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Dec 30, 2024
CRC Q1 2025 Earnings Report
California Resources Corporation reported its financial and operating results for the first quarter of 2025.
Key Takeaways
California Resources Corporation (CRC) delivered a strong start to 2025, achieving a net income of $115 million and adjusted EBITDAX of $328 million. The company generated $131 million in free cash flow and returned $258 million to stakeholders, including $100 million in share repurchases and $35 million in dividends. Average net production remained flat quarter-over-quarter at 141 MBoe/d.
Reported net income of $115 million and adjusted EBITDAX of $328 million.
Generated $131 million in free cash flow and $186 million of net cash provided by operating activities.
Returned $258 million to stakeholders, including $100 million in share repurchases and $35 million in dividends.
Achieved average net production of 141 MBoe/d, flat quarter-over-quarter, with 79% oil.
CRC
CRC
CRC Revenue by Segment
Revenue by Segment
Oil, natural gas and NGL sales Revenue
CapyFin.comNet gain (loss) from commodity derivatives Revenue
CapyFin.comRevenue from marketing of purchased commodities Revenue
CapyFin.comElectricity sales Revenue
CapyFin.comInterest and other Revenue
CapyFin.com Forward Guidance
CRC's guidance for Q2 2025 and full year 2025 anticipates continued strong performance, with stable production and significant capital investment. The company expects to maintain its shareholder return strategy and progress its carbon management initiatives.
Positive Outlook
- Net production expected to remain stable at 133-137 MBoe/d for 2Q25E and 132-138 MBoe/d for Total Year 2025E.
- Adjusted EBITDAX projected to be $275-$290 million for 2Q25E and $1,100-$1,200 million for Total Year 2025E.
- Capital investments are planned at $81-$92 million for 2Q25E and $285-$335 million for Total Year 2025E, supporting ongoing operations and growth.
- Targeting first carbon dioxide (CO2) injection at the CTV I - 26R storage reservoir from CRC's carbon capture and storage (CCS) project at its Elk Hills Cryogenic Gas Plant by year-end 2025.
- Company reaffirms its 2025 Production, Capital Investment and Adjusted EBITDAX Guidance.
Challenges Ahead
- Brent price assumption of $63.00 per barrel for both 2Q25E and Total Year 2025E, indicating potential commodity price volatility.
- NGL realizations as a percentage of Brent are expected to be 55% to 60% for 2Q25E and 60% to 68% for Total Year 2025E, which could impact NGL revenue.
- Natural gas realizations as a percentage of NYMEX are projected to be 50% to 60% for 2Q25E and 80% to 90% for Total Year 2025E, suggesting potential variability in gas revenue.
- Deferred Income Taxes are projected to be (68%) - (72%) for 2Q25E and 5% - 10% for Total Year 2025E, which could impact net income.
- CRC's share of production under PSC contracts decreases when commodity prices rise and increases when prices fall, introducing a variable element to production volumes.