the Permian Basin in Texas and New Mexico.

Shareholders will receive 0.4 shares of California Resources for every one share of Occidental held as of Nov. 17.

Occidental's board also authorized the repurchase of an additional 60 million of its shares and said it would pay a quarterly dividend of 72 cents per share.

Shares of Occidental rose about 1 percent to $96.25 after the close of regular trading.

(Reporting by Anna Driver; Editing by Chris Reese)

Copyright 2017 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
United States Houston: Sr Advising Engineer - Tech Development
Expertise: Business Development|IT - Software Development
Location: Houston, TX
Business Development Manager
Expertise: Business Development|Construction Manager|Marketing
Location: Salt Lake City, UT
Project Manager II
Expertise: Estimating|Project Controls|Project Management
Location: Hayward, CA
search for more jobs

Brent Crude Oil : $50.97/BBL 1.53%
Light Crude Oil : $48.75/BBL 1.79%
Natural Gas : $2.92/MMBtu 0.68%
Updated in last 24 hours