Pacific Western Oil Corporation

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Pacific Western Oil Corporation was a holding company for the stock of the Pacific Western Oil Company.

History

Incorporated on November 10, 1928 in Delaware, [1] Pacific Western Oil was founded to acquire substantially all oil producing properties [a] and the greater part of undeveloped oil properties in California of the Petroleum Securities Company. The sole stockholders of Petroleum Securities were Edward L. Doheny and his family. Of the 2,000,000 no par shares authorized of Pacific Western Oil Corp, 1,000,000 were outstanding and a block of 670,000 were offered to the public at $24 per share. An additional $15,500,000 were raised with the issue of 6.5% 15-year bonds dated Nov 1, 1928 which came with stock purchase warrants. [b] The properties acquired were appraised at $43 million. [4] Jacques Vinmont was the first chairman of the board and William C. McDuffie [c] was president. [6] The remaining initial Board of Directors were Earle Bailie, James R. Simpson, Lloyd Gilmour, Charles R. Blyth, Edward Nolan, George L. Eastman, and David P. Babcock. [7] Pacific Western paid the Dohenys $25,000,000, which was said at the time to be the largest cash transfer in the West. [8]

J. Paul Getty was elected to the board in 1930. Control of the company passed to Getty on February 9, 1932, the result of a two year campaign of stock accumulation. [9] [10] After this the board was expanded from nine to ten members. H. Paul Grimm was elected the new president of the board. Emil Kluth, H.M. Macomber, Fero Williams, and E.H. Parkford were also elected to the board. [11]

Getty interest in Pacific Western Oil (Feb 1, 1935) [12]
CompanyShares owned6.5% bonds owned
Getty, Inc.115,500$415,000
George F. Getty Oil Co.316,000
Minnehoma Oil & Gas Co.243,319
Total674,819

On May 7, 1935 PWOilCo (operating subsidiary) sold its leaseholds and equipment in the Baldwin Hills (Inglewood) field (acquired in November 1928) and its interest in the Kettleman North Dome (acquired in March 1929) for $12,150,000 ($2,150,000 in cash and purchase and cancellation of $10,000,000 of the 15-year 6.5% bonds. [d] PWOilCorp was then free of long term debt. [13] [12] The buyer was the Shell Union Oil Corp. / Shell Oil Co. of California. [14]

The Pacific Western Oil Co. (operating subsidiary) was dissolved on August 29, 1936 and the properties transferred to the holding company [15] which then effectively changed its character to an operating company. The no par common stock was replaced by $10 par common stock at the end of 1936. There were still 1,000,000 shares outstanding. [16]

PWO sold $2,100,000 3.5% 10-year notes dated August 1, 1939, proceeds of which were used to pay back to Harris Trust & Savings Bank and First National Bank of Chicago prior loans of $2,100,000. [17]

J. Paul Getty individually or as trustee in 1941 owned the entire outstanding stock of George F. Getty, Inc. It was agreed that PWO would acquire the entire stock (78,033.2 shares of par $100) in exchange for 1,273,421 newly issued shares of its own stock. When the U.S. Treasury Department refused a request filed August 23, 1941 to allow this transaction to be tax-free, the plan was abandoned. George F. Getty, Inc owned 687,519 PWO shares and a $828,821 PWO promissory note, among other assets, including oil production assets. [18] [19] [20] In other words, assuming Getty owned none of the 312,481 remaining PWO shares and, arguendo, that the new treasury stock of 687,519 shares would have been cancelled, Getty's ownership in the merged company would have been 80.3% [1,273,421 / (1,273,421 + 312,481)] up from 68.8%.

The company was awarded the Saudi Arabian half of the Saudi Arabian-Kuwaiti neutral zone joint concession in 1949. [21]

The company sold $10,000,000 of 3.5% 15-year bonds dated June 1, 1949, proceeds of which together with a $5m bank loan [e] were used to repay a Feb 21, 1949 $10.5 million bank loan used for the upfront $9.5 million Neutral Zone concession payment and the first $1 million in annual royalty to the Saudi government. $3,303,035 were used to repay a April 29, 1949 loan used to buy 127,777 shares of Tide Water Associated Oil Co. at $25.60 per share and the balance for general corporate purposes. [22]

Securities owned (June 1949) [22]
CompanyShares % Shares
Mission Corp (Nevada) [f] 645,60847%
owned 208,132 in 1935 [24]


owned 641,808 in 1939 [17]
in 1940 Mission Corp owned 57% of Skelly Oil common stock and 16% of Tide Water Associated Oil Co. common stock [25] [g]
in December 1948 exchanged its entire holding of 1,417,000 Tide Water shares for 2,834,000 shares of Mission Development Corp and by May 2, 1949 had distributed 5⁄6 of those as dividends for each share of its own stock.

Tide Water Associated Oil Co (Delaware)705,63111%

owned 269,700 in 1934 [27]
owned 300,000 in 1935 [24]
owned 250,100 in 1939 [17]

Mission Development Co. (Delaware) [h] 538,00719%
represents the stock dividends paid Dec 28, 1948 and May 2, 1949 and equivalent to 269,003.5 Tide Water shares
Pacific Western Oil Co Ltd (Province of Alberta)6,70067%
Skelly Oil owned 33%
Santa Fe Oil Co Ltd (Province of Alberta)16,75067%
Skelly Oil owned 33%
Getty Realty Corp100%
owned the Hotel Pierre, New York

The common stock was traded on the New York Curb Exchange until in September 1933 it was listed on the NYSE. [35]

Pacific Western Oil price range
1920s [i]
89
High26+1⁄426+5⁄8
Low2012+1⁄8
Divnone
1930s [j]
0123456789
High19+1⁄21589+1⁄29+3⁄81423+1⁄229+3⁄415+7⁄811+7⁄8
Low5+1⁄22+7⁄835+3⁄45+1⁄26+3⁄411+3⁄411+3⁄4107
Div.none25c40c25c65c75c
1940s [k]
0123456789
High8+7⁄89+3⁄4917+1⁄217+1⁄232+7⁄834+5⁄859+3⁄462+3⁄444
Low5+1⁄24+3⁄45+1⁄8912+3⁄416+1⁄418+1⁄421+3⁄439+1⁄229+1⁄4
1950s [l]
0123456789
High5322+3⁄426+1⁄247+3⁄4
Low361717+3⁄422+1⁄2

When the Wafra field was discovered in the Neutral Zone, the stock price went from 28+7⁄8 on March 20, 1953 [62] to 47+3⁄4 on March 31, 1953. [63]

Effective April 25, 1956 the Pacific Western Oil Corporation was renamed the Getty Oil Company. [64] [65]

References

  1. ↑ "Pacific Western Oil Corp. - Debentures Offered". Commercial and Financial Chronicle. Vol. 149, no. 3868. 12 August 1939. p. 1033.
  2. ↑ "Pacific Western Oil Company - Fifteen-Year 6.5% Sinking Fund Gold Debentures". Commercial and Financial Chronicle. Vol. 127, no. 3309. 24 November 1928. p. XXXIV.
  3. ↑ "Pacific Western Oil Co. - Bonds Sold". Commercial and Financial Chronicle. Vol. 127, no. 3309. 24 November 1928. p. 2971.
  4. ↑ "Pacific Western Oil Corporation". Commercial and Financial Chronicle. Vol. 127, no. 3308. 17 November 1928. p. XXXIII.
  5. ↑ "William C. McDuffie". National Petroleum News. Vol. 27, no. 42. 16 October 1935. p. 10.
  6. ↑ "Display ad 20". Los Angeles Times. November 16, 1928.
  7. ↑ "New Oil Directors Named". The New York Times. November 28, 1928.
  8. ↑ "Huge Oil Check Handed Doheny Operator Paid $25,000,000 By Pacific Western Deal Follows Shortly After Sale to Richfield Pioneer Repeats Denial of Retirement Story". Los Angeles Times. November 28, 1928.
  9. ↑ "Getty Buys Oil Control". Los Angeles Times. February 6, 1932.
  10. ↑ "Pacific Western Control Gained by Getty". National Petroleum News. Vol. 24, no. 6. 10 February 1932. p. 74.
  11. ↑ "Grimm Gets Oil Concern Presidency". Los Angeles Times. February 10, 1932.
  12. 1 2 "Arrangements Concluded For Sale of Pacific Western Kettleman Land". California Oil World. Vol. 27, no. 33. 7 March 1935. p. 10.
  13. ↑ "Pacific Western Oil Corp. - Annual Report". Commercial and Financial Chronicle. Vol. 142, no. 3690. 14 March 1936. p. 1826.
  14. ↑ "Shell Union Oil Corp. - Acquisition". Commercial and Financial Chronicle. Vol. 140, no. 3637. 9 March 1935. p. 1672.
  15. ↑ "Pacific Western Oil Corp. - Subsidiary Dissolved". Commercial and Financial Chronicle. Vol. 143, no. 3720. 10 October 1936. p. 2381.
  16. ↑ "Pacific Western Oil Corp. - Listing". Commercial and Financial Chronicle. Vol. 144, no. 3732. 2 January 1937. p. 115.
  17. 1 2 3 "Pacific Western Oil Corp. - Debentures Offered". Commercial and Financial Chronicle. Vol. 149, no. 3868. 12 August 1939. p. 1032.
  18. ↑ "Pacific Western Oil Corp. - Drops Plan to Buy Getty Firm". Commercial and Financial Chronicle. Vol. 154, no. 4007. 15 November 1941. p. 1057.
  19. ↑ "Pacific Western Oil Corp. - Exchange Plan Loses". Commercial and Financial Chronicle. Vol. 154, no. 3986. 27 September 1941. p. 338.
  20. ↑ "Pacific Western Oil Corp. - To Merge Getty Interests". Commercial and Financial Chronicle. Vol. 154, no. 3977. 6 September 1941. p. 57.
  21. ↑ Yergin, Daniel (1991). The Prize: the Epic Quest for Oil, Money, and Power. New York: Touchstone. pp. 437–445, 790. ISBN   9780671799328.
  22. 1 2 "Pacific Western Oil Corp. - Debentures Offered". Commercial and Financial Chronicle. Vol. 169, no. 25. 27 June 1949. p. 11.
  23. ↑ "Mission Corp. - Acquisition". Commercial and Financial Chronicle. Vol. 147, no. 3811. 9 July 1938. p. 274.
  24. 1 2 "Pacific Western Oil". The Financial World. Vol. 64, no. 8. 21 August 1935. p. 178.
  25. ↑ "Tide Water Associated Oil Co. - Skelly Merger Discussed". Commercial and Financial Chronicle. Vol. 151, no. 3926. 21 September 1940. p. 1738.
  26. ↑ "Mission Corp. - Earnings". Commercial and Financial Chronicle. Vol. 151, no. 3924. 7 September 1940. p. 1436.
  27. ↑ "Pacific Western Oil". National Petroleum News. Vol. 27, no. 33. 14 August 1935. p. 71.
  28. ↑ "Mission Corp. - Declares Conditional Dividend". Commercial and Financial Chronicle. Vol. 168, no. 21. 13 December 1948. p. 10.
  29. ↑ "Mission Corp. - Sale of Tidewater Oil Stock". Commercial and Financial Chronicle. Vol. 168, no. 25. 27 December 1948. p. 11.
  30. ↑ "Mission Corp. - Ruling on Stock Dividend". Commercial and Financial Chronicle. Vol. 169, no. 1. 3 January 1949. p. 8.
  31. ↑ "Mission Corp. - To Pay Another Dividend in Stock". Commercial and Financial Chronicle. Vol. 169, no. 25. 28 March 1949. p. 8.
  32. ↑ "Mission Development Co. - To Acquire Tide Water Associated Oil Stock". Commercial and Financial Chronicle. Vol. 172, no. 4971. 25 December 1950. p. 6.
  33. ↑ "Mission Corp. - To Sell Tide Water Oil Stock". Commercial and Financial Chronicle. Vol. 173, no. 4979. 22 January 1951. p. 382.
  34. ↑ "Dividends". Commercial and Financial Chronicle. Vol. 173, no. 4999. 2 April 1951. p. 49.
  35. ↑ "Pacific Western Oil Corp. - Initial Distribution". Commercial and Financial Chronicle. Vol. 137, no. 3562. 30 September 1933. p. 2472.
  36. ↑ "Independent Oils on New York Curb". National Petroleum News. Vol. 22, no. 2. 8 January 1930. p. 118.
  37. ↑ "Independent Oils on New York Curb". National Petroleum News. Vol. 22, no. 45. 5 November 1930. p. 102.
  38. ↑ "Oil and Royalty Stocks on New York Curb". National Petroleum News. Vol. 23, no. 50. 16 December 1931. p. 78.
  39. ↑ "Oil and Royalty Stocks on New York Curb". National Petroleum News. Vol. 25, no. 13. 29 March 1933. p. 63.
  40. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 139, no. 3612. 15 September 1934. p. 1677.
  41. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 140, no. 3638. 16 March 1935. p. 1789.
  42. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 143, no. 3721. 17 October 1936. p. 2483.
  43. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 145, no. 3770. 25 September 1937. p. 2033.
  44. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 146, no. 3809. 25 June 1938. p. 4079.
  45. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 150, no. 3889. 6 January 1940. p. 95.
  46. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 151, no. 3918. 27 July 1940. p. 513.
  47. ↑ "Pacific Western Oil Corp. - 75-Cent Dividend". Commercial and Financial Chronicle. Vol. 145, no. 3779. 27 November 1937. p. 3506.
  48. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 154, no. 4005. 11 November 1941. p. 984.
  49. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 156, no. 4137. 28 December 1942. p. 2280.
  50. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 157, no. 4151. 15 February 1943. p. 612.
  51. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 159, no. 4259. 28 February 1944. p. 852.
  52. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 161, no. 4367. 12 March 1945. p. 1108.
  53. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 163, no. 4479. 8 April 1946. p. 1881.
  54. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 165, no. 4575. 10 March 1947. p. 1332.
  55. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 167, no. 4. 12 April 1948. p. 22.
  56. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 169, no. 1. 4 April 1949. p. 23.
  57. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 172, no. 4947. 2 October 1950. p. 21.
  58. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 173, no. 4987. 19 February 1951. p. 775.
  59. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 176, no. 5145. 25 August 1952. p. 699.
  60. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 178, no. 5251. 31 August 1953. p. 775.
  61. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 180, no. 5339. 5 July 1954. p. 71.
  62. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 177, no. 5205. 23 March 1953. p. 21.
  63. ↑ "New York Stock Record". Commercial and Financial Chronicle. Vol. 177, no. 5209. 6 April 1953. p. 19.
  64. ↑ "Pacific Western Oil Corp. - Changes Name". Commercial and Financial Chronicle. Vol. 183, no. 5529. 30 April 1956. p. 10.
  65. ↑ McDonald, John (December 1, 1967). "J. Paul Getty's Changed Plans". Fortune. Retrieved October 10, 2020.
  1. ↑ Production was obtained from these districts: In October 1928 they yielded 16,000bpd (13,000bpd after royalties) with ca. 4,000bpd of production capacity shut in. 8 wells were drilling, all in the Ventura Avenue field. The existing contract with the Richfield Oil Company for purchase of all production up to 20,000bpd was continued.
  2. ↑ For each $1,000 principal amount the holder was entitled to buy 15 shares at $33+1⁄3 before November 1, 1938. 232,500 shares of unissued common stock were reserved for this conversion privilege. Warrants were detachable in case the bond was called. There was a sinking fund to redeem 60% of the bonds by maturity. All proceeds from warrant conversions to be used to retire bonds. [2] [3]
  3. ↑ Entered the oil industry as roustabout in the Coalinga Oil Field in 1909 and was made production superintendent for Shell Oil Co. at Coalinga in 1915 and eventually became general manager of Royal Dutch Shells worldwide production headquartered in The Hague. Resigned from Shell to become PWO president in 1928 and resigned as PWO president to become receiver for Richfield Oil Company. [5]
  4. ↑ the stock warrants void after Nov 1, 1938 remained intact in the hands of the prior bondholders
  5. ↑ 2.75% 5-year notes to be repaid $1m annually on June 30, 1950 with last payment on June 30, 1954
  6. ↑ Was authorized by shareholders on May 12, 1938 to engage as an operating company in the business of oil production. Had been solely a holding company before. [23]
  7. ↑ As of June 30, 1940 Mission Corp owned 1,097,223 TWAO, 573,557 Skelly and 44,700 PWO shares, constituting 96.7% of all assets of Mission Corp. [26]
  8. ↑ Came into existence in a December 4, 1948 board meeting. Mission Corp exchanged its entire holding of 1,417,000 Tide Water stock for newly issued 2,834,000 $5 par shares of Mission Development Corp. A stock dividend was paid on December 28, 1948 of 1⁄3 share of Mission Development Corp for each share of Mission Corp. The purpose was to allow PWO to sell (if needed) stock of Mission Development Corp without diminishing their 47% position in Mission Corp and to preserve the integrity of the Tide Water block of shares. [28] [29] [30] On May 2, 1949 Mission Corp paid a further dividend of 1⁄2 shares of Mission Development Corp for each share of Mission Corp. [31] The same procedure was repeated in December 1950 and a further 996,622 Tide Water shares were exchanged for newly issued 1,993,324 Mission Development Corp shares [32] [33] and April 9, 1951 1⁄2 share of Mission Development Corp was paid as a stock dividend for each share of Mission Corp stock. [34]
  9. ↑
  10. ↑
  11. ↑ Share price: 0 [48] 1 [49] 2 [50] 3 [51] 4 [52] 5 [53] 6 [54] 7 [55] 8 [56] 9 [57]
  12. ↑ Share price: 0 [58] 1 [59] 2 [60] 3 [61]
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