Newspaper article THE JOURNAL RECORD

Stockholders OK Restructuring of Sun; 1,300 Jobs to Be Lost

Newspaper article THE JOURNAL RECORD

Stockholders OK Restructuring of Sun; 1,300 Jobs to Be Lost

Article excerpt

spins off the $4.2 billion domestic gas exploration and production of Sun Co.into a separate operation was approved by Sun stockholders Tuesday.

The restructuring of Sun, the nation's 10th largest oil company, will result in the reduction of 1,300 jobs.

At the same time, the new structure retains the refining and marketing of petroleum into a slimmed-down business.

One of Sun's five refineries is in Tulsa.

Under the restructuring plan, adopted at a special meeting in nearby King of Prussia, shareholders will receive one common share of the new Sun Exploration & Production Co. for each common share of Sun, effective Nov. 1.

Record date for distribution is Oct. 14.

Stockholders representing less than 1.5 percent of Sun's 106 million outstanding shares opposed the plan, Sun spokesman Ray Enderle said. He could not provide specific figures.

In 1987 Sun Co. reported more than $9.1 billion in revenues. It had some 20,000 employees in the United States and eight other countries. About 1,200 of those employees work in Tulsa, either at the refinery or at the company's offices in Tulsa.

Both new companies plan to reduce employment within a year - Sun Exploration trimming 800 from the 4,000 workers it is getting in the restructuring and Sun Co. cutting approximately 500 from its headquarters staff.

Sun Exploration, in the spinoff, will become the largest independent oil and gas producer in North America, Enderle said. As an integrated company that combined exploration, production, refining and marketing, Sun Co. was the 10th largest U.S. oil company.

One of four new Sun Exploration and Production regional offices will be in Oklahoma City. Other regional offices will be in Houston, Midland, Texas, and Valencia, Calif.

Sun stock has been selling at around $57. It had shot up above $60 when the restructuring announcement was made last July.

The stock of each of the new firms is expected to start off at around $28-$30. …

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