California Resources Corporation Announces Joint Venture to Invest $250 Million in Oil & Gas Properties
February 16 2017 - 4:16PM
Business Wire
California Resources Corporation (NYSE: CRC) announced today a
joint venture (JV) with Benefit Street Partners L.L.C. (BSP) to
invest in CRC’s oil and gas properties in California, with a focus
on development opportunities in multiple CRC producing fields.
CRC will operate the properties.
The Joint Venture calls for Benefit Street Partners to invest up
to $250 million for development opportunities in both conventional
and unconventional assets of CRC in California. BSP will make an
initial $50 million investment to be directed toward drilling
activities across properties subject to the JV. BSP will make
subsequent investments in tranches up to $50 million at the
discretion of the JV partners over a two year investment window.
Subject to customary conditions, the parties anticipate that the
initial investment will fund in approximately two weeks.
Todd Stevens, President and CEO of CRC, noted, “This joint
venture is an excellent opportunity for CRC to accelerate
development of CRC’s vast underdeveloped resource base and advance
our long term deleveraging efforts. We look forward to partnering
with Benefit Street Partners for our mutual benefit.”
Tim Murray, Managing Director of BSP said, “We are proud to
partner with CRC and their quality management team. We view CRC’s
diverse asset base as an excellent opportunity to structure a joint
venture to focus on the primary and secondary development
opportunities to enhance CRC’s portfolio.”
About California Resources
Corporation
California Resources Corporation is the largest oil and natural
gas exploration and production company in California on a
gross-operated basis. The Company operates its world class resource
base exclusively within the State of California, applying
integrated infrastructure to gather, process and market its
production. Using advanced technology, California Resources
Corporation focuses on safely and responsibly supplying affordable
energy for California by Californians.
About Benefit Street
Partners
BSP is a leading credit-focused alternative asset management
firm that, together with affiliates, manages over $18 billion in
assets across a broad range of complementary credit strategies
including high yield, levered loans, private / opportunistic debt,
liquid credit, structured credit and commercial real estate debt.
BSP has approximately 150 employees with over 90 investment
professionals. BSP is an affiliate of Providence Equity Partners
L.L.C., a leading global private equity firm with $50 billion in
assets under management across complimentary private equity and
credit businesses.
Forward Looking Statement Disclosure
This press release contains forward-looking statements that
involve risks and uncertainties that could materially affect our
expected results of operations, liquidity, cash flows and business
prospects. Such statements include those regarding our expectations
as to our future operations, operational results, transactions,
projects and reserves. Actual results may differ from anticipated
results, sometimes materially, and reported results should not be
considered an indication of future performance. Factors (but not
necessarily all the factors) that could cause results to differ
include:
- commodity price changes
- legislative or regulatory changes, including those related to
drilling, completion, well stimulation, operation, maintenance or
abandonment of wells or facilities, managing energy, water, land,
greenhouse gases or other emissions, protection of health, safety
and the environment, or transportation, marketing and sale of our
products
- unexpected geologic conditions
- inability to enter efficient hedges
- equipment, service or labor price inflation or
unavailability
- availability or timing of, or conditions imposed on, permits
and approvals
- lower-than-expected production, reserves or resources from
development projects or acquisitions or higher-than-expected
decline rates
- disruptions due to accidents, mechanical failures,
transportation constraints, natural disasters, labor difficulties,
cyber attacks or other catastrophic events
- factors discussed in “Risk Factors” in our Annual Report on
Form 10-K available on our website at crc.com.
Any forward-looking statement speaks only as of the date on
which such statement is made and we undertake no obligation to
correct or update any forward-looking statement, whether as a
result of new information, future events or otherwise, except as
required by applicable law.
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version on businesswire.com: http://www.businesswire.com/news/home/20170216006062/en/
California Resources CorporationScott Espenshade
(Investor Relations)818 661-6010Scott.Espenshade@crc.comorMargita
Thompson (Media)818 661-6005Margita.Thompson@crc.com
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