Core Viewpoint - Carbon TerraVault Holdings, LLC (CTV), a subsidiary of California Resources Corporation (CRC), has received authorization from the U.S. EPA to construct CO2 injection wells, marking a significant step in California's carbon capture and storage (CCS) initiatives [1][2]. Financial Performance - In the second quarter of 2025, CTV reported other operating expenses of $14 million, down from $18 million in the first quarter. General and administrative expenses remained stable at $3 million for both quarters [4]. - Capital investments increased to $5 million in Q2 2025 from $2 million in Q1 2025. Adjusted EBITDAX improved to $(17) million in Q2 from $(21) million in Q1 [4]. Guidance - For the third quarter of 2025, CTV expects capital expenditures to be between $8 million and $10 million, with total year guidance set at $20 million to $30 million. Other operating expenses are projected to range from $7 million to $13 million for Q3 and $45 million to $60 million for the full year [6]. - Adjusted EBITDAX for Q3 is anticipated to be between $(15) million and $(11) million, with a full-year estimate of $(68) million to $(64) million [6]. Project Development - CTV is focused on completing California's first CCS project at the Elk Hills cryogenic gas plant by year-end 2025, with CO2 injection expected to begin in early 2026, pending final regulatory approvals [7][9]. - The company is in discussions with potential partners to supply power from the Elk Hills power plant, utilizing a carbon capture and storage pathway to support decarbonized energy solutions [7]. Company Overview - Carbon TerraVault is dedicated to developing projects for capturing, transporting, and permanently storing CO2, aiming to support CRC's affiliates and customers in achieving decarbonization goals [9][11]. - The Carbon TerraVault Joint Venture, formed between CTV and Brookfield, focuses on developing the necessary infrastructure and storage assets for CCS in California, with CRC holding a 51% stake [10].