California Resources (CRC) Q4 2024 earnings summary

Executive summary

• Achieved strong 2024 financial and operational results, integrating the Aera merger, realizing over 70% of $235 million targeted synergies, and improving capital efficiency.

• Advanced carbon management leadership with California's first EPA Class VI permits, new agreements including National Cement, and expanded CCS project pipeline.

• Increased shareholder returns, raising the dividend by 25% and returning 85% of free cash flow to shareholders.

• Delivered robust cash flow, strong operational performance, and expanded into high-growth areas like power and carbon management.

• Reported net income of $376 million for 2024 and adjusted EBITDAX of $1,006 million.

Financial highlights

• 2024 Adjusted EBITDAX was $1,006 million; free cash flow totaled $355 million.

• Q4 net production reached 141,000 BOE/day (79% oil); realized oil prices at 99% of Brent.

• Full-year revenues were $3,198 million, up from $2,801 million in 2023.

• Operating and transportation costs were 4% below initial guidance post-Aera merger; G&A reduced 10% quarter-over-quarter to $95 million.

• PV-10 of 2024 proved reserves was $8.9 billion with 545 MMBOE.

Outlook and guidance

• 2025 capital investment planned at $285–$335 million, with $165–$180 million for drilling, completions, and workovers.

• Net production guidance for 2025 is 132–138 MBOE/d (79% oil), with a 5–8% entry-to-exit decline.

• 2025 Adjusted EBITDAX projected at $1,100–$1,200 million at $73 Brent.

• Over 70% of 2025 oil production hedged at $67/bbl; 60% of fuel gas hedged at $3.95/MMBtu.

• On track to achieve the remaining $65 million in Aera-related synergies by year-end 2025.