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Dec 31, 2023

CRC Q4 2023 Earnings Report

Reported financial and operating results for Q4 2023, showcasing record cash flow and free cash flow per share.

Key Takeaways

California Resources Corporation (CRC) reported strong Q4 2023 results, including net income of $188 million, or $2.60 per diluted share, and adjusted net income of $67 million, or $0.93 per diluted share. The company generated $131 million in net cash from operating activities and $65 million in free cash flow. Daily gross production averaged 98 MBoe/d, while net production averaged 83 MBoe/d, including 50 MBo/d. CRC also realized approximately $15 million in savings in the fourth quarter from cost-cutting initiatives.

Generated $131 million of net cash from operating activities and $65 million of free cash flow.

Reported net income of $188 million, or $2.60 per diluted share, and adjusted net income of $67 million, or $0.93 per diluted share.

Daily gross production averaged 98 MBoe/d, with net production averaging 83 MBoe/d, including 50 MBo/d.

Realized approximately $15 million of savings in the fourth quarter from cost-cutting initiatives, expected to result in $65 million in annualized savings.

Total Revenue
$607M
Previous year: $682M
-11.0%
EPS
$0.93
Previous year: $1.24
-25.0%
Average net oil production per day
50K
Previous year: 55
+90809.1%
Average net NGL production per day
11K
Previous year: 11
+99900.0%
Average net natural gas production per day
130M
Previous year: 147
+88435274.1%
Gross Profit
$279M
Previous year: $398M
-29.9%
Cash and Equivalents
$496M
Previous year: $307M
+61.6%
Free Cash Flow
$65M
Previous year: $39M
+66.7%
Total Assets
$929M
Previous year: $3.97B
-76.6%

CRC

CRC

CRC Revenue by Segment

Forward Guidance

CRC expects its first quarter capital program to range between $65 million to $75 million and expects to produce 76 to 80 MBoe/d (~60% oil) in the first quarter of 2024.

Positive Outlook

  • Capital program includes $36 million to $42 million for oil and natural gas, and facilities development.
  • Capital program includes $4 million to $6 million for carbon management projects.
  • Natural Gas Marketing Margin is expected to be $8 million to $13 million
  • Electricity Margin is expected to be $5 million to $10 million
  • Adjusted General and Administrative Expenses are expected to be $48 million to $58 million

Challenges Ahead

  • General and Administrative Expenses are expected to be $61 million to $72 million
  • CMB Expenses and Operating Costs are expected to be $175 million to $185 million
  • Transportation Expense is expected to be $16 million to $21 million
  • Taxes Other Than on Income are expected to be $35 million to $50 million
  • Interest and Debt Expense is expected to be $12 million to $14 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income