LONG BEACH, Calif. - California Resources Corporation (NYSE: NYSE:CRC) today reported its financial and operational results for the first quarter of 2024, revealing mixed outcomes that saw the company surpassing analyst earnings estimates but falling short on revenue expectations.
The independent energy and carbon management company reported an adjusted earnings per share (EPS) of $0.75, which was $0.04 higher than the analyst consensus of $0.71. However, revenue for the quarter was reported at $454 million, missing the consensus estimate of $491.54 million.
The slight revenue shortfall led to a modest stock decline of 0.8%, indicating a tempered response from the market. This subtle movement suggests that while investors took note of the revenue miss, it did not drastically alter their valuation of the company.
CRC's first-quarter performance was characterized by a commitment to shareholder returns, with $79 million returned through share repurchases and dividends. Despite the revenue miss, the company managed to generate $87 million of net cash from operating activities and reported an adjusted EBITDAX of $149 million, along with $33 million of free cash flow.
The company's net production averaged 76 thousand barrels of oil equivalent per day (MBoe/d), including net oil production of 48 thousand barrels of oil per day (MBo/d).
The production figures were impacted by longer than anticipated maintenance at the Elk Hills power plant and challenging weather conditions, which affected net production by 1.5 MBoe/d from previously issued guidance.
CRC's President and Chief Executive Officer, Francisco Leon, commented on the results, stating, "Our solid first quarter performance adds to CRC's historical track record of unwavering commitment to shareholder returns and effective cost management. CRC's improved cost structure demonstrates the fundamental improvements we've made to our business, reflecting our readiness to combine with Aera while driving a higher level of efficiency and effectiveness throughout the organization."
Looking ahead, the company remains focused on closing the Aera Merger, expanding its carbon management business, and continuing to provide innovative energy solutions to meet California's energy needs.
The upcoming merger with Aera Energy LLC is expected to enhance CRC's operational capabilities and market position, subject to regulatory approvals and closing conditions.
Investors and analysts will be keeping a close eye on CRC's future guidance and performance as the company navigates the dynamic energy market and works towards its strategic goals.
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