California Resources Corporation Generates Record $690 Million of Operating Cash Flow and $311 Million of Free Cash Flow in 2022
California Resources Corporation Raises its Share Repurchase Program by Nearly 30% to $1.1 Billion and Meaningfully Advances its Carbon Management Business
LONG BEACH, Calif.–(BUSINESS WIRE)–California Resources Corporation (NYSE: CRC), an independent oil and natural gas company committed to energy transition in the sector, today reported fourth quarter and full year 2022 operational and financial results.
“CRC continued to deliver as we closed out 2022 with record operating cash flow which allowed us to return $372 million to shareholders. Given our positive outlook on 2023 free cash flow generation, we are increasing our Share Repurchase Program to $1.1 billion, a $250 million or nearly 30% increase, with approximately $640 million remaining on our authorization as of December 31, 2022 after taking into account this increase. Our 2023 development plans will utilize current permits in-hand and focus on workovers and maintenance opportunities to maximize cash flow per share,” said Mac McFarland, CRC’s President and Chief Executive Officer.
“We continued to build off the momentum we generated throughout the year. In late 2022 and the start of 2023, our Carbon Management Business signed two carbon dioxide management agreements (CDMAs) to sequester 470,000 metric tons (MT) of carbon dioxide (CO2). Further, we announced the formation of a consortium of organizations across industry, technology, academia, national labs, community, government, and labor to create the California Direct Air Capture (DAC) Hub, reinforcing our dedication and commitment to California’s energy transition. For the balance of 2023, we will continue developing our Carbon Management Business, while making strides in our CalCapture project, filing additional Class VI permits with the EPA and advancing numerous additional CDMAs.”
Annual Highlights
- Reported net income attributable to common stock of $524 million, or $6.75 per diluted share. When adjusted for items analysts typically exclude from estimates including noncash mark to market gains and gains on asset divestitures, the Company’s adjusted net income1 was $384 million, or $4.95 per diluted share
- Generated operating cash flow of $690 million, adjusted EBITDAX1 of $852 million, free cash flow1 of $311 million, and E&P, Corporate and Other Free Cash Flow1 of $362 million in 2022
- Returned $372 million to shareholders in 2022, $59 million in dividends and $313 million through the Share Repurchase Program, while maintaining a strong cash balance of $307 million
- Produced an average of 55,000 barrels of oil per day throughout the year, with total drilling and completions and workover capital expenditures of $278 million in 2022
- Increased the Share Repurchase Program by $250 million to $1.1 billion, extended the program term through June 30, 2024, and repurchased ~14% of the Company’s common stock since program inception
- Advanced the Carbon Management Business in California on several fronts:
- Formed a joint venture with Brookfield Renewables,
- Submitted Class VI permits to EPA for an additional 94 MMT of CO2 reservoirs,
- Executed two CDMAs to sequester 470,000 MT of CO2 per annum at CTV I and CTV III reservoirs, and
- Made substantial progress on CalCapture Project with targeted Final Investment Decision (FID) in early 2024
- Through its subsidiary CTV Direct, formed in February 2023 a consortium of organizations across industry, technology, academia, national labs, community, government, and labor that is intended to create California’s first DAC Hub
Fourth Quarter 2022 Highlights
Financial
- Reported net income of $83 million, or $1.11 per diluted share. When adjusted for items analysts typically exclude from estimates including mark-to-market adjustments and gains on asset divestitures, the Company’s adjusted net income1 was $93 million, or $1.24 per diluted share
- Generated net cash provided by operating activities of $114 million, adjusted EBITDAX1 of $208 million and free cash flow1 of $39 million
- Ended the quarter with $307 million of cash on hand and an undrawn RBL credit facility representing $765 million of total liquidity2
- Declared a quarterly dividend of $0.2825 per share of common stock, totaling ~$20 million payable on March 16, 2023 to shareholders of record on March 6, 2023, with subsequent quarterly dividends subject to final determination and Board approval
- Repurchased 1,521,190 common shares for $66 million during the fourth quarter of 2022; repurchased an aggregate 11,456,260 shares for $461 million since the inception of the Share Repurchase Program through December 31, 2022
Operations
- Produced an average of 91,000 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 $81 million during the quarter
- Operated one drilling rig in the San Joaquin Basin and two drilling rigs in the Los Angeles Basin; drilled 23 wells (23 online in 4Q22)
- Operated 36 maintenance rigs in the fourth quarter
2023 Guidance and Capital Program3
CRC expects its 2023 capital program to range between $200 and $245 million. The program includes $154 to $184 million of adjusted capital for oil and natural gas development4, $15 to $25 million of adjusted capital for carbon management projects4 and $31 to $36 million for corporate and other activities, including procuring long-lead time items for planned maintenance at CRC’s Elk Hills power plant in 2024. The foregoing amounts related to carbon management projects does not include amounts funded by Brookfield through the Carbon TerraVault JV. See Part II, Item 8 – Financial Statements and Supplementary Data, Note 8 Investment in Unconsolidated Subsidiary and Related Party Transactions for more information on CRC’s joint venture with Brookfield. The actual amount of spending under CRC’s 2023 capital program will depend on a variety of factors including regulatory and permitting status.
CRC expects to produce between 85,000 and 91,000 Boe/d3 (~60% oil) in 2023. CRC plans to run a development program averaging 1.5 rigs in 2023 for drilling locations for which we already have permits and will otherwise focus on workover and maintenance activity to offset base decline following the ongoing impact of the Kern County EIR litigation.
On a go-forward basis utilizing a 1.5 rig program, CRC would expect to spend ~$155 million in E&P drilling and completions and workover capital. This level of spending excludes one-time items and CMB capital which is expected to be funded by projected CTV JV contributions.
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CRC GUIDANCE3 |
Total 2023E |
|
CMB 2023E |
|
E&P, Corp. & Other 2023E |
|
|
Net Total Production (MBoe/d) |
85 – 91 |
|
|
|
85 – 91 |
|
|
Net Oil Production (MBbl/d) |
51 – 55 |
|
|
|
51 – 55 |
|
|
Operating Costs ($ millions) |
$845 – $895 |
|
|
|
$845 – $895 |
|
|
CMB Expenses5 ($ millions) |
$25 – $35 |
|
$25 – $35 |
|
|
|
|
Adjusted General and Administrative Expenses1 ($ millions) |
$195 – $225 |
|
$10 – $15 |
|
$185 – $210 |
|
|
Total Capital ($ millions) |
$200 – $245 |
|
$5 – $15 |
|
$195 – $230 |
|
|
Adjusted Total Capital4 ($ millions) |
$200 – $245 |
|
$15 – $25 |
|
$185 – $220 |
|
|
Drilling & Completions |
$66 – $76 |
|
|
|
$66 – $76 |
|
|
Workovers |
$44 – $54 |
|
|
|
$44 – $54 |
|
|
Adjusted Facilities |
$44 – $54 |
|
|
|
$44 – $54 |
|
|
Corporate & Other |
$31 – $36 |
|
|
|
$31 – $36 |
|
|
Adjusted CMB |
$15 – $25 |
|
$15 – $25 |
|
|
|
|
Free Cash Flow1 ($ millions) |
$330 – $440 |
|
($60) – ($80) |
|
$410 – $500 |
|
|
|
|
|
|
|
|
|
|
Natural Gas Trading, Net ($ millions) |
$60 – $70 |
|
|
|
$60 – $70 |
|
|
Net Electricity ($ millions) |
$80 – $120 |
|
|
|
$80 – $120 |
|
|
Transportation Expense ($ millions) |
$50 – $70 |
|
|
|
$50 – $70 |
|
|
ARO Settlement Payments* ($ millions) |
$55 – $60 |
|
|
|
$55 – $60 |
|
|
Taxes Other Than on Income* ($ millions) |
$175 – $185 |
|
|
|
$175 – $185 |
|
|
Interest and Debt Expense* ($ millions) |
$55 – $60 |
|
|
|
$55 – $60 |
|
|
Cash Income Taxes* ($ millions) |
$80 – $100 |
|
|
|
$80 – $100 |
|
|
|
|
|
|
|
|
|
|
Commodity Realizations: |
|
|
|
|
|
|
|
Oil – % of Brent: |
97% – 99% |
|
|
|
97% – 99% |
|
|
NGL – % of Brent: |
58% – 64% |
|
|
|
58% – 64% |
|
|
Natural Gas – % of NYMEX: |
150% – 250% |
|
|
|
150% – 250% |
|
*Notes:
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First Quarter 2023 Guidance and Capital Program3
CRC expects its first quarter 2023 capital program to range between $57 and $69 million assuming normal operating conditions. This includes $2 to $4 million for carbon management projects.
At this level of spending, CRC expects to produce between 89,000 and 91,000 Boe/d3 (~59% oil) in the first quarter of 2023 and plans to run 3 drilling rigs in the Long Beach and San Joaquin basins developing drilling locations for which we already have permits. CRC will also focus on workover activity throughout 2023 to offset base decline following the impact of the Kern County EIR litigation.
CRC sells all of its natural gas not used in its operations into the California market where the majority of these sales are done via bid in monthly method. Given the recent natural gas environment, CRC expects the first quarter of 2023 to benefit on a net basis, particularly in its natural gas revenue and natural gas marketing segments. CRC also expects to see higher costs related to purchased natural gas and energy operating costs, but as CRC is net long natural gas, the benefit will exceed the higher costs.
|
CRC GUIDANCE3 |
Total 1Q23E |
CMB 1Q23E |
E&P, Corp. & Other 1Q23E |
|||
|
Net Total Production (MBoe/d) |
89 – 91 |
|
|
|
89 – 91 |
|
|
Net Oil Production (MBbl/d) |
53 – 54 |
|
|
|
53 – 54 |
|
|
Operating Costs ($ millions) |
$260 – $270 |
|
|
|
$260 – $270 |
|
|
CMB Expenses5 ($ millions) |
$5 – $10 |
|
$5 – $10 |
|
|
|
|
Adjusted General and Administrative Expenses1 ($ millions) |
$50 – $58 |
|
$3 – $5 |
|
$47 – $53 |
|
|
Total Capital ($ millions) |
$57 – $69 |
|
$2 – $4 |
|
$55 – $65 |
|
|
Adjusted Total Capital4 ($ millions) |
$57 – $69 |
|
$2 – $4 |
|
$55 – $65 |
|
|
Free Cash Flow1 ($ millions) |
$151 – $180 |
|
($15) – ($24) |
|
$175 – $195 |
|
|
|
|
|
|
|
|
|
|
Natural Gas Trading, Net ($ millions) |
$35 – $45 |
|
|
|
$35 – $45 |
|
|
Net Electricity ($ millions) |
$25 – $35 |
|
|
|
$25 – $35 |
|
|
Transportation Expense ($ millions) |
$14 – $16 |
|
|
|
$14 – $16 |
|
|
|
|
|
|
|
|
|
|
Commodity Realizations: |
|
|
|
|
|
|
|
Oil – % of Brent: |
97% – 99% |
|
|
|
97% – 99% |
|
|
NGL – % of Brent: |
63% – 65% |
|
|
|
63% – 65% |
|
|
Natural Gas – % of NYMEX*: |
400% – 500% |
|
|
|
400% – 500% |
|
*Note: January and February natural gas average realized prices were ~$47.50 and ~$10.00 per Mcf, respectively. |
Fourth Quarter & Full Year 2022 E&P Operational Results
In November 2020, the SEC amended Regulation S-K to, among other things, provide companies with the option to discuss material changes to results of operations between the current and immediately preceding quarter. CRC has elected to discuss its results of operations on a sequential-quarter basis. CRC believes this approach provides more meaningful and useful information to measure its performance from the immediately preceding quarter. In accordance with this final rule, CRC is not required to include a comparison of the current quarter and the same prior-year quarter.
Total daily net production for the three months ended December 31, 2022, compared to the three months ended September 30, 2022 decreased by approximately 1 MBoe/d, or 1%. This decrease is predominately a result of CRC’s natural decline and lower development drilling, partially offset by production-sharing contracts (PSCs), which positively impacted CRC’s net oil production in the three months ended December, 2022 by approximately 1 MBoe/d, compared to the three months ended September 30, 2022.
Total daily net production for the year ended December 31, 2022, compared to the year ended December 31, 2021 decreased by approximately 9 MBoe/d, or 9%. The decrease was predominately a result of CRC’s natural decline and lower development drilling which accounted for approximately 4 MBoe/d and divestitures of certain Ventura basin and Lost Hills assets which accounted for approximately 5 MBoe/d. See Part II, Item 8 – Financial Statements and Supplementary Data, Note 3 Divestitures and Acquisitions of CRC’s 2022 10-K for more information on CRC’s divestitures in 2022.
During the fourth quarter of 2022, CRC operated an average of one drilling rig in the San Joaquin Basin and two drilling rigs in the Los Angeles Basin. During the quarter, CRC drilled 23 net wells and brought online 23 wells. See Attachment 3 for further information on CRC’s production results by basin and Attachment 5 for further information on CRC’s drilling activity.
Fourth Quarter & Full Year 2022 Financial Results
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|
4th Quarter |
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|
3rd Quarter |
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Total Year |
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|
Total Year |
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($ and shares in millions, except per share amounts) |
2022 |
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|
2022 |
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2022 |
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|
2021 |
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Statements of Operations: |
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Revenues |
|
|
|
|
|
|
|
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|
|||||||||
|
Total operating revenues |
$ |
682 |
|
|
|
$ |
1,125 |
|
|
$ |
2,707 |
|
|
|
$ |
1,889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Operating Expenses |
|
|
|
|
|
|
|
|
|
|||||||||
|
Total operating expenses |
|
549 |
|
|
|
|
536 |
|
|
|
1,954 |
|
|
|
|
1,720 |
|
|
|
Gain on asset divestitures |
|
(1 |
) |
|
|
|
2 |
|
|
|
59 |
|
|
|
|
124 |
|
|
|
Operating Income |
$ |
132 |
|
|
|
$ |
591 |
|
|
$ |
812 |
|
|
|
$ |
293 |
|
|
|
Net Income Attributable to Common Stock |
$ |
83 |
|
|
|
$ |
426 |
|
|
$ |
524 |
|
|
|
$ |
612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net income attributable to common stock per share – basic |
$ |
1.14 |
|
|
|
$ |
5.75 |
|
|
$ |
6.94 |
|
|
|
$ |
7.46 |
|
|
|
Net income attributable to common stock per share – diluted |
$ |
1.11 |
|
|
|
$ |
5.58 |
|
|
$ |
6.75 |
|
|
|
$ |
7.37 |
|
|
|
Adjusted net income1 |
$ |
93 |
|
|
|
$ |
111 |
|
|
$ |
384 |
|
|
|
$ |
506 |
|
|
|
Adjusted net income1 per share – diluted |
$ |
1.24 |
|
|
|
$ |
1.45 |
|
|
$ |
4.95 |
|
|
|
$ |
6.10 |
|
|
|
Weighted-average common shares outstanding – basic |
|
72.7 |
|
|
|
|
74.1 |
|
|
|
75.5 |
|
|
|
|
82.0 |
|
|
|
Weighted-average common shares outstanding – diluted |
|
75.0 |
|
|
|
|
76.3 |
|
|
|
77.6 |
|
|
|
|
83.0 |
|
|
|
Adjusted EBITDAX1 |
$ |
208 |
|
|
|
$ |
234 |
|
|
$ |
852 |
|
|
|
$ |
860 |
|
|
Review of Fourth Quarter & Full Year 2022 Financial Results
Realized oil prices, excluding the effects of cash settlements on CRC’s commodity derivative contracts, decreased by $10.81 per barrel from $97.96 per barrel in the third quarter of 2022 to $87.15 per barrel in the fourth quarter of 2022. Crude realizations decreased in the fourth quarter of 2022 relative to the third quarter of 2022 as California refining margins tightened significantly leaving those refiners less motivated to secure incremental barrels.
For the year ended December 31, 2022, realized oil prices, excluding the effects of cash settlements on CRC’s commodity derivative contracts, increased by $27.83 per barrel to $98.26 from $70.43 per barrel in the same period of 2021. Capital and production discipline across domestic and international producers generally offset continued COVID-19 lockdowns in China, reduced energy demand across much of Europe and the release of meaningful quantities of oil from the United States Strategic Petroleum Reserve.
Realized oil prices, including the effects of cash settlements on CRC’s commodity derivative contracts, decreased by $1.12 from $62.45 in the third quarter of 2022 to $61.33 in the fourth quarter of 2022.
For the year ended December 31, 2022, realized oil prices, including the effects of cash settlements on CRC’s commodity derivative contracts, increased by $5.75 to $61.80 from $56.05 per barrel in the same period of 2021. See Attachment 4 for further information on prices.
Adjusted EBITDAX1 for the fourth quarter of 2022 and for the year ended December 31, 2022, was $208 million and $852 million, respectively. See table below for the Company’s net cash provided by operating activities, capital investments and free cash flow1 during the same periods.
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FREE CASH FLOW1 |
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Management uses free cash flow, which is defined by CRC as net cash provided by operating activities less capital investments, as a measure of liquidity. The following table presents a reconciliation of CRC’s net cash provided by operating activities to free cash flow. CRC supplemented its non-GAAP measure of free cash flow with free cash flow of CRC’s exploration and production and corporate items (Free Cash Flow for E&P, Corporate & Other) which it believes is a useful measure for investors to understand the results of its core oil and gas business. CRC defines Free Cash Flow for E&P, Corporate & Other as consolidated free cash flow less results attributable to its carbon management business (CMB). |
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4th Quarter |
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|
3rd Quarter |
|
Total Year |
|
|
Total Year |
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($ millions) |
2022 |
|
|
2022 |
|
2022 |
|
|
2021 |
|||||||||
|
|
|
|
|
|
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|
Net cash provided by operating activities |
$ |
114 |
|
$ |
235 |
|
$ |
690 |
|
$ |
660 |
|
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|
Capital investments |
|
(75 |
) |
|
(107 |
) |
|
(379 |
) |
|
(194 |
) |
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Free cash flow1 |
|
39 |
|
|
128 |
|
|
311 |
|
|
466 |
|
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|
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E&P, corporate & other free cash flow1 |
$ |
61 |
|
$ |
139 |
|
$ |
362 |
|
$ |
472 |
|
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CMB free cash flow1 |
$ |
(22 |
) |
$ |
(11 |
) |
$ |
(51 |
) |
$ |
— |
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The following table presents key operating data for CRC’s oil and gas operations, on a per BOE basis, for the periods presented below. Energy operating costs consist of purchased natural gas used to generate electricity for CRC’s operations and steam for its steamfloods, purchased electricity and internal costs to generate electricity used in CRC’s operations. Gas processing costs include costs associated with compression, maintenance and other activities needed to run CRC’s gas processing facilities at Elk Hills. Non-energy operating costs equal total operating costs less energy operating costs and gas processing costs. Purchased natural gas used to generate steam in CRC’s steamfloods was reclassified from non-energy operating costs to energy operating costs beginning in the third quarter of 2022. All prior periods have been updated to conform to this presentation.
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OPERATING COSTS PER BOE |
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The reporting of PSCs creates a difference between reported operating costs, which are for the full field, and reported volumes, which are only CRC’s net share, inflating the per barrel operating costs. The following table presents operating costs after adjusting for the excess costs attributable to PSCs. |
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4th Quarter |
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3rd Quarter |
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Total Year |
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Total Year |
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($ per Boe) |
2022 |
|
|
2022 |
|
2022 |
|
|
2021 |
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|
Energy operating costs |
$ |
9.56 |
|
|
|
$ |
10.96 |
|
|
$ |
9.76 |
|
|
|
$ |
7.01 |
|
|
|
Gas processing costs |
|
0.48 |
|
|
|
|
0.49 |
|
|
|
0.52 |
|
|
|
|
0.54 |
|
|
|
Non-energy operating costs |
|
13.82 |
|
|
|
|
13.82 |
|
|
|
13.47 |
|
|
|
|
11.84 |
|
|
|
Operating costs |
$ |
23.86 |
|
|
|
$ |
25.27 |
|
|
$ |
23.75 |
|
|
|
$ |
19.39 |
|
|
|
Excess costs attributable to PSCs |
$ |
(1.90 |
) |
|
|
|
(2.16 |
) |
|
$ |
(2.23 |
) |
|
|
|
(1.83 |
) |
|
|
Operating costs, excluding effects of PSCs (a) |
$ |
21.96 |
|
|
|
$ |
23.11 |
|
|
$ |
21.52 |
|
|
|
$ |
17.56 |
|
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(a) |
Operating costs, excluding effects of PSCs is a non-GAAP measure. |
|
Energy operating costs for the fourth quarter of 2022 were $80 million, or $9.56 per Boe, which was a decrease of $13 million or 14% from $93 million, or $10.96 per Boe, for the third quarter of 2022. This decrease was primarily a result of lower production and lower electricity and natural gas prices.
Energy operating costs for the year ended December 31, 2022 were $323 million, or $9.76 per Boe, which was an increase of $68 million or 27% from $255 million, or $7.01 per Boe, in the same period of 2021. The increase was predominantly a result of higher prices for purchased natural gas, which CRC uses to generate electricity for its operations and steam for its steamfloods, and for purchased electricity.
Non-energy operating costs for the fourth quarter of 2022 were $116 million, or $13.82 per Boe, which was a decrease of $1 million or 1% from $117 million, or $13.82 per Boe, for the third quarter of 2022. This decrease was primarily a result of lower surface maintenance.
Non-energy operating costs for the year ended December 31, 2022 were $445 million, or 13.47 per Boe, which was an increase of $15 million or 3% from $430 million, or 11.84 per Boe, in the same period of 2021. This increase was primarily a result of increased surface and downhole maintenance activity in 2022.
Sustainability & Carbon Management Update
In December 2022, Carbon TerraVault JV entered into a CDMA with Lone Cypress, an independent energy company focused on the development of low-carbon hydrogen generation facilities and energy infrastructure, to sequester 100,000 MT of CO2 per annum from a newly constructed blue hydrogen plant at the Elk Hills Field in Kern County.
Also in December 2022, CRC received an A- from CDP for its 2022 climate disclosure, securing a score at CDP’s Leadership Level for the fourth year in a row. This accomplishment is further evidence of CRC’s commitment to maintaining a strong ESG and sustainability platform.
In January 2023, CTV entered into a CDMA with Grannus, an independent clean-tech company that is building a portfolio of blue ammonia and hydrogen production facilities to supply the agriculture, mobility and marine fuel markets, to sequester 370,000 MT of CO2 per annum at CTV III from a new blue ammonia and hydrogen plant to be constructed in Northern California. Called the Grannus Blue Ammonia and Hydrogen Project, the project aims to be California’s first blue ammonia and hydrogen facility producing 150,000 MT per annum of blue ammonia and 10,000 MT per annum of blue hydrogen.
In February 2023, CRC assembled a consortium of organizations across industry, technology, academia, national labs, community, government, and labor, to pursue U.S. Department of Energy (DOE) funding under its Regional DAC Hubs Initiative to create the California DAC Hub, the state’s first full-scale DAC plus storage (DAC+S) network of regional DAC+S hubs. DAC+S is a solution that can remove and then permanently store atmospheric CO2 using low carbon emission energy and provide economic benefits to surrounding communities.
The California DAC Hub is expected to accelerate California’s progress to achieve its carbon neutrality goal while prioritizing the surrounding under-represented California communities in several areas including: air quality improvements, increased renewable energy use and enhanced water management including water reclamation and production of new water sources. Further, CRC expects that the hub will provide high quality union jobs while enhancing local area education programs in science, technology and math (STEM) along with energy transition.
Balance Sheet and Liquidity Update
CRC’s aggregate commitment under the Revolving Credit Facility was $602 million as of December 31, 2022. The borrowing base for the Revolving Credit Facility is redetermined semi-annually and was reaffirmed at $1.2 billion on October 25, 2022.
As of December 31, 2022, CRC had liquidity of $765 million, which consisted of $307 million in unrestricted cash and $458 million of available borrowing capacity under its Revolving Credit Facility which is net of $144 million of letters of credit.
Acquisitions and Divestitures
On February 1, 2022, CRC sold its 50% non-operated working interest in certain horizons within its Lost Hills field, located in the San Joaquin basin, recognizing a gain of $49 million. CRC retained an option to capture, transport and store 100% of the CO2 from steam generators across the Lost Hills field for future carbon management projects. CRC also retained 100% of the deep rights and related seismic data.
In June 2022, CRC sold its commercial office building located in Bakersfield, California for net proceeds of $13 million, recognizing no gain or loss on sale.
During the year ended December 31, 2022, CRC recognized a gain of $11 million related to the sale of certain Ventura basin assets. The closing of the sale of CRC’s remaining assets in the Ventura basin is subject to final approval from the State Lands Commission, which it expects to receive prior to the end of the first quarter of 2023. These remaining assets, consisting of property, plant and equipment and associated asset retirement obligations, are classified as held for sale on CRC’s consolidated balance sheet as of December 31, 2022.
Also in 2022, CRC sold non-core assets recognizing a $1 million loss and acquired properties for carbon management activities for ~$17 million.
Shareholder Return Strategy
CRC continues to prioritize shareholder returns and therefore dedicates a significant portion of its free cash flow to shareholders in the form of dividends and share repurchases.
Contacts
Joanna Park (Investor Relations)
818-661-3731
Richard Venn (Media)
818-661-6014
