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Mar 31, 2024

CRC Q2 2024 Earnings Report

Announced private offering of additional senior unsecured notes.

Key Takeaways

California Resources Corporation announced its intention to offer and sell $200 million in aggregate principal amount of its 8.250% senior unsecured notes due 2029. Concurrently, they commenced a tender offer to purchase for cash up to $200 million aggregate principal amount of its 7.125% senior notes due 2026.

Intends to offer $200 million in aggregate principal amount of 8.250% senior unsecured notes due 2029.

Notes are offered as additional notes under the indenture dated as of June 5, 2024.

Commenced a tender offer to purchase for cash up to $200 million of its 7.125% senior notes due 2026.

Net proceeds will be used to fund the tender offer, reduce outstanding indebtedness, and for general corporate purposes.

Total Revenue
$525M
Previous year: $591M
-11.2%
EPS
$0.6
Previous year: $0.53
+13.2%
Gross Profit
$201M
Previous year: $262M
-23.3%
Cash and Equivalents
$403M
Previous year: $448M
-10.0%
Free Cash Flow
$33M
Previous year: $69M
-52.2%
Total Assets
$3.91B
Previous year: $3.9B
+0.3%

CRC

CRC

Forward Guidance

The company expects activities, events or developments to occur in the future, such as the proposed offering and the intended use of proceeds, including the Tender Offer.

Positive Outlook

  • Proposed offering of senior unsecured notes.
  • Intended use of proceeds for tender offer.
  • Reduction of outstanding indebtedness.
  • General corporate purposes.
  • Focus on energy transition and carbon management.

Challenges Ahead

  • Subject to market and other conditions.
  • Outcomes and results could materially differ from expectations.
  • Subject to risks and uncertainties incident to the Company’s business.
  • Risks described in the Company’s Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q.
  • Forward-looking statements speak only as of the date of the release.