Shares of California Resources (CRC - Get Report) rose 12% to $11.07 Friday, bouncing back from the previous day's dive, after the company dismissed reports it was thinking of restructuring and had hired advisers.The Los Angeles-based oil and natural gas exploration and production company said it was still pursuing other asset sales.
"Contrary to recent erroneous reporting, we are not considering restructuring or hiring advisors for this purpose," California Resources said in an SEC filing. "We regularly meet with investment banks and advisors on ideas to help us achieve our long-term goal of strengthening our balance sheet and reducing the absolute levels of our debt. As discussed on our earnings calls, we are actively looking at asset sales, royalty monetizations and other transactions similar to those we have done in the past to help us delever."
California Resources saw its shares plummet about 29% on Thursday after a report that was attributed to Debtwire said the company was meeting with a restructuring company, Bloomberg said.
Andrew Ragsby, the managing editor of Debtwire forwarded a copy of the story and noted that "it reports the company has hired one bank and been meeting with other restructuring advisors to explore strategies that could strengthen the balance sheet by reducing debt, pursuing asset sales, royalty monetizations and other transactions similar to those the company has done in the past."The company sells crude oil, natural gas, and natural gas liquids to marketers, California refineries, and other purchasers that have access to transportation and storage facilities.
A Bank of America analyst said there appeared to be no reason for the nosedive, but added that he was not surprised by the selloff given the company's high leverage and the restructuring news concerning McDermott (MDR - Get Report) .
Houston-based McDermott's shares sank Wednesday and Thursday after the Houston-based company reportedly had engaged the turnaround consultancy Alix Partners of New York.
McDermott's shares soared on Friday when the company announced it had received unsolicited interest to acquire all or part of its Lummus Technology unit, which has been valued at $2.5 billion.