California Resources (CRC) - 2025 Q2 - Quarterly Results

Q2 2025 Financial and Operating Results Second Quarter 2025 Highlights CRC reported strong Q2 2025 results with high production, record shareholder returns, and significant Aera merger synergies Q2 2025 Key Financial and Operating Metrics | Metric | Value | | :--- | :--- | | Average Net Production | 137 MBoe/d (80% oil) | | Net Income | $172 million | | Net Income per Diluted Share | $1.92 | | Adjusted Net Income | $98 million | | Adjusted Net Income per Diluted Share | $1.10 | | Net Cash from Operating Activities | $165 million | | Free Cash Flow | $109 million | | Adjusted EBITDAX | $324 million | | Shareholder Returns | $287 million (record) | - The company successfully implemented the targeted $235 million in annualized Aera merger-related synergies, expecting to realize $185 million in 2025 and the remaining $50 million in 2026[5] - CRC updated its 2025 outlook by lowering the drilling, completions, and workover capital program by $5 million, while raising the midpoint of net production guidance to 136 MBoe/d and adjusted EBITDAX guidance to $1,235 million[5] - Carbon TerraVault received authorization from the U.S. EPA to construct CO2 injection wells for the 26R storage reservoir, a key milestone for its carbon management business[5] Second Quarter 2025 Comparative Financial Results Total operating revenues increased to $978 million and net income rose to $172 million quarter-over-quarter Q2 2025 vs Q1 2025 Financial Comparison | Metric ($ in millions, except per share) | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Total Production (MBoe/d) | 137 | 141 | | Total Operating Revenues | $978 | $912 | | Operating Income | $267 | $186 | | Net Income | $172 | $115 | | Net Income per Share - Diluted | $1.92 | $1.26 | | Adjusted Net Income | $98 | $98 | | Adjusted EBITDAX | $324 | $328 | | Free Cash Flow | $109 | $131 | 2025 Guidance Updated 2025 Guidance CRC updated its 2025 guidance, raising full-year net production and Adjusted EBITDAX midpoints Select 2025 Guidance | Metric | 3Q25E | Full Year 2025E | | :--- | :--- | :--- | | Net Production (MBoe/d) | 135 - 139 | 134 - 138 | | Percentage Oil | ~79% | ~79% | | Capital Investments ($ millions) | $84 - $108 | $280 - $330 | | Adjusted EBITDAX ($ millions) | $310 - $340 | $1,195 - $1,275 | Shareholder Returns Share Repurchase Program and Dividends CRC returned a record $287 million to shareholders in Q2 2025 and extended its share repurchase program - The Board of Directors extended the Share Repurchase Program through June 30, 2026, with $205 million remaining for repurchases as of June 30, 2025[9] Q2 2025 Shareholder Return Details | Activity | Value | | :--- | :--- | | Total Returned to Shareholders | $287 million | | Share Repurchases | $252 million (5.52M shares) | | Dividends Paid | $35 million | | Declared Quarterly Dividend | $0.3875 per share | - Since May 2021, the company has returned nearly $1.5 billion to shareholders, comprising approximately $1.1 billion in share repurchases and $337 million in dividends[10] Balance Sheet and Liquidity Debt and Liquidity Position CRC maintained a strong $1,039 million liquidity and plans to redeem $122 million in 2026 Senior Notes - CRC plans to redeem or refinance the $122 million outstanding balance of its 2026 Senior Notes in the second half of 2025[11] Liquidity as of June 30, 2025 | Component | Amount ($ millions) | | :--- | :--- | | Available Cash and Cash Equivalents | $56 | | Available Borrowing Capacity | $983 | | Total Liquidity | $1,039 | Financial Statements and Key Metrics (Attachments) Financial Statements This section provides detailed unaudited financial statements, including operations, cash flow, and balance sheet data Statements of Operations Q2 2025 Statement of Operations Highlights ($ millions) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Total Operating Revenues | $978 | $912 | $514 | | Total Operating Expenses | $711 | $726 | $477 | | Operating Income | $267 | $186 | $38 | | Net Income | $172 | $115 | $8 | Cash Flow and Balance Sheet Data Cash Flow Data ($ millions) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $165 | $186 | $97 | | Net cash used in investing activities | $(51) | $(79) | $(33) | | Net cash (used in) financing activities | $(256) | $(265) | $564 | Select Balance Sheet Information ($ millions) | Line Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | $728 | $1,024 | | Property, plant and equipment, net | $5,560 | $5,680 | | Long-term debt, net | $888 | $1,132 | | Total stockholders' equity | $3,407 | $3,538 | Capital Investments Capital Investments Breakdown ($ millions) | Category | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Oil and natural gas segment | $51 | $42 | $46 | | Carbon management segment | $5 | $2 | $(2) | | Total capital investment | $56 | $55 | $34 | Detailed Guidance Detailed guidance for Q3 and full year 2025 includes production, costs, capital investments, and Adjusted EBITDAX projections Full Year 2025E Guidance by Segment ($ millions) | Metric | Consolidated | Oil and Natural Gas | Carbon Management | | :--- | :--- | :--- | :--- | | Capital Investments | $280 - $330 | $245 - $275 | $20 - $30 | | Adjusted EBITDAX | $1,195 - $1,275 | $1,210 - $1,340 | ($68) - ($64) | Full Year 2025E Commodity Assumptions | Commodity | Assumed Price | | :--- | :--- | | Brent | $68.00 /Bbl | | NYMEX | $3.65 /Mcf | Non-GAAP Reconciliations This section provides detailed reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures Adjusted Net Income (Loss) Reconciliation of Net Income to Adjusted Net Income ($ millions) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net income (GAAP) | $172 | $115 | $8 | | Total unusual, infrequent and other items | $(103) | $(24) | $47 | | Income tax provision of adjustments | $29 | $7 | $(13) | | Adjusted net income (Non-GAAP) | $98 | $98 | $42 | Adjusted EBITDAX Reconciliation of Net Income to Adjusted EBITDAX ($ millions) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net income (GAAP) | $172 | $115 | $8 | | Adjustments (Interest, Taxes, DD&A, etc.) | $152 | $213 | $131 | | Adjusted EBITDAX (Non-GAAP) | $324 | $328 | $139 | Free Cash Flow Reconciliation of Net Cash from Operations to Free Cash Flow ($ millions) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities (GAAP) | $165 | $186 | $97 | | Capital investments | $(56) | $(55) | $(34) | | Free cash flow (Non-GAAP) | $109 | $131 | $63 | Production and Price Statistics This section details the company's production volumes by basin and provides statistics on realized commodity prices Net Production Per Day by Basin (Q2 2025) | Basin | Oil (MBbl/d) | NGLs (MBbl/d) | Natural Gas (MMcf/d) | | :--- | :--- | :--- | :--- | | San Joaquin Basin | 83 | 10 | 96 | | Los Angeles Basin | 17 | - | 1 | | Other Basins | 9 | - | 14 | | Total | 109 | 10 | 111 | Realized Prices (Q2 2025) | Commodity | Realized Price (with derivatives) | | :--- | :--- | | Oil | $66.73 /Bbl | | NGLs | $42.41 /Bbl | | Natural Gas | $2.79 /Mcf | Drilling Activity This section summarizes the company's drilling activity for the second quarter and first six months of 2025 Drilling Activity | Period | Wells Drilled (Total) | | :--- | :--- | | Q2 2025 | 24 | | Six Months 2025 | 27 | Company and Investor Information Company Overview California Resources Corporation is an independent energy and carbon management company focused on the energy transition - CRC is an independent energy and carbon management company committed to the energy transition, focusing on providing responsibly sourced energy and developing decarbonization projects[16] - Carbon TerraVault (CTV) is CRC's carbon management business, focused on developing projects to capture, transport, and permanently store CO2 for CRC affiliates and customers[17] Investor Conference and Call Details CRC will participate in several investor conferences in August and September 2025 and hosted a Q2 results conference call - CRC plans to participate in investor conferences hosted by Citi, Barclays, Goldman Sachs, and PEP Energy in August and September 2025[13][17] - A conference call to discuss Q2 2025 results was scheduled for August 6, 2025, with details provided for participation via phone and webcast[14]