California Resources (US:CRC)2025-11-05 21:31Financial Performance - Total operating revenues for Q3 2025 were $855 million, a decrease of 36.8% compared to $1,353 million in Q3 2024[12]. - Net income for Q3 2025 was $64 million, down 81.5% from $345 million in Q3 2024[12]. - Operating income for Q3 2025 was $98 million, a significant decrease of 81.0% from $518 million in Q3 2024[12]. - The company reported a basic net income per share of $0.76 for Q3 2025, down from $3.86 in Q3 2024[12]. - Net income for the three months ended September 30, 2025, was $64 million, compared to $345 million for the same period in 2024, reflecting a decrease of approximately 81.5%[23]. - For the nine months ended September 30, 2025, net income was $351 million, slightly up from $343 million in 2024, indicating a growth of about 2.3%[23]. - Total operating revenues for the nine months ended September 30, 2025, were $2,272 million, compared to $2,321 million in the same period of 2024, showing a slight decrease of 2.1%[78][81]. - Basic earnings per share (EPS) for the nine months ended September 30, 2025, was $4.00, a decrease from $4.54 in the same period of 2024[93]. Revenue Breakdown - Oil, natural gas, and natural gas liquids sales decreased to $715 million in Q3 2025 from $870 million in Q3 2024, representing a decline of 17.8%[12]. - For the nine months ended September 30, 2025, oil, natural gas, and natural gas liquids sales totaled $2,265 million, down from $1,729 million in the same period of 2024, reflecting an increase of 31.0%[78][81]. - Revenue from marketing of purchased commodities for the three months ended September 30, 2025, was $58 million, an increase of 14% compared to $51 million in 2024[96]. - Electricity revenue surged by $43 million to $101 million in Q3 2025, attributed to higher resource adequacy revenues compared to Q2 2025[143]. - Electricity revenue increased by $61 million to $181 million for the nine months ended September 30, 2025, compared to $120 million for the same period in 2024, a rise of 50.8%[157]. Expenses and Costs - Total costs and other for the three months ended September 30, 2025, were $756 million, compared to $835 million in the same period of 2024, reflecting a decrease of about 9%[106][107]. - Operating expenses totaled $2,193 million for the nine months ended September 30, 2025, compared to $1,776 million for the same period in 2024, reflecting an increase of 23.4%[160]. - General and administrative expenses for the nine months ended September 30, 2025, were $40 million, compared to $21 million in the same period of 2024, indicating an increase of 90.5%[79][76]. - Interest expense for the nine months ended September 30, 2025, was $8 million, up from $3 million in the same period of 2024, reflecting a rise of 166.7%[79][76]. - Taxes other than income rose to $187 million for the nine months ended September 30, 2025, up from $162 million in the same period of 2024, an increase of 15.4%[166]. Assets and Liabilities - Total current assets decreased to $812 million as of September 30, 2025, down from $1,024 million at December 31, 2024, a reduction of 20.7%[11]. - Total assets decreased to $6,751 million as of September 30, 2025, compared to $7,135 million at December 31, 2024, a decline of 5.4%[11]. - Long-term debt, net, decreased to $889 million as of September 30, 2025, from $1,132 million at December 31, 2024, a reduction of 21.5%[11]. - The company’s total stockholders' equity as of September 30, 2025, was $3,443 million, a decrease from $3,538 million at December 31, 2024, a decline of 2.7%[11]. - Total current liabilities as of September 30, 2025, were $917 million, a decrease from $980 million as of December 31, 2024[103]. Mergers and Acquisitions - The Aera Merger, completed on July 1, 2024, involved the issuance of shares valued at $1,141 million and the settlement of Aera's debt amounting to $990 million[37]. - The company plans to merge with Berry Corporation in an all-stock transaction, expected to enhance its oil-weighted reserves and sustainable cash flows[32]. - The Berry Merger is expected to close in the first quarter of 2026, with existing stockholders anticipated to own approximately 94% of the combined company[121][123]. Cash Flow and Investments - The company reported cash flow from operating activities of $279 million for the three months ended September 30, 2025, compared to $220 million for the same period in 2024, representing an increase of approximately 26.8%[23]. - Capital investments for the three months ended September 30, 2025, totaled $91 million, up from $79 million in 2024, marking a rise of about 15.2%[23]. - Capital investment for the nine months ended September 30, 2025, totaled $202 million, compared to $167 million for the same period in 2024, reflecting a 20.9% increase[85]. - Cash flow used in financing activities was $589 million for the nine months ended September 30, 2025, compared to cash flow provided of $351 million in the same period in 2024[206]. Market and Commodity Prices - The average daily Brent oil price for the three months ended September 30, 2025, was $68.13 per barrel, compared to $81.79 per barrel for the same period in 2024, a decrease of approximately 17%[126]. - The average daily NYMEX Henry Hub price for the nine months ended September 30, 2025, was $3.39 per MMBtu, compared to $2.10 per MMBtu for the same period in 2024, reflecting an increase of approximately 61%[126]. Future Outlook - The company expects to generate operating cash flow to return cash to shareholders through dividends and share repurchases based on current commodity prices and planned capital programs for 2025[191]. - The company anticipates maintaining a four drilling rig capital program throughout 2026, contingent on obtaining new permits expected to be available post-SB 237 enactment[137]. - The company expects to retain flexibility in its 2026 capital plan to adjust for changes in commodity prices and market factors[199].