Occidental Petroleum's Board of Directors Approves Spin-off Of California Resources Corporation

Occidental Petroleum Corporation OXY announced today that its Board of Directors has approved the spin-off of its California oil and gas business into an independent and separately traded company, California Resources Corporation. The companies will be separated through the distribution of approximately 80.1 percent of the outstanding shares of California Resources to holders of Occidental common stock. Subject to the satisfaction of the conditions to the spin-off, the distribution is expected to occur on November 30, 2014. 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 November 17, 2014, the record date for the distribution. Fractional shares of California Resources common stock will not be distributed. Any fractional shares of California Resources common stock will be aggregated and sold in the open market and the aggregate net proceeds of the sales will be distributed ratably in the form of cash payments to Occidental stockholders of record who would otherwise be entitled to receive a fractional share of California Resources common stock. Following the distribution of California Resources common stock, California Resources will be an independent, publicly traded company, and Occidental will retain approximately 19.9 percent ownership interest in California Resources for a period of up to 18 months. California Resources has been approved to list its shares of common stock on the New York Stock Exchange under the symbol “CRC”. As previously announced, California Resources' Board of Directors will include William E. Albrecht, Executive Chairman, and Todd A. Stevens, President and Chief Executive Officer. Other Board members will include: Justin A. Gannon, 65, an independent consultant, private investor and former Managing Partner with Grant Thornton LLP and audit partner with Arthur Andersen LLP, who brings over four decades of financial accounting and private investment experience; Ronald L. Havner, Jr., 56, Chairman of the Board, President and Chief Executive Officer of Public Storage, who will provide insight into growing a California-based business; Harold M. Korell, 69, who recently served as Chairman of the Board and before that as Chief Executive Officer of Southwestern Energy Company and will bring over four decades of experience in the energy business; Richard W. Moncrief, 72, founding principal and current President and Chairman of the Board of Moncrief Oil International, Inc., who offers extensive experience in the upstream oil and gas industry; Avedick B. Poladian, 62, Executive Vice President and Chief Operating Officer of Lowe Enterprises, Inc., and a Director of Occidental Petroleum; and Robert V. Sinnott, 65, President, Chief Executive Officer and Chief Investment Officer of Kayne Anderson Capital Advisors, L.P., who brings broad experience analyzing and investing in oil and gas industry firms.