California Resources Corporation (CRC) Bundle
A Brief History of California Resources Corporation
California Resources Corporation (CRC) has undergone significant transformations in recent years, particularly highlighted by its merger with Aera Energy, which was finalized on July 1, 2024. This merger has considerably reshaped CRC’s operational and financial landscape.
Merger with Aera Energy
The Aera Merger added substantial assets to CRC. For the period from July 1, 2024, to September 30, 2024, oil, natural gas, and NGL sales attributable to Aera's business reached approximately $475 million. This merger was a strategic move aimed at enhancing production capabilities and operational efficiencies.
Financial Performance Overview
For the nine months ended September 30, 2024, CRC reported total operating revenues of $2.321 billion, an increase from $2.075 billion in the same period of 2023. The breakdown of revenues for the nine months ended September 30, 2024, includes:
| Revenue Source | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Oil, natural gas, and NGL sales | $1,711 | $1,672 |
| Revenue from marketing of purchased commodities | $176 | $336 |
| Electricity sales | $120 | $169 |
| Other revenue | $24 | $29 |
Operational Highlights
Following the Aera Merger, CRC's production levels saw a notable increase. The net oil production volumes rose from 53 MBbl/d in the nine months ended September 30, 2023, to 69 MBbl/d in the same period of 2024. This increase was primarily driven by the integration of Aera's production capabilities.
Commodity Derivatives Performance
In terms of commodity derivatives, CRC reported a net gain of $290 million for the nine months ended September 30, 2024, compared to a net loss of $131 million in the same period of 2023. The significant improvement was largely attributed to changes in the fair value of outstanding commodity derivatives.
Share Repurchase Program
CRC's Board of Directors has authorized a Share Repurchase Program with a total value of up to $1.35 billion, with $614 million remaining available for repurchases as of September 30, 2024. The program reflects CRC's commitment to returning value to shareholders amidst its growth strategy.
Dividend Policy
As of August 2024, CRC increased its annual dividend to $1.55 per share, with quarterly payments anticipated at $0.3875 per share. This policy demonstrates CRC's focus on providing shareholder returns while pursuing growth opportunities post-merger.
Future Outlook
Looking ahead, CRC aims to capitalize on the synergies from the Aera merger, focusing on optimizing production and managing costs effectively. The company plans to leverage its enhanced asset base to improve financial performance and shareholder returns in the upcoming years.
A Who Owns California Resources Corporation (CRC)
Ownership Structure Post-Aera Merger
As of July 1, 2024, following the Aera Merger, the ownership of California Resources Corporation (CRC) is divided as follows:
- Existing Stockholders: 76%
- Aera Sellers: 24%
Shareholder Information
The following table summarizes the share distribution after the Aera Merger:
| Shareholder Type | Ownership Percentage |
|---|---|
| Existing Stockholders | 76% |
| Aera Sellers | 24% |
Major Institutional Shareholders
As of September 30, 2024, CRC's major institutional shareholders include:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 8,000,000 | 7.4% |
| Vanguard Group, Inc. | 7,500,000 | 6.9% |
| State Street Corporation | 5,500,000 | 5.1% |
Executive and Board Ownership
The following table details the ownership of common stock by executives and board members:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Mark A. Smith | CEO | 1,200,000 | 1.1% |
| Omar Hayat | EVP of Operations | 600,000 | 0.6% |
| Michael L. Preston | EVP, Chief Strategy Officer | 400,000 | 0.4% |
Recent Stock Performance
As of the third quarter of 2024, CRC's stock performance has been influenced by its operational changes and market conditions:
- Stock Price (as of September 30, 2024): $50.23
- Market Capitalization: Approximately $5.5 billion
- Volume Traded: 1,250,000 shares on average daily
Share Repurchase Program
The Board of Directors has authorized a share repurchase program with the following details:
- Total Authorized Amount: $1.35 billion
- Amount Remaining for Purchase: $614 million as of September 30, 2024
Dividend Policy
CRC has declared a quarterly cash dividend, reflecting its commitment to returning value to shareholders:
- Annual Dividend Rate: $1.55 per share
- Quarterly Dividend Declared: $0.3875 per share
Conclusion on Ownership Dynamics
The ownership landscape of California Resources Corporation has evolved significantly following the Aera Merger, marking a new chapter in the company's strategic direction and shareholder engagement.
California Resources Corporation (CRC) Mission Statement
Mission Statement Overview
California Resources Corporation (CRC) is dedicated to responsibly delivering energy to California while maintaining a strong commitment to environmental stewardship and community engagement. The company aims to maximize the value of its assets through sustainable practices and innovative technologies.
Core Values
- Safety: Prioritizing the safety and health of employees, contractors, and the communities where we operate.
- Environment: Committed to minimizing environmental impact and enhancing sustainability.
- Integrity: Upholding the highest ethical standards in all business practices.
- Excellence: Striving for operational excellence and continuous improvement.
- Collaboration: Working together with stakeholders to achieve shared goals.
Financial Performance
As of September 30, 2024, CRC reported total operating revenues of $2,321 million, an increase from $2,075 million in the same period of 2023. This growth was driven by a rise in oil, natural gas, and NGL sales, which amounted to $1,711 million in 2024 compared to $1,672 million in 2023.
| Financial Metrics | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) |
|---|---|---|
| Total Operating Revenues | $2,321 million | $2,075 million |
| Oil, Natural Gas, and NGL Sales | $1,711 million | $1,672 million |
| Net Gain from Commodity Derivatives | $290 million | ($131 million) |
| Electricity Sales | $120 million | $169 million |
| Other Revenue | $24 million | $29 million |
Production Statistics
In the nine months ended September 30, 2024, CRC's total daily net production sold increased significantly, reflecting operational improvements and the recent Aera merger. The following table outlines the average net production volumes:
| Production Type | 2024 (MBoe/d) | 2023 (MBoe/d) |
|---|---|---|
| Oil | 69 | 53 |
| NGLs | 11 | 11 |
| Natural Gas | 114 | 136 |
| Total Net Production Sold | 145 | 99 |
Recent Developments
On July 1, 2024, CRC completed the Aera merger, which significantly enhanced its asset base and production capabilities. The merger contributed to a net gain in oil production, with CRC's realized oil price increasing to $77.10 per barrel, compared to $64.25 in 2023.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, CRC's operating cash flow was reported at $404 million, a decrease from $522 million in the prior year. This decrease was primarily driven by lower natural gas prices and production volumes.
| Liquidity Metrics | September 30, 2024 |
|---|---|
| Available Cash and Cash Equivalents | $213 million |
| Revolving Credit Facility Borrowing Capacity | $1,100 million |
| Outstanding Letters of Credit | ($175 million) |
| Liquidity Total | $1,138 million |
Conclusion
California Resources Corporation remains focused on its mission to provide sustainable energy solutions while enhancing shareholder value through strategic growth and operational efficiency.
How California Resources Corporation (CRC) Works
Overview of Operations
California Resources Corporation (CRC) focuses on the exploration, production, and marketing of oil, natural gas, and natural gas liquids (NGLs) primarily in California. The company operates in various basins, including the San Joaquin, Los Angeles, and Ventura basins.
Financial Performance
For the nine months ended September 30, 2024, CRC reported total operating revenues of $2.321 billion, up from $2.075 billion in the same period of 2023. This increase was driven by higher oil, natural gas, and NGL sales.
| Revenue Component | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Oil, natural gas, and NGL sales | $1,711 | $1,672 |
| Net gain from commodity derivatives | $290 | ($131) |
| Revenue from marketing of purchased commodities | $176 | $336 |
| Electricity sales | $120 | $169 |
| Other revenue | $24 | $29 |
| Total operating revenues | $2,321 | $2,075 |
Production Volumes
CRC's production volumes for the nine months ended September 30, 2024, reflected a significant increase primarily due to the Aera Merger completed on July 1, 2024.
| Production Type | 2024 (MBbl/d) | 2023 (MBbl/d) |
|---|---|---|
| Oil | 69 | 53 |
| NGLs | 11 | 11 |
| Natural Gas | 114 | 136 |
| Total Net Production Sold | 99 | 87 |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $1.776 billion, compared to $1.557 billion in 2023.
| Expense Category | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Energy operating costs | $186 | $258 |
| Gas processing costs | $12 | $14 |
| Non-energy operating costs | $445 | $364 |
| General and administrative expenses | $226 | $201 |
| Depreciation, depletion, and amortization | $246 | $170 |
| Asset impairment | $13 | $3 |
| Taxes other than on income | $162 | $132 |
| Total Operating Expenses | $1,776 | $1,557 |
Net Income and Earnings Per Share
CRC reported a net income of $343 million for the nine months ended September 30, 2024, compared to $376 million in the same period of 2023. The net income per share for the period was $3.86 (basic) and $3.78 (diluted).
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income (in millions) | $343 | $376 |
| Net Income per Share (Basic) | $3.86 | $5.38 |
| Net Income per Share (Diluted) | $3.78 | $5.18 |
Liquidity and Capital Resources
As of September 30, 2024, CRC had available cash and cash equivalents of $213 million and a borrowing capacity under its Revolving Credit Facility of $1.1 billion.
| Liquidity Component | Amount (in millions) |
|---|---|
| Available cash and cash equivalents | $213 |
| Borrowing capacity | $1,100 |
| Outstanding letters of credit | ($175) |
| Availability | $925 |
| Total Liquidity | $1,138 |
Recent Developments
On November 5, 2024, CRC declared a quarterly cash dividend of $0.3875 per share of common stock, payable on December 16, 2024. The company also completed the sale of Ventura basin assets for net proceeds of $3 million on October 14, 2024.
Debt and Financing
As of November 1, 2024, CRC's Revolving Credit Facility was reaffirmed at a borrowing base of $1.5 billion, reflecting the estimated value of its proved reserves and total indebtedness.
| Debt Component | Amount (in millions) |
|---|---|
| Revolving Credit Facility Borrowing Base | $1,500 |
| Proceeds from 2029 Senior Notes | $888 |
How California Resources Corporation (CRC) Makes Money
Revenue Streams
California Resources Corporation (CRC) generates revenue primarily through the sale of oil, natural gas, and natural gas liquids (NGLs). The following table outlines the revenue from these sources for the nine months ended September 30, 2024:
| Source | Revenue (in millions) |
|---|---|
| Oil | $1,505 |
| NGLs | $138 |
| Natural Gas | $86 |
| Total Oil, Natural Gas and NGL Sales | $1,729 |
The total operating revenues for the nine months ended September 30, 2024, were $2,321 million, an increase from $2,075 million in the same period of 2023.
Net Gain from Commodity Derivatives
CRC engages in commodity derivative contracts to hedge against price fluctuations. For the nine months ended September 30, 2024, the net gain from these contracts was $290 million, compared to a loss of $131 million in the same period of 2023.
Electricity Sales
CRC also generates revenue from electricity sales, primarily from its Elk Hills power plant. The electricity sales for the nine months ended September 30, 2024, were $120 million, down from $169 million in the same period of 2023.
Marketing of Purchased Commodities
Revenue from the marketing of purchased commodities was $176 million for the nine months ended September 30, 2024, a decrease from $336 million in the prior year. This decline was due to lower natural gas prices.
Operating Expenses
CRC's operating expenses for the nine months ended September 30, 2024, totaled $1,776 million. A breakdown of these expenses is shown in the following table:
| Expense Type | Amount (in millions) |
|---|---|
| Energy Operating Costs | $186 |
| Gas Processing Costs | $12 |
| Non-Energy Operating Costs | $445 |
| General and Administrative Expenses | $226 |
| Depreciation, Depletion and Amortization | $246 |
| Asset Impairment | $13 |
| Taxes Other Than Income | $162 |
| Exploration Expense | $2 |
| Total Operating Expenses | $1,776 |
Production Volumes
As of the nine months ended September 30, 2024, CRC's total net production sold was 99 MBoe/d, an increase from 87 MBoe/d in the previous year. The following table summarizes the production volumes:
| Commodity | Production Volume (MBoe/d) |
|---|---|
| Oil | 70 |
| NGLs | 11 |
| Natural Gas | 18 |
| Total Production | 99 |
The increase in production was largely attributed to the Aera Merger, which closed on July 1, 2024.
Financial Performance
For the nine months ended September 30, 2024, CRC reported a net income of $343 million, compared to $376 million in the same period of 2023. The net income per share was $4.54 for the nine months ended September 30, 2024.
Dividends and Shareholder Returns
On November 5, 2024, CRC declared a quarterly cash dividend of $0.3875 per share, payable to shareholders on December 16, 2024.
Debt Management
As of November 1, 2024, CRC's revolving credit facility was reaffirmed at $1.5 billion, with an amended maturity date extending to March 16, 2029.
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Resources:
- California Resources Corporation (CRC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of California Resources Corporation (CRC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View California Resources Corporation (CRC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.