RT Custom Content from WSJ (@WSJCustom)Paid Program with @Shell: A ship carrying liquefied carbon has made history in Norway—launching the world’s first cross-border CCS project and redefining what’s possible for heavy industry decarbonization.https://t.co/FsZ0pUw9si ...

Francisco Leon is the CEO of California Resources Corporation. Joins us now for a Power Lunch exclusive and I think is this your first ever CNBC interview. >> It is. It is.Thanks for having me. >> Well, I'm I'm glad you could do it. Thank you for coming on.This is interesting. Um before we get into sort of your company in general, 550 a gallon. I'm driving around here.I'm thinking, okay, there's a refinery going to be shut down, I think later this year. They're talking about shutting down a refinery across ...

Core Insights - California Resources Corporation is focusing on local oil production to address high gas prices and energy affordability in California, which pays about 40% higher prices than the rest of the US [3][5] - The company is committed to providing reliable, affordable, and clean energy, emphasizing the importance of oil in California's energy landscape [5][6] - California Resources Corporation has initiated a carbon capture and storage (CCS) project to decarbonize its operations and meet environmental standards [7][10] Company Strategy - The company aims to leverage its natural gas supply and existing power plant capacity to support the growing demand for clean energy, particularly from data centers [9][10] - California Resources Corporation is tailoring its services to assist carbon-intensive industries, such as cement production, in achieving net-zero emissions [11][12] - The company is positioning itself as a market solution provider, helping manufacturers and power plants reduce emissions while maintaining competitiveness [7][12] Market Context - California consumes approximately 9% of the oil in the US, highlighting the significant market potential for local production [3] - The exit of major companies like Chevron from California presents an opportunity for California Resources Corporation to strengthen its market position [4][5] - The company is optimistic about the future of the energy market in California, citing a population of 40 million that still relies on oil [5][6]

Financial Data and Key Metrics Changes - The company increased the midpoint of its 2025 adjusted EBITDA guidance range to $1.13 billion, an 18% increase from the prior year adjusted EBITDA guidance [5] - Adjusted EBITDA for the third quarter was $288 million, representing an $11 million increase from the prior quarter [11] - The distributable cash flow guidance range was raised to $800 to $830 million, a midpoint increase of $45 million due to lower maintenance capital, interest, and cash taxes [12] Business Line Data and Key Metrics Changes - The pipeline segment results were in line with the second quarter, while gathering segment results were $10 million higher than the second quarter, driven by higher volumes on the Haynesville system [11] - Total gathering volumes for the Haynesville averaged 2.04 Bcf per day, a 35% increase over the third quarter of 2024 [11] - The LEAP Phase 4 expansion increased capacity from 1.9 to 2.1 Bcf per day, providing access to Gulf Coast LNG markets [7] Market Data and Key Metrics Changes - The company noted robust gas and power demand growth throughout the region, particularly in Louisiana, driven by data center activity and LNG demand [6][10] - The Northeast volumes averaged 1.09 Bcf per day, with expectations for higher volumes in the fourth quarter [11][12] - The Haynesville system demonstrated record high throughput, indicating producers' ability to respond quickly to LNG demand signals [9] Company Strategy and Development Direction - The company is focused on executing its pure play natural gas pipeline strategy and is well-positioned with a strong balance sheet to fund incremental investments [15] - The Guardian G3+ expansion will increase the total capacity of the Guardian pipeline by approximately 537 million cubic feet per day, supported by long-term contracts with investment-grade utilities [6] - The company is pursuing upstream network opportunities to enhance flexibility and reliability for customers [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position within the natural gas market, citing a positive shift in Haynesville and strong demand growth [10] - The recent Senate confirmation of two new FERC members was viewed as an encouraging sign for the regulatory environment [10] - Management remains optimistic about the future opportunities, particularly in the LNG market and industrial demand growth [10][15] Other Important Information - The company announced a third-quarter dividend of $0.82 per share, unchanged from the prior quarter, with a commitment to grow the dividend by 5% to 7% per year [14] - The committed capital for the 2025 to 2029 period has increased to $1.6 billion, reflecting 70% of the $2.3 billion backlog advancing to execution [14] Q&A Session Summary Question: Potential for network to support gas-fired generation in Louisiana - Management noted robust demand growth in Louisiana, particularly from data centers and LNG demand, and expressed confidence in capturing market share [20] Question: Growth trajectory in Haynesville and LEAP expansions - Management highlighted significant development in western Haynesville and expected continued volume growth, with a focus on maintaining market share [21][22] Question: Upstream Chicago opportunities - Management discussed the potential for the Vector, Nexus, and Midwestern pipelines to bring in incremental supply to the Chicago market [24] Question: Dividend growth potential - Management indicated that strong growth could lead to higher dividend increases, with a focus on maintaining strong coverage ratios [61][65] Question: Millennium open season status - Management described the complexity of the Millennium project and emphasized the need for patience in the regulatory process [53] Question: Market share trends in Haynesville - Management expressed confidence in maintaining or growing market share due to strong connectivity and resource quality [132]

Financial Performance - Equinor reported an adjusted operating income of USD 6.21 billion and an adjusted net income of USD 0.93 billion for Q3 2025, leading to adjusted earnings per share of USD 0.37 [1][9] - The net operating income was USD 5.27 billion, down from USD 6.91 billion in the same quarter last year, impacted by net impairments of USD 754 million [10] - Cash flows from operating activities before taxes were USD 9.10 billion, with cash flow from operations after taxes paid at USD 5.33 billion [13] Production and Operational Highlights - Total equity production reached 2,130 mboe per day, a 7% increase from 1,984 mboe per day in Q3 2024 [3] - Strong operational performance on the Norwegian continental shelf (NCS) with a 9% production growth, particularly from the Johan Sverdrup and Johan Castberg fields [4][7] - The US segment saw a 29% increase in oil and gas production due to acquisitions and increased offshore production [5] Strategic Developments - Production commenced from the Bacalhau field in Brazil, the largest international offshore field developed by Equinor, expected to significantly contribute to earnings [2][16] - Successful exploration led to seven commercial discoveries on the NCS, enhancing Equinor's role as a reliable energy supplier to Europe [15] - The company decided to stop two early-phase electrification projects due to high abatement costs, while further developing the Grane-Balder energy project [18] Capital Distribution - A cash dividend of USD 0.37 per share was declared for Q3 2025, consistent with previous announcements [19] - The fourth tranche of the share buy-back program for 2025 will be up to USD 1.266 billion, completing a total capital distribution of around USD 9 billion for the year [20][21] Renewable Energy Contributions - Total power generation was 1.37 TWh, with the renewable portfolio contributing 0.91 TWh, a 34% increase year-over-year [8] - The company completed 18 offshore exploration wells on the NCS, resulting in seven commercial discoveries [8]

Core Insights - The discussion at the Fortune Global Forum highlighted the dual speeds of AI development: rapid technological breakthroughs versus slower adoption rates, emphasizing the need for a fundamental rethink of processes to fully realize AI's economic benefits [1][2] Group 1: AI's Economic Impact - Ruth Porat, president and chief investment officer of Alphabet and Google, stressed that AI's potential requires a comprehensive evaluation of its implications for businesses and countries [2] - Barclays Group CEO C.S. Venkatakrishnan noted that significant financial commitments and trustworthy partnerships are essential to unlock AI's full potential, particularly in transforming business processes [3][4] Group 2: Human Element and Skills Investment - Saudi Arabia's Minister of Investment, Khalid Al-Falih, emphasized the importance of trust in partnerships and the need to focus on both technology and talent in navigating economic complexities [5][6] - Porat echoed this sentiment, stating that responsible AI execution must include investments in training and education, alongside infrastructure development to support AI expansion [7] Group 3: Infrastructure and Energy - Porat highlighted the potential for 2,500 gigawatts of energy in development in the U.S. that is awaiting grid integration, which is crucial for supporting AI initiatives [7] - Google is addressing the shortage of electricians in the U.S. by creating training programs and is also advancing projects in carbon capture and nuclear energy [8]

Market Overview - U.S. equities showed signs of recovery on October 23, 2025, with major indexes bouncing back from a volatile session the previous day, driven by corporate earnings, U.S.-China trade relations, and a surge in oil prices [1][2] - The Dow Jones Industrial Average (DJIA) rose by approximately 0.1% or 25 points, while the S&P 500 (SPX) advanced by about 0.3%, and the Nasdaq Composite (IXIC) led gains with a rise of around 0.6% [2] Sector Performance - The Energy Select Sector SPDR (XLE) surged by 1.62%, significantly contributing to market gains, fueled by a nearly 6% increase in West Texas Intermediate crude oil futures, which reached $61.90 per barrel due to new U.S. sanctions on Russian oil companies [3] - The Technology Select Sector SPDR (XLK) experienced a slight decline of 0.34%, while Consumer Discretionary (XLY) and Health Care (XLV) sectors also finished lower [3] Upcoming Events - Investors are awaiting the Consumer Price Index (CPI) report scheduled for October 24, which is expected to provide insights into inflation trends and influence Federal Reserve policy decisions, with a 96.7% probability of a Fed rate cut in October [4] Corporate Earnings - Major companies are set to report quarterly results, including Apple (AAPL) on October 30, Microsoft (MSFT) on October 29, and Alphabet (GOOGL, GOOG) also on October 29, with expectations of strong revenue growth [5] - Intel (INTC), Ford (F), Honeywell (HON), T-Mobile US (TMUS), and American Airlines (AAL) are also expected to release their results [5] Geopolitical Factors - The White House is considering new curbs on software exports to China, which previously affected tech stocks, indicating ongoing geopolitical tensions that could lead to market volatility [6] Major Stock News - Tesla (TSLA) reported a 12% revenue increase but a 37% narrowing of net income for Q3 2025, leading to initial stock declines despite record vehicle deliveries of 497,099 units [7] - Google (GOOGL, GOOG) announced a corporate agreement for a gas-fired power plant with carbon capture technology and a significant quantum computing breakthrough, with shares climbing 0.82% [9] - Nvidia (NVDA) continued strong momentum with shares near all-time highs, driven by major AI partnerships and a $5 billion investment in Intel for a 4% stake [10] - Apple (AAPL) faced a legal setback in the UK regarding its App Store commission, but remains financially robust ahead of its earnings release [11] - Microsoft (MSFT) is expected to exceed revenue expectations, driven by strong growth in its Azure cloud business [12] - IBM (IBM) saw its stock drop despite better-than-expected profit and revenue, indicating challenges in its enterprise business [13]

Core Insights - Google is investing in a natural gas power plant in Illinois that aims to capture approximately 90% of its carbon emissions [1][2] - The power plant will have a capacity of 400 megawatts and will be located next to an ethanol plant operated by Archer Daniels Midland (ADM) [1] - The project is being developed by Low Carbon Infrastructure, and Google plans to purchase most of the electricity generated for its data centers [1] Carbon Capture and Storage (CCS) Performance - The power plant's carbon dioxide will be injected into geological storage formations already utilized by ADM's ethanol facility, which is the site of the first long-term CO2 storage well in the U.S. [2] - A recent study of 13 CCS facilities indicates that many are not meeting their carbon capture expectations, with an ExxonMobil facility capturing 36% less than anticipated [5] - A similar Canadian power plant has only captured about 50% of the promised carbon emissions [5] Environmental Impact Considerations - While CCS can reduce emissions from natural gas power generation, it does not address methane leaks throughout the natural gas supply chain, which is a significant greenhouse gas [6] - Methane has a warming potential 84 times greater than carbon dioxide over a 20-year period, and even with carbon capture, the overall warming impact from natural gas extraction and transportation remains [6][7] - Leakage rates as low as 2% can make burning natural gas comparable to coal in terms of carbon accounting [7]

Core Insights - Google has made a significant move by entering into its first corporate agreement to purchase electricity from a U.S. power plant that utilizes carbon capture and storage technology, aimed at powering its data centers in the Midwest region of the country [1] Company Summary - The agreement marks a strategic initiative for Google to enhance its sustainability efforts and reduce carbon emissions associated with its energy consumption [1] - This deal is part of a broader trend among tech companies to invest in renewable energy sources and innovative technologies to meet their energy needs while addressing environmental concerns [1] Industry Summary - The power plant involved in this agreement represents a growing sector focused on carbon capture and storage, which is gaining traction as a viable solution for reducing greenhouse gas emissions in energy production [1] - The collaboration between tech companies and energy producers highlights the increasing importance of sustainable practices in the energy industry, as corporate demand for cleaner energy sources continues to rise [1]

Core Insights - California Resources Corporation (CRC) has initiated the groundbreaking for Carbon TerraVault I (CTV I), marking a significant step towards California's clean energy future and its goal of carbon neutrality by 2045 [1][2] Project Overview - CTV I is California's first carbon capture and storage (CCS) project, designed to reduce emissions and support the state's sustainability goals [1][2] - The project will utilize existing facilities at CRC's Elk Hills, with a CO₂ storage capacity of up to 1.6 million metric tons annually and a total potential of 38 million metric tons in the 26R reservoir [2] Strategic Importance - CTV I is a cornerstone of California's emerging CCS industry and has received final Class VI permits from the U.S. Environmental Protection Agency, setting a new standard for CCS deployment in the state [3] - The project is part of a joint venture between CRC and Brookfield, with CRC holding a 51% stake [8] Economic and Environmental Impact - The project is expected to create high-quality jobs in the Central Valley while contributing to environmental sustainability [3] - Brookfield has invested over half a trillion dollars in infrastructure across the U.S., highlighting the significance of CTV I within its broader energy investment strategy [4] Community Engagement - Local leaders, including Taft Mayor Dave Noerr, emphasize the project's role in continuing the region's legacy of energy innovation and environmental responsibility [4]