California Resources Reports Second Quarter 2024 Financial and Operating Results
Increasing quarterly dividend by 25%, enhancing cash returns to shareholders
Targeting
New
Highlights:
-
Successfully closed the merger with
Aera Energy onJuly 1, 2024 . Complementary assets grow Company's core base, expected to double cash flow, and adds quality assets to carbon business platform -
Increased Aera merger targeted synergies to
$235 million which includes a reduction of$60 million 1 in annual interest expense and$25 million in additional operational synergies
CRC
-
Enhanced cash returns to shareholders through 25% increase in quarterly dividend; declared quarterly dividend of
$0.3875 /share to be paid in the third quarter of 2024 -
Generated
$97 million of net cash provided by operating activities, net cash provided by operating activities before changes in operating assets and liabilities2 of$108 million and$63 million of free cash flow2 -
Returned 142% of year-to-date free cash flow2, or
$136 million , to shareholders including$93 million in share repurchases and$43 million in dividends -
Generated
$8 million of net income,$42 million of adjusted net income2 and adjusted EBITDAX2 of$139 million - Delivered second quarter average net production of 76 MBoe/d and average net oil production of 47 thousand barrels of oil per day (MBo/d). Gross production averaged 93 MBoe/d
-
Exceeded first half 2024 production expectations through lower-than-expected natural field declines and in-line capital investments; entry-to-exit gross production declined by 2%, or 2 thousand barrels of oil equivalent per day (MBoe/d) on drilling and workover capital investments of
$51 million -
Submitted a 102 million metric ton (MMT) Class VI permit application to the
EPA for the Carbon TerraVault VI (CTV VI) CO2 reservoir inCentral California bringing CTV's total potential storage capacity with Class VI permits submitted to theEPA to ~320 MMT. See CTV's Second Quarter 2024 Update for additional information
"These are exciting times for CRC as we successfully closed the merger with
Second Quarter 2024 Financial and Operating Summary
CRC reported net income of
Gross production averaged 93 MBoe/d and net production averaged 76 MBoe/d, including net oil production of 47 MBo/d. Second quarter net production was negatively impacted by approximately 3 Mboe/d due to both scheduled maintenance and unplanned downtime at
Operating costs declined 11% quarter-over-quarter to
Capital investments totaled
Second Quarter 2024 Financial Results
Selected Production, Price Information and Results of Operations |
2nd Quarter |
|
|
1st Quarter |
|
||||
($ in millions) |
|
2024 |
|
|
|
|
2024 |
|
|
|
|
|
|
|
|
||||
Average net oil production per day (MBbl/d) |
|
47 |
|
|
|
|
48 |
|
|
Realized oil price with derivative settlements ($ per Bbl) |
$ |
81.29 |
|
|
|
$ |
77.17 |
|
|
Average net NGL production per day (MBbl/d) |
|
10 |
|
|
|
|
11 |
|
|
Realized NGL price ($ per Bbl) |
$ |
46.96 |
|
|
|
$ |
50.5 |
|
|
Average net natural gas production per day (Mmcf/d) |
|
114 |
|
|
|
|
105 |
|
|
Realized natural gas price with derivative settlements ($ per Mcf) |
$ |
1.78 |
|
|
|
$ |
3.9 |
|
|
Average net total production per day (MBoe/d) |
|
76 |
|
|
|
|
76 |
|
|
|
|
|
|
|
|
||||
Margin from marketing of purchased commodities4 ($ millions) |
$ |
8 |
|
|
|
$ |
20 |
|
|
Margin from electricity sales5 ($ millions) |
$ |
22 |
|
|
|
$ |
7 |
|
|
Net gain (loss) from oil commodity derivatives ($ millions) |
$ |
5 |
|
|
|
$ |
(71 |
) |
|
Selected Financial Statement Data and non-GAAP measures: |
2nd Quarter |
|
|
1st Quarter |
|
||||
($ and shares in millions, except per share amounts) |
|
2024 |
|
|
|
|
2024 |
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|
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|
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|
||||
Statements of Operations: |
|
|
|
|
|
||||
Revenues |
|
|
|
|
|
||||
Total operating revenues |
$ |
514 |
|
|
|
$ |
454 |
|
|
|
|
|
|
|
|
||||
Selected Expenses |
|
|
|
|
|
||||
Operating costs |
$ |
156 |
|
|
|
$ |
176 |
|
|
General and administrative expenses |
$ |
63 |
|
|
|
$ |
57 |
|
|
Adjusted general and administrative expenses2 |
$ |
56 |
|
|
|
$ |
49 |
|
|
Taxes other than on income |
$ |
39 |
|
|
|
$ |
38 |
|
|
Transportation costs |
$ |
17 |
|
|
|
$ |
20 |
|
|
Operating Income (loss) |
$ |
38 |
|
|
|
$ |
(4 |
) |
|
Interest and debt expense |
$ |
(17 |
) |
|
|
$ |
(13 |
) |
|
Income tax benefit (provision) |
$ |
(3 |
) |
|
|
$ |
9 |
|
|
Net (loss) Income |
$ |
8 |
|
|
|
$ |
(10 |
) |
|
|
|
|
|
|
|
||||
EPS, Non-GAAP Measures and Select Balance Sheet Data |
|
|
|
|
|
||||
Adjusted net income2 |
$ |
42 |
|
|
|
$ |
54 |
|
|
Weighted-average common shares outstanding - diluted |
|
70.0 |
|
|
|
|
69.0 |
|
|
Net loss (income) per share - diluted |
$ |
0.11 |
|
|
|
$ |
(0.14 |
) |
|
Adjusted net income2 per share - diluted |
$ |
0.60 |
|
|
|
$ |
0.75 |
|
|
Adjusted EBITDAX2 |
$ |
139 |
|
|
|
$ |
149 |
|
|
Net cash provided by operating activities |
$ |
97 |
|
|
|
$ |
87 |
|
|
Net cash provided by operating activities before changes in operating assets and liabilities, net2 |
$ |
108 |
|
|
|
$ |
92 |
|
|
Capital investments |
$ |
34 |
|
|
|
$ |
54 |
|
|
Free cash flow2 |
$ |
63 |
|
|
|
$ |
33 |
|
|
Cash and cash equivalents |
$ |
1,031 |
|
|
|
|
403 |
|
|
Guidance
The following tables reflect guidance for key third quarter and second half 2024 financial and operating results. Guidance for the second half of 2024 includes approximately
CRC GUIDANCE3
|
Total 3Q24E |
Net Production (MBoe/d) |
141 - 145 |
Oil Production (%) |
~79% |
Capital ($ millions) |
|
Adjusted EBITDAX2 ($ millions) |
|
CRC GUIDANCE3
|
Total 2H24E |
Net Production (MBoe/d) |
140 - 146 |
Oil Production (%) |
~79% |
Capital ($ millions) |
|
Adjusted EBITDAX2 |
|
Shareholder Returns
CRC is committed to returning cash to shareholders through dividends and repurchases of common stock.
During the second quarter of 2024, CRC repurchased 0.7 million shares for
On
On
From
Balance Sheet and Liquidity
On
As of
On
Upcoming Investor Conference Participation
CRC plans to participate in the following events in
-
2024 Barclays CEO Energy-Power Conference on
September 3 to 5 inNew York, NY -
NYSE Energy Virtual Investor Access Day on
September 10 -
Pickering Energy Partners Energy Conference 2024 onSeptember 16 to 18 inAustin, TX -
2024
Goldman Sachs Global Sustainability Forum onSeptember 26 inNew York, NY
CRC’s presentation materials will be available the day of the events on the Events and Presentations page in the Investor Relations section on www.crc.com.
Conference Call Details
A conference call is scheduled for
1As of |
2 See Attachment 3 for the non-GAAP financial measures of operating costs per BOE (excluding effects of PSCs), adjusted net income (loss), adjusted net income (loss) per share - basic and diluted, net cash provided by operating activities before changes in operating assets and liabilities, net, adjusted EBITDAX, free cash flow and adjusted general and administrative expenses, including reconciliations to their most directly comparable GAAP measure, where applicable. For the 3Q24 estimates of the non-GAAP measures of adjusted EBITDAX and adjusted general and administrative expenses, including reconciliations to its most directly comparable GAAP measure, see Attachment 2. |
3 2H24 guidance assumes Brent price of |
4 Margin from Marketing of |
5 Electricity Margin is calculated as the difference between Electricity Sales and Electricity Generation Expenses |
About
About Carbon TerraVault
Forward-Looking Statements
This document contains statements that CRC believes to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical facts are forward-looking statements, and include statements regarding CRC's future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and plans and objectives of management for the future. Words such as “expect,” “could,” “may,” “anticipate,” “intend,” “plan,” “ability,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “guidance,” “outlook,” “opportunity” or “strategy” or similar expressions are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.
Although CRC believes the expectations and forecasts reflected in its forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond its control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause CRC's actual results to be materially different than those expressed in its forward-looking statements include:
- fluctuations in commodity prices, including supply and demand considerations for CRC's products and services, and the impact of such fluctuations on revenues and operating expenses;
-
decisions as to production levels and/or pricing by
OPEC orU.S. producers in future periods; -
government policy, war and political conditions and events, including the military conflicts in
Israel ,Ukraine andYemen and theRed Sea ; - the ability to successfully integrate Aera's business;
- regulatory actions and changes that affect the oil and gas industry generally and CRC in particular, including (1) the availability or timing of, or conditions imposed on, permits and approvals necessary for drilling or development activities or its carbon management business; (2) the management of energy, water, land, greenhouse gases (GHGs) or other emissions, (3) the protection of health, safety and the environment, or (4) the transportation, marketing and sale of CRC's products;
- the impact of inflation on future expenses and changes generally in the prices of goods and services;
- changes in business strategy and CRC's capital plan;
- lower-than-expected production or higher-than-expected production decline rates;
- changes to CRC's estimates of reserves and related future cash flows, including changes arising from its inability to develop such reserves in a timely manner, and any inability to replace such reserves;
- the recoverability of resources and unexpected geologic conditions;
- general economic conditions and trends, including conditions in the worldwide financial, trade and credit markets;
- production-sharing contracts' effects on production and operating costs;
- the lack of available equipment, service or labor price inflation;
- limitations on transportation or storage capacity and the need to shut-in wells;
- any failure of risk management;
- results from operations and competition in the industries in which CRC operates;
- CRC's ability to realize the anticipated benefits from prior or future efforts to reduce costs;
- environmental risks and liability under federal, regional, state, provincial, tribal, local and international environmental laws and regulations (including remedial actions);
- the creditworthiness and performance of CRC's counterparties, including financial institutions, operating partners, CCS project participants and other parties;
- reorganization or restructuring of CRC's operations;
- CRC's ability to claim and utilize tax credits or other incentives in connection with its CCS projects;
- CRC's ability to realize the benefits contemplated by its energy transition strategies and initiatives, including CCS projects and other renewable energy efforts;
- CRC's ability to successfully identify, develop and finance carbon capture and storage projects and other renewable energy efforts, including those in connection with the Carbon TerraVault JV, and its ability to convert its CDMAs to definitive agreements and enter into other offtake agreements;
- CRC's ability to maximize the value of its carbon management business and operate it on a stand alone basis;
- CRC's ability to successfully develop infrastructure projects and enter into third party contracts on contemplated terms;
- uncertainty around the accounting of emissions and its ability to successfully gather and verify emissions data and other environmental impacts;
- changes to CRC's dividend policy and share repurchase program, and its ability to declare future dividends or repurchase shares under its debt agreements;
- limitations on CRC's financial flexibility due to existing and future debt;
- insufficient cash flow to fund CRC's capital plan and other planned investments and return capital to shareholders;
- changes in interest rates;
- CRC's access to and the terms of credit in commercial banking and capital markets, including its ability to refinance its debt or obtain separate financing for its carbon management business;
- changes in state, federal or international tax rates, including CRC's ability to utilize its net operating loss carryforwards to reduce its income tax obligations;
- effects of hedging transactions;
- the effect of CRC's stock price on costs associated with incentive compensation;
- inability to enter into desirable transactions, including joint ventures, divestitures of oil and natural gas properties and real estate, and acquisitions, and CRC's ability to achieve any expected synergies;
- disruptions due to earthquakes, forest fires, floods, extreme weather events or other natural occurrences, accidents, mechanical failures, power outages, transportation or storage constraints, labor difficulties, cybersecurity breaches or attacks or other catastrophic events;
- pandemics, epidemics, outbreaks, or other public health events, such as the COVID-19 pandemic; and
-
other factors discussed in Part I, Item 1A – Risk Factors in CRC's Annual Report on Form 10-K and its other
SEC filings available at www.crc.com.
CRC cautions you not to place undue reliance on forward-looking statements contained in this document, which speak only as of the filing date, and it undertakes no obligation to update this information. This document may also contain information from third party sources. This data may involve a number of assumptions and limitations, and CRC has not independently verified them and does not warrant the accuracy or completeness of such third-party information.
Attachment 1 |
|||||||||||||||||||
SUMMARY OF RESULTS |
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|
2nd Quarter |
|
1st Quarter |
|
2nd Quarter |
|
Six Months |
|
Six Months |
||||||||||
($ and shares in millions, except per share amounts) |
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Statements of Operations: |
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
||||||||||
Oil, natural gas and NGL sales |
$ |
412 |
|
|
$ |
429 |
|
|
$ |
447 |
|
|
$ |
841 |
|
|
$ |
1,162 |
|
Net gain (loss) from commodity derivatives |
|
5 |
|
|
|
(71 |
) |
|
|
31 |
|
|
|
(66 |
) |
|
|
73 |
|
Revenue from marketing of purchased commodities |
|
51 |
|
|
|
74 |
|
|
|
72 |
|
|
|
125 |
|
|
|
259 |
|
Electricity sales |
|
36 |
|
|
|
15 |
|
|
|
34 |
|
|
|
51 |
|
|
|
102 |
|
Other revenue |
|
10 |
|
|
|
7 |
|
|
|
7 |
|
|
|
17 |
|
|
|
19 |
|
Total operating revenues |
|
514 |
|
|
|
454 |
|
|
|
591 |
|
|
|
968 |
|
|
|
1,615 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Expenses |
|
|
|
|
|
|
|
|
|
||||||||||
Operating costs |
|
156 |
|
|
|
176 |
|
|
|
186 |
|
|
|
332 |
|
|
|
440 |
|
General and administrative expenses |
|
63 |
|
|
|
57 |
|
|
|
71 |
|
|
|
120 |
|
|
|
136 |
|
Depreciation, depletion and amortization |
|
53 |
|
|
|
53 |
|
|
|
56 |
|
|
|
106 |
|
|
|
114 |
|
Asset impairment |
|
13 |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
|
|
3 |
|
Taxes other than on income |
|
39 |
|
|
|
38 |
|
|
|
42 |
|
|
|
77 |
|
|
|
84 |
|
Exploration expense |
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
Costs related to marketing of purchased commodities |
|
43 |
|
|
|
54 |
|
|
|
27 |
|
|
|
97 |
|
|
|
151 |
|
Electricity generation expenses |
|
14 |
|
|
|
8 |
|
|
|
13 |
|
|
|
22 |
|
|
|
62 |
|
Transportation costs |
|
17 |
|
|
|
20 |
|
|
|
16 |
|
|
|
37 |
|
|
|
33 |
|
Accretion expense |
|
13 |
|
|
|
12 |
|
|
|
11 |
|
|
|
25 |
|
|
|
23 |
|
Carbon management business expenses |
|
15 |
|
|
|
8 |
|
|
|
8 |
|
|
|
23 |
|
|
|
13 |
|
Other operating expenses, net |
|
51 |
|
|
|
37 |
|
|
|
13 |
|
|
|
88 |
|
|
|
21 |
|
Total operating expenses |
|
477 |
|
|
|
464 |
|
|
|
444 |
|
|
|
941 |
|
|
|
1,082 |
|
Net gain on asset divestitures |
|
1 |
|
|
|
6 |
|
|
|
— |
|
|
|
7 |
|
|
|
7 |
|
Operating Income (Loss) |
|
38 |
|
|
|
(4 |
) |
|
|
147 |
|
|
|
34 |
|
|
|
540 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-Operating (Expenses) Income |
|
|
|
|
|
|
|
|
|
||||||||||
Interest and debt expense |
|
(17 |
) |
|
|
(13 |
) |
|
|
(14 |
) |
|
|
(30 |
) |
|
|
(28 |
) |
Loss from investment in unconsolidated subsidiary |
|
(4 |
) |
|
|
(3 |
) |
|
|
(1 |
) |
|
|
(7 |
) |
|
|
(3 |
) |
Other non-operating (loss) income, net |
|
(6 |
) |
|
|
1 |
|
|
|
3 |
|
|
|
(5 |
) |
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income Before Income Taxes |
|
11 |
|
|
|
(19 |
) |
|
|
135 |
|
|
|
(8 |
) |
|
|
511 |
|
Income tax (provision) benefit |
|
(3 |
) |
|
|
9 |
|
|
|
(38 |
) |
|
|
6 |
|
|
|
(113 |
) |
Net Income |
$ |
8 |
|
|
$ |
(10 |
) |
|
$ |
97 |
|
|
$ |
(2 |
) |
|
$ |
398 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per share - basic |
$ |
0.12 |
|
|
$ |
(0.14 |
) |
|
$ |
1.39 |
|
|
$ |
(0.03 |
) |
|
$ |
5.65 |
|
Net income (loss) per share - diluted |
$ |
0.11 |
|
|
$ |
(0.14 |
) |
|
$ |
1.35 |
|
|
$ |
(0.03 |
) |
|
$ |
5.47 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net income |
$ |
42 |
|
|
$ |
54 |
|
|
$ |
38 |
|
|
$ |
96 |
|
|
$ |
231 |
|
Adjusted net income per share - basic |
$ |
0.62 |
|
|
$ |
0.78 |
|
|
$ |
0.55 |
|
|
$ |
1.40 |
|
|
$ |
3.28 |
|
Adjusted net income per share - diluted |
$ |
0.60 |
|
|
$ |
0.75 |
|
|
$ |
0.53 |
|
|
$ |
1.35 |
|
|
$ |
3.18 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average common shares outstanding - basic |
|
68.1 |
|
|
|
69.0 |
|
|
|
69.7 |
|
|
|
68.6 |
|
|
|
70.5 |
|
Weighted-average common shares outstanding - diluted |
|
70.0 |
|
|
|
69.0 |
|
|
|
71.9 |
|
|
|
68.6 |
|
|
|
72.7 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDAX |
$ |
139 |
|
|
$ |
149 |
|
|
$ |
138 |
|
|
$ |
288 |
|
|
$ |
496 |
|
Effective tax rate |
|
27 |
% |
|
|
45 |
% |
|
|
28 |
% |
|
|
75 |
% |
|
|
22 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
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||||||||||
|
2nd Quarter |
|
1st Quarter |
|
2nd Quarter |
|
YTD June |
|
YTD June |
||||||||||
($ in millions) |
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Cash Flow Data: |
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities |
$ |
97 |
|
|
$ |
87 |
|
|
$ |
108 |
|
|
$ |
184 |
|
|
$ |
418 |
|
Net cash used in investing activities |
$ |
(33 |
) |
|
$ |
(49 |
) |
|
$ |
(44 |
) |
|
$ |
(82 |
) |
|
$ |
(105 |
) |
Net cash provided (used) in financing activities |
$ |
564 |
|
|
$ |
(131 |
) |
|
$ |
(93 |
) |
|
$ |
433 |
|
|
$ |
(172 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
($ in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
||||||
Selected Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
||||||||||
Total current assets |
$ |
1,439 |
|
|
$ |
929 |
|
|
|
|
|
|
|
||||||
Property, plant and equipment, net |
$ |
2,773 |
|
|
$ |
2,770 |
|
|
|
|
|
|
|
||||||
Deferred tax asset |
$ |
139 |
|
|
$ |
132 |
|
|
|
|
|
|
|
||||||
Total current liabilities |
$ |
593 |
|
|
$ |
616 |
|
|
|
|
|
|
|
||||||
Long-term debt, net |
$ |
1,161 |
|
|
$ |
540 |
|
|
|
|
|
|
|
||||||
Noncurrent asset retirement obligations |
$ |
436 |
|
|
$ |
422 |
|
|
|
|
|
|
|
||||||
Stockholders' Equity |
$ |
2,052 |
|
|
$ |
2,219 |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
GAINS AND LOSSES FROM COMMODITY DERIVATIVES |
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||
|
2nd Quarter |
|
1st Quarter |
|
2nd Quarter |
YTD June |
|
YTD June |
|||||||||||
($ millions) |
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-cash derivative gain (loss) |
$ |
11 |
|
|
$ |
(59 |
) |
|
$ |
94 |
|
$ |
(48 |
) |
|
$ |
201 |
|
|
Net payments on settled commodity derivatives |
|
(6 |
) |
|
|
(12 |
) |
|
|
(63 |
) |
|
(18 |
) |
|
|
(128 |
) |
|
Net gain (loss) from commodity derivatives |
$ |
5 |
|
|
$ |
(71 |
) |
|
$ |
31 |
|
$ |
(66 |
) |
|
$ |
73 |
|
|
|
|
|
|
|
|
|
|
|
CAPITAL INVESTMENTS |
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
||||||
|
2nd Quarter |
|
1st Quarter |
|
2nd Quarter |
|
YTD June |
|
YTD June |
||||||
($ millions) |
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
|
|
|
|
|
|
|
|
|
|
||||||
Facilities (1) |
$ |
17 |
|
|
$ |
14 |
|
$ |
11 |
|
$ |
31 |
|
$ |
20 |
Drilling |
|
18 |
|
|
|
15 |
|
|
13 |
|
|
33 |
|
|
38 |
Workovers |
|
11 |
|
|
|
7 |
|
|
11 |
|
|
18 |
|
|
17 |
|
|
46 |
|
|
|
36 |
|
|
35 |
|
|
82 |
|
|
75 |
CMB (1) |
|
(2 |
) |
|
|
4 |
|
|
— |
|
|
2 |
|
|
1 |
Corporate and other |
|
(10 |
) |
|
|
14 |
|
|
4 |
|
|
4 |
|
|
10 |
Total capital program |
$ |
34 |
|
|
$ |
54 |
|
$ |
39 |
|
$ |
88 |
|
$ |
86 |
|
|
|
|
|
|
|
|
|
|
||||||
(1) Facilities capital includes |
|||||||||||||||
Capital for the three months ended |
|||||||||||||||
Attachment 2 |
|||||
CRC GUIDANCE |
Total
|
|
CMB
|
|
E&P, Corp. & Other
|
Net Production (MBoe/d) |
140 - 146 |
|
|
|
140 - 146 |
Oil Production (%) |
~79% |
|
|
|
~79% |
CMB Expenses & Operating Costs ($ millions) |
|
|
|
|
|
General and Administrative Expenses ($ millions) |
|
|
|
|
|
Adjusted General and Administrative Expenses ($ millions) |
|
|
|
|
|
Capital ($ millions) |
|
|
|
|
|
Drilling & completions, workover ($ millions) |
|
|
|
|
|
Facilities ($ millions) |
|
|
|
|
|
Carbon management business ($ millions) |
|
|
|
|
|
Corporate & other ($ millions) |
|
|
|
|
|
Adjusted EBITDAX ($ millions) |
|
|
|
|
|
|
|
|
|
|
|
Margin from Marketing of |
|
|
|
|
|
Electricity Margin ($ millions) (2) |
|
|
|
|
|
Other Operating Revenue & Expenses, net ($ millions)(3) |
( |
|
|
|
( |
Transportation Costs ($ millions) |
|
|
|
|
|
Taxes Other Than on Income ($ millions) |
|
|
|
|
|
Interest and Debt Expense ($ millions) |
|
|
|
|
|
|
|
|
|
|
|
Commodity Assumptions: |
|
|
|
|
|
Brent ($/Bbl) |
|
|
|
|
|
NYMEX ($/Mcf) |
|
|
|
|
|
Oil - % of Brent: |
94% to 98% |
|
|
|
94% to 98% |
NGL - % of Brent: |
52% to 58% |
|
|
|
52% to 58% |
Natural Gas - % of NYMEX: |
110% to 131% |
|
|
|
110% to 131% |
CRC GUIDANCE |
Total
|
|
CMB
|
|
E&P, Corp. & Other
|
Net Production (MBoe/d) |
141 - 145 |
|
|
|
141 - 145 |
Oil Production (%) |
~79% |
|
|
|
~79% |
CMB Expenses & Operating Costs ($ millions) |
|
|
|
|
|
General and Administrative Expenses ($ millions) |
|
|
|
|
|
Adjusted General and Administrative Expenses ($ millions) |
|
|
|
|
|
Capital ($ millions) |
|
|
|
|
|
Drilling & completions, workover ($ millions) |
|
|
|
|
|
Facilities ($ millions) |
|
|
|
|
|
Carbon management business ($ millions) |
|
|
|
|
|
Corporate & other ($ millions) |
|
|
|
|
|
Adjusted EBITDAX ($ millions) |
|
|
|
|
|
|
|
|
|
|
|
Margin from Marketing of |
|
|
|
|
|
Electricity Margin ($ millions) (2) |
|
|
|
|
|
Other Operating Revenue & Expenses, net ($ millions)(3) |
( |
|
|
|
( |
Transportation Costs ($ millions) |
|
|
|
|
|
Taxes Other Than on Income ($ millions) |
|
|
|
|
|
Interest and Debt Expense ($ millions) |
|
|
|
|
|
|
|
|
|
|
|
Commodity Assumptions: |
|
|
|
|
|
Brent ($/Bbl) |
|
|
|
|
|
NYMEX ($/Mcf) |
|
|
|
|
|
Oil - % of Brent: |
94% - 98% |
|
|
|
94% - 98% |
NGL - % of Brent: |
46% - 54% |
|
|
|
46% - 54% |
Natural Gas - % of NYMEX: |
100% - 114% |
|
|
|
100% - 114% |
(1) Margin from Marketing of |
|||||
(2) Electricity Margin is calculated as the difference between Electricity Sales and Electricity Generation Expenses. |
|||||
(3) Other Operating Revenue & Expenses, net is calculated as the difference between Other Revenue and Other Operating Expenses, net. Includes Aera merger and integration costs paid in 3Q24 and |
|||||
See Attachment 3 for management's disclosure of its use of these non-GAAP measures and how these measures provide useful information to investors about CRC's results of operations and financial condition. |
|||||
ESTIMATED ADJUSTED GENERAL AND ADMINISTRATIVE EXPENSES RECONCILIATION |
|||||||||||||||||||||||
|
2H24 Estimated |
||||||||||||||||||||||
|
Consolidated |
|
CMB |
|
E&P, Corporate & Other |
||||||||||||||||||
($ millions) |
Low |
|
High |
|
Low |
|
High |
|
Low |
|
High |
||||||||||||
General and administrative expenses |
$ |
190 |
|
|
$ |
210 |
|
|
$ |
3 |
|
|
$ |
5 |
|
|
$ |
187 |
|
|
$ |
205 |
|
Equity-settled stock-based compensation |
|
(23 |
) |
|
|
(23 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(22 |
) |
|
|
(22 |
) |
Other |
|
(2 |
) |
|
|
(2 |
) |
|
|
|
|
|
|
(2 |
) |
|
|
(2 |
) |
||||
Estimated adjusted general and administrative expenses |
$ |
165 |
|
|
$ |
185 |
|
|
$ |
2 |
|
|
$ |
4 |
|
|
$ |
163 |
|
|
$ |
181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q24 Estimated |
||||||||||||||||||||||
|
Consolidated |
|
CMB |
|
E&P, Corporate & Other |
||||||||||||||||||
($ millions) |
Low |
|
High |
|
Low |
|
High |
|
Low |
|
High |
||||||||||||
General and administrative expenses |
$ |
100 |
|
|
$ |
120 |
|
|
$ |
2 |
|
|
$ |
4 |
|
|
$ |
98 |
|
|
$ |
116 |
|
Equity-settled stock-based compensation |
|
(19 |
) |
|
|
(20 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(18 |
) |
|
|
(18 |
) |
Other |
|
(1 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
(1 |
) |
|
|
(1 |
) |
||||
Estimated adjusted general and administrative expenses |
$ |
80 |
|
|
$ |
99 |
|
|
$ |
1 |
|
|
$ |
2 |
|
|
$ |
79 |
|
|
$ |
97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ESTIMATED ADJUSTED EBITDAX RECONCILIATION |
||||||
|
||||||
|
|
2H24E |
||||
($ millions) |
|
Low |
|
High |
||
Net income |
|
$ |
152 |
|
$ |
162 |
Interest and debt expense, net |
|
|
53 |
|
|
58 |
Depreciation, depletion and amortization |
|
|
310 |
|
|
315 |
Income taxes |
|
|
55 |
|
|
62 |
Unusual, infrequent and other items |
|
|
83 |
|
|
88 |
Other non-cash items |
|
|
|
|
||
Accretion expense |
|
|
54 |
|
|
58 |
Stock-settled compensation |
|
|
10 |
|
|
14 |
Post-retirement medical and pension |
|
|
3 |
|
|
3 |
Estimated adjusted EBITDAX |
|
$ |
720 |
|
$ |
760 |
|
|
|
|
|
||
Net cash provided by operating activities |
|
$ |
480 |
|
$ |
500 |
Cash interest |
|
|
48 |
|
|
54 |
Cash income taxes |
|
|
58 |
|
|
66 |
Working capital changes |
|
|
134 |
|
|
140 |
Estimated adjusted EBITDAX |
|
$ |
720 |
|
$ |
760 |
|
||||||
|
|
3Q24E |
||||
($ millions) |
|
Low |
|
High |
||
Net income |
|
$ |
45 |
|
$ |
65 |
Interest and debt expense, net |
|
|
25 |
|
|
29 |
Depreciation, depletion and amortization |
|
|
156 |
|
|
160 |
Income taxes |
|
|
16 |
|
|
20 |
Unusual, infrequent and other items |
|
|
102 |
|
|
106 |
Other non-cash items |
|
|
|
|
||
Accretion expense |
|
|
26 |
|
|
28 |
Stock-settled compensation |
|
|
5 |
|
|
7 |
Post-retirement medical and pension |
|
|
0 |
|
|
0 |
Estimated adjusted EBITDAX |
|
$ |
375 |
|
$ |
415 |
|
|
|
|
|
||
Net cash provided by operating activities |
|
$ |
270 |
|
$ |
290 |
Cash interest |
|
|
19 |
|
|
23 |
Cash income taxes |
|
|
27 |
|
|
31 |
Working capital changes |
|
|
59 |
|
|
71 |
Estimated adjusted EBITDAX |
|
$ |
375 |
|
$ |
415 |
Attachment 3 |
||||||||
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS |
||||||||
|
||||||||
To supplement the presentation of its financial results prepared in accordance with |
||||||||
|
|
|
|
|
|
|
|
|
ADJUSTED NET INCOME (LOSS) |
|
|
|
|
|
|
|
|
|
||||||||||
|
|||||||||||||||||||
Adjusted net income (loss) and adjusted net income (loss) per share are non-GAAP measures. CRC defines adjusted net income as net income excluding the effects of significant transactions and events that affect earnings but vary widely and unpredictably in nature, timing and amount. These events may recur, even across successive reporting periods. Management believes these non-GAAP measures provide useful information to the industry and the investment community interested in comparing CRC's financial performance between periods. Reported earnings are considered representative of management's performance over the long term. Adjusted net income (loss) is not considered to be an alternative to net income (loss) reported in accordance with GAAP. The following table presents a reconciliation of the GAAP financial measure of net income and net income attributable to common stock per share to the non-GAAP financial measure of adjusted net income and adjusted net income per share. |
|||||||||||||||||||
|
|
|
|
||||||||||||||||
|
2nd Quarter |
|
1st Quarter |
|
2nd Quarter |
|
YTD June |
|
YTD June |
||||||||||
($ millions, except per share amounts) |
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) |
$ |
8 |
|
|
$ |
(10 |
) |
|
$ |
97 |
|
|
$ |
(2 |
) |
|
$ |
398 |
|
Unusual, infrequent and other items: |
|
|
|
|
|
|
|
|
|
||||||||||
Non-cash derivative (gain) loss |
|
(11 |
) |
|
|
59 |
|
|
|
(94 |
) |
|
|
48 |
|
|
|
(201 |
) |
Asset impairment |
|
13 |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
|
|
3 |
|
Severance and termination costs |
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
1 |
|
|
|
3 |
|
Aera merger transaction fees |
|
5 |
|
|
|
10 |
|
|
|
— |
|
|
|
15 |
|
|
|
— |
|
Aera merger integration fees |
|
8 |
|
|
|
3 |
|
|
|
— |
|
|
|
11 |
|
|
|
— |
|
Increased power and fuel costs due to power plant shutdown |
|
15 |
|
|
|
21 |
|
|
|
— |
|
|
|
36 |
|
|
|
— |
|
Net gain on asset divestitures |
|
(1 |
) |
|
|
(6 |
) |
|
|
— |
|
|
|
(7 |
) |
|
|
(7 |
) |
Other, net |
|
17 |
|
|
|
2 |
|
|
|
10 |
|
|
|
19 |
|
|
|
13 |
|
Total unusual, infrequent and other items |
|
47 |
|
|
|
89 |
|
|
|
(82 |
) |
|
|
136 |
|
|
|
(189 |
) |
Income tax (benefit) provision of adjustments at effective tax rate |
|
(13 |
) |
|
|
(25 |
) |
|
|
23 |
|
|
|
(38 |
) |
|
|
53 |
|
Income tax (benefit) provision - out of period |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(31 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net income |
$ |
42 |
|
|
$ |
54 |
|
|
$ |
38 |
|
|
$ |
96 |
|
|
$ |
231 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per share - basic |
$ |
0.12 |
|
|
$ |
(0.14 |
) |
|
$ |
1.39 |
|
|
$ |
(0.03 |
) |
|
$ |
5.65 |
|
Net income (loss) per share - diluted |
$ |
0.11 |
|
|
$ |
(0.14 |
) |
|
$ |
1.35 |
|
|
$ |
(0.03 |
) |
|
$ |
5.47 |
|
Adjusted net income per share - basic |
$ |
0.62 |
|
|
$ |
0.78 |
|
|
$ |
0.55 |
|
|
$ |
1.40 |
|
|
$ |
3.28 |
|
Adjusted net income per share - diluted |
$ |
0.60 |
|
|
$ |
0.75 |
|
|
$ |
0.53 |
|
|
$ |
1.35 |
|
|
$ |
3.18 |
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDAX |
|
|
|
|
|
|
|
|||||||||||||
|
||||||||||||||||||||
CRC defines Adjusted EBITDAX as earnings before interest expense; income taxes; depreciation, depletion and amortization; exploration expense; other unusual, infrequent and out-of-period items; and other non-cash items. CRC believes this measure provides useful information in assessing its financial condition, results of operations and cash flows and is widely used by the industry, the investment community and its lenders. Although this is a non-GAAP measure, the amounts included in the calculation were computed in accordance with GAAP. Certain items excluded from this non-GAAP measure are significant components in understanding and assessing CRC’s financial performance, such as its cost of capital and tax structure, as well as depreciation, depletion and amortization of CRC's assets. This measure should be read in conjunction with the information contained in CRC’s financial statements prepared in accordance with GAAP. A version of Adjusted EBITDAX is a material component of certain of its financial covenants under CRC's Revolving Credit Facility and is provided in addition to, and not as an alternative for, income and liquidity measures calculated in accordance with GAAP.
The following table represents a reconciliation of the GAAP financial measures of net income and net cash provided by operating activities to the non-GAAP financial measure of adjusted EBITDAX. CRC has supplemented its non-GAAP measures of consolidated adjusted EBITDAX with adjusted EBITDAX for its exploration and production and corporate items (Adjusted EBITDAX for E&P, Corporate & Other) which management believes is a useful measure for investors to understand the results of the core oil and gas business. CRC defines adjusted EBITDAX for E&P, Corporate & Other as consolidated adjusted EBITDAX less results attributable to its carbon management business (CMB).
|
||||||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
2nd Quarter |
|
1st Quarter |
|
|
2nd Quarter |
|
YTD June |
|
YTD June |
||||||||||
($ millions, except per BOE amounts) |
|
2024 |
|
|
|
2024 |
|
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) |
$ |
8 |
|
|
$ |
(10 |
) |
|
|
$ |
97 |
|
|
$ |
(2 |
) |
|
$ |
398 |
|
Interest and debt expense |
|
17 |
|
|
|
13 |
|
|
|
|
14 |
|
|
|
30 |
|
|
|
28 |
|
Depreciation, depletion and amortization |
|
53 |
|
|
|
53 |
|
|
|
|
56 |
|
|
|
106 |
|
|
|
114 |
|
Income tax provision (benefit) |
|
3 |
|
|
|
(9 |
) |
|
|
|
38 |
|
|
|
(6 |
) |
|
|
113 |
|
Exploration expense |
|
— |
|
|
|
1 |
|
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
Interest income |
|
(8 |
) |
|
|
(6 |
) |
|
|
|
(5 |
) |
|
|
(14 |
) |
|
|
(9 |
) |
Unusual, infrequent and other items (1) |
|
47 |
|
|
|
89 |
|
|
|
|
(82 |
) |
|
|
136 |
|
|
|
(189 |
) |
Non-cash items |
|
|
|
|
|
|
|
|
|
|
||||||||||
Accretion expense |
|
13 |
|
|
|
12 |
|
|
|
|
11 |
|
|
|
25 |
|
|
|
23 |
|
Stock-based compensation |
|
6 |
|
|
|
5 |
|
|
|
|
8 |
|
|
|
11 |
|
|
|
15 |
|
Post-retirement medical and pension |
|
— |
|
|
|
1 |
|
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
Adjusted EBITDAX |
$ |
139 |
|
|
$ |
149 |
|
|
|
$ |
138 |
|
|
$ |
288 |
|
|
$ |
496 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities |
$ |
97 |
|
|
$ |
87 |
|
|
|
$ |
108 |
|
|
$ |
184 |
|
|
$ |
418 |
|
Cash interest payments |
|
1 |
|
|
|
21 |
|
|
|
|
2 |
|
|
|
22 |
|
|
|
25 |
|
Cash interest received |
|
(8 |
) |
|
|
(6 |
) |
|
|
|
(5 |
) |
|
|
(14 |
) |
|
|
(9 |
) |
Cash income taxes |
|
4 |
|
|
|
22 |
|
|
|
|
51 |
|
|
|
26 |
|
|
|
51 |
|
Exploration expenditures |
|
— |
|
|
|
1 |
|
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
Adjustments to working capital changes |
|
45 |
|
|
|
24 |
|
|
|
|
(19 |
) |
|
|
69 |
|
|
|
9 |
|
Adjusted EBITDAX |
$ |
139 |
|
|
$ |
149 |
|
|
|
$ |
138 |
|
|
$ |
288 |
|
|
$ |
496 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
E&P, Corporate & Other Adjusted EBITDAX |
$ |
160 |
|
|
$ |
162 |
|
|
|
$ |
151 |
|
|
$ |
322 |
|
|
$ |
518 |
|
CMB Adjusted EBITDAX |
$ |
(21 |
) |
|
$ |
(13 |
) |
|
|
$ |
(13 |
) |
|
$ |
(34 |
) |
|
$ |
(22 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDAX per Boe |
$ |
20.23 |
|
|
$ |
21.47 |
|
|
|
$ |
17.59 |
|
|
$ |
20.86 |
|
|
$ |
31.23 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) See Adjusted Net Income (Loss) reconciliation. |
FREE CASH FLOW AND SUPPLEMENTAL CASH FLOW MEASURES |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Management uses free cash flow, which is defined by CRC as net cash provided by operating activities less capital investments, as a measure of liquidity. The following table presents a reconciliation of CRC's net cash provided by operating activities to free cash flow. CRC supplemented its non-GAAP measure of free cash flow with (i) net cash provided by operating activities before changes in operating assets and liabilities, net, (ii) adjusted free cash flow, and (iii) adjusted free cash flow of exploration and production, and corporate and other items (Free Cash Flow for E&P, Corporate & Other), which it believes is a useful measure for investors to understand the results of CRC's core oil and gas business. CRC defines Free Cash Flow for E&P, Corporate & Other as consolidated free cash flow less results attributable to its carbon management business (CMB). CRC defines adjusted free cash flow as free cash flow before transaction and integration costs from the Aera Merger. |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
2nd Quarter |
|
1st Quarter |
|
2nd Quarter |
|
YTD June |
|
YTD June |
||||||||||
($ millions) |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities before working capital changes |
|
$ |
108 |
|
|
$ |
92 |
|
|
$ |
98 |
|
|
$ |
200 |
|
|
$ |
414 |
|
Working capital changes |
|
|
(11 |
) |
|
|
(5 |
) |
|
|
10 |
|
|
|
(16 |
) |
|
|
4 |
|
Net cash provided by operating activities |
|
|
97 |
|
|
|
87 |
|
|
|
108 |
|
|
|
184 |
|
|
|
418 |
|
Capital investments |
|
|
(34 |
) |
|
|
(54 |
) |
|
|
(39 |
) |
|
|
(88 |
) |
|
|
(86 |
) |
Free cash flow |
|
$ |
63 |
|
|
$ |
33 |
|
|
$ |
69 |
|
|
$ |
96 |
|
|
$ |
332 |
|
Add: Aera transaction and integration costs |
|
|
13 |
|
|
|
13 |
|
|
|
— |
|
|
|
26 |
|
|
|
— |
|
|
|
$ |
76 |
|
|
$ |
46 |
|
|
$ |
69 |
|
|
$ |
122 |
|
|
$ |
332 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
E&P, Corporate and Other (1) |
|
$ |
95 |
|
|
$ |
53 |
|
|
$ |
78 |
|
|
$ |
148 |
|
|
$ |
348 |
|
CMB (1) |
|
$ |
(19 |
) |
|
$ |
(7 |
) |
|
$ |
(9 |
) |
|
$ |
(26 |
) |
|
$ |
(16 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjustments to capital investments: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Replacement water facilities(2) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
2 |
|
Adjusted capital investments: |
|
|
|
|
|
|
|
|
|
|
||||||||||
E&P, Corporate and Other |
|
$ |
36 |
|
|
$ |
50 |
|
|
$ |
38 |
|
|
$ |
86 |
|
|
$ |
83 |
|
CMB |
|
$ |
(2 |
) |
|
$ |
4 |
|
|
$ |
1 |
|
|
$ |
2 |
|
|
$ |
3 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted free cash flow: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
||||||||||||||||||||
E&P, Corporate and Other |
|
$ |
95 |
|
|
$ |
53 |
|
|
$ |
79 |
|
|
$ |
148 |
|
|
$ |
350 |
|
CMB |
|
$ |
(19 |
) |
|
$ |
(7 |
) |
|
$ |
(10 |
) |
|
$ |
(26 |
) |
|
$ |
(18 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) CMB free cash flow previously reported for the first three months of 2024 was |
||||||||||||||||||||
(2) Facilities capital includes
|
ADJUSTED GENERAL & ADMINISTRATIVE EXPENSES |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Management uses a measure called adjusted general and administrative (G&A) expenses to provide useful information to investors interested in comparing CRC's costs between periods and performance to our peers. CRC supplemented its non-GAAP measure of adjusted general and administrative expenses with adjusted general and administrative expenses of its exploration and production and corporate items (adjusted general & administrative expenses for E&P, Corporate & Other) which it believes is a useful measure for investors to understand the results or CRC's core oil and gas business. CRC defines adjusted general & administrative Expenses for E&P, Corporate & Other as consolidated adjusted general and administrative expenses less results attributable to its carbon management business (CMB). |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
2nd Quarter |
|
1st Quarter |
|
2nd Quarter |
|
YTD June |
|
YTD June |
||||||||||
($ millions) |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
General and administrative expenses |
|
$ |
63 |
|
|
$ |
57 |
|
|
$ |
71 |
|
|
$ |
120 |
|
|
$ |
136 |
|
Stock-based compensation |
|
|
(6 |
) |
|
|
(5 |
) |
|
|
(8 |
) |
|
|
(11 |
) |
|
|
(15 |
) |
Information technology infrastructure |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(6 |
) |
|
|
(3 |
) |
|
|
(9 |
) |
Other |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
Adjusted G&A expenses |
|
$ |
56 |
|
|
$ |
49 |
|
|
$ |
57 |
|
|
$ |
105 |
|
|
$ |
112 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
E&P, Corporate and Other adjusted G&A expenses |
|
$ |
53 |
|
|
$ |
47 |
|
|
$ |
54 |
|
|
$ |
100 |
|
|
$ |
106 |
|
CMB adjusted G&A expenses |
|
$ |
3 |
|
|
$ |
2 |
|
|
$ |
3 |
|
|
$ |
5 |
|
|
$ |
6 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING COSTS PER BOE |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
The reporting of PSC-type contracts creates a difference between reported operating costs, which are for the full field, and reported volumes, which are only CRC's net share, inflating the per barrel operating costs. The following table presents operating costs after adjusting for the excess costs attributable to PSCs. |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
2nd Quarter |
|
1st Quarter |
|
2nd Quarter |
|
YTD June |
|
YTD June |
||||||||||
($ per BOE) |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Energy operating costs (1) |
|
$ |
6.40 |
|
|
$ |
8.07 |
|
|
$ |
7.39 |
|
|
$ |
7.24 |
|
|
$ |
11.52 |
|
Gas processing costs (2) |
|
|
0.44 |
|
|
|
0.58 |
|
|
|
0.64 |
|
|
|
0.51 |
|
|
|
0.63 |
|
Non-energy operating costs |
|
|
16.30 |
|
|
|
17.15 |
|
|
|
15.68 |
|
|
|
16.73 |
|
|
|
15.56 |
|
Operating costs |
|
$ |
23.14 |
|
|
$ |
25.80 |
|
|
$ |
23.71 |
|
|
$ |
24.48 |
|
|
$ |
27.71 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Costs attributable to PSCs |
|
|
|
|
|
|
|
|
|
|
||||||||||
Excess energy operating costs attributable to PSCs |
|
$ |
(0.94 |
) |
|
$ |
(0.99 |
) |
|
$ |
(0.91 |
) |
|
$ |
(0.97 |
) |
|
$ |
(0.98 |
) |
Excess non-energy operating costs attributable to PSCs |
|
|
(1.62 |
) |
|
|
(1.55 |
) |
|
|
(1.24 |
) |
|
|
(1.58 |
) |
|
|
(1.21 |
) |
Excess costs attributable to PSCs |
|
$ |
(2.56 |
) |
|
$ |
(2.54 |
) |
|
$ |
(2.15 |
) |
|
$ |
(2.55 |
) |
|
$ |
(2.19 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Energy operating costs, excluding effect of PSCs (1) |
|
$ |
5.46 |
|
|
$ |
7.08 |
|
|
$ |
6.48 |
|
|
$ |
6.27 |
|
|
$ |
10.54 |
|
Gas processing costs, excluding effect of PSCs (2) |
|
|
0.44 |
|
|
|
0.58 |
|
|
|
0.64 |
|
|
|
0.51 |
|
|
|
0.63 |
|
Non-energy operating costs, excluding effect of PSCs |
|
|
14.68 |
|
|
|
15.60 |
|
|
|
14.44 |
|
|
|
15.15 |
|
|
|
14.35 |
|
Operating costs, excluding effects of PSCs |
|
$ |
20.58 |
|
|
$ |
23.26 |
|
|
$ |
21.56 |
|
|
$ |
21.93 |
|
|
$ |
25.52 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) Energy operating costs consist of purchased natural gas used to generate electricity for operations and steamfloods, purchased electricity and internal costs to generate electricity used in CRC's operations. |
||||||||||||||||||||
(2) Gas processing costs include costs associated with compression, maintenance and other activities needed to run CRC's gas processing facilities at |
||||||||||||||||||||
|
Attachment 4 |
||||||||||
PRODUCTION STATISTICS |
|
|
|
|
|
|
|
|
|
|
|
|
2nd Quarter |
|
1st Quarter |
|
2nd Quarter |
|
YTD June |
|
YTD June |
Net Production Per Day |
|
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Oil (MBbl/d) |
|
|
|
|
|
|
|
|
|
|
|
|
30 |
|
30 |
|
34 |
|
30 |
|
35 |
|
|
17 |
|
18 |
|
19 |
|
17 |
|
19 |
Total |
|
47 |
|
48 |
|
53 |
|
47 |
|
54 |
|
|
|
|
|
|
|
|
|
|
|
NGLs (MBbl/d) |
|
|
|
|
|
|
|
|
|
|
|
|
10 |
|
11 |
|
11 |
|
11 |
|
11 |
Total |
|
10 |
|
11 |
|
11 |
|
11 |
|
11 |
|
|
|
|
|
|
|
|
|
|
|
Natural Gas (MMcf/d) |
|
|
|
|
|
|
|
|
|
|
|
|
99 |
|
90 |
|
119 |
|
94 |
|
119 |
|
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
|
14 |
|
14 |
|
15 |
|
14 |
|
16 |
Total |
|
114 |
|
105 |
|
135 |
|
109 |
|
136 |
|
|
|
|
|
|
|
|
|
|
|
Total Production (MBoe/d) |
|
76 |
|
76 |
|
86 |
|
76 |
|
88 |
|
|
|
|
|
|
|
|
|
|
|
Gross Operated and Net Non-Operated |
|
2nd Quarter |
|
1st Quarter |
|
2nd Quarter |
|
YTD June |
|
YTD June |
Production Per Day |
|
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Oil (MBbl/d) |
|
|
|
|
|
|
|
|
|
|
|
|
33 |
|
34 |
|
38 |
|
33 |
|
39 |
|
|
24 |
|
24 |
|
25 |
|
24 |
|
25 |
Total |
|
57 |
|
58 |
|
63 |
|
57 |
|
64 |
|
|
|
|
|
|
|
|
|
|
|
NGLs (MBbl/d) |
|
|
|
|
|
|
|
|
|
|
|
|
11 |
|
11 |
|
12 |
|
11 |
|
12 |
Total |
|
11 |
|
11 |
|
12 |
|
11 |
|
12 |
|
|
|
|
|
|
|
|
|
|
|
Natural Gas (MMcf/d) |
|
|
|
|
|
|
|
|
|
|
|
|
125 |
|
128 |
|
136 |
|
127 |
|
135 |
|
|
7 |
|
7 |
|
7 |
|
7 |
|
7 |
|
|
17 |
|
17 |
|
19 |
|
17 |
|
20 |
Total |
|
149 |
|
152 |
|
162 |
|
151 |
|
162 |
|
|
|
|
|
|
|
|
|
|
|
Total Production (MBoe/d) |
|
93 |
|
94 |
|
103 |
|
93 |
|
103 |
|
|
|
|
|
|
|
|
|
|
|
|
Attachment 5 |
|||||||||||||||||||
PRICE STATISTICS |
|
|
|
|
|
|
|
|
|
||||||||||
|
2nd Quarter |
|
1st Quarter |
|
2nd Quarter |
|
YTD June |
|
YTD June |
||||||||||
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Oil ($ per Bbl) |
|
|
|
|
|
|
|
|
|
||||||||||
Realized price with derivative settlements |
$ |
81.29 |
|
|
$ |
77.17 |
|
|
$ |
63.66 |
|
|
$ |
79.20 |
|
|
$ |
63.35 |
|
Realized price without derivative settlements |
$ |
83.14 |
|
|
$ |
80.16 |
|
|
$ |
75.77 |
|
|
$ |
81.63 |
|
|
$ |
77.25 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NGLs ($/Bbl) |
$ |
46.96 |
|
|
$ |
50.50 |
|
|
$ |
42.48 |
|
|
$ |
48.76 |
|
|
$ |
50.88 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Natural gas ($/Mcf) |
|
|
|
|
|
|
|
|
|
||||||||||
Realized price with derivative settlements |
$ |
1.78 |
|
|
$ |
3.90 |
|
|
$ |
3.46 |
|
|
$ |
2.81 |
|
|
$ |
12.44 |
|
Realized price without derivative settlements |
$ |
1.78 |
|
|
$ |
3.90 |
|
|
$ |
3.46 |
|
|
$ |
2.81 |
|
|
$ |
12.44 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Index Prices |
|
|
|
|
|
|
|
|
|
||||||||||
Brent oil ($/Bbl) |
$ |
85.00 |
|
|
$ |
81.84 |
|
|
$ |
78.01 |
|
|
$ |
83.42 |
|
|
$ |
80.12 |
|
WTI oil ($/Bbl) |
$ |
80.57 |
|
|
$ |
76.96 |
|
|
$ |
73.78 |
|
|
$ |
78.77 |
|
|
$ |
74.95 |
|
NYMEX average monthly settled price ($/MMBtu) |
$ |
1.89 |
|
|
$ |
2.24 |
|
|
$ |
2.10 |
|
|
$ |
2.07 |
|
|
$ |
2.76 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Realized Prices as Percentage of Index Prices |
|
|
|
|
|
|
|
|
|
||||||||||
Oil with derivative settlements as a percentage of Brent |
|
96 |
% |
|
|
94 |
% |
|
|
82 |
% |
|
|
95 |
% |
|
|
79 |
% |
Oil without derivative settlements as a percentage of Brent |
|
98 |
% |
|
|
98 |
% |
|
|
97 |
% |
|
|
98 |
% |
|
|
96 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil with derivative settlements as a percentage of WTI |
|
101 |
% |
|
|
100 |
% |
|
|
86 |
% |
|
|
101 |
% |
|
|
85 |
% |
Oil without derivative settlements as a percentage of WTI |
|
103 |
% |
|
|
104 |
% |
|
|
103 |
% |
|
|
104 |
% |
|
|
103 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
NGLs as a percentage of Brent |
|
55 |
% |
|
|
62 |
% |
|
|
54 |
% |
|
|
58 |
% |
|
|
64 |
% |
NGLs as a percentage of WTI |
|
58 |
% |
|
|
66 |
% |
|
|
58 |
% |
|
|
62 |
% |
|
|
68 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Natural gas with derivative settlements as a percentage of NYMEX contract month average |
|
94 |
% |
|
|
174 |
% |
|
|
165 |
% |
|
|
136 |
% |
|
|
451 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Natural gas without derivative settlements as a percentage of NYMEX contract month average |
|
94 |
% |
|
|
174 |
% |
|
|
165 |
% |
|
|
136 |
% |
|
|
451 |
% |
Attachment 6 |
|||||||||
SECOND QUARTER 2024 DRILLING ACTIVITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Drilled |
Basin |
|
Basin |
|
Basin |
|
Basin |
|
Total |
|
|
|
|
|
|
|
|
|
|
Development Wells |
|
|
|
|
|
|
|
|
|
Primary |
3 |
|
— |
|
— |
|
— |
|
3 |
Waterflood |
— |
|
— |
|
— |
|
— |
|
— |
Steamflood |
— |
|
— |
|
— |
|
— |
|
— |
Total (1) |
3 |
|
— |
|
— |
|
— |
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SIX MONTHS 2024 DRILLING ACTIVITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Drilled |
Basin |
|
Basin |
|
Basin |
|
Basin |
|
Total |
|
|
|
|
|
|
|
|
|
|
Development Wells |
|
|
|
|
|
|
|
|
|
Primary |
5 |
|
— |
|
— |
|
— |
|
5 |
Waterflood |
— |
|
— |
|
— |
|
— |
|
— |
Steamflood |
— |
|
— |
|
— |
|
— |
|
— |
Total (1) |
5 |
|
— |
|
— |
|
— |
|
5 |
|
|
|
|
|
|
|
|
|
|
(1) Includes steam injectors and drilled but uncompleted wells, which are not included in the |
|||||||||
|
|
|
|
|
|
|
|
Attachment 7 |
||
OIL HEDGES AS OF |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2024 |
|
Q4 2024 |
|
Q1 2025 |
|
Q2 2025 |
|
2H 2025 |
|
|
|
|
|
|
|
|
|
|
|
Sold Calls |
|
|
|
|
|
|
|
|
|
|
Barrels per day |
|
30,000 |
|
29,000 |
|
30,000 |
|
30,000 |
|
29,500 |
Weighted-average Brent price per barrel |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Swaps |
|
|
|
|
|
|
|
|
|
|
Barrels per day |
|
8,875 |
|
8,875 |
|
5,250 |
|
3,500 |
|
3,250 |
Weighted-average Brent price per barrel |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased Puts |
|
|
|
|
|
|
|
|
|
|
Barrels per day |
|
30,000 |
|
29,000 |
|
30,000 |
|
30,000 |
|
29,500 |
Weighted-average Brent price per barrel |
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806459431/en/
818-661-3731
Joanna.Park@crc.com
818-661-6014
Richard.Venn@crc.com
Source: