HOUSTON, Jan. 5 /PRNewswire/ -- Pennzoil Company, which has been renamed
PennzEnergy Company (NYSE: PZE), has paid to its common shareholders a
dividend consisting of common stock of Pennzoil-Quaker State Company
(NYSE: PZL). The dividend was paid at the rate of one share of Pennzoil-
Quaker State Company common stock for each share of Pennzoil Company common
stock owned as of the December 10, 1998 record date.
For United States federal income tax purposes, the dividend was received
tax-free by the Pennzoil Company common shareholders. As a result, a portion
of each shareholder's adjusted tax basis is allocated to the Pennzoil-Quaker
State Company common stock received through the distribution. This allocation
is based on the respective fair market value of the PennzEnergy Company common
stock and the Pennzoil-Quaker State Company common stock.
The average of the high and low quoted market values of PennzEnergy
Company common stock and Pennzoil-Quaker State common stock on the first day
of trading as two separate companies (December 31, 1998) should determine the
fair market valuation. Using this methodology, 51.002 percent of the tax
basis in a share of Pennzoil Company common stock should be allocated to
shares of PennzEnergy Company (formerly Pennzoil Company), while the balance
of 48.998 percent should be allocated to shares of Pennzoil-Quaker State
Company common stock.
PennzEnergy is one of the ten largest domestic independent exploration and
production companies. Pennzoil-Quaker State is the world's biggest automotive
consumer products company.
SOURCE Pennzoil-Quaker State Company and PennzEnergy Company
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Related links:
http://www.pennzoil.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/19981007/DAW022
or NewsCom, 213-237-5431. More photos are available at
http://www.Newscom.com
Company News On-Call:
http://www.prnewswire.com/comp/684550.html or fax,
800-758-5804, ext. 684550
CONTACT:
Ray Scippa of Pennzoil-Quaker State Company
and PennzEnergy Company, 713-546-8942
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