Core Points - Canter Resources Corp. has amended underlying agreements to reduce property carrying costs by approximately 50% and extend major cash or exploration work obligations to 2027 and 2028 [1][2] - The company is focused on domestic lithium production through brine resources and sustainable extraction methods, viewing the Columbus Project as a significant opportunity for discovery [2] - The company is retaining 379 claims covering a core mineralized system at Columbus, resulting in annual cost savings of $130,000 [7] Financial Adjustments - The company plans to settle debts totaling $154,000 through the issuance of 2,200,000 common shares at a deemed price of $0.07 per share [4] - A cash payment obligation of $250,000 due on May 9, 2026, has been reduced to $25,000 in cash and $40,000 in shares, resulting in a $225,000 reduction [7] - A $600,000 payment due on November 9, 2026, has been extended to December 1, 2027, and reduced to $450,000, with $150,000 payable in shares [7]

Financial Results Announcement - California Resources Corporation (CRC) plans to release its second quarter 2025 financial results on August 5 after market close [1] - A conference call to discuss these results will be held on August 6 at 1:00 p.m. Eastern Time [1] Conference Call Participation - Participants are encouraged to pre-register for the conference call via a provided link [2] - Callers who pre-register will receive a conference passcode and unique PIN for immediate access [2] - To join the call, participants can dial (877) 328-5505 or access the webcast at www.crc.com [3] Company Overview - California Resources Corporation is an independent energy and carbon management company focused on energy transition [4] - The company emphasizes environmental stewardship while providing responsibly sourced energy [4] - CRC aims to maximize the value of its land and mineral ownership through carbon capture and storage (CCS) and emissions-reducing projects [4]

Part I - Financial Information [Financial Statements](index=7&type=section&id=Item%201) The company's Q1 2025 financial statements reflect a significant revenue increase and a shift to net income from a prior-year loss, driven by the Aera Merger [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $6.83 billion as of March 31, 2025, primarily due to a reduction in cash, while total liabilities also decreased, driven by lower long-term debt Condensed Consolidated Balance Sheet (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $799 | $1,024 | | Cash and cash equivalents | $214 | $372 | | **Total Assets** | **$6,827** | **$7,135** | | **Total Current Liabilities** | $961 | $980 | | Long-term debt, net | $888 | $1,132 | | **Total Liabilities** | **$3,311** | **$3,598** | | **Total Stockholders' Equity** | **$3,516** | **$3,538** | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, the company reported a net income of $115 million, a significant turnaround from a $10 million net loss in Q1 2024, driven by the Aera Merger Condensed Consolidated Statements of Operations (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total operating revenues | $912 | $454 | | Oil, natural gas and NGL sales | $814 | $429 | | Net gain (loss) from commodity derivatives | $6 | $(71) | | Total operating expenses | $726 | $464 | | Operating Income (Loss) | $186 | $(4) | | **Net Income (Loss)** | **$115** | **$(10)** | | **Diluted EPS** | **$1.26** | **$(0.14)** | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net operating cash flow more than doubled to $186 million in Q1 2025, while significant financing outflows for debt redemption and stock buybacks led to a $158 million cash decrease Condensed Consolidated Statements of Cash Flows (in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$186** | **$87** | | **Net cash used in investing activities** | **$(79)** | **$(49)** | | Capital investments | $(55) | $(54) | | **Net cash used in financing activities** | **$(265)** | **$(131)** | | Repurchases of common stock | $(101) | $(58) | | Debt redemption | $(123) | $— | | **Decrease in cash and cash equivalents** | **$(158)** | **$(93)** | | Cash and cash equivalents—end of period | $214 | $403 | [Notes to the Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the significant impact of the Aera Merger on financial comparability, key accounting policies, and segment reporting for Oil & Gas and Carbon Management - The **Aera Merger**, closed on July 1, 2024, **significantly impacted the comparability of financial results** for Q1 2025 versus Q1 2024[24](index=24&type=chunk) - The company's business is conducted through **two reportable segments**: (1) oil and natural gas and (2) carbon management (Carbon TerraVault)[68](index=68&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202) Management attributes improved Q1 2025 performance to the Aera Merger, discusses the commodity price environment, and outlines its new 'Responsible Net Zero' goal [Business Environment and Industry Outlook](index=32&type=section&id=Business%20Environment%20and%20Industry%20Outlook) The business environment is marked by commodity price volatility from OPEC+ actions and potential cost increases from U.S. tariffs on imported goods - **OPEC+ began unwinding production cuts** in early 2025, adding supply and contributing to a decline in global oil prices during Q1 2025[100](index=100&type=chunk) - New **U.S. tariffs on imported goods**, including steel and aluminum, could increase the cost of oilfield goods and delivery lead times[100](index=100&type=chunk)[107](index=107&type=chunk) - The planned closures of two California refineries are **not expected to negatively impact** CRC's ability to market its crude oil production[102](index=102&type=chunk) [Regulatory Updates](index=33&type=section&id=Regulatory%20Updates) The company faces ongoing delays from CalGEM for new well permits but holds sufficient permits for its 2025 capital program and one drilling rig through 2026 - In Q1 2025, CRC received permits for 53 workovers and 21 sidetracks, but **continued to face delays from CalGEM** for new well and deepening permits[103](index=103&type=chunk)[104](index=104&type=chunk) - The company holds **enough permits to maintain its 2025 capital program** and operate one active drilling rig throughout 2026[105](index=105&type=chunk) [Responsible Net Zero Goal](index=34&type=section&id=Responsible%20Net%20Zero%20Goal) The Board adopted a new 'Responsible Net Zero' goal to reduce absolute Scope 1 and 2 GHG emissions by 80% by 2045, driven by the Aera Merger - A new **'Responsible Net Zero' goal** was adopted in May 2025, aiming for an **80% reduction in absolute Scope 1 and 2 GHG emissions by 2045** and neutralizing the remainder[108](index=108&type=chunk) - The change from the previous goal was primarily driven by the **Aera Merger**, which nearly doubled the asset base and altered the company's carbon intensity profile[109](index=109&type=chunk) [Statements of Operations Analysis](index=35&type=section&id=Statements%20of%20Operations%20Analysis) Quarter-over-quarter, operating revenues and net income increased, driven by higher derivative gains and lower G&A expenses from post-merger synergies Consolidated Results of Operations (in millions) | Metric | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Total operating revenues | $912 | $877 | | Total operating expenses | $726 | $813 | | Operating income | $186 | $68 | | Net income | $115 | $33 | - **G&A expenses decreased by $23 million** from Q4 2024 to Q1 2025, primarily due to lower compensation-related expenses following the Aera Merger[117](index=117&type=chunk) - **Non-energy operating costs decreased by $16 million** quarter-over-quarter due to lower maintenance activity and more favorable vendor pricing[116](index=116&type=chunk) [Results of Our Oil and Natural Gas Operations](index=39&type=section&id=Results%20of%20Our%20Oil%20and%20Natural%20Gas%20Operations) The oil and gas segment maintained stable production of 141 MBoe/d in Q1 2025 with a segment profit of $266 million and an average realized oil price of $73.57 per barrel Oil and Natural Gas Segment Key Data | Metric | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Net production sold (MBoe/d) | 141 | 141 | | Segment profit (in millions) | $266 | $268 | | Operating costs ($ per Boe) | $25.60 | $25.35 | Realized Prices (Q1 2025) | Commodity | Realized Price (w/o derivatives) | Realization vs. Brent | | :--- | :--- | :--- | | Oil ($/Bbl) | $73.57 | 98% | | NGLs ($/Bbl) | $54.64 | 73% | | Natural Gas ($/Mcf) | $4.12 | 113% of NYMEX | [Results of Our Carbon Management Segment](index=42&type=section&id=Results%20of%20Our%20Carbon%20Management%20Segment) The early-stage Carbon TerraVault segment reported no revenue and a segment loss of $25 million for Q1 2025, an improvement from the prior quarter - The carbon management segment is in its **early development stages** and had **no revenue** for Q1 2025[138](index=138&type=chunk) Carbon Management Segment Results (in millions) | Metric | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Segment loss | $(25) | $(31) | | Carbon management expenses | $18 | $20 | | Segment G&A expenses | $3 | $5 | [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained total liquidity of $1.18 billion, redeemed $123 million in debt, repurchased $101 million in stock, and projects a 2025 capital program of $285-$335 million Liquidity Summary (as of March 31, 2025, in millions) | Component | Amount | | :--- | :--- | | Available cash and cash equivalents | $199 | | Revolving Credit Facility Availability | $983 | | **Total Liquidity** | **$1,182** | - In February 2025, the company **redeemed $123 million** of its 7.125% senior notes due 2026[145](index=145&type=chunk) - The **2025 capital program is expected to be $285 million to $335 million**, with the majority allocated to the oil and natural gas segment[150](index=150&type=chunk) - Integration of Aera is expected to result in approximately **$80 million of annual savings** ($50M in G&A, $30M in operating costs)[154](index=154&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%203) The company's primary market risks are commodity prices, counterparty credit, and interest rates, which are managed through extensive hedging and fixed-rate debt - As of March 31, 2025, the company has **hedged approximately 70% of its expected oil production** for the rest of 2025 at a weighted average floor price of $67.07[168](index=168&type=chunk) - Approximately **70% of expected fuel use** in oil and gas operations for the remainder of 2025 is **hedged at a fixed price of $3.41**[168](index=168&type=chunk) - **Interest-rate risk is minimal** as the company had no variable-rate debt outstanding as of March 31, 2025; both the 2026 and 2029 Senior Notes are fixed-rate[172](index=172&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%204) The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - Management, including the CEO and CFO, concluded that the company's **disclosure controls and procedures were effective** as of March 31, 2025[173](index=173&type=chunk) - **No material changes** were made to the company's internal controls over financial reporting during the first quarter of 2025[174](index=174&type=chunk) Part II - Other Information [Legal Proceedings](index=50&type=section&id=Item%201) The company is involved in various routine lawsuits and claims, referring to Note 5 and its 2024 Annual Report for details - For information on legal proceedings, the company refers to **Note 5 in the financial statements** and its **2024 Annual Report**[177](index=177&type=chunk) [Risk Factors](index=50&type=section&id=Item%201A) No material changes to the risk factors disclosed in the company's 2024 Annual Report occurred during the first quarter of 2025 - **No material changes** to the company's risk factors occurred during the first quarter of 2025[178](index=178&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202) The company issued deferred consideration shares for the Aera merger and repurchased approximately $101 million of its common stock in Q1 2025 - On February 24, 2025, the company **issued 107,265 shares of common stock** to former Aera owners as deferred consideration for the merger[179](index=179&type=chunk) Share Repurchase Activity (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 336,665 | $52.74 | | Feb 2025 | — | $— | | Mar 2025 | 1,935,254 | $42.47 | | **Total** | **2,271,919** | **$44.00** | - As of March 31, 2025, **$457 million remained available** for purchase under the authorized Share Repurchase Program[181](index=181&type=chunk) [Other Disclosures](index=50&type=section&id=Item%205) No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the first quarter of 2025 - **No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement** during Q1 2025[182](index=182&type=chunk) [Exhibits](index=51&type=section&id=Item%206) This section lists the exhibits filed with the Form 10-Q, including officer certifications and XBRL data files - Lists various filed exhibits, including **officer certifications and Inline XBRL documents**[184](index=184&type=chunk)

Financial Data and Key Metrics Changes - The company reported flat net production quarter over quarter at 141,000 barrels of oil equivalent per day, with realized prices at 98% of Brent [12] - Adjusted EBITDAX was $328 million, net cash flow before changes in working capital was $252 million, and free cash flow totaled $131 million, all exceeding consensus expectations [12] - Operating and G&A costs were $388 million, approximately 5% better than guidance, with expectations to reduce operating costs by nearly 10% in the first half of 2025 compared to the second half of 2024 [13] Business Line Data and Key Metrics Changes - The company achieved over 70% of its total $235 million in announced annual synergies from the Era merger, with full target expected by early 2026 [7] - The integrated strategy of power and natural gas marketing is delivering meaningful margins, supporting cash generation and shareholder returns [8] Market Data and Key Metrics Changes - Approximately 70% of oil production and natural gas consumption is hedged at attractive levels relative to current market prices [7] - The company can generate free cash flow at Brent prices down to approximately $34 per barrel, indicating resilience against commodity price fluctuations [8] Company Strategy and Development Direction - The company is focused on mitigating commodity price volatility, generating cash flow, maintaining a strong balance sheet, and sustainably returning cash to shareholders [5] - The strategic steps taken to strengthen the business include achieving critical scale through the Era merger, which has provided opportunities for cost savings and improved returns [6] - The company is pursuing multiple new opportunities in carbon management and power generation, with a focus on integrating gas to power and carbon capture strategies [17][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its strategy despite macroeconomic uncertainties, highlighting a strong balance sheet and quality assets [22] - The management noted that the regulatory environment in California is improving, which supports the company's growth and permitting efforts [20][100] Other Important Information - The company returned a record $258 million to stakeholders through dividends, share buybacks, and debt redemption in the first quarter [10] - The company is actively working on California's first carbon capture and storage project at the Elk Hills Cryogenic Gas Plant, with construction expected to begin in the second quarter [20] Q&A Session Summary Question: How is the company achieving similar EBITDA with a lower Brent assumption? - Management attributed the achievement to synergy targets and strong execution in integrating Era assets, along with cost savings from supply chain advantages and infrastructure consolidation [25][26] Question: What does the breakeven look like on an unhedged basis? - The corporate breakeven is around $34 Brent or about $30 WTI, achieved through low decline, predictable assets and proactive cost management [31] Question: What is the political landscape regarding CO2 pipeline regulation and gas permitting? - Management noted encouraging progress in California and Washington, with constructive engagement on CO2 pipelines and oil and gas permitting [41][43] Question: Update on Huntington Beach real estate marketing and remediation timeline? - The company is preparing to market the property for optimal use, with a timeline of about three years for approvals [49] Question: Thoughts on the Elk Hills PPA and funding for carbon capture? - Management is focused on securing a long-term partner for the Elk Hills project, with various clean energy incentives in play [53][56] Question: Update on synergies and potential for pulling them forward? - Management indicated that while some synergies may be realized earlier, there are timing components tied to specific projects [64][70] Question: Will the company pursue bolt-on acquisitions in California? - Management is open to bolt-on acquisitions if they are significantly accretive to cash flow, but the focus remains on executing the current business strategy [77] Question: Recent advancements in carbon capture technology? - The company is agnostic to technology advancements but focuses on land and mineral ownership for carbon capture opportunities [81] Question: Update on base decline and maintenance capital? - Management highlighted that maintenance capital could potentially decrease in an unconstrained permitting environment, but specific guidance is not yet available [85][87] Question: Clarification on the potential PPA discussions? - Management confirmed ongoing discussions with multiple large-scale industrial customers for power purchase agreements, emphasizing the interest in clean baseload power [102]

Financial Data and Key Metrics Changes - The company reported flat net production quarter over quarter at 141,000 barrels of oil equivalent per day, with realized prices at 98% of Brent [11] - Adjusted EBITDAX was $328 million, net cash flow before changes in working capital was $252 million, and free cash flow totaled $131 million, all exceeding consensus expectations [11] - Operating and G&A costs were $388 million, approximately 5% better than guidance, with expectations to reduce operating costs by nearly 10% in the first half of 2025 compared to the second half of 2024 [12] Business Line Data and Key Metrics Changes - The company achieved over 70% of its total $235 million in announced annual synergies from the Era merger, with full target expected by early 2026 [6][8] - The integrated strategy in power and natural gas marketing is delivering meaningful margins, supporting debt service and shareholder returns [6] Market Data and Key Metrics Changes - Approximately 70% of oil production and natural gas consumption is hedged at attractive levels relative to current market prices [6] - The company can generate free cash flow at Brent prices down to approximately $34 per barrel, indicating resilience against commodity price fluctuations [6] Company Strategy and Development Direction - The company is focused on mitigating commodity price volatility, generating cash flow, maintaining a strong balance sheet, and sustainably returning cash to shareholders [4] - The strategic steps taken to strengthen the business include achieving critical scale through the Era merger, which has provided opportunities for cost savings and improved returns [5] - The company is pursuing multiple new opportunities in carbon management and power generation, including California's first CCS project at the Elk Hills Cryogenic Gas Plant [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to withstand macroeconomic uncertainties and highlighted the strength of its business model [5][20] - The company is optimistic about the progress in permitting and regulatory environments, which are expected to support future growth [94] Other Important Information - The company returned a record $258 million to stakeholders through dividends, share buybacks, and debt redemption in the first quarter [8] - The company has more than $1 billion in liquidity and nearly $200 million in available cash, indicating strong financial health [14] Q&A Session Summary Question: How is the company achieving similar EBITDA with lower Brent assumptions? - Management highlighted that synergy targets and cost savings from the Era merger are key factors, with ongoing integration efforts exceeding expectations [23][25] Question: What does the breakeven look like on an unhedged basis? - The corporate breakeven is around $34 Brent or about $30 WTI, supported by low decline, predictable assets and proactive cost management [28] Question: Is there concern about refinery shutdowns affecting sales? - Management indicated no concern, as existing refineries are built for California crude, and the company is positioned to meet local demand [32] Question: What progress is being made on CO2 pipeline regulation and permitting? - Management reported encouraging progress in both Sacramento and Washington, with constructive engagement on CO2 pipelines and oil and gas permitting [40] Question: Update on Huntington Beach real estate marketing and remediation timeline? - The company is preparing to market the property for mixed-use development, with a timeline of approximately three years for approvals [46] Question: Insights on the Elk Hills PPA and funding for carbon capture? - Management emphasized the importance of securing a long-term partner for the Elk Hills project, with ongoing discussions to optimize costs and funding [50][56] Question: What is the outlook for maintenance capital in an unconstrained permitting environment? - Management stated that while they are not ready to guide on unconstrained scenarios, they are seeing strong performance with low capital expenditures [82] Question: Clarification on the potential PPA discussions? - The company is engaged with multiple large-scale industrial customers for PPAs, expanding interest beyond data centers [99]

3. BALANCE SHEET & HEDGE BOOK STRENGTH REDUCE 2025 RISK ~70% of remaining 2025E net production hedged at a floor price of ~$67/bbl Brent drives cash flow stability Integrated strategy provides revenue diversification (power and natural gas marketing with CMB in development) Strengthened financial position – 0.7x 2025E Net Leverage*, 4: redeemed $123MM of 2026 Senior Notes in February 2025, targeting to address the balance in 2025 See slide 25 for "Assumptions, Estimates and Endnotes". 2 First Quarter 2025 R ...

Earnings Performance - California Resources Corporation (CRC) reported quarterly earnings of $1.07 per share, exceeding the Zacks Consensus Estimate of $0.83 per share, and up from $0.75 per share a year ago, representing an earnings surprise of 28.92% [1] - The company posted revenues of $912 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.26%, compared to year-ago revenues of $454 million [2] Stock Performance - California Resources shares have declined approximately 32.7% since the beginning of the year, while the S&P 500 has decreased by 3.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $842.86 million, and for the current fiscal year, it is $2.94 on revenues of $3.47 billion [7] Industry Outlook - The Oil and Gas - Exploration and Production - United States industry is currently ranked in the bottom 24% of over 250 Zacks industries, indicating potential challenges for stocks within this sector [8] - The earnings outlook for California Resources is influenced by the overall industry performance, which can materially impact stock performance [8] Estimate Revisions - Ahead of the earnings release, the estimate revisions trend for California Resources was unfavorable, resulting in a Zacks Rank 5 (Strong Sell) for the stock, suggesting expected underperformance in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[First Quarter 2025 Financial and Operating Results](index=1&type=section&id=First%20Quarter%202025%20Financial%20and%20Operating%20Results) [Financial and Operating Highlights](index=1&type=section&id=Financial%20and%20Operating%20Highlights) CRC reported strong Q1 2025 financial results with $115 million net income, $131 million free cash flow, stable production, and robust liquidity Q1 2025 Key Financial Metrics | Metric | Value (in millions) | | :--- | :--- | | Net Income | $115 | | Adjusted Net Income | $98 | | Adjusted EBITDAX | $328 | | Net Cash from Operating Activities | $186 | | Free Cash Flow | $131 | - Delivered average net production of **141 thousand barrels of oil equivalent per day (MBoe/d)**, which was flat quarter-over-quarter[4](index=4&type=chunk) - Returned a total of **$258 million** to stakeholders, comprising **$100 million** in share repurchases, **$35 million** in dividends, and **$123 million** in debt repurchases[4](index=4&type=chunk) - Realized **$173 million** of the Aera-related merger synergies and is on track to achieve the full **$185 million** by the end of 2025[4](index=4&type=chunk) - Ended Q1 2025 with **$1,182 million** of liquidity, including **$199 million** in cash and **$983 million** in available borrowing capacity[4](index=4&type=chunk) - The Carbon TerraVault (CTV) project is targeting its first carbon dioxide (CO₂) injection at the Elk Hills Cryogenic Gas Plant by year-end 2025[4](index=4&type=chunk) [Financial Results and Outlook](index=2&type=section&id=Financial%20Results%20and%20Outlook) CRC reported increased Q1 2025 revenues and net income, reaffirming full-year 2025 production and Adjusted EBITDAX guidance [First Quarter 2025 Financial Results](index=2&type=section&id=First%20Quarter%202025%20Financial%20Results) CRC's Q1 2025 saw total operating revenues rise to $912 million and net income significantly increase to $115 million Q1 2025 vs. Q4 2024 Financial Performance | Financial Metric | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Total Operating Revenues | $912 million | $877 million | | Operating Income | $186 million | $68 million | | Net Income | $115 million | $33 million | | Net Income per Share - diluted | $1.26 | $0.36 | | Adjusted Net Income | $98 million | $84 million | | Adjusted EBITDAX | $328 million | $316 million | | Free Cash Flow | $131 million | $118 million | Q1 2025 Production and Realized Prices | Production / Price | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Net Oil Production (MBbl/d) | 111 | 112 | | Realized Oil Price ($/Bbl) | $72.01 | $73.00 | | Net NGL Production (MBbl/d) | 10 | 10 | | Net Natural Gas Production (MMcf/d) | 117 | 115 | | Realized Natural Gas Price ($/Mcf) | $4.12 | $3.65 | | Total Net Production (MBoe/d) | 141 | 141 | [2025 Guidance](index=3&type=section&id=2025%20Guidance) CRC reaffirmed its full-year 2025 guidance and Q2 targets, planning a one-rig program in H1 and a two-rig program in H2 CRC 2025 Guidance Highlights | Metric | 2Q25 Estimate | Full Year 2025 Estimate | | :--- | :--- | :--- | | Net Production (MBoe/d) | 133 - 137 | 132 - 138 | | Capital ($ millions) | $81 - $92 | $285 - $335 | | Adjusted EBITDAX ($ millions) | $275 - $290 | $1,100 - $1,200 | - The company will run a one-rig program in H1 2025 and expects to run a two-rig program in H2 2025, utilizing existing permits[6](index=6&type=chunk) [Shareholder Returns and Capital Structure](index=3&type=section&id=Shareholder%20Returns%20and%20Capital%20Structure) CRC committed to shareholder returns in Q1 2025 through repurchases and dividends, while strengthening its capital structure by reducing debt and maintaining robust liquidity [Shareholder Returns and Dividend Announcements](index=3&type=section&id=Shareholder%20Returns%20and%20Dividend%20Announcements) In Q1 2025, CRC repurchased $100 million in shares and declared a quarterly dividend, bringing total shareholder returns since mid-2021 to $1.2 billion - Repurchased **2.3 million shares** for **$100 million** at an average price of **$44 per share** during Q1 2025[8](index=8&type=chunk) - Total capital returned to shareholders since mid-2021 amounts to approximately **$1,195 million**, with **$457 million** remaining under the current repurchase authorization[8](index=8&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.3875 per share**, payable in June 2025[8](index=8&type=chunk) [Balance Sheet and Liquidity](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity) CRC strengthened its balance sheet by redeeming $123 million in notes, maintaining $1.182 billion in liquidity, with its borrowing base reaffirmed at $1.5 billion - Redeemed **$123 million** of 2026 Senior Notes and expects to redeem the remaining **$122 million** in 2025[9](index=9&type=chunk) Liquidity as of March 31, 2025 | Component | Amount (in millions) | | :--- | :--- | | Available Cash and Cash Equivalents | $199 | | Available Borrowing Capacity | $983 | | **Total Liquidity** | **$1,182** | - In April 2025, CRC's borrowing base under its Revolving Credit Facility was reaffirmed at **$1,500 million**[9](index=9&type=chunk) [Company and Business Overview](index=3&type=section&id=Company%20and%20Business%20Overview) CRC is an independent energy and carbon management company focused on energy transition and CCS projects through CTV, with upcoming investor conference participation [About California Resources Corporation (CRC) and Carbon TerraVault (CTV)](index=4&type=section&id=About%20California%20Resources%20Corporation%20%28CRC%29%20and%20Carbon%20TerraVault%20%28CTV%29) CRC is an independent energy company focused on energy transition and decarbonization, with its Carbon TerraVault subsidiary developing CO₂ capture and storage projects - CRC is an independent energy and carbon management company committed to energy transition and environmental stewardship[14](index=14&type=chunk) - Carbon TerraVault (CTV), CRC's subsidiary, is developing services to capture, transport, and permanently store CO₂ for its customers in depleted underground reservoirs[15](index=15&type=chunk) [Upcoming Investor Conference Participation](index=3&type=section&id=Upcoming%20Investor%20Conference%20Participation) CRC management is scheduled to participate in various investor conferences from May to July 2025, covering energy transition and financial topics - CRC will participate in numerous investor conferences between May and July 2025, including events hosted by UBS, Morgan Stanley, Goldman Sachs, RBC, BofA, Jefferies, J.P. Morgan, and TD[10](index=10&type=chunk)[15](index=15&type=chunk) [Attachments (Detailed Financials and Operations)](index=6&type=section&id=Attachments%20%28Detailed%20Financials%20and%20Operations%29) Attachments provide detailed financial statements, operational statistics, and non-GAAP reconciliations, including results summaries, capital investments, guidance, and production data [Summary of Results (Attachment 1)](index=6&type=section&id=Summary%20of%20Results%20%28Attachment%201%29) This section presents detailed consolidated statements of operations, cash flow data, and selected balance sheet figures for Q1 2025, with comparative periods Q1 2025 Statement of Operations Highlights | ($ in millions) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Total operating revenues | $912 | $877 | $454 | | Total operating expenses | $726 | $813 | $464 | | Operating Income | $186 | $68 | $(4) | | Net Income | $115 | $33 | $(10) | Q1 2025 Cash Flow Data | ($ in millions) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $186 | $206 | $87 | | Net cash used in investing activities | $(79) | $(67) | $(49) | | Net cash (used in) provided by financing activities | $(265) | $(8) | $(131) | [Capital Investments and Derivatives (Attachment 1)](index=7&type=section&id=Capital%20Investments%20and%20Derivatives%20%28Attachment%201%29) Q1 2025 total capital investment was $55 million, primarily in oil and natural gas, with a $6 million net gain from commodity derivatives Q1 2025 Capital Investments Breakdown | ($ in millions) | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Total oil and natural gas capital | $42 | $78 | | Carbon management | $2 | $6 | | Corporate and other | $11 | $4 | | **Total capital program** | **$55** | **$88** | [Guidance Details (Attachment 2)](index=8&type=section&id=Guidance%20Details%20%28Attachment%202%29) Detailed Q2 and full-year 2025 guidance is provided by segment, based on assumed Brent oil and NYMEX gas prices Full Year 2025E Guidance by Segment ($ millions) | Metric | Consolidated | Oil and Natural Gas | Carbon Management | | :--- | :--- | :--- | :--- | | Capital | $285 - $335 | $250 - $280 | $20 - $30 | | Adjusted EBITDAX | $1,100 - $1,200 | $1,205 - $1,340 | ($80) - ($85) | - Full-year 2025 guidance assumes a Brent price of **$63.00 per barrel** and a NYMEX gas price of **$4.28 per Mcf**[13](index=13&type=chunk)[26](index=26&type=chunk) [Non-GAAP Reconciliations (Attachment 3)](index=10&type=section&id=Non-GAAP%20Reconciliations%20%28Attachment%203%29) This section provides detailed reconciliations of key non-GAAP financial measures to GAAP equivalents, including Adjusted Net Income, Adjusted EBITDAX, and Free Cash Flow Reconciliation of Net Income to Adjusted Net Income (Q1 2025) | ($ in millions) | Amount | | :--- | :--- | | Net income | $115 | | Non-cash derivative gain | ($22) | | Aera merger related costs | $3 | | Other adjustments, net | ($5) | | Income tax provision of adjustments | $7 | | **Adjusted net income** | **$98** | Reconciliation of Net Cash from Operations to Free Cash Flow (Q1 2025) | ($ in millions) | Amount | | :--- | :--- | | Net cash provided by operating activities | $186 | | Capital investments | ($55) | | **Free cash flow** | **$131** | Reconciliation of Net Income to Adjusted EBITDAX (Q1 2025) | ($ in millions) | Amount | | :--- | :--- | | Net income | $115 | | Interest and debt expense | $27 | | Depreciation, depletion and amortization | $131 | | Income tax provision | $47 | | Other adjustments | $8 | | **Adjusted EBITDAX** | **$328** | [Production, Price, and Drilling Statistics (Attachments 4, 5, 6)](index=16&type=section&id=Production%2C%20Price%2C%20and%20Drilling%20Statistics%20%28Attachments%204%2C%205%2C%206%29) These attachments detail Q1 2025 operational data, including 141 MBoe/d total net production, realized prices, and drilling statistics for 3 development wells Q1 2025 Net Production by Basin | Basin | Oil (MBbl/d) | NGLs (MBbl/d) | Natural Gas (MMcf/d) | | :--- | :--- | :--- | :--- | | San Joaquin | 84 | 10 | 101 | | Los Angeles | 18 | 0 | 1 | | Other Basins | 9 | 0 | 15 | | **Total** | **111** | **10** | **117** | Q1 2025 Price Realizations | Commodity | Realized Price (w/o derivatives) | Index Price (Brent/NYMEX) | | :--- | :--- | :--- | | Oil ($/Bbl) | $73.57 | $74.92 | | NGLs ($/Bbl) | $54.64 | - | | Natural Gas ($/Mcf) | $4.12 | $3.65 | - In Q1 2025, the company drilled a total of **3 development wells**, all located in the San Joaquin Basin[48](index=48&type=chunk)

Core Insights - California Resources Corporation (CRC) reported a strong start to 2025, returning a record $258 million to stakeholders while maintaining balance sheet strength and flat quarter-over-quarter total net production [3][5][10] - The company reaffirmed its production, capital investment, and adjusted EBITDAX guidance for 2025, indicating confidence in its operational strategy and market positioning [1][7] Financial Performance - In Q1 2025, CRC reported net income of $115 million and adjusted net income of $98 million, with adjusted EBITDAX of $328 million [5][6] - Total operating revenues for Q1 2025 were $912 million, an increase from $877 million in Q4 2024 [6][28] - The company generated $186 million in net cash from operating activities and $131 million in free cash flow [5][6] Production and Pricing - Average net production was 141 thousand barrels of oil equivalent per day (MBoe/d), with 79% of production being oil [5][6] - Realized oil price was $72.01 per barrel, while realized natural gas price was $4.12 per Mcf [4][5] Shareholder Returns - CRC returned $258 million to stakeholders in Q1 2025, including $100 million in share repurchases and $35 million in dividends [5][9] - The company has returned approximately $1,195 million to shareholders since mid-2021 [10] Capital Investments and Guidance - Capital investments in Q1 2025 totaled $55 million, with plans to run a one rig program in the first half and a two rig program in the second half of 2025 [7][8] - The company expects net production for Q2 2025 to be between 133 - 137 MBoe/d and adjusted EBITDAX between $275 - $290 million [8][34] Balance Sheet and Liquidity - As of March 31, 2025, CRC had $199 million in available cash and $983 million in borrowing capacity, totaling $1,182 million in liquidity [11][12] - The company redeemed $123 million of its 2026 Senior Notes in February 2025 and plans to redeem the remaining $122 million in 2025 [11]

Core Insights - Carbon TerraVault Holdings, LLC (CTV), a subsidiary of California Resources Corporation (CRC), is advancing California's first carbon capture and sequestration (CCS) project at Elk Hills, with expectations to break ground in summer 2025 and inject CO2 by year-end 2025 [2][7]. Financial Performance - In the first quarter of 2025, CMB expenses were $18 million, down from $20 million in the fourth quarter of 2024. General and administrative expenses decreased to $3 million from $5 million [4]. - Capital investments in Q1 2025 were $2 million, a decline from $6 million in Q4 2024. Adjusted EBITDAX for Q1 2025 was $(21) million, an improvement from $(25) million in Q4 2024 [4]. Guidance - For Q2 2025, CRC expects capital expenditures between $5 million and $10 million, with total year guidance of $20 million to $30 million. CMB expenses are projected to be $10 million to $15 million for Q2 and $60 million to $90 million for the full year [6]. - General and administrative expenses are estimated at $2 million to $4 million for Q2 and $10 million to $15 million for the year. Adjusted EBITDAX is forecasted to be between $(15) million and $(20) million for Q2 and $(80) million to $(85) million for the full year [6]. Project Developments - CTV has received EPA Class VI well permits for CO2 storage and is preparing to commence construction of the CCS project at Elk Hills [7]. - CTV signed a Memorandum of Understanding (MOU) with National Cement for the "Lebec Net Zero" initiative, which aims to produce carbon-neutral cement with potential funding of up to $500 million from the Department of Energy [7].