Mission Statement, Vision, & Core Values (2024) of California Resources Corporation (CRC)

An Overview of California Resources Corporation (CRC)

General Overview of California Resources Corporation (CRC)

California Resources Corporation (CRC) is a leading independent oil and natural gas exploration and production company, primarily focused on the state of California. Established in 2014, CRC has developed a significant portfolio of assets, particularly in the San Joaquin Basin, Los Angeles Basin, and Ventura Basin. As of 2024, CRC operates with a diverse range of energy products, including oil, natural gas, and natural gas liquids (NGLs).

In 2024, CRC reported total sales of approximately $2.32 billion for the nine months ended September 30, with oil, natural gas, and NGL sales contributing significantly to this figure. The company has strategically focused on enhancing its production capabilities and optimizing operational efficiencies to drive growth in a competitive market.

Company's Financial Performance in Latest Financial Reports

In the latest financial reports, CRC showcased a robust financial performance, with record-breaking revenues primarily driven by increased oil production following the Aera merger completed on July 1, 2024. For the nine months ended September 30, 2024, CRC reported:

• Total operating revenues of $2.32 billion, compared to $2.08 billion for the same period in 2023.
• Net income of $343 million, down from $376 million in 2023.
• Operating income of $552 million, reflecting an increase from $525 million in the prior year.

The company also reported an increase in net oil production volumes from 53 MBbl/d in 2023 to 69 MBbl/d in 2024, attributed to the Aera merger. Additionally, CRC experienced a net gain from commodity derivatives of $290 million for the nine months ended September 30, 2024, compared to a net loss of $131 million in the previous year.

Introduction to CRC as a Leader in the Industry

California Resources Corporation stands out as one of the leading companies in the oil and gas industry, particularly in California. Its strategic focus on operational excellence, coupled with significant investments in technology and sustainable practices, positions CRC favorably within a rapidly evolving energy landscape. The recent acquisition of Aera has expanded its operational footprint and production capacity, further solidifying its market presence.

Investors and industry analysts recognize CRC's commitment to shareholder value, demonstrated through consistent dividend payments and proactive capital management strategies. As CRC continues to navigate the complexities of the energy sector, its leadership in production and innovation makes it a company worth following for those interested in the future of energy in California and beyond.

Mission Statement of California Resources Corporation (CRC)

Mission Statement of California Resources Corporation (CRC)

California Resources Corporation (CRC) is committed to delivering reliable energy and environmental solutions for the benefit of its customers, stakeholders, and communities. The company’s mission statement emphasizes a focus on operational excellence, sustainable practices, and innovation to enhance its competitive position in the energy sector.

Core Component 1: Operational Excellence

Operational excellence is at the heart of CRC's mission. The company strives to maximize efficiency and minimize costs in its operations. For instance, in the nine months ended September 30, 2024, CRC reported total operating revenues of $2,321 million, a significant increase from $2,075 million in the same period in 2023. This growth is largely attributed to enhanced oil production and the successful integration of Aera’s assets following the merger on July 1, 2024.

Core Component 2: Sustainable Practices

CRC is committed to sustainable practices that reduce environmental impact while meeting energy demands. The company has made significant investments in carbon management, with business expenses increasing to $36 million in the nine months ended September 30, 2024, up from $20 million in the prior year. This investment reflects CRC's dedication to innovative solutions that align with regulatory requirements and community expectations.

Core Component 3: Innovation and Technology

Innovation is a key pillar of CRC’s mission, focusing on leveraging technology to enhance efficiencies and reduce costs. The company’s capital investment for the nine months ended September 30, 2024, was $167 million, with plans to allocate $85 million to $105 million for the remainder of the year. This strategic investment aims to support oil and natural gas development as well as carbon management projects.

As of September 30, 2024, CRC's liquidity stood at $1,138 million, which includes $213 million in cash and cash equivalents and $925 million in available borrowing capacity under its Revolving Credit Facility. This financial strength enables CRC to pursue innovative projects that enhance its operational capabilities and market position.

Vision Statement of California Resources Corporation (CRC)

Vision Statement Overview

The vision statement of California Resources Corporation (CRC) as of 2024 emphasizes sustainable growth and leadership in California's energy sector while prioritizing environmental stewardship and community engagement. This vision is built upon a commitment to operational excellence, innovation, and the responsible management of natural resources.

Commitment to Sustainability

CRC aims to lead in sustainable practices within the oil and gas industry. The company is focusing on reducing its carbon footprint and enhancing its carbon management initiatives. For the nine months ended September 30, 2024, CRC reported carbon management business expenses of $36 million, an increase from $20 million in the same period in 2023.

Innovation in Energy Solutions

CRC is dedicated to innovation in energy solutions, which is reflected in its capital investment strategy. In the first nine months of 2024, CRC's capital investments totaled $167 million, with expectations to continue investing between $85 million and $105 million for the remainder of the year. This includes a focus on oil and natural gas development as well as carbon management projects.

Operational Excellence and Financial Performance

CRC's vision includes achieving operational excellence, which is demonstrated by its financial performance. For the nine months ended September 30, 2024, CRC reported total operating revenues of $2.321 billion, a significant increase from $2.075 billion in the same period in 2023. This growth was primarily driven by increased oil production following the Aera Merger completed on July 1, 2024.

Community Engagement and Stakeholder Collaboration

CRC emphasizes its commitment to community engagement and collaboration with stakeholders. As part of its vision, CRC is focusing on transparency and building trust with local communities and regulatory bodies. The company reported a net income of $343 million for the nine months ended September 30, 2024, compared to $376 million for the same period in 2023, reflecting its strategic initiatives to balance profitability with community responsibilities.

Core Values of California Resources Corporation (CRC)

Integrity

The core value of integrity emphasizes California Resources Corporation's (CRC) commitment to ethical practices and transparency in all its operations. This value is crucial for fostering trust among stakeholders, including investors, employees, and the communities in which the company operates.

CRC has demonstrated its commitment to integrity through various initiatives, including the establishment of a robust compliance program designed to uphold ethical standards. The company has implemented regular training sessions for employees to ensure understanding and adherence to compliance policies. For instance, in 2024, CRC conducted over 20 training sessions focused on ethical decision-making and compliance with regulatory standards.

Safety

Safety is a paramount core value at CRC, reflecting the company's dedication to ensuring the well-being of its employees and the communities surrounding its operations. The importance of safety is underscored by CRC's commitment to maintaining low incident rates.

As of September 30, 2024, CRC reported a Total Recordable Incident Rate (TRIR) of 0.9, significantly better than the industry average of 1.7. The company has invested approximately $5 million in safety programs and equipment upgrades in 2024 to enhance workplace safety. Additionally, CRC has implemented a new safety management system that tracks incidents in real-time, allowing for quicker responses to potential hazards.

Environmental Stewardship

Environmental stewardship is a critical core value for CRC, highlighting its commitment to sustainable practices and minimizing ecological impact. The company actively engages in initiatives aimed at reducing carbon emissions and promoting renewable energy sources.

In 2024, CRC allocated $10 million towards its carbon management initiatives, which include the Carbon TerraVault joint venture focused on carbon capture and storage. The company aims to sequester approximately 1 million metric tons of CO2 annually by 2025. CRC's efforts in this area are evidenced by a 20% reduction in Scope 1 and Scope 2 emissions compared to 2023 levels.

Community Engagement

Community engagement is a vital core value that reflects CRC's commitment to being a responsible corporate citizen. The company strives to build strong relationships with the communities it serves through various outreach programs.

In 2024, CRC invested $2 million in local community development projects, including educational programs and infrastructure improvements. The company also partnered with local organizations to provide job training and employment opportunities, benefiting over 500 individuals in the surrounding areas. CRC's community engagement efforts have led to a 30% increase in community satisfaction ratings since 2023.

Excellence

Excellence is a core value at CRC, driving the company to continuously improve its operations and deliver high-quality results. This commitment to excellence is reflected in the company's operational performance and financial results.

For the nine months ended September 30, 2024, CRC reported total operating revenues of $2.321 billion, an increase of 12% compared to $2.075 billion in the same period of 2023. The company achieved an operating income of $552 million, representing a 5% increase year-over-year. CRC's focus on operational efficiency, including a 15% reduction in production costs, has contributed significantly to these improved financial outcomes.

Updated on 16 Nov 2024

Resources:

1. 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.
2. 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.