California Resources Corp. Considers Strategic Options

Santa Clarita oil and gas company California Resources Corp. said it will “consider all options” to get through the slump in oil prices after Bloomberg reported Friday the company may declare bankruptcy. “Over the past five years, we have consistently pursued options to preserve and enhance the value of CRC and we are fighting hard for the best outcome for our shareholders and other stakeholders,” the company said in its statement Friday. “We have significant operating flexibility and are focusing on controlling what we can control, including reducing our capital program and operating costs.” The company also said it will not provide public updates on its financial decisions. Bloomberg cited anonymous sources who said bankruptcy was an option as CRC works to refinance about $5 billion in debt, which will start maturing next year. A payment of $74 million in interest is due in June and a proposed debt swap fell through because of the stock market crash, the Bloomberg article said. Benchmark Brent crude oil closed Monday at $22.70 a barrel, compared to a price of $66 at the beginning of the year. On Friday, shares of California Resources (CRC) plummeted 46 percent to close at $1.32. The slide continued Monday with a drop of 21 percent to $1.04 on the New York Stock Exchange.