Financial Performance - The company generated $328 million of Adjusted EBITDAX, exceeding guidance[3] - Shareholder returns totaled $135 million, representing 103% of 1Q25 Free Cash Flow[3, 4] - Net leverage stands at 0.7x 2025E Net Leverage, reflecting a strengthened financial position[3] Operational Highlights - Net production reached 141 MBOE/D in 1Q25, with oil comprising 79% of the total[6, 7] - Non-energy operating costs decreased by 7% QoQ, achieving 74% of Aera merger-related synergies[3] - Approximately 70% of the remaining 2025 estimated net production is hedged at a floor price of around $67 per barrel Brent, ensuring cash flow stability[3] Synergies and Cost Structure - The company is targeting to realize $185 million of the $235 million of Aera merger-related synergies by the end of 2025[10] - A roughly 15% improvement in the 2025 estimated controllable cost structure is expected compared to the pro forma 2023 baseline[10] Carbon Management - The company is targeting first CO2 sequestration from the Elk Hills Cryogenic Gas Plant by the end of 2025[10] - The company received California's first EPA Class VI permits for CTV I – 26R, with permits becoming effective February 3, 2025[54]

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].

Core Viewpoint - California Resources Corporation (CRC) is anticipated to report a year-over-year increase in earnings and revenues for the quarter ended March 2025, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The consensus estimate for CRC's quarterly earnings is $0.83 per share, reflecting a year-over-year increase of +10.7% [3]. - Expected revenues for the quarter are $869.31 million, which represents a substantial increase of 91.5% compared to the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 26.2%, indicating a reassessment by analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for CRC is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +2.36% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [8]. - However, CRC currently holds a Zacks Rank of 5 (Strong Sell), complicating the prediction of an earnings beat despite the positive Earnings ESP [11]. Historical Performance - In the last reported quarter, CRC was expected to post earnings of $0.96 per share but delivered only $0.91, resulting in a surprise of -5.21% [12]. - Over the past four quarters, CRC has surpassed consensus EPS estimates two times [13]. Industry Context - In the broader industry context, Talos Energy (TALO) is expected to report a loss of $0.10 per share for the same quarter, with revenues projected at $499.97 million, reflecting a year-over-year increase of 16.3% [17]. - The consensus EPS estimate for Talos Energy has been revised down by 55% over the last 30 days, and it currently has an Earnings ESP of 0.00% combined with a Zacks Rank of 3 (Hold) [18].

Core Viewpoint - Canter Resources Corp. has appointed Warwick Smith as Executive Chairman, aiming to leverage his extensive experience in corporate finance and M&A to support the company's growth strategy in the critical metals sector [1][2][3]. Company Overview - Canter Resources Corp. is a junior mineral exploration company focused on advancing the Columbus Lithium-Boron Project and the Railroad Valley Lithium-Boron Project in Nevada, USA [6]. - The company is employing a phased drilling approach at Columbus to explore brine targets for lithium-boron enrichment [6]. Leadership Appointment - Warwick Smith brings over 25 years of leadership experience in corporate finance and M&A, with a successful track record in deal-making and value creation [2]. - Smith has previously collaborated with Canter's CEO, Joness Lang, at American Pacific Mining, where they secured major partnerships and strategic investments [4]. Strategic Focus - Canter is actively engaging with potential strategic partners at both project and corporate levels, emphasizing the importance of securing domestic supplies of critical minerals [3]. - The company is currently reviewing an amended Notice of Intent (NOI) with the Bureau of Land Management (BLM) for its Columbus Lithium-Boron Project [2].

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

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

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