CRC Delivers Record Cash Flow and Free Cash
Flow per Share Annual Results
California Resources Corporation (NYSE: CRC) today reported
financial and operating results for the fourth quarter and
full-year 2023. The Company plans to host a conference call and
webcast on Wednesday, February 28th at 1:00 p.m. Eastern Time
(10:00 a.m. Pacific Time). Participation details can be found
within this release. In addition, supplemental slides are posted to
CRC’s website at www.crc.com.
2023 Highlights:
- Generated $653 million of net cash from operating activities
and $468 million of free cash flow1
- Demonstrated strong capital efficiency with lower-than-expected
total capital of $185 million delivering 6% entry to exit gross
production decline
- Reported net income of $564 million, or $7.78 per diluted
share. When adjusted for items analysts typically exclude from
estimates (including gains on asset divestitures, business
transformation costs and mark-to-market adjustments on commodity
derivative contracts) adjusted net income1 was $372 million, or
$5.13 per share
- Average annual net production of 86 thousand barrels of oil
equivalent per day (MBoe/d). Oil production averaged 52 thousand
barrels of oil per day (MBo/d)
- Returned $280 million to stakeholders, more than half of 2023
free cash flow1, through share repurchases, debt repurchases and
dividends
- Exited 2023 with a leverage ratio1 of 0.1 times, down from 0.3
times at year-end 2022
- Through the business transformation initiative, strengthened
future outlook by achieving $65 million in annual, sustainable cost
savings
- Announced receipt of California’s first U.S. Environmental
Protection Agency (EPA) draft Class VI well permits for underground
carbon dioxide (CO2) injection and storage at Elk Hills. See Carbon
TerraVault's 2023 Update for additional information
"Our 2023 results were exceptional, and our teams executed on
our plan to build a stronger CRC while creating long-term value for
all stakeholders," said Francisco Leon, CRC’s President and Chief
Executive Officer. “We profitably grew our business and generated
significant free cash flow that maintained our premier balance
sheet and allowed us to prioritize cash returns to our
shareholders. Our focus now is on securing the requisite approvals
to close the recently announced merger with Aera Energy, while
preparing for integration of their experienced team members and
high value assets into CRC after closing. The Aera merger will
provide CRC greater operating scale for the entire business,
thereby improving our operating cash flows and liquidity profile.
The Aera assets will also enhance CRC’s carbon management business
from which CRC will accelerate the decarbonization of
California.”
Fourth Quarter 2023 Financial and
Operating Summary
The Company reported fourth quarter net cash from operating
activities of $131 million and free cash flow1 of $65 million. Net
income for the period was $188 million, or $2.60 per diluted share
of common stock, and adjusted net income1 was $67 million, or $0.93
per diluted share. Adjusted EBITDAX1 was $179 million.
CRC’s daily gross production in the fourth quarter averaged 98
MBoe/d. Net production averaged 83 MBoe/d, including 50 MBo/d.
Average realized oil prices during the period were 99% of
Brent.
Operating costs in the fourth quarter of 2023 averaged $24.49
per Boe, compared to $24.96 per Boe in the third quarter of 2023
and reflect a positive impact of recent organizational changes. In
August 2023, CRC took actions to better align its resources to
strategic priorities and improve operational efficiency. The
Company realized approximately $15 million of savings in the fourth
quarter and expects these actions to result in approximately $65
million of savings in operating costs and general and
administrative expenses on an annualized basis.
Capital investments in the fourth quarter were in line with
expectations and totaled $66 million. Capital allocation during the
period was focused on a one-rig program in the Los Angeles
basin.
Fourth Quarter and Full Year Financial
Results
Selected Production, Price Information
and Results of Operations
4th Quarter
3rd Quarter
Total Year
Total year
($ in millions)
2023
2023
2023
2022
Average net oil production per day
(MBbl/d)
50
51
52
55
Realized oil price with derivative
settlements ($ per Bbl)
$
71.34
$
66.12
$
65.97
$
61.8
Average net NGL production per day
(MBbl/d)
11
11
11
11
Realized NGL price ($ per Bbl)
$
49.08
$
44.95
$
48.94
$
64.33
Average net natural gas production per day
(Mmcf/d)
130
138
135
147
Realized natural gas price with derivative
settlements ($ per Mcf)
$
4.66
$
4.83
$
8.59
$
7.54
Average net total production per day
(MBoe/d)
83
85
86
91
Margin from marketing purchased natural
gas ($ millions)
$
28
$
47
$
180
$
41
Margin from electricity sales ($
millions)
$
24
$
44
$
108
$
94
Net gain (loss) from commodity derivatives
($ millions)
$
119
$
(204
)
$
(12
)
$
(551
)
Selected Financial Statement Data and
non-GAAP measures:
4th Quarter
3rd Quarter
Total Year
Total year
($ and shares in millions, except per
share amounts)
2023
2023
2023
2022
Statements of
Operations:
Revenues
Total operating revenues
$
726
$
460
$
2,801
$
2,707
Selected
Expenses
Operating costs
$
186
$
196
$
822
$
785
General and administrative expenses
$
66
$
65
$
267
$
222
Adjusted general and administrative
expenses1
$
55
$
51
$
218
$
201
Taxes other than on income
$
33
$
48
$
165
$
162
Transportation costs
$
18
$
16
$
67
$
50
Exploration expense
$
1
$
—
$
3
$
4
Operating Income (loss)
$
283
$
(15
)
$
808
$
812
Interest and debt expense
$
(13
)
$
(15
)
$
(56
)
$
(53
)
Income tax provision (benefit)
$
(79
)
$
8
$
(184
)
$
(237
)
Net (loss) Income
$
188
$
(22
)
$
564
$
524
Adjusted net income1
$
67
$
74
$
372
$
384
Weighted-average common shares outstanding
- diluted
72.3
68.7
72.5
77.6
Net (loss) income per share - diluted
$
2.60
$
(0.32
)
$
7.78
$
6.75
Adjusted net income1 per share -
diluted
$
0.93
$
1.02
$
5.13
$
4.95
Adjusted EBITDAX1
$
179
$
187
$
862
$
852
Net cash provided by operating activities
before changes in operating assets and liabilities, net1
$
104
$
129
$
647
$
747
Net cash provided by operating
activities
$
131
$
104
$
653
$
690
Capital investments
$
66
$
33
$
185
$
379
Free cash flow1
$
65
$
71
$
468
$
311
Cash and cash equivalents
$
496
$
479
$
496
$
307
2023 Reserves
As of December 31, 2023, CRC’s proved reserves totaled an
estimated 377 million Boe (MMBoe), of which 68% was oil and 331
MMBoe was proved developed. Estimated future net cash flows had a
PV-10* value of $5.5 billion based on SEC pricing of Brent $82.84
per barrel for oil and Henry Hub $2.64 per thousand cubic feet
(Mcf) for natural gas, as of December 31, 2023.
PV-10 AND STANDARDIZED MEASURE
The following table presents a
reconciliation of the GAAP financial measure of Standardized
Measure of discounted future net cash flows (Standardized Measure)
to the non-GAAP financial measure of PV-10:
($ millions)
December 31, 2023
Standardized Measure of discounted future
net cash flows
$
4,069
Present value of future income taxes
discounted at 10%
1,464
PV-10 of cash flows (*)
$
5,533
(*) PV-10 is a non-GAAP financial measure
and represents the year-end present value of estimated future cash
inflows from proved oil and natural gas reserves, less future
development and operating costs, discounted at 10% per annum to
reflect the timing of future cash flows and using SEC prescribed
pricing assumptions for the period. PV-10 differs from Standardized
Measure because Standardized Measure includes the effects of future
income taxes on future net cash flows. Neither PV-10 nor
Standardized Measure should be construed as the fair value of our
oil and natural gas reserves. Standardized Measure is prescribed by
the SEC as an industry standard asset value measure to compare
reserves with consistent pricing costs and discount assumptions.
PV-10 facilitates the comparisons to other companies as it is not
dependent on the tax-paying status of the entity.
Pending Aera Merger
On February 7, 2024, CRC entered into a definitive merger
agreement (Merger Agreement) to combine with Aera Energy, LLC
(Aera) in an all-stock transaction with an effective date of
January 1, 2024. Aera is a leading operator of mature fields in
California, primarily in the San Joaquin and Ventura basins, with
high oil-weighted production. At closing, Aera's owners will
receive 21.2 million shares of CRC's common stock plus an
additional number of shares determined by reference to the
dividends declared by CRC having a record date between the
effective date and closing. CRC also agreed to assume Aera’s
outstanding long-term indebtedness of $950 million. CRC expects to
repay a significant portion of this indebtedness with cash on hand
and borrowings under its revolving credit facility. CRC expects to
refinance the balance through one or more debt capital markets
transactions and, only to the extent necessary, borrowings under a
bridge loan facility.
The Merger Agreement has been unanimously approved by CRC’s
Board of Directors and the shareholders of Aera. The transaction is
subject to certain closing conditions, including among others,
regulatory approvals and approval of the stock issuance by CRC's
shareholders. The transaction is expected to close in the second
half of 2024.
For more information about this transaction please visit:
https://www.crc.com/news/news-details/2024/California-Resources-Corporation-to-Combine-with-Aera-Energy/default.aspx
2024 Preliminary Outlook and First
Quarter 2024 Guidance and Capital Program2
CRC’s 2024 guidance estimates exclude the pending merger with
Aera. The Company intends to update guidance after the transaction
closes.
CRC expects its total 2024 capital program to range between $300
million and $340 million assuming normal operating conditions. Of
this amount, $250 million to $260 million is related to oil and
natural gas development, $30 million to $40 million is related to
maintenance of one of its gas processing facilities and a power
plant, both of which are located in CRC's Elk Hills field, $15
million to $25 million is for carbon management projects and $5
million to $15 million is for corporate and other activities.
Through 2024, CRC expects to run a one rig program executing
projects using existing permits. Subject to the availability of
well permits, the Company expects to increase to a four rig program
in the second half of 2024. The actual amount of spending related
to oil and gas development under CRC's 2024 capital program will
depend on a variety of factors. In particular, the rate and amount
of this spending depends on its ability to obtain new well permits
in the second half of the year. If CRC is not able to obtain these
permits, CRC could reduce its capital program by up to $100
million.
2024 PRELIMINARY OUTLOOK2
TOTAL 2024E
Net Total Production (MBoe/d)
78 - 82
Oil Production (%)
~60%
Capital ($ millions)
$300 - $340
Drilling & completions, workovers ($
millions)
$250 -$260
Facilities ($ millions)
$30 - $40
Carbon management business ($
millions)
$15 - $25
Corporate & other ($ millions)
$5 - $15
Note: If CRC is not able to receive
drilling permits or permits are delayed, the Company plans to run a
one rig program with a $200 million to $240 million 2024E total
capital program and would expect a 5% to 7% entry to exit decline
rate.
CRC expects its first quarter capital program to range between
$65 million to $75 million. The program includes capital of $36
million to $42 million for oil and natural gas, and facilities
development3, $4 million to $6 million for carbon management
projects and $25 million to $27 million for corporate and other
activities, including maintenance at CRC's Elk Hills power
plant.
CRC expects to produce 76 to 80 MBoe/d (~60% oil) in the first
quarter of 2024. The table below provides highlights of the
Company's first quarter 2024 guidance. See Attachment 2 for
complete information on CRC's first quarter 2024 guidance.
CRC GUIDANCE2
Total
1Q24E
CMB
1Q24E
E&P, Corp. & Other
1Q24E
Net Total Production (MBoe/d)
76 - 80
76 - 80
CMB Expenses and Operating Costs ($
millions)
$175 - $185
$6 - $10
$169 - $175
General and Administrative Expenses ($
millions)
$61 - $72
$2 - $3
$59 - $69
Adjusted General and Administrative
Expenses1 ($ millions)
$48 - $58
$2 - $3
$46 - $55
Capital ($ millions)
$65 - $75
$4 - $6
$61 - $69
Natural Gas Marketing Margin ($
millions)
$8 - $13
$8 - $13
Electricity Margin ($ millions)
$5 - $10
$5 - $10
Shareholder Return & Deleveraging
Strategy
CRC is committed to returning significant cash to shareholders
through dividends and repurchases of its common stock. On February
6th, 2024, CRC’s Board of Directors approved a $250 million
increase of the Share Repurchase Program, bringing the aggregate
program to $1.35 billion, and extended the program through December
31, 2025. Adjusting for this increase, CRC has approximately $747
million of capacity remaining under the repurchase program as of
February 6, 2024.
In 2023, CRC repurchased 3.4 million shares for approximately
$143 million at an average price of $41.69 per share. Since the
inception of the Share Repurchase Program in May 2021 through
December 31, 2023, 14.9 million shares have been repurchased for
$604 million at an average price of $40.53 per share, including
commissions and excise taxes. These total repurchases represent
~18% of CRC’s shares outstanding since December 31, 2020.
In 2023, CRC repurchased $55 million in principal of its Senior
Notes at par. After these repurchases, the remaining principal
amount of CRC’s Senior Notes is $545 million due February 1,
2026.
On February 27, 2024, CRC's Board of Directors declared a
quarterly cash dividend of $0.31 per share of common stock. The
dividend is payable to shareholders of record on March 6, 2024 and
will be paid on March 18, 2024.
Through December 31, 2023, CRC has returned $813 million of cash
to its stakeholders, including $604 million in share repurchases,
$154 million of dividends and $55 million in principal of its
Senior Notes repurchases.
Balance Sheet and Liquidity
Update
On October 30, 2023, the borrowing base for the Revolving Credit
Facility was reaffirmed at $1.2 billion as part of CRC's
semi-annual redetermination. CRC's aggregate commitment from
lenders under the Revolving Credit Facility was $630 million as of
December 31, 2023.
As of December 31, 2023, CRC had liquidity of $973 million,
which consisted of $496 million in cash and cash equivalents plus
$477 million of available borrowing capacity under its Revolving
Credit Facility (which is net of $153 million of issued letters of
credit).
In connection with the Merger Agreement, on February 9, 2024,
CRC entered into a second amendment to its Revolving Credit
Facility to permit CRC to incur indebtedness under a bridge loan
facility that may be used in connection with closing the Aera
Merger.
Acquisitions and
Divestitures
On December 29, 2023, CRC sold its non-operating working
interest in the Round Mountain Unit in the San Joaquin basin for
$35 million, before transaction costs and purchase price
adjustments, recognizing a gain of $25 million. CRC retained an
option to capture, transport and store carbon dioxide (CO2)
emissions from the production at Round Mountain Unit for future
carbon management projects.
On February 22, 2024, CRC entered into an agreement to sell its
0.9 acre Fort Apache real estate property in Huntington Beach to a
local real estate developer for approximately $10 million.
Sustainability
“2023 was another important year in CRC’s sustainability
journey,” said Francisco Leon, CRC’s President and Chief Executive
Officer. “We are dedicated to becoming an even more sustainable
energy company while continuously prioritizing health, safety, and
the environment in all we do. We achieved our second-best safety
rate in the Company’s history, our best since the period during
COVID. Throughout the year, our skilled teams plugged and abandoned
more than 600 wells, exceeding stringent local and state
requirements. Furthermore, we received the 2023 S&P Global
Energy Transition - Upstream Award recognizing CRC’s perseverance
in developing solutions to help reduce carbon emissions and tackle
climate change, one of many industry awards we received during the
year.”
Additional 2023 sustainability highlights and achievements
include:
- Eliminated 269 gas venting pneumatics, keeping CRC on track
with its 2030 methane reduction ESG goal
- Delivered more than 113 million barrels of water for
agricultural use, or more than 3 times the amount for CRC's
internal use
- Qualified for 22 National Safety Awards for 2023 safety
performance
- Provided more than $2.5 million in charitable giving to local
groups, organizations, and nonprofits
Upcoming Investor Conference
Participation
CRC's executives will be participating in the following events
in March and April of 2024:
- MS Global Energy and Power Conference on March 6 and 7 in New
York, NY
- CERAWeek 2024 on March 18 to 20 in Houston, TX
- Capital One Carbon Capture Conference on March 27 in New York,
NY
- North America CCUS & Hydrogen Decarbonization Summit on
April 16 to 18 in Chicago, IL
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 Wednesday, February 28th at
1:00 p.m. Eastern Time (10:00 a.m. Pacific Time). To participate in
the call, please dial (877) 328-5505 (International calls please
dial +1 (412) 317-5421) or access via webcast at www.crc.com 15
minutes prior to the scheduled start time to register. Participants
may also pre-register for the conference call at
https://dpregister.com/sreg/10184870/fb2ecfed18. A digital replay
of the conference call will be archived for approximately 90 days
and supplemental slides for the conference call will be available
online in the Investor Relations section of www.crc.com.
1 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, adjusted G&A and adjusted capital, including
reconciliations to their most directly comparable GAAP measure,
where applicable. For the 1Q24 estimates of the non-GAAP measure of
adjusted general and administrative expenses, including
reconciliations to its most directly comparable GAAP measure, see
Attachment 2.
2 Current preliminary 2024 outlook assumes a four rigs program
starting from 2H24 subject to the availability of well permits. If
CRC is not able to receive drilling permits or permits are delayed,
the Company plans to run a one rig program with a $200 million to
$240 million 2024E total capital program and would expect a 5% to
7% entry to exit decline rate. 1Q24 guidance assumes Brent price of
$78.73 per barrel of oil, NGL realizations as a percentage of Brent
consistent with prior years and a NYMEX gas price of $2.87 per mcf.
CRC's share of production under PSC contracts decreases when
commodity prices rise and increases when prices fall.
About California Resources
Corporation
California Resources Corporation (CRC) is an independent energy
and carbon management company committed to energy transition. CRC
produces some of the lowest carbon intensity oil in the US and is
focused on maximizing the value of its land, mineral and technical
resources for decarbonization efforts. For more information about
CRC, please visit www.crc.com.
About Carbon TerraVault
Carbon TerraVault Holdings, LLC (CTV), a subsidiary of CRC,
provides services that include the capture, transport and storage
of carbon dioxide for its customers. CTV is engaged in a series of
CCS projects that inject CO2 captured from industrial sources into
depleted underground reservoirs and permanently store CO2 deep
underground. For more information about CTV, please visit
www.carbonterravault.com.
Additional Information and Where to
Find It
This communication may be deemed to be solicitation material in
respect of the transactions contemplated by the merger agreement
pursuant to which California Resources Corporation (“CRC”) has
agreed to combine with Aera Energy, LLC (“Aera”) (the “Merger
Agreement”), including the proposed issuance of CRC’S common stock
pursuant to the Merger Agreement. In connection with the
transaction, CRC will file a proxy statement on Schedule 14A with
the U.S. Securities and Exchange Commission (“SEC”), as well as
other relevant materials. Following the filing of the definitive
proxy statement, CRC will mail the definitive proxy statement and a
proxy card to its stockholders. INVESTORS AND SECURITY HOLDERS OF
CRC ARE URGED TO READ THE PROXY STATEMENT AND OTHER RELEVANT
DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY WHEN THEY
BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION
ABOUT CRC, AERA, THE TRANSACTION AND RELATED MATTERS. Investors and
security holders will be able to obtain copies of the proxy
statement (when available) as well as other filings containing
information about CRC, Aera and the transaction, without charge, at
the SEC’s website, www.sec.gov. Copies of documents filed with the
SEC by CRC will be available, without charge, at CRC’s website,
www.crc.com.
Participants in
Solicitation
CRC and its directors and executive officers may be deemed to be
participants in the solicitation of proxies in connection with the
transaction. Information about the directors and executive officers
of CRC is set forth in the proxy statement for CRC’s 2023 Annual
Meeting of Stockholders, which was filed with the SEC on March 16,
2023. Investors may obtain additional information regarding the
interest of such participants by reading the proxy statement
regarding the transaction when it becomes available.
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. Additionally, the information in this report contains
forward-looking statements related to the recently announced Aera
merger.
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;
- decisions as to production levels and/or pricing by OPEC or
U.S. producers in future periods;
- government policy, war and political conditions and events,
including the military conflicts in Israel, Ukraine and Yemen and
the Red Sea;
- the ability to successfully integrate the business of Aera once
the Aera merger is completed;
- the timing, receipt and terms and conditions of any required
governmental and regulatory approvals of the Aera merger that could
reduce anticipated benefits or cause the parties to abandon the
Aera merger;
- the occurrence of any event, change or other circumstances that
could give rise to the termination of the Merger Agreement;
- the possibility that the stockholders of CRC may not approve
the issuance of new shares of common stock in the Aera merger;
- the ability to obtain the required debt financing in connection
with the Aera merger and, if obtained, the potential impact of
additional debt on its business and the financial impacts and
restrictions due to the additional debt;
- 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 the company 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
4th Quarter
3rd Quarter
4th Quarter
Total Year
Total Year
($ and shares in millions, except per
share amounts)
2023
2023
2022
2023
2022
Statements of Operations:
Revenues
Oil, natural gas and NGL sales
$
483
$
510
$
617
$
2,155
$
2,643
Net gain (loss) from commodity
derivatives
119
(204
)
(132
)
(12
)
(551
)
Marketing of purchased natural gas
67
78
94
401
314
Electricity sales
42
67
90
211
261
Other revenue
15
9
13
46
40
Total operating revenues
726
460
682
2,801
2,707
Operating Expenses
Operating costs
186
196
199
822
785
General and administrative expenses
66
65
59
267
222
Depreciation, depletion and
amortization
55
56
49
225
198
Asset impairment
—
—
—
3
2
Taxes other than on income
33
48
42
165
162
Exploration expense
1
—
1
3
4
Purchased natural gas marketing
expense
39
31
87
221
273
Electricity generation expenses
18
23
68
103
167
Transportation costs
18
16
13
67
50
Accretion expense
11
12
11
46
43
Carbon management business expenses
17
9
11
37
14
Other operating expenses, net
24
19
9
66
34
Total operating expenses
468
475
549
2,025
1,954
Net gain on asset divestitures
25
—
(1
)
32
59
Operating Income (Loss)
283
(15
)
132
808
812
Non-Operating (Expenses) Income
Interest and debt expense
(13
)
(15
)
(14
)
(56
)
(53
)
Loss from investment in unconsolidated
subsidiary
(3
)
(3
)
(1
)
(9
)
(1
)
Net loss on early extinguishment of
debt
(1
)
—
—
(1
)
—
Other non-operating income, net
1
3
—
6
3
Income (Loss) Before Income
Taxes
267
(30
)
117
748
761
Income tax (provision) benefit
(79
)
8
(34
)
(184
)
(237
)
Net Income Loss)
$
188
$
(22
)
$
83
$
564
$
524
Net income (loss) per share - basic
$
2.74
$
(0.32
)
$
1.14
$
8.10
$
6.94
Net income (loss) per share - diluted
$
2.60
$
(0.32
)
$
1.11
$
7.78
$
6.75
Adjusted net income
$
67
$
74
$
93
$
372
$
384
Adjusted net income per share - basic
$
0.98
$
1.08
$
1.28
$
5.34
$
5.09
Adjusted net income per share -
diluted
$
0.93
$
1.02
$
1.24
$
5.13
$
4.95
Weighted-average common shares outstanding
- basic
68.7
68.7
72.7
69.6
75.5
Weighted-average common shares outstanding
- diluted
72.3
68.7
75.0
72.5
77.6
Adjusted EBITDAX
$
179
$
187
$
208
$
862
$
852
Effective tax rate
30
%
27
%
29
%
25
%
31
%
4th Quarter
3rd Quarter
4th Quarter
Total Year
Total Year
($ in millions)
2023
2023
2022
2023
2022
Cash Flow Data:
Net cash provided by operating
activities
$
131
$
104
$
114
$
653
$
690
Net cash used in investing activities
$
(42
)
$
(28
)
$
(79
)
$
(175
)
$
(317
)
Net cash used in financing activities
$
(72
)
$
(45
)
$
(86
)
$
(289
)
$
(371
)
December 31,
December 31,
($ in millions)
2023
2022
Selected Balance Sheet Data:
Total current assets
$
929
$
864
Property, plant and equipment, net
$
2,770
$
2,786
Deferred tax asset
$
132
$
164
Total current liabilities
$
616
$
894
Long-term debt, net
$
540
$
592
Noncurrent asset retirement
obligations
$
422
$
432
Stockholders' Equity
$
2,219
$
1,864
GAINS AND LOSSES FROM COMMODITY DERIVATIVES
4th Quarter
3rd Quarter
4th Quarter
Total Year
Total Year
($ millions)
2023
2023
2022
2023
2022
Non-cash derivative gain (loss)
$
168
$
(109
)
$
2
$
260
$
187
Non-cash gas supply derivative loss
(8
)
—
—
(8
)
—
Net payments on settled commodity
derivatives
(49
)
(95
)
(134
)
(272
)
(738
)
Net gain (loss) from commodity
derivatives
$
111
$
(204
)
$
(132
)
$
(20
)
$
(551
)
CAPITAL INVESTMENTS
4th Quarter
3rd Quarter
4th Quarter
Total Year
Total Year
($ millions)
2023
2023
2022
2023
2022
Facilities (1)
$
20
$
7
$
19
$
47
$
71
Drilling
16
13
48
67
242
Workovers
11
11
14
39
36
Total E&P capital
47
31
81
153
349
CMB (1)
4
—
(13
)
5
4
Corporate and other
15
2
7
27
26
Total capital program
$
66
$
33
$
75
$
185
$
379
(1) Facilities capital includes $1
million, $1 million and $3 million in the fourth and third quarter
of 2023 and fourth quarter of 2022, respectively, and $4 million
and $12 million for the years 2023 and 2022, respectively to build
replacement water injection facilities which will allow CRC to
divert produced water away from a depleted oil and natural gas
reservoir held by the Carbon TerraVault JV. Construction of these
facilities supports the advancement of CRC’s carbon management
business and CRC reported these amounts as part of adjusted CMB
capital in this Earnings Release. Where adjusted CMB capital is
presented, CRC removed the amounts from facilities capital and
presented adjusted E&P, Corporate and Other capital.
Attachment 2
2024 PRELIMINARY OUTLOOK1
Total 2024E
Net Total Production (MBoe/d)
78 - 82
Oil Production (%)
~60%
Capital ($ millions)
$300 - $340
CRC GUIDANCE
Total
1Q24E
CMB
1Q24E
E&P, Corp. & Other
1Q24E
Net Total Production (MBoe/d)
76 - 80
76 - 80
Oil Production (%)
~60%
~60%
CMB Expenses & Operating Costs ($
millions)
$175 - $185
$6 - $10
$169 - $175
General and Administrative Expenses ($
millions)
$61 - $72
$2 - $3
$59 - $69
Adjusted General and Administrative
Expenses ($ millions)
$48 - $58
$2 - $3
$46 - $55
Capital ($ millions)
$65 - $75
$4 - $6
$61 - $69
Natural Gas Marketing Margin ($
millions)
$8 - $13
$8 - $13
Electricity Margin ($ millions)
$5 - $10
$5 - $10
Other Operating Revenue & Expenses,
net ($ millions)
$5 - $10
$5 - $10
Transportation Expense ($ millions)
$16 - $21
$16 - $21
Taxes Other Than on Income ($
millions)
$35 - $50
$35 - $50
Interest and Debt Expense ($ millions)
$12 - $14
$12 - $14
Commodity Assumptions:
Brent ($/Bbl)
$78.73
$78.73
NYMEX ($/Mcf)
$2.87
$2.87
Oil - % of Brent:
96% - 99%
96% - 99%
NGL - % of Brent:
60% - 66%
60% - 66%
Natural Gas - % of NYMEX:
120% - 140%
120% - 140%
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.
1 Current preliminary 2024 outlook assumes a four rigs scenario
starting from 2H24 subject to the availability of well permits. If
CRC is not able to receive drilling permits or permits are delayed,
the Company plans to run a one rig program with a $200 million to
$240 million 2024E total capital program and would expect a 5% to
7% entry to exit decline rate.
ESTIMATED ADJUSTED GENERAL AND ADMINISTRATIVE EXPENSES
RECONCILIATION
1Q24 Estimated
Consolidated
CMB
E&P, Corporate &
Other
($ millions)
Low
High
Low
High
Low
High
General and administrative expenses
$
61
$
72
$
2
$
3
$
59
$
69
Equity-settled stock-based
compensation
(8
)
(6
)
(8
)
(6
)
Other
(5
)
(8
)
(5
)
(8
)
Estimated adjusted general and
administrative expenses
$
48
$
58
$
2
$
3
$
46
$
55
Attachment 3
NON-GAAP FINANCIAL MEASURES AND
RECONCILIATIONS
To supplement the presentation of its
financial results prepared in accordance with U.S generally
accepted accounting principles (GAAP), management uses certain
non-GAAP measures to assess its financial condition, results of
operations and cash flows. The non-GAAP measures include adjusted
net income (loss), adjusted EBITDAX, E&P, Corporate & Other
adjusted EBITDAX, CMB adjusted EBITDAX, net cash provided by
operating activities before changes in operating assets and
liabilities, net, free cash flow, E&P, Corporate & Other
free cash flow, CMB free cash flow, adjusted general and
administrative expenses, operating costs per BOE, and adjusted
total capital among others. These measures are also widely used by
the industry, the investment community and CRC's lenders. Although
these are non-GAAP measures, the amounts included in the
calculations were computed in accordance with GAAP. Certain items
excluded from these non-GAAP measures are significant components in
understanding and assessing CRC's financial performance, such as
CRC's cost of capital and tax structure, as well as the effect of
acquisition and development costs of CRC's assets. Management
believes that the non-GAAP measures presented, when viewed in
combination with CRC's financial and operating results prepared in
accordance with GAAP, provide a more complete understanding of the
factors and trends affecting the Company's performance. The
non-GAAP measures presented herein may not be comparable to other
similarly titled measures of other companies. Below are additional
disclosures regarding each of the non-GAAP measures reported in
this earnings release, including reconciliations to their most
directly comparable GAAP measure where applicable.
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.
4th Quarter
3rd Quarter
4th Quarter
Total Year
Total Year
($ millions, except per share amounts)
2023
2023
2022
2023
2022
Net (loss) income
$
188
$
(22
)
$
83
$
564
$
524
Unusual, infrequent and other items:
Non-cash derivative loss (gain)
(160
)
109
(2
)
(252
)
(187
)
Asset impairment
—
—
—
3
2
Severance and termination costs
—
7
—
10
—
Net loss on early extinguishment of
debt
1
—
—
1
—
Net gain on asset divestitures
(25
)
—
1
(32
)
(59
)
Other, net
16
17
15
46
22
Total unusual, infrequent and other
items
(168
)
133
14
(224
)
(222
)
Income tax (benefit) provision of
adjustments at effective tax rate
47
(37
)
(4
)
63
63
Income tax (benefit) provision - out of
period
—
—
—
(31
)
19
Adjusted net income attributable to common
stock
$
67
$
74
$
93
$
372
$
384
Net income (loss) per share - basic
$
2.74
$
(0.32
)
$
1.14
$
8.10
$
6.94
Net income (loss) per share - diluted
$
2.60
$
(0.32
)
$
1.11
$
7.78
$
6.75
Adjusted net income per share - basic
$
0.98
$
1.08
$
1.28
$
5.34
$
5.09
Adjusted net income per share -
diluted
$
0.93
$
1.02
$
1.24
$
5.13
$
4.95
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).
4th Quarter
3rd Quarter
4th Quarter
Total Year
Total Year
($ millions, except per BOE amounts)
2023
2023
2022
2023
2022
Net income (loss)
$
188
$
(22
)
$
83
$
564
$
524
Interest and debt expense
13
15
14
56
53
Depreciation, depletion and
amortization
55
56
49
225
198
Income tax provision (benefit)
79
(8
)
34
184
237
Exploration expense
1
—
1
3
4
Interest income
(7
)
(5
)
(3
)
(21
)
(4
)
Unusual, infrequent and other items
(1)
(168
)
133
14
(224
)
(222
)
Non-cash items
Accretion expense
11
12
11
46
43
Stock-based compensation
6
6
4
27
17
Post-retirement medical and pension
1
—
1
2
2
Adjusted EBITDAX
$
179
$
187
$
208
$
862
$
852
Net cash provided by operating
activities
$
131
$
104
$
114
$
653
$
690
Cash interest payments
1
23
2
49
50
Cash interest received
(7
)
(5
)
(3
)
(21
)
(4
)
Cash income taxes
41
29
—
121
20
Exploration expenditures
1
—
1
3
4
Adjustments to changes in operating assets
and liabilities
12
36
94
57
92
Adjusted EBITDAX
$
179
$
187
$
208
$
862
$
852
E&P, Corporate & Other Adjusted
EBITDAX
$
199
$
199
$
223
$
916
$
879
CMB Adjusted EBITDAX
$
(20
)
$
(12
)
$
(15
)
$
(54
)
$
(27
)
Adjusted EBITDAX per Boe
$
23.57
$
23.81
$
24.94
$
27.51
$
25.77
(1) See Adjusted Net Income (Loss)
reconciliation.
FREE CASH FLOW AND SUPPLEMENTAL FREE
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) 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 net cash provided by operating
activities less adjusted capital investments.
4th Quarter
3rd Quarter
4th Quarter
Total Year
Total Year
($ millions)
2023
2023
2022
2023
2022
Net cash provided by operating activities
before changes in operating assets and liabilities, net
$
104
$
129
$
192
$
647
$
747
Changes in operating assets and
liabilities, net
27
(25
)
(78
)
6
(57
)
Net cash provided by operating
activities
131
104
114
653
690
Capital investments
(66
)
(33
)
(75
)
(185
)
(379
)
Free cash flow
$
65
$
71
$
39
$
468
$
311
E&P, Corporate and Other
$
84
$
79
$
61
$
511
$
362
CMB
$
(19
)
$
(8
)
$
(22
)
$
(43
)
$
(51
)
Adjustments to capital investments:
Replacement water facilities(1)
$
1
$
1
$
3
$
4
$
12
Adjusted capital investments:
E&P, Corporate and Other
$
61
$
32
$
85
$
176
$
363
CMB
$
5
$
1
$
(10
)
$
9
$
16
Adjusted free cash flow:
E&P, Corporate and Other
$
85
$
80
$
64
$
515
$
374
CMB
$
(20
)
$
(9
)
$
(25
)
$
(47
)
$
(63
)
(1) Facilities capital includes $1
million, $1 million and $4 million in the third and second quarter
of 2023 and third quarter of 2022, respectively, to build
replacement water injection facilities which will allow CRC to
divert produced water away from a depleted oil and natural gas
reservoir held by the Carbon TerraVault JV. Construction of these
facilities supports the advancement of CRC’s carbon management
business and CRC reported these amounts as part of adjusted CMB
capital in this press release. Where adjusted CMB capital is
presented, CRC removed the amounts from facilities capital and
presented adjusted E&P, Corporate and Other capital.
ADJUSTED GENERAL & ADMINISTRATIVE
EXPENSES
Management uses a measure called adjusted
general and administrative (G&A) expenses to provide useful
information to investors interested in comparing CRC's costs
between periods and performance to our peers. CRC supplemented its
non-GAAP measure of adjusted general and administrative expenses
with adjusted general and administrative expenses of its
exploration and production and corporate items (adjusted general
& administrative expenses for E&P, Corporate & Other)
which it believes is a useful measure for investors to understand
the results or CRC's core oil and gas business. CRC defines
adjusted general & administrative Expenses for E&P,
Corporate & Other as consolidated adjusted general and
administrative expenses less results attributable to its carbon
management business (CMB).
4th Quarter
3rd Quarter
4th Quarter
Total Year
Total Year
($ millions)
2023
2023
2022
2023
2022
General and administrative expenses
$
66
$
65
$
59
$
267
$
222
Stock-based compensation
(6
)
(6
)
(4
)
(27
)
(17
)
Information technology infrastructure
(4
)
(6
)
(2
)
(17
)
(4
)
Other
(1
)
(2
)
—
(5
)
—
Adjusted G&A expenses
$
55
$
51
$
53
$
218
$
201
E&P, Corporate and Other adjusted
G&A expenses
$
53
$
47
$
51
$
206
$
189
CMB adjusted G&A expenses
$
2
$
4
$
2
$
12
$
12
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.
4th Quarter
3rd Quarter
4th Quarter
Total Year
Total Year
($ per BOE)
2023
2023
2022
2023
2022
Energy operating costs (1)
$
8.65
$
9.42
$
9.56
$
10.31
$
9.76
Gas processing costs (2)
0.60
0.64
0.48
0.58
0.52
Non-energy operating costs
15.24
14.90
13.82
15.35
13.47
Operating costs
$
24.49
$
24.96
$
23.86
$
26.24
$
23.75
Costs attributable to PSCs
Excess energy operating costs attributable
to PSCs
$
(1.01
)
$
(1.09
)
$
(0.76
)
$
(1.00
)
$
(0.92
)
Excess non-energy operating costs
attributable to PSCs
(1.32
)
(1.30
)
(1.14
)
(1.25
)
(1.31
)
Excess costs attributable to
PSCs
$
(2.33
)
$
(2.39
)
$
(1.90
)
$
(2.25
)
$
(2.23
)
Energy operating costs, excluding effect
of PSCs (1)
$
7.64
$
8.33
$
8.80
$
9.31
$
8.84
Gas processing costs, excluding effect of
PSCs (2)
0.60
0.64
0.48
0.58
0.52
Non-energy operating costs, excluding
effect of PSCs
13.92
13.60
12.68
14.10
12.16
Operating costs, excluding effects of
PSCs
$
22.16
$
22.57
$
21.96
$
23.99
$
21.52
(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 Elk Hills.
Attachment 4
PRODUCTION STATISTICS
4th Quarter
3rd Quarter
4th Quarter
Total Year
Total Year
Net Production Per Day
2023
2023
2022
2023
2022
Oil (MBbl/d)
San Joaquin Basin
32
33
36
33
37
Los Angeles Basin
18
18
19
19
18
Total
50
51
55
52
55
NGLs (MBbl/d)
San Joaquin Basin
11
11
11
11
11
Total
11
11
11
11
11
Natural Gas (MMcf/d)
San Joaquin Basin
114
122
129
119
129
Los Angeles Basin
1
1
1
1
1
Sacramento Basin
15
15
17
15
17
Total
130
138
147
135
147
Total Production (MBoe/d)
83
85
91
86
91
Gross Operated and Net
Non-Operated
4th Quarter
3rd Quarter
4th Quarter
Total Year
Total Year
Production Per Day
2023
2023
2022
2023
2022
Oil (MBbl/d)
San Joaquin Basin
36
36
40
37
41
Los Angeles Basin
25
25
25
25
25
Total
61
61
65
62
66
NGLs (MBbl/d)
San Joaquin Basin
11
13
12
12
12
Total
11
13
12
12
12
Natural Gas (MMcf/d)
San Joaquin Basin
129
135
136
135
136
Los Angeles Basin
8
8
8
7
7
Sacramento Basin
18
18
21
19
22
Total
155
161
165
161
165
Total Production (MBoe/d)
98
102
105
101
106
Attachment 5
PRICE STATISTICS
4th Quarter
3rd Quarter
4th Quarter
Total Year
Total Year
2023
2023
2022
2023
2022
Oil ($ per Bbl)
Realized price with derivative
settlements
$
71.34
$
66.12
$
61.33
$
65.97
$
61.80
Realized price without derivative
settlements
$
82.00
$
85.36
$
87.15
$
80.41
$
98.26
NGLs ($/Bbl)
$
49.08
$
44.95
$
56.55
$
48.94
$
64.33
Natural gas ($/Mcf)
Realized price with derivative
settlements
$
4.66
$
4.83
$
8.51
$
8.59
$
7.54
Realized price without derivative
settlements
$
4.66
$
4.83
$
8.73
$
8.59
$
7.68
Index Prices
Brent oil ($/Bbl)
$
82.69
$
85.95
$
88.60
$
82.22
$
98.89
WTI oil ($/Bbl)
$
78.32
$
82.26
$
82.64
$
77.62
$
94.23
NYMEX average monthly settled price
($/MMBtu)
$
2.88
$
2.55
$
6.26
$
2.74
$
6.64
Realized Prices as Percentage of Index
Prices
Oil with derivative settlements as a
percentage of Brent
86
%
77
%
69
%
80
%
62
%
Oil without derivative settlements as a
percentage of Brent
99
%
99
%
98
%
98
%
99
%
Oil with derivative settlements as a
percentage of WTI
91
%
80
%
74
%
85
%
66
%
Oil without derivative settlements as a
percentage of WTI
105
%
104
%
105
%
104
%
104
%
NGLs as a percentage of Brent
59
%
52
%
64
%
60
%
65
%
NGLs as a percentage of WTI
63
%
55
%
68
%
63
%
68
%
Natural gas with derivative settlements as
a percentage of NYMEX contract month average
162
%
189
%
136
%
314
%
114
%
Natural gas without derivative settlements
as a percentage of NYMEX contract month average
162
%
189
%
139
%
314
%
116
%
Attachment 6
FOURTH QUARTER 2023 DRILLING
ACTIVITY
San Joaquin
Los Angeles
Ventura
Sacramento
Wells Drilled
Basin
Basin
Basin
Basin
Total
Development Wells
Primary
—
—
—
—
—
Waterflood
—
8
—
—
8
Steamflood
—
—
—
—
—
Total (1)
—
8
—
—
8
TOTAL YEAR 2023 DRILLING
ACTIVITY
San Joaquin
Los Angeles
Ventura
Sacramento
Wells Drilled
Basin
Basin
Basin
Basin
Total
Development Wells
Primary
2
—
—
—
2
Waterflood
1
29
—
—
30
Steamflood
—
—
—
—
—
Total (1)
3
29
—
—
32
(1) Includes steam injectors and drilled
but uncompleted wells, which are not included in the SEC definition
of wells drilled.
Attachment 7
OIL HEDGES AS OF DECEMBER 31,
2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
2025
Sold Calls
Barrels per day
23,650
30,000
30,000
29,000
19,748
Weighted-average Brent price per
barrel
$90.00
$90.07
$90.07
$90.07
$85.63
Swaps
Barrels per day
9,500
8,875
7,750
5,500
3,374
Weighted-average Brent price per
barrel
$79.81
$79.28
$79.64
$77.45
$72.66
Purchased Puts
Barrels per day
30,584
30,000
30,000
29,000
19,748
Weighted-average Brent price per
barrel
$67.27
$65.17
$65.17
$65.17
$60.00
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240227457969/en/
Joanna Park (Investor Relations) 818-661-3731
Joanna.Park@crc.com
Richard Venn (Media) 818-661-6014 Richard.Venn@crc.com
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