Financial Results Announcement - California Resources Corporation (CRC) plans to release its first quarter 2025 financial results on May 6th after market close [1] - A conference call to discuss these results will be held on May 7th at 1:00 p.m. Eastern Time [1] Conference Call Participation - Participants are encouraged to pre-register for the conference call via a provided link [2] - Callers who pre-register will receive a conference passcode and unique PIN for immediate access [2] - To join the call, participants can dial (877) 328-5505 or access the webcast at www.crc.com [3] Company Overview - California Resources Corporation is an independent energy and carbon management company focused on energy transition [4] - The company emphasizes environmental stewardship while providing responsibly sourced energy [4] - CRC aims to maximize the value of its land and mineral ownership through carbon capture and storage (CCS) and emissions-reducing projects [4]

Group 1 - J.P. Morgan analyst Alejandra Magana maintained a Neutral rating on California Resources Corporation (CRC) with a price forecast of $63 [1] - California Resources reported fourth-quarter 2024 adjusted EPS of $0.91, missing the $0.97 estimate, and revenue of $877 million, falling short of the $897.75 million expectation [1] - The company delivered a strong fourth quarter, with EBITDA beating estimates, solid operations, and continued momentum in CCS volume agreements [1] Group 2 - The company faces challenges maintaining output due to strict California regulations [2] - The Aera acquisition bolstered the business, but concerns remain about oil exposure amid potential oversupply in 2025 [2] - The company's permit inventory rebuild is stalled as CalGEM revises well procedures, and a new bill may allow local governments to impose further restrictions [2] Group 3 - The company is exploring clean power, aiming to connect Elk Hills to a CCS vault [3] - While CRC has unique CCS and power opportunities, regulatory uncertainty and ongoing permitting challenges keep the analyst cautious [3] - Investors can gain exposure to the stock via Invesco S&P SmallCap Energy ETF PSCE and Innovator U.S. Small Cap Managed Floor ETF RFLR [3] Group 4 - CRC shares are up 2.59% at $43.14 at the last check [3]

Financial Data and Key Metrics Changes - The company reported net production of 141,000 BOE per day and realized oil prices at 99% of Brent, leading to $316 million in adjusted EBITDAX and $118 million in free cash flow for Q4 2024 [19][20] - For the year 2024, the company achieved over $1 billion in adjusted EBITDAX and generated $355 million in free cash flow, returning about 85% of free cash flow to shareholders through dividends and share repurchases [24][31] - The company ended 2024 with gross production of 163,000 BOE per day and maintained a low annual gross decline of about 6% [23][24] Business Line Data and Key Metrics Changes - The conventional oil and gas business continues to deliver robust cash flow, supported by quality proved reserves and a deep inventory, unlocking significant synergies from low decline, low capital intensity assets [8][19] - The carbon management business is rapidly expanding, with nearly nine million metric tons per annum of carbon management projects under consideration, including the first EPA class six permits for California's first TCS project at Elk Hills [12][16] Market Data and Key Metrics Changes - The company expects to benefit from new sustainable efficiencies in 2025, with an estimated controllable cost structure of $220 million, nearly 16% lower than the pro forma combined 2023 organization [25] - The resource adequacy power capacity payments are expected to increase by 50% to $150 million, with new power purchase agreements being assessed [28] Company Strategy and Development Direction - The company is focused on building a sustainable future through carbon management and power, actively pursuing agreements with well-capitalized parties for new AI data centers in California [9][10] - The recent agreement with National Cement is seen as a major milestone in domestic industrial decarbonization, validating the company's CCS strategy and expertise in carbon management [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong position entering 2025, highlighting the importance of maintaining a strong balance sheet and the ability to invest in high-return opportunities [29][30] - The management team emphasized the significant near-term value drivers and the company's commitment to shareholder returns, with a focus on disciplined capital allocation [33][34] Other Important Information - The company has more than $1 billion in liquidity and has rebuilt cash on hand from nearly zero to over $350 million post-merger [30][90] - The company plans to redeem the remaining $122 million of 2026 senior notes later this year, maintaining a leverage ratio of less than one [31][90] Q&A Session Summary Question: Stock price underperformance compared to peers - Management acknowledged the stock's underperformance but highlighted a strong track record of returning capital to shareholders, with over $1 billion returned since 2021 [41][42] Question: Details on the data center agreements - Management discussed ongoing talks with multiple parties for data centers, emphasizing the strategic infrastructure advantage and the potential for long-term contracts [49][51] Question: Power redundancy and modular generation - Management confirmed that their plant operates 24/7 and has standby agreements for backup power, ensuring reliability [56][58] Question: Update on the MOU with National Cement - Management expressed excitement about the partnership, highlighting the significant market opportunity in California's cement industry and the need for CO2 transportation solutions [76][78] Question: Financial priorities going forward - The CFO outlined priorities including maintaining a strong balance sheet, driving sustainable cash flow, and creating long-term shareholder value [84][86]

Executing Today, Building for Tomorrow Fourth Quarter and Full Year 2024 Results March 3, 2025 Delivered on All Fronts in 2024 California's Premier Energy Platform $1,006MM Delivered Adj. EBITDAX* $355MM $303MM Generated Free Cash Flow* Returned Dividends and SRP1 73% 9% 18% Oil NGLs Gas 110MBOE/D (90% Average NRI) 2024 TOTAL NET PRODUCTION2 1 1 1H24 2H24 2024 ACTIVE DRILLING RIGS Southern California Central California Northern California 85% 8% 7% PDP PDNP PUD $8.9B PV-10 OF 2024 PROVED RESERVES3 545 MMBOE ...

Aera Merger Impact - The Aera Merger added significant oil-weighted production and proved developed reserves, with 21,315,707 shares issued to former Aera owners and approximately $990 million paid to extinguish Aera's outstanding debt[15]. - For the year ended December 31, 2024, the company generated $376 million in net income, including Aera's operations for the second half of the year[18]. - The company expects to implement annual cost savings of $170 million from synergies in 2024 and an additional $65 million in 2025 following the Aera Merger[18]. - Acquisitions during the year included 236 MMBoe from the Aera Merger, significantly impacting total proved reserves[50]. - The Aera Merger, completed on July 1, 2024, added significant oil-weighted production and proved developed reserves, primarily in the San Joaquin and Ventura basins, with existing stockholders owning 76% and former Aera owners 24% of CRC[15]. Financial Performance - As of December 31, 2024, the company had $1,337 million in liquidity, consisting of $983 million available for borrowing and $354 million in cash[19]. - The company expects to generate reliable cash flows by maintaining high operational performance standards and driving efficiencies through innovation[18]. - Oil sales for the year ended December 31, 2024, amounted to $2,255 million, while total oil, natural gas, and NGL sales reached $2,537 million, an increase from $2,155 million in 2023[74]. - The PV-10 of cash flows as of December 31, 2024, was $8,877 million, based on average realized prices of $77.91 per barrel for oil and $2.71 per Mcf for natural gas[57]. - The present value of future income taxes discounted at 10% is $2,175 million[57]. Production and Reserves - Total net production for the year ended December 31, 2024, was 40 MMBoe, with an average daily net production of 110 MBoe/d, representing a 28% increase from 86 MBoe/d in 2023[36]. - Proved reserves as of December 31, 2024, included 443 MMBbl of oil, 34 MMBbl of NGLs, and 409 Bcf of natural gas, totaling 545 MMBoe[20]. - The reserves to production ratio was 14 years for total proved reserves as of December 31, 2024[45]. - Proved undeveloped reserves decreased to 39 MMBoe as of December 31, 2024, primarily due to regulatory challenges and performance-related revisions[51]. - The company anticipates that approximately 9,000 net mineral acres will expire in 2025, representing 2% of total net undeveloped acreage, but does not expect a material adverse effect from these expirations[34]. Operational Efficiency - Operating costs per Boe decreased to $24.51 in 2024 from $26.24 in 2023, indicating improved cost efficiency[36]. - Operating costs for 2024 were $983 million, with a per barrel cost of $24.51, compared to $822 million and $26.24 per barrel in 2023[41]. - The company operates 65 producing fields, with 38 in the San Joaquin Basin, 4 in the Los Angeles Basin, and 21 in the Sacramento Basin[20]. - The company holds 1,863 thousand net mineral acres, with 79% held in fee and 85% of leased acreage held by production[33]. - The company plans to maintain a disciplined capital program, focusing on workovers and sidetracks in the short term, and investing in high-return wells when permitting resumes[18]. Carbon Management and Environmental Initiatives - The company aims to advance its carbon management business, leveraging the Carbon TerraVault joint venture with Brookfield to reduce capital investments in decarbonization projects[19]. - The company is committed to reducing CO and methane emissions and managing idle wells while maintaining transparency in its environmental stewardship efforts[19]. - The company is developing carbon capture and sequestration (CCS) projects, with the first EPA Class VI permits issued in California for underground injection and storage of CO2 at the Elk Hills field[89]. - The company announced a capital investment of $14 million to $18 million for the installation of carbon capture equipment at the Elk Hills facility, with operations expected to commence in late 2025[90]. - The company expects growth in projects related to carbon management services, reflecting its strategic expansion in this segment[90]. Regulatory Environment - The company emphasizes proactive engagement with regulators to minimize adverse impacts from new legislation and regulations on its operations[19]. - California's Senate Bill No. 1137 establishes a minimum setback of 3,200 feet for new oil and natural gas production wells from sensitive receptors, effective June 27, 2024[121]. - Assembly Bill 1866 increases annual fees for idle wells based on the duration of idleness, effective January 1, 2025, and mandates operators to submit plans for idle well management[123]. - The company is subject to numerous federal and state regulations that may restrict operations and increase costs, including those related to health, safety, and environmental protection[134]. - Recent litigation against the company regarding environmental compliance is not expected to have a material adverse effect on operations following a favorable court ruling[132]. Workforce and Safety - The company had approximately 1,550 employees as of December 31, 2024, a significant increase from approximately 970 employees as of December 31, 2023, primarily due to the Aera Merger[102]. - The company achieved a 99.999% oil spill prevention rate in 2024 and a total recordable incident rate (TRIR) of 0.39, reflecting strong safety performance[105]. - The company plans to operate one active drilling rig in Kern County in the first half of 2025, with plans to increase to two rigs in the second half of 2025[118]. - The company has submitted applications for conditional use permits for projects in Kern County, with uncertain timelines for approval that could extend into the first half of 2026[111]. - The company is evaluating the feasibility of developing a carbon capture system for its 550 MW Elk Hills power plant, indicating a focus on carbon management expansion[90].

California Resources Corporation (NYSE:CRC) Q4 2024 Earnings Conference Call March 3, 2025 1:00 PM ET Company Participants Joanna Park - VP, IR & Treasurer Francisco Leon - CEO, President & Director Clio Crespy - EVP & CFO Francisco Leon - CEO, President & Director Jay Bys - EVP & Chief Commercial Officer Conference Call Participants Scott Hanold - RBC Capital Markets Kalei Akamine - Bank of America Merrill Lynch Nate Pendleton - Texas Capital Josh Silverstein - UBS Betty Jiang - Barclays Neal Dingmann - Tr ...

California Resources Corporation (CRC) came out with quarterly earnings of $0.91 per share, missing the Zacks Consensus Estimate of $0.96 per share. This compares to earnings of $0.93 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.21%. A quarter ago, it was expected that this company would post earnings of $0.89 per share when it actually produced earnings of $1.50, delivering a surprise of 68.54%.Over the last four quarte ...

California Resources Reports Fourth Quarter and Full Year 2024 Financial and Operating Results Achieves Meaningful Capital Efficiency Improvements and Significant Cost Reductions Following Aera Merger 1 LONG BEACH, California, March 3, 2025 - California Resources Corporation (NYSE: CRC) today reported financial and operating results for the fourth quarter and full year 2024, as well as its guidance for 2025. The Company plans to host a conference call and webcast at 1 p.m. ET (10 a.m. PT) on Monday, March 3 ...

Core Insights - California Resources Corporation (CRC) reported significant financial improvements and operational results for 2024, highlighting the successful integration of the Aera merger and achieving over 70% of targeted synergies [5][6][9]. Fourth Quarter 2024 Highlights - Generated $206 million in net cash flow from operating activities and $118 million in free cash flow, with a reported net income of $33 million and adjusted net income of $84 million [5][7]. - Average net production was 141 thousand barrels of oil equivalent per day (MBoe/d), with 79% being oil [5][7]. - Returned $92 million to shareholders, approximately 78% of fourth quarter free cash flow, through share repurchases and dividends [5][7]. Full Year 2024 Highlights - Total net cash flow from operating activities reached $610 million, with free cash flow of $355 million and a net income of $376 million [5][7]. - Average net production for the year was 110 MBoe/d, with 73% being oil [5][7]. - Returned $303 million to shareholders, about 85% of free cash flow, through share repurchases and dividends [5][7]. 2025 Outlook and Highlights - Capital investments are expected to range between $285 million and $335 million, with net production projected at 132 to 138 MBoe/d [5][11]. - The company aims to achieve the remaining $65 million in Aera-related synergies by year-end 2025 [5][11]. - CRC plans to run a one rig program in the first half of 2025, increasing to two rigs in the second half [10][11]. Shareholder Returns and Dividend Announcements - Since mid-2021, CRC has returned approximately $1,060 million to shareholders, including $793 million in share repurchases and $267 million in dividends [12][13]. - A quarterly cash dividend of $0.3875 per share was declared, payable on March 21, 2025 [14]. Balance Sheet and Liquidity - As of year-end 2024, CRC had $354 million in available cash and $983 million in available borrowing capacity, totaling liquidity of $1,337 million [16][17]. - The company reaffirmed its $1,500 million borrowing base under its Revolving Credit Facility, extending its maturity date to March 2029 [15][16]. 2024 Sustainability Highlights - CRC achieved a 'Grade A' certification for methane emissions performance and eliminated 311 gas venting pneumatics, aligning with 2030 methane reduction goals [18][25]. - The company delivered over 112 million barrels of water for agricultural use, supporting local agriculture [25].

Core Insights - Carbon TerraVault Holdings, LLC (CTV) has signed a Memorandum of Understanding with National Cement Company of California to establish California's first net zero cement facility, highlighting its commitment to decarbonization in hard-to-abate sectors [1][2] - CTV has received the first Class VI well permits from the EPA for carbon dioxide (CO₂) storage, which is a significant regulatory milestone for the company [2][6] - The company is focused on executing its first carbon capture and storage (CCS) project at Elk Hills in 2025, with a project pipeline approaching 9 million metric tons per year [2][6] 2024 Highlights - CTV expanded its CO₂ storage portfolio by 70%, adding 134 million metric tons (MMT) in Class VI permit applications, bringing the total CO₂ storage capacity submitted to the EPA for review to 325 MMT [6] - The company signed agreements for 5.4 million metric tons per annum (MMTPA) of CO₂ management with major industrial partners [6] - CTV was awarded $12 million in funding and selected for an additional $35 million from the U.S. Department of Energy to support decarbonization projects in California [6] 2025 Outlook and Highlights - Construction of California's first CCS project at CRC's Elk Hills cryogenic gas plant is planned to commence in Q2 2025, with the first CO₂ injection anticipated by year-end [6] - CTV's total CO₂ emissions from CCS projects under consideration now stands at nearly 9 MMTPA [6] - Expected capital investments for 2025 are projected to be between $20 million and $35 million, with $14 million to $18 million allocated for the CCS project at Elk Hills [6][9] Financial Results - In Q4 2024, CMB expenses were reported at $20 million, up from $13 million in Q3 2024, with total expenses for the year reaching $56 million compared to $37 million in 2023 [5] - General and administrative expenses for Q4 2024 were consistent at $5 million, with total expenses for the year at $15 million, compared to $12 million in 2023 [5]