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- **Resilient E&P Growth**: Base decline rate cuts to 8-13%, enabling $231M Q3 free cash flow and 2026 4-rig program with 2% decline guidance.
- **CCS Leadership**: First commercial CCS project at Elk Hills on track for 2026, supporting 2.4GW Kern County power hub with hyperscale data center demand.
- **Financial Strength**: 0.6x net leverage, $1.1B liquidity, and 5% dividend increase amid $450M shareholder returns.
- **Strategic Expansion**: Berry merger refinanced with $400M debt; Huntington Beach project progressing for 2028 monetization.

**【CEO Summary Section】**
- CRC delivered strong Q3 2025 results, with E&P performance driven by conventional reservoirs and Aera integration benefits. Base decline rate improved to 8-13% (from 10-15%), enhancing cash flow and capital efficiency.
- Berry merger progressing smoothly, with $400M debt refinanced at attractive terms. CCS project at Elk Hills advancing, targeting CO2 injection in early 2026.
- Power sector expansion: MOU with Capital Power for 200MW decarbonized natural gas plant; Kern County hub vision includes 2.4GW potential power generation with CCS.
- 2026 outlook: 4-rig program (80% oil-focused) with $280-330M capex, 2/3 production hedged at $64/bbl. Huntington Beach project on track for 2028 monetization.

**【CFO Financial Commentary】**
- Q3 2025: Net production 137,000 BOE/d, EBITDAX $338M, free cash flow $231M. Oil realizations 97% of Brent, natural gas 113% of NYMEX.
- Balance sheet strength: Net leverage 0.6x, liquidity $1.1B. Dividend increased 5%, $450M returned to shareholders YTD.
- 2026 guidance: 4-rig program, 2% entry-to-exit decline, $280-330M capex. Berry merger synergies expected post-close.

**【Q&A Highlights】**
- **Power & CCS Expansion**: Capital Power MOU validates market demand for decarbonized power; Kern County hub could serve 10GW+ data center demand. Elk Hills CCS project to enhance NGL recovery and operational efficiency.
- **Reservoir Performance**: PDP decline improvement driven by injection efficiency (Belridge) and AI-driven well surveillance (Elk Hills). 2026 workover/sidetrack focus to maintain 80% oil contribution.
- **2026 Capital Allocation**: $280-330M capex for 4-rig program, 60-70% workovers/sidetracks. Natural gas drilling contingent on price and power demand growth.
- **Huntington Beach Update**: 800-unit residential development on track for 2028, with $200-250M abandonment costs. Regulatory environment improving for in-state production growth.

California Resources Corporation (CRC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CRC

CRC fundamentals

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