Pacific Western Oil Corporation
| Company type | Public |
|---|---|
| Industry | Oil and gas |
| Founded | November 10, 1928 in Delaware, United States |
| Fate | Renamed Getty Oil Company |
| Successor | Getty Oil Company |
| Headquarters | United States |
Key people | Jacques Vinmont (chairman), William C. McDuffie (president), H. Paul Grimm (president), J. Paul Getty (board member, later controlling shareholder) |
| Products | Oil and gas production and exploration |
Pacific Western Oil Corporation functioned as a holding entity for the shares of Pacific Western Oil Company.
History
Formed on November 10, 1928, in Delaware, Pacific Western Oil was created to purchase the majority of oil-producing and undeveloped assets in California from the Petroleum Securities Company, which was controlled by Edward L. Doheny and his family. Out of 2 million authorized shares without par value, 1 million were issued, with 670,000 offered to the public at $24 apiece. Additionally, the company raised $15.5 million by issuing 6.5% bonds due in 15 years, which included warrants for stock purchases. The acquired properties were valued at $43 million. Jacques Vinmont took the role of initial chairman, while William C. McDuffie was appointed president. The first board of directors featured Earle Bailie, James R. Simpson, Lloyd Gilmour, Charles R. Blyth, Edward Nolan, George L. Eastman, and David P. Babcock. Pacific Western paid the Dohenys $25 million in what was then considered the largest cash transaction in the western United States.
J. Paul Getty joined the board in 1930 and secured control by February 1932 through accumulating shares. The board expanded to ten members with H. Paul Grimm assuming the presidency. By 1935, Getty’s combined shareholdings across related companies amounted to 674,819 shares.
On May 7, 1935, the operating subsidiary of Pacific Western Oil sold leaseholds and equipment located in Baldwin Hills and Kettleman North Dome fields to Shell Union Oil Corp. for $12.15 million, which eliminated long-term debt obligations. The subsidiary was dissolved on August 29, 1936; its assets were absorbed into the holding company, which then transitioned into an operating company and replaced its no-par shares with common stock having a $10 par value.
In August 1939, the corporation issued $2.1 million worth of notes at a 3.5% interest rate to repay previous bank borrowings.
A planned acquisition in 1941 of George F. Getty Inc., fully owned by J. Paul Getty either personally or as trustee, was abandoned after the U.S. Treasury refused to grant tax-exempt status; this acquisition would have increased Getty’s ownership stake beyond 80%.
In 1949, Pacific Western secured the Saudi Arabian portion of the Saudi-Kuwaiti Neutral Zone concession, marking a major step in its international expansion.
To fund this acquisition and repay earlier loans related to concession payments and royalty commitments, Pacific Western issued $10 million in bonds at 3.5% interest and arranged a $5 million bank loan during mid-1949.
By June of that year, Pacific Western held significant equity interests: a 47% ownership in Mission Corp (Nevada), which controlled majority stakes in Skelly Oil and Tide Water Associated Oil Co.; an 11% direct stake in Tide Water; a 19% interest in Mission Development Co., established to manage Tide Water shares; controlling interests in Canadian subsidiaries Pacific Western Oil Co Ltd and Santa Fe Oil Co Ltd; as well as full ownership of Getty Realty Corp.
Pacific Western’s common stock traded on the New York Curb Exchange until September 1933 when it transitioned to listing on the New York Stock Exchange.
The company’s share price mirrored industry events: notably increasing from around $28¾ to $47¾ between March 20 and March 31, 1953 following the discovery at the Wafra field within the Neutral Zone.
On April 25, 1956, Pacific Western Oil Corporation adopted the name Getty Oil Company, symbolizing its evolution under J. Paul Getty’s leadership into a leading integrated oil enterprise.