California Resources Corp (CRC) Reports Q3 2023 Earnings, Increases Dividend by 10%
California Resources Corp (NYSE:CRC) reported a net loss of $22 million, or $0.32 per diluted share, for Q3 2023.
The company generated net cash provided by operating activities of $104 million and delivered $71 million of free cash flow in the third quarter.
CRC increased its quarterly dividend by 10% to $0.31 per share, payable on December 15, 2023.
The company is on track to achieve at least $55 million in annual run rate reductions to operating and overhead costs.
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California Resources Corp (NYSE:CRC), an independent energy and carbon management company, announced its third quarter 2023 operational and financial results on November 1, 2023. Despite reporting a net loss, the company demonstrated significant free cash flow and advanced its carbon management business.
Financial Performance
CRC reported a net loss of $22 million, or $0.32 per diluted share. However, when adjusted for items typically excluded from estimates, the companys adjusted net income was $74 million, or $1.02 per diluted share. The company generated adjusted EBITDAX of $187 million and ended the quarter with $479 million of cash and cash equivalents, an undrawn Revolving Credit Facility, and $958 million of total liquidity.
Operational Highlights
The company's reservoirs performed in line with expectations, with total daily gross production of 101,000 gross barrels of oil equivalent per day (Boe/d) during the third quarter. CRC operated 1 drilling rig in the LA Basin, drilled 9 wells, and brought 8 wells online during the third quarter.
Shareholder Returns and Dividend Increase
CRC continues to prioritize shareholder returns, dedicating a significant portion of its free cash flow to dividends, share repurchases, and debt repurchases. The company increased its quarterly dividend by 10% to $0.31 per share, payable on December 15, 2023, to shareholders of record on December 1, 2023.
Advancements in Carbon Management Business
CRC announced the first capture to storage project at one of its gas processing plants, Elk Hills cryogenic gas plant, in Kern County, California. This new project is expected to begin to remove and permanently store 100,000 metric tons per annum (MTPA) of CO2 in the CTV I reservoir by year-end 2025.
Outlook
For the full year 2023, CRC is narrowing its guidance range for average daily total net production from 85 to 91 Mboe/d to 85 and 87 MBoe/d. The company is also lowering its guidance range for the 2023 capital program from $200 to $245 million to $185 to $210 million due to the timing of projects and the availability of permits.
Explore the complete 8-K earnings release (here) from California Resources Corp for further details.
This article first appeared on GuruFocus.
