Money & The Economy

Activist Investment Firm Pushes California Oil And Gas Producer To Curb Oil And Gas Production

Kimmeridge Energy Management Company, an energy investment firm focused on advancing net zero emissions targets, owns a stake in California Resources Corporation, an oil and gas producer, and is pressuring the energy company to curb its production to increase its profits, Reuters reported.

The activist investment firm owns more than three million shares in California Resources, representing about a 4% stake, and is in discussions with the company’s management in recent weeks about how to increase its valuation, sources told Reuters. Kimmeridge is encouraging California Resources to divest from its Huntington Beach oil and gas properties in Orange County, which it believes could be worth around $800 million if the land is sold to real estate developers.

Kimmeridge is also advising California Resources to concentrate more on its carbon capture operations to meet net zero emissions targets, according to Reuters.

Kimmeridge entirely focuses on investing to accelerate the energy sector’s transition towards “net zero energy” goals in order to be “environmentally responsible,” according to its website. The firm believes that investing in projects that are environmentally and socially responsible creates long-term value and reduces risk.

Kimmeridge’s actions come amid the rise of environmental, social and corporate governance (ESG) investing strategies that often push companies to curb emissions and divest in fossil fuels to comply with international climate goals.

Despite high domestic crude and natural gas prices, California Resources’ shares have lagged behind peers this year as investors have shifted funds to other producers with higher growth rates that can capitalize on the commodity price upswing, Reuters reported. The stock has gained 7.7% this year, giving it a market capitalization of $3.5 billion, compared to the S&P energy index’s 41.4% gain.

Kimmeridge and California Resources did not immediately respond to the Daily Caller News Foundation’s request for comment.

Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@dailycallernewsfoundation.org

Jack McEvoy

Share
Published by
Jack McEvoy

Recent Posts

Cuba’s Bustling Black Markets Hold an Important Economic Lesson

Black Markets have always been regarded as networks where buyers and sellers transact goods and…

8 hours ago

I Demand Reparations for Italians

My paternal ancestors migrated to America from Italy at the turn of the twentieth century.…

8 hours ago

Oregon Judge Refuses To Let Restrictive Gun Control Law Take Effect

A recently passed Oregon gun law will not take effect Thursday, following a high court…

8 hours ago

CRONIES: Biden To Spend Billions Of Taxpayer Dollars Bailing Out Union

President Joe Biden is set to announce a roughly $36 billion bailout for union pension…

12 hours ago

George Soros Preps For 2024 Election With Massive Donations To Dem Super PAC

Billionaire and Democratic mega-donor George Soros poured $50 million into a Democratic super PAC this…

12 hours ago

Dems’ Star Witness In SCOTUS Hearing Deemed ‘Not Credible’ By SCOTUS

The Rev. Robert Schenck will testify during the House Justiciary Committee Hearing on Thursday regarding…

13 hours ago