The board of directors at Houston-based Occidental Petroleum Corporation approved the spin off of the company’s California oil and gas business into an independent and separately traded company Friday.
The company will be called California Resources Corporation.
California Resources and Occidental will be separated through the distribution of approximately 80.1 percent of outstanding California Resources shares to holders of Occidental common stock.
The distribution is expected to occur on November 30, 2014, subject to the satisfaction of the conditions for the spin off.
Occidental shareholders will receive 0.4 shares of California Resources common stock for every one share of Occidental common stock held at the close of business on November 17, 2014.
Fractional shares of California Resources common stock will not be distributed.
Any fractional shares of California Resources common stock will be aggregated and sold on the open market. The the aggregate net proceeds of the sales will be distributed proportionally in cash to the fractional shareholders.
Following the distribution of California Resources common stock, California Resources will be an independent, publicly traded company that will trade on the New York Stock Exchange under the symbol “CRC.”
Occidental will retain an approximately 19.9 percent ownership interest in California Resources for a period of up to 18 months.