California Resources Q3 swings to loss on higher operating expenses
CRC•California Resources reported a Q3 net loss of $315 million, or $3.55 per share, while adjusted EPS of $1.17 beat the $0.96 estimate. The company raised its quarterly dividend by 4%, completed its Crimson Midstream acquisition and forecast Q4 adjusted EBITDAX of $340 million to $380 million.
1. Quarterly results
California Resources reported Q3 net loss of $315 million, or $3.55 per share, as operating expenses rose, mainly because of higher natural gas prices for steamflood operations and increased workover activity. Adjusted net income was $104 million, adjusted EBITDAX was $341 million and adjusted EPS was $1.17, above analyst estimates of $88.15 million, $319.95 million and $0.96, respectively.
2. Outlook and transactions
The company raised its quarterly dividend by 4% and completed its acquisition of Crimson Midstream. For Q4, it expects net production of 150,000 to 152,000 barrels of oil equivalent per day, 79% oil, capital investments of $110 million to $130 million, and adjusted EBITDAX of $340 million to $380 million.
3. Production drivers
Net production grew 2% quarter over quarter, supported by a new Belridge-Elk Hills connection and increased gas processing at the Elk Hills Cryogenic Gas Plant. Higher resource adequacy prices and wholesale electricity sales helped electricity revenue net of generation expenses exceed guidance.
