Shares of California Resources Corp. rose nearly 30 percent Monday after the company announced an expansion of its debt buyback program.
The Chatsworth oil producer now plans to spend up to $750 million to buy back corporate notes, an increase from the previously announced amount of $525 million. It will pay between 55 and 68 percent of the notes’ face value.
Late last week, the company posted quarterly results that missed analyst expectations and sent shares down sharply. On Aug. 4 it reported an adjusted net loss of $72 million (-$1.80 a share), missing analyst expectations of a loss of $1.49. Shares closed down 6.8 percent to $9.89.
In a conference call after release of the quarterly results, Chief Executive Todd Stevens said the company was making progress on its goal to lower its debt burden despite the volatility of oil prices.
“Assuming successful completion of our tender offer, we will have achieved a substantial portion of our initial deleveraging goal by reducing our debt from its post-spend peak of approximately $6.6 billion without any significant asset disposals,” Stevens said during the call.
Shares closed Monday up $2.59 or more than 27 percent to $12.01 on the New York Stock Exchange.