California Resources (US:CRC)2025-11-04 21:45Financial Performance - Reported net income of $64 million, adjusted net income of $123 million, and $338 million of adjusted EBITDAX for Q3 2025[5] - Total operating revenues for Q3 2025 were $855 million, a decrease of 37% compared to $1,353 million in Q3 2024[31] - Net income for Q3 2025 was $64 million, down from $345 million in Q3 2024, representing an 81% decline[31] - Adjusted net income for Q3 2025 was $123 million, compared to $137 million in Q3 2024, a decrease of 10%[31] - Operating income for Q3 2025 was $98 million, down from $518 million in Q3 2024, a decline of 81%[31] - Total operating expenses for Q3 2025 were $756 million, an increase from $835 million in Q3 2024[31] - The effective tax rate for Q3 2025 was 15%, compared to 29% in Q3 2024[31] - Adjusted EBITDAX for Q3 2025 was $338 million, compared to $324 million in Q2 2025 and $402 million in Q3 2024[48] Cash Flow and Liquidity - Generated $279 million in net cash provided by operating activities and $188 million in free cash flow[5] - Ended Q3 2025 with $180 million in available cash and cash equivalents, $974 million in available borrowing capacity, and total liquidity of $1,154 million[5] - Net cash provided by operating activities for Q3 2025 was $279 million, up from $165 million in Q2 2025 and $220 million in Q3 2024[32] - Liquidity as of September 30, 2025, was $1,154 million, down from $1,337 million as of December 31, 2024[36] Production and Capital Expenditures - Delivered 137 MBoe/d of total production, with 78% being oil, and total capital expenditures of $91 million[5] - Total gross production for Q3 2025 was 155 MBoe/d, a decrease from 165 MBoe/d in Q3 2024, but consistent with the production levels seen in Q2 2025[62] - The company drilled a total of 20 wells in Q3 2025, including 2 primary development wells and 12 steamflood wells, indicating ongoing investment in production capacity[66] - Total capital investment in Q3 2025 was $91 million, compared to $56 million in Q2 2025 and $79 million in Q3 2024[34] Shareholder Returns - Increased quarterly dividend by 5% to $0.405 per share, reinforcing commitment to shareholder returns[5] - Committed to returning $454 million to shareholders in the first nine months of 2025, including $352 million in share repurchases and $102 million in dividends[15] Mergers and Acquisitions - Announced a definitive agreement to merge with Berry Corporation in an all-stock transaction, with a 15% premium over Berry's closing price prior to the announcement[8] - Completed a private offering of $400 million in senior notes due 2034 to repay Berry's outstanding debt and cover transaction costs[9] Sustainability and Environmental Performance - Received "Grade A" certification for methane emissions performance, highlighting commitment to sustainability[18] Segment Performance - Segment profit for the Oil & Natural Gas segment in Q3 2025 was $182 million, down from $194 million in Q2 2025 and $298 million in Q3 2024[50] - Adjusted EBITDAX for the Oil & Natural Gas segment was $332 million in Q3 2025, compared to $346 million in Q2 2025 and $474 million in Q3 2024[50] - The Carbon Management segment reported a loss of $21 million in Q3 2025, compared to a loss of $20 million in Q2 2025 and $25 million in Q3 2024[50] Sales and Pricing - Oil, natural gas, and natural gas liquids sales in Q3 2025 were $715 million, a 18% decrease from $870 million in Q3 2024[31] - The realized price of oil with derivative settlements in Q3 2025 was $67.04 per Bbl, compared to $75.38 per Bbl in Q3 2024, showing a decrease of 11% year-over-year[63] - The realized price of natural gas with derivative settlements in Q3 2025 was $3.47 per Mcf, up from $2.68 per Mcf in Q3 2024, reflecting a 30% increase year-over-year[63] Operating Expenses - General and administrative expenses increased to $87 million in Q3 2025 from $106 million in Q3 2024[31] - Other operating expenses net of other revenue for Q3 2025 totaled $25 million, down from $60 million in Q2 2025 and $71 million in Q3 2024, reflecting a 65% decrease year-over-year[60] - The company reported a total electricity generation expense of $11 million in Q3 2025, compared to $5 million in Q2 2025 and $9 million in Q3 2024, indicating increased operational costs[58]