California Resources Corp. Considers Selling 100,000 Utah Acres and Four Wells
California Resources Corp. is evaluating a sale of 100,000 Utah acres and four horizontal wells acquired from Berry Corp. in December after finding California assets yield four times the investment return. The company plans up to $470 million in capital, targeting an 11–13% production increase to 157,000 barrels per day.
1. Potential Utah Asset Sale
CEO Francisco Leon said the company may divest the 100,000 contiguous Utah acres and four horizontal wells acquired in December from Berry Corp. after determining those assets must compete with California holdings that generate four times the capital return. All strategic alternatives—including sale, partnership or in-house expansion—remain under evaluation, with decisions driven by full-cycle returns and value creation.
2. Production Growth and Capital Plan
California Resources Corp. forecasts an 11–13% increase in average daily production this year to as much as 157,000 barrels, over 80% of which will be crude. The company intends to invest up to $470 million across its portfolio, allocating as much as $300 million for drilling, completions and workovers to optimize asset performance.
3. Q4 Financial Results
The company reported fourth-quarter net income of $12 million, down 80% from the prior quarter, despite an 8% revenue increase. Management attributed the earnings decline to acquisition integration costs and shifts in capital deployment toward higher-return California operations.