California Resources (CRC) - 2025 Q1 - Quarterly Results

First Quarter 2025 Financial and Operating Results Financial and Operating Highlights 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] - 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] - 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] - Ended Q1 2025 with $1,182 million of liquidity, including $199 million in cash and $983 million in available borrowing capacity[4] - 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] Financial Results and Outlook CRC reported increased Q1 2025 revenues and net income, reaffirming full-year 2025 production and Adjusted EBITDAX guidance First Quarter 2025 Financial Results 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 | $3.65 | | Total Net Production (MBoe/d) | 141 | 141 | 2025 Guidance CRC reaffirmed its full-year 2025 guidance and Q2 targets, planning a one-rig program in H1 and a two-rig program in H2 CRC 2025 Guidance Highlights | Metric | 2Q25 Estimate | Full Year 2025 Estimate | | :--- | :--- | :--- | | Net Production (MBoe/d) | 133 - 137 | 132 - 138 | | Capital ($ 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] Shareholder Returns and Capital Structure 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 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] - Total capital returned to shareholders since mid-2021 amounts to approximately $1,195 million, with $457 million remaining under the current repurchase authorization[8] - The Board of Directors declared a quarterly cash dividend of $0.3875 per share, payable in June 2025[8] Balance Sheet and Liquidity 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] 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 $1,500 million[9] Company and Business Overview CRC is an independent energy and carbon management company focused on energy transition and CCS projects through CTV, with upcoming investor conference participation About California Resources Corporation (CRC) and Carbon TerraVault (CTV) CRC is an independent energy company focused on energy transition and decarbonization, with its Carbon TerraVault subsidiary developing CO₂ capture and storage projects - CRC is an independent energy and carbon management company committed to energy transition and environmental stewardship[14] - Carbon TerraVault (CTV), CRC's subsidiary, is developing services to capture, transport, and permanently store CO₂ for its customers in depleted underground reservoirs[15] Upcoming Investor Conference Participation CRC management is scheduled to participate in various investor conferences from May to July 2025, covering energy transition and financial topics - CRC will participate in numerous investor conferences between May and July 2025, including events hosted by UBS, Morgan Stanley, Goldman Sachs, RBC, BofA, Jefferies, J.P. Morgan, and TD[10][15] Attachments (Detailed Financials and Operations) Attachments provide detailed financial statements, operational statistics, and non-GAAP reconciliations, including results summaries, capital investments, guidance, and production data Summary of Results (Attachment 1) This section presents detailed consolidated statements of operations, cash flow data, and selected balance sheet figures for Q1 2025, with comparative periods Q1 2025 Statement of Operations Highlights | ($ 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) 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 | $88 | Guidance Details (Attachment 2) Detailed Q2 and full-year 2025 guidance is provided by segment, based on assumed Brent oil and NYMEX gas prices Full Year 2025E Guidance by Segment ($ 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 $4.28 per Mcf[13][26] Non-GAAP Reconciliations (Attachment 3) This section provides detailed reconciliations of key non-GAAP financial measures to GAAP equivalents, including Adjusted Net Income, Adjusted EBITDAX, and Free Cash Flow Reconciliation of Net Income to Adjusted Net Income (Q1 2025) | ($ 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 | $328 | Production, Price, and Drilling Statistics (Attachments 4, 5, 6) These attachments detail Q1 2025 operational data, including 141 MBoe/d total net production, realized prices, and drilling statistics for 3 development wells Q1 2025 Net Production by Basin | Basin | Oil (MBbl/d) | NGLs (MBbl/d) | Natural Gas (MMcf/d) | | :--- | :--- | :--- | :--- | | San Joaquin | 84 | 10 | 101 | | Los Angeles | 18 | 0 | 1 | | Other Basins | 9 | 0 | 15 | | Total | 111 | 10 | 117 | Q1 2025 Price Realizations | Commodity | Realized Price (w/o derivatives) | Index Price (Brent/NYMEX) | | :--- | :--- | :--- | | Oil ($/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]