Longleaf Partners Funds, where Mason Hawkins (Trades, Portfolio) is chairman and CEO, has reduced its holding of California Resources Corp (CRC, Financial) by 57.46%, according to Real Time Picks.
The firm retains 14,244,200 shares of the company, representing 3.7% of the oil company's total outstanding shares. California Resources spun off of Occidental Petroleum on Nov. 30, in the same quarter that Longleaf reported starting its position of 33,481,500 shares. Longleaf, however, does not own Occidental Petroleum (OXY, Financial) shares and bought California Resources on the open market. According to its Small-Cap Fund first quarter shareholder letter:
“Late in 2014 we purchased California Resources (CRC, Financial), the largest producer of oil and gas in the state of California. CRC gained 38% in the first quarter with the company’s decision to cut its capex budget by 80% and its indication that year-over-year production would be flat given CRC’s low decline rate. News that CRC’s lenders amended covenants in light of the weak commodity pricing environment was also a positive development.”
California Resources Corp, an oil and gas exploration and production company focused solely on drilling in California, announced its first quarter financial results on April 30, the same day that the Longleaf made its sell.
The company announced revenue of $549 million compared to $1.08 billion in the same quarter a year ago, on record quarterly total crude oil production of 166,000 barrels per day. It also had an adjusted net loss of $97 million, or $0.25 per diluted share, compared with net income to $223 million, or $0.57 per diluted share, in the same quarter a year ago.
California Resources shares are up 44% year to date, trading around $7.96 each on Monday. It has a market cap of $3.07 billion and P/B ratio of 1.2.
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