Chevron to Buy Rest of Oil and Land Company

Chevron Corp. late Thursday said it plans to purchase for about $65 million in Chevron common stock the remaining third of Huntington Beach Co.

The San Francisco-based oil giant already owns a 66% stake in the oil and real estate holding company.

Chevron said it will offer to exchange $650 worth of its own common stock for each share of the company. Currently, Huntington Beach Co. has 300,000 shares outstanding, said Nancy Arvay, a Chevron spokeswoman. Based on Chevron’s own calculations, the firm is worth $195 million.

Offshore Wells

Founded at the turn of the century, Huntington Beach Co. owns and operates oil wells both on shore and off the Southern California coast, Arvay said. During 1984, the last year for which figures are available, Huntington Beach Co.’s oil production totaled more than 1 million barrels, the majority of which came from the offshore wells, she said.

In addition, the company owns shopping malls, office buildings and other commercial and residential real estate in Los Angeles, Orange and San Diego counties. Among the holdings are the Sea Cliffs Country Club in Huntington Beach and the Harbor Gateway Business Park in Los Angeles.

The proposed merger, Chevron said, would be a friendly one. It is conditioned upon approval of an agreement by Huntington Beach’s directors and minority shareholders. Six of the nine directors of Huntington Beach Co. are also Chevron officials, Arvay said.