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• Net Production: 141,000 BOE per day, flat quarter-over-quarter.

• Realized Prices: 98% of Brent.

• Adjusted EBITDAX: $328 million.

• Net Cash Flow Before Changes in Working Capital: $252 million.

• Free Cash Flow: $131 million.

• Operating and G&A Costs: $388 million, approximately 5% better than guidance.

• Share Repurchases: $100 million, nearly double the historical average.

• Dividends Paid: $35 million.

• Total Cash Returned to Shareholders: $135 million, about 103% of Q1 free cash flow.

• Full Year Adjusted EBITDAX Guidance: $1.1 billion to $1.2 billion.

• Average Annual Production Target: 136,000 BOE per day.

• D&C Capital Investment: Between $165 million and $180 million.

• Leverage: Below 1x.

• Liquidity: More than $1 billion.

• Available Cash: Nearly $200 million.

• Debt Redemption: $123 million of 2026 notes redeemed at par.

• Aera-Related Synergies Realized: $173 million in annual run rate.

• Warning! GuruFocus has detected 4 Warning Sign with CRC.

Release Date: May 07, 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 a solid quarter, exceeding the Street's expectations with an adjusted EBITDAX of $328 million and free cash flow of $131 million.

• The company has realized more than 70% of its $235 million in announced annual synergies from the Aera merger, with full target achievement expected by early 2026.

• CRC's strong hedge portfolio and diversified revenue stream provide visibility into near-term cash generation, supporting debt service and shareholder returns.

• The company returned a record $258 million to stakeholders in the first quarter through dividends, share buybacks, and debt redemption.

• CRC maintains a strong balance sheet with leverage below 1x, over $1 billion in liquidity, and nearly $200 million in available cash, providing flexibility for debt reduction and capital investment.

Negative Points

• Despite reaffirming full-year guidance, CRC faces challenges from a nearly 16% decline in oil prices.

• The company is navigating a complex regulatory environment in California, with ongoing litigation related to the Kern County EIR and the need for multiple permitting avenues.

• CRC's production guidance for the second quarter indicates a slight decline, attributed to operational adjustments and strategic decisions to optimize cash flow.

• The company is still in the early stages of its carbon management business, with significant reliance on future permitting and infrastructure development for CO2 pipelines.

• CRC's ability to achieve full synergy targets from the Aera merger is contingent on the timely completion of infrastructure consolidation projects, some of which extend into 2026.