The following is a summary of the California Resources Corporation (CRC) Q3 2024 Earnings Call Transcript:

Financial Performance:

• CRC reported third quarter production averaged 145,000 barrels of oil equivalent per day and oil averaged 113,000 barrels per day, with oil sold at 96% of Brent after hedges.

• Adjusted EBITDAX for the quarter reached $402 million, and the company achieved $141 million in free cash flow.

• Liquidity remains strong at $1.15 billion, and CRC is committed to reducing debt towards their leverage target in 2025 while continuing dividend and share repurchase programs.

Business Progress:

• CRC has successfully integrated Aera Energy, becoming California's largest producer with a portfolio of high quality, low decline and low capital intensity conventional fields.

• The company has implemented over 55% of the $235 million annual synergies projected from the Aera integration.

• CRC is advancing several projects in its carbon management business and plans to break ground on its first carbon capture to storage project at Elk Hills following EPA permit approval.

Opportunities:

• CRC's combination of natural gas production with power generation positions the company to monetize excess power capacity amidst rapidly accelerating electricity demand in California.

• The company's carbon management initiatives align with California's decarbonization goals, offering significant growth potential as regulatory acceptance progresses.

Risks:

• The company's growth in its AI services and other innovative projects might face delays or increased costs due to regulatory barriers and the need for extensive infrastructure such as CO2 pipelines.

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