California Resources Corporation (CRC) reported a net income of $376 million for the year ended December 31, 2024, a decrease from the $564 million reported in 2023. Total operating revenues reached $3.198 billion in 2024, up from $2.801 billion in 2023. This increase was primarily driven by the acquisition of Aera Energy LLC on July 1, 2024, which added $915 million in oil, natural gas, and NGL sales. However, excluding Aera's contribution, oil, natural gas, and NGL sales were lower in 2024 due to decreased natural gas prices.
Operating expenses totaled $2.589 billion in 2024, compared to $2.025 billion in 2023. The increase reflects the inclusion of Aera's operations for the second half of 2024, particularly in non-energy operating costs ($206 million) and general and administrative expenses ($73 million). Despite the overall increase, excluding Aera, certain operating costs were lower in 2024 due to cost-saving initiatives implemented in 2023. The company also reported a $30 million charge for other operating expenses related to a workforce reduction following the Aera merger.
A key strategic development was the Aera merger, resulting in CRC becoming the largest oil and gas producer in California. The merger added 236 million barrels of oil equivalent (MMBoe) in proved reserves and significantly increased production. CRC expects to issue additional shares in 2025 related to post-closing settlements for the Aera merger. The company also paid approximately $990 million to extinguish Aera's outstanding debt. CRC plans to focus on integrating Aera's assets, reducing costs (targeting $170 million in 2024 and an additional $65 million in 2025), and pursuing further acquisitions.
CRC's average daily net production increased to 110,000 Boe/d in 2024 from 86,000 Boe/d in 2023, primarily due to the Aera acquisition. However, natural gas production decreased due to scheduled and unplanned downtime at the Elk Hills power plant and natural decline. Average realized prices for oil and natural gas were lower in 2024 compared to 2023, reflecting global market conditions. The company's 2025 capital program is projected to be between $285 million and $335 million, primarily focused on workovers and sidetracks, with plans to increase investment in new wells when permitting allows. CRC maintains a strong balance sheet with $1.337 billion in liquidity as of December 31, 2024.
CRC's outlook includes continued integration of Aera, disciplined capital allocation, and advancement of its carbon management business. The company anticipates further cost savings and expects to fund its capital program primarily through operating cash flow. CRC also highlights the ongoing challenges related to obtaining permits in California, emphasizing the uncertainty surrounding future production and development plans. The company acknowledges various regulatory risks and uncertainties, including those related to climate change and GHG emissions, and emphasizes its commitment to environmental stewardship.
About California Resources Corp
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