Why is Oxy spinning off new California oilco?

One question regarding this news from last week (reported in the LA Times):

A little more than a month after filing documents to spin off its California operations, Occidental Petroleum Corp. has named the leadership team for its proposed subsidiary.

The longtime Los Angeles company announced in February that it was moving its headquarters to Houston and would spin off its California operations and assets into a separate publicly traded company. In early June, the new subsidiary filed documents with the U.S. Securities and Exchange Commission with the name California Resources Corp.

Occidental Petroleum appointed Todd A. Stevens president and chief executive of California Resources, the parent company announced Thursday. Stevens, who has served as vice president of corporate development at Occidental since August 2012, is a 19-year veteran of the company.

Why? Why why why? 

Expect to look into this soon. Note that it's common for big firms to spin off divisions considered to be a drag on the price of their stock, as Time Warner did not so long ago with its print division Time Inc

Published by Kit Stolz

I'm a freelance reporter and writer based in Ventura County.

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