CRC - California Resources beats Q1 top and bottom line estimates; initiates Q2 and reaffirms FY23 outlook

2023-05-02 01:55:54 ET

• California Resources press release ( NYSE: CRC ): Q1 Non-GAAP EPS of $2.63 beats by $0.67 .
• Revenue of $1.02B (+566.7% Y/Y) beats by $282.5M .
• Generated net cash provided by operating activities of $310 million, adjusted EBITDAX of $358 million and free cash flow of $263 million.
• Ended the quarter with $477 million of cash and cash equivalents and an undrawn $454 million Revolving Credit Facility, (net of $148 million of letters of credit), representing $931 million of total liquidity ^.
• Produced an average of 89,000 net barrels of oil equivalent per day (Boe/d), including 55,000 barrels of oil per day (Bo/d), with E&P capital expenditures of $40 million during the quarter.
• Guidance: CRC is reaffirming its total year 2023 capital program to a range between $200 and $245 million. The program includes $15 to $25 million of adjusted capital for carbon management projects and $185 to $220 million of E&P, Corporate and other adjusted capital, including procuring long-lead time items for planned maintenance at CRC's Elk Hills power plant in 2024.
• CRC estimates average production between 85,000 and 91,000 Boe/d (~60% oil) for 2023. CRC expects to run a development program averaging 1.5 rigs for drilling locations where CRC has permits and plans to focus on workover and maintenance activity.
• As a result of higher-than-expected natural gas market prices in the first quarter of 2023, CRC is raising its free cash flow and lowering its operating costs guidance by 8% (to a range of $360 to $470 million) and 3% (to a range of $815 to $865 million) at the midpoint, respectively.

• Second Quarter 2023 Guidance and Capital Program ^: CRC expects its second quarter 2023 total capital program to range between $46 and $62 million under current operating conditions.

• At this level of spending, CRC expects to produce on average between 86,000 and 88,000 Boe/d (~61% oil) in the second quarter of 2023 and plans to run 1 drilling rig in the Los Angeles basin, where CRC plans to develop drilling locations for which it already has permits.

For further details see: