Q1 2024 California Resources Corp Earnings Call Transcript
Key Points
- California Resources Corp (CRC) successfully maintained stable production levels with a one-rig program, demonstrating the strength and efficiency of its asset base.
- The company generated $149 million in adjusted EBITDAX and delivered $33 million in free cash flow, highlighting strong financial performance.
- CRC distributed $79 million to shareholders through dividends and buybacks, reflecting a commitment to returning value to shareholders.
- The pending merger with Aera is set to enhance scale, improve asset durability, and expand CRC's carbon management capabilities, positioning the company for future growth.
- CRC received a Grade A certification for methane emissions standards, underscoring its commitment to sustainability and environmental responsibility.
- Production challenges due to extended maintenance at Elk Hills power plants and adverse weather conditions impacted output.
- The company faces ongoing delays in the permitting process, which could restrict its ability to increase drilling activities and expand production.
- Despite maintaining production levels, the total capital investments for 2024 are expected to remain constrained between $200 million and $240 million, potentially limiting growth opportunities.
- The Kern County EIR revision process is ongoing, with a court order requiring additional environmental reviews, which could further delay drilling activities.
- CRC's net production is expected to experience modest natural declines, reflecting the challenges in boosting output under current operational constraints.
Good day and welcome to the California Resources Corporation first-quarter 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would like now to turn the conference over to Joanna Park, Vice President of Investor Relations and Treasurer. Please go ahead.
Welcome to California Resources Corporation's first-quarter 2024 conference call. Prepared remarks today will come from our President and CEO, Francisco Leon; and our CFO, Nelly Molina. Following our prepared remarks, we will be available to take your questions. Please limit your questions to one primary and one follow-up.
Our remarks today include forward-looking statements based on current expectations. Actual results may differ materially due to factors described in our earnings release and in our SEC filings. We undertake no obligation to update these statements as a result of new information or future events. We will also discuss our pending merger with Aera.
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