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• Net Production: 141,000 BOE per day.

• Realized Oil Prices: 99% of Brent.

• Adjusted EBITDA: $360 million.

• Free Cash Flow: $118 million for the quarter; $355 million for the year.

• Operating and Transportation Costs: $344 million, 4% lower than initial guidance.

• G&A Reduction: 10% quarter over quarter to $95 million.

• Gross Production: 163,000 BOE per day for 2024.

• Annual Gross Decline Rate: Approximately 6%.

• Drilling Capital: $123 million.

• Adjusted EBITDAX for 2024: Over $1 billion.

• Shareholder Returns: 85% of 2024 free cash flow returned through dividends and share repurchases.

• 2025 Capital Investment Expectation: $285 million to $335 million.

• 2025 Targeted Controllable Cost Structure: Estimated at $220 million, nearly 16% lower than 2023.

• 2025 Annual Net Production Estimate: About 135,000 BOE per day, with oil comprising nearly 80%.

• 2025 Oil Production Hedging: More than 70% hedged at $67 per barrel.

• 2025 Fuel Gas Hedging: More than 60% hedged at $3.95 per MMBTU.

• Resource Adequacy Power Capacity Payments: Expected to increase 50% to $150 million.

• Liquidity: More than $1 billion, with cash on hand over $350 million at year-end 2024.

• 2026 Senior Notes Redemption: Half redeemed at par, with plans to act on remaining $122 million later in the year.

• Leverage Ratio: Less than one turn.

• Buyback Authorization Remaining: More than $550 million as of year-end 2024.

• Warning! GuruFocus has detected 5 Warning Sign with CRC.

Release Date: March 03, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• California Resources Corp (NYSE:CRC) delivered robust financial results in 2024, exceeding expectations with net production of 141,000 BOE per day and generating $118 million in free cash flow.

• The company announced a significant partnership with National Cement to develop California's first net-zero cement facility, backed by up to $500 million in DOE funding.

• CRC's carbon management business is expanding rapidly, with the nation's first EPA Class 6 permits received, allowing the advancement of California's first CCS project at Elk Hills.

• The company has achieved 70% of its targeted synergies from the era merger, improving its 2025 cost structure and reinforcing asset management.

• CRC is actively pursuing agreements to advance new AI data centers in California, leveraging its available behind-the-meter power capacity.

Negative Points

• CRC's stock price has underperformed compared to peers, despite progress and positive developments, partly due to market conditions and potential lockup agreements from era owners.

• The company faces challenges in the permitting process, with expectations to receive new permits by the end of the year, impacting future drilling activities.

• CRC's carbon management projects are contingent on the development of CO2 pipelines, which are currently under a moratorium in California, delaying project execution.

• The company has significant cash flow commitments in the near term, including bonus payments and merger-related retention payments, impacting liquidity.

• CRC's financial strategy involves maintaining a strong balance sheet, which may limit aggressive capital returns to shareholders in the short term.