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PENNZOIL CONCLUDES DEAL WITH CHEVRON

 PENNZOIL CONCLUDES DEAL WITH CHEVRON
 HOUSTON, Oct. 30 /PRNewswire/ -- Today, Pennzoil Co. (NYSE: PZL)


concluded its previously announced exchange of 15,750,000 shares of Chevron Corp. (NYSE: CHV) common stock -- or 48 percent of Pennzoil's interest in Chevron Corp. stock -- for all of the stock of Chevron PBC, Inc., a Chevron subsidiary owning Gulf of Mexico, Gulf Coast, Permian Basin and other domestic oil and gas producing properties.
 The companies adopted July 1, 1992, as the "effective date" of the exchange transaction for valuation and other economic purposes. During the interim period from July 1 until today, Chevron continued operation of these properties and immediately prior to closing, contributed $57.4 million to Chevron PBC (for the benefit of Pennzoil), representing the cash flow from these operations during this interim period, less production costs, provisions for taxes, and net of $11.7 million of nonrecurring closing adjustments. The $57.4 million contribution is subject to an increase or decrease (with interest) based upon the results of a post-closing audit.
 Pennzoil estimates that the pretax cash flow from the acquired operations will be more than four times Pennzoil's current dividend income ($52 million annually) received on the 15,750,000 Chevron Corp. shares being exchanged. Pennzoil continues to own 17,194,100 shares of Chevron Corp. common stock, or 5.3 percent of the outstanding shares, and at Chevron's current dividend rate, Pennzoil should earn approximately $57 million annually on this remaining investment in Chevron common stock.
 -0- 10/30/92
 /CONTACT: Robert Harper of Pennzoil, 713-546-8536/
 (PZL CHV) CO: Pennzoil Co.; Chevron Corp. ST: Texas IN: OIL SU:


GK -- NY080 -- 7219 10/30/92 15:03 EST
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Publication:PR Newswire
Date:Oct 30, 1992
Words:278
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