California Resources Corp., formed as a spinoff from Occidental Petroleum, is in talks to sell 
some of its oil and gas fields, pipelines and other holdings to pay down a portion of its $6.2 billion in debt.
CRC’s Chief Executive Officer Todd Stevens disclosed the plans in a presentation to analysts, saying the company is negotiating agreements with several potential purchasers of the assets.
According to Bloomberg Business News, the company would use the proceeds to reduce its $6.5 billion in long-term debt at a time when the company’s cash flow has been impacted by the decline in oil and gas prices.
In addition to producing fields and pipelines, assets that could be sold include processing plants, electrical transmission lines, compressor stations, water plants and other facilities.
CRC, now the largest oil and gas exploration and production company in the state, was spun off from Occidental late in 2014.
The company will announce its third quarter financial results on Nov. 5th. During the second quarter, it lost $51 million or 13 cents per share on revenues of $609 million. A year earlier it had earned a profit of $246 million or 63 cents per share on revenues of $1.1 billion.