California Resources Reports Fourth Quarter and Full Year 2024 Financial and Operating Results

Achieves Meaningful Capital Efficiency Improvements and Significant Cost Reductions Following Aera Merger

LONG BEACH, Calif., March 03, 2025 (GLOBE NEWSWIRE) — California Resources Corporation (NYSE: CRC) today reported financial and operating results for the fourth quarter and full year 2024, as well as its guidance for 2025. The Company plans to host a conference call and webcast at 1 p.m. ET (10 a.m. PT) on Monday, March 3, 2025. Participation details can be found within this release. Supplemental slides are available on CRC’s website at www.crc.com.

Fourth Quarter 2024 Highlights

• Generated $206 million of net cash flow provided by operating activities, $258 million of operating cash flow before changes in operating assets and liabilities¹ and $118 million in free cash flow¹
• Reported net income of $33 million, adjusted net income¹ of $84 million and adjusted EBITDAX¹ of $316 million
• Delivered average net production of 141 thousand barrels of oil equivalent per day (MBoe/d) (79% oil); exited 2024 with 163 MBoe/d of gross production
• Returned $92 million to shareholders (~78% of fourth quarter free cash flow¹) via share repurchases and dividends²
• Received California’s first Environmental Protection Agency (EPA) Class VI well permits for underground carbon dioxide (CO₂) injection and storage into the 26R reservoir. See Carbon TerraVault’s 2024 Update for additional information

Full Year 2024 Highlights

• Transformed and scaled the business through successful Aera merger, and achieved more than 70% of its targeted $235 million in merger-related synergies
• Generated net cash flow provided by operating activities of $610 million, $707 million before changes in operating assets and liabilities¹ and $355 million in free cash flow¹
• Posted net income of $376 million, adjusted net income¹ of $317 million and adjusted EBITDAX¹ of $1,006 million
• Delivered average net production of 110 MBoe/d (73% oil)
• Enhanced capital efficiency after deploying $123 million of drilling, completions and workover capital to achieve an entry-to-exit gross production decline of approximately 6%
• Returned $303 million to shareholders (approximately 85% of free cash flow¹) via share repurchases and dividends²
• Exited 2024 with $354 million in available cash³, $983 million in available borrowing capacity and liquidity¹ of $1,337 million³
• Sold 0.9 acre Fort Apache real estate property in Huntington Beach for approximately $10 million
• Signed new CO₂ management agreements⁴ (CDMA) and memoranda of understanding⁴ (MOU) to sequester up to 5.4 million metric tons per annum (MMTPA) of CO₂ emissions with reputable national partners and approved California’s first carbon capture and storage (CCS) project. See Carbon TerraVault’s 2024 Update for additional information

2025 Outlook and Highlights

• Capital investments expected to range between $285 – $335 million, including drilling, completions and workover capital of $165 – $180 million and carbon management capital of $20 – $30 million
• Net production expected to be 132 – 138 MBoe/d (79% oil), with an expected range between 5% – 8% entry-to-exit gross production decline
• On track to achieve the remaining $65 million in Aera-related synergies by year-end
• Redeemed $123 million of 2026 Senior Notes at par in February 2025 with the remaining balance of $122 million slated for redemption later this year
• Announced a new up to 1.0 MMTPA of CO₂ emissions brownfield MOU⁴ with National Cement Company of California Inc. (National Cement); Targeting first CO₂ sequestration and cash flow from CCS project at Elk Hills Cryogenic Gas Plant. See Carbon TerraVault and National Cement Sign MOU for California’s First Net Zero Cement Facility for additional information

“We delivered exceptional results in 2024, while successfully completing our transformative merger with Aera Energy. We proved our ability to seamlessly integrate assets and drive synergies. Today, we have the right people, portfolio, and business plan to help lead California’s decarbonization efforts,” said CRC President and CEO Francisco Leon. “In 2025, we are focused on delivering value through our integrated asset portfolio, combining conventional oil and gas, carbon management and an expanding power solutions business. We will maintain financial strength to generate sustainable cash flow, while returning significant capital through dividends and opportunistic share buybacks to our shareholders.”

Fourth Quarter and Full Year 2024 Financial Results

2024 Proved Reserves

As of December 31, 2024, CRC’s total proved reserves were 545 million Boe (MMBoe), of which approximately 81% was oil and 506 MMBoe was proved developed. CRC added 236 MMBoe of proved reserves related to the Aera merger in 2024. Estimated future net cash flows had a PV-10¹ value of $8,877 million based on SEC pricing of Brent spot price of $80.42 per barrel of oil and NYMEX gas price of $2.13 per MMBtu for natural gas. See Attachment 3 for complete information on CRC’s Non-GAAP Financial Measures and Reconciliations.

2025 Guidance

The following table provides key first quarter and full year 2025 financial and operating guidance. CRC expects to run a one rig program in the first half of 2025, increasing to two rigs in the second half of 2025. See Attachment 2 for complete information on CRC’s first quarter and full year 2025 guidance.

Shareholder Returns and Dividend Announcements

CRC is committed to sustainably returning cash to shareholders through dividends and repurchases of its outstanding common stock. Since mid-2021, the Company has returned approximately $1,060 million to shareholders², including $793 million in share repurchases and $267 million in dividends.

In 2024, CRC repurchased 3.6 million shares of its common stock for $190 million² at an average price of $52.12 per share and returned $113 million to shareholders in dividends. As of December 31, 2024, CRC had approximately $557 million of capacity remaining under its share repurchase authorization.

On March 2, 2025, CRC’s Board of Directors declared a quarterly cash dividend of $0.3875 per share of common stock, payable to shareholders of record on March 10, 2025. The dividend is expected to be paid on March 21, 2025.

Balance Sheet and Liquidity

In November 2024, CRC reaffirmed its $1,500 million borrowing base under its Revolving Credit Facility (the Facility), extended its maturity date to March 16, 2029, amended the springing maturity to allow the 2026 Senior Notes to remain outstanding past October 31, 2025 subject to certain conditions, and increased elected commitments by $50 million, as well as other technical amendments.

At year-end 2024, CRC had $354 million in available cash and cash equivalents³, $983 million of available borrowing capacity under its Facility (which reflects $1,150 million of borrowing capacity less $167 million of outstanding letters of credit) and liquidity¹ of $1,337 million³.

2024 Sustainability Highlights

“In 2024, CRC demonstrated its unwavering commitment to sustainability by achieving significant milestones in environmental stewardship, safety, and community engagement,” said Leon. “We are proud that our assets in the Los Angeles Basin were MiQ ‘Grade A’ certified, and we plan to continue investing in the Kern County community through our Community Benefits Plan. These are just two examples of our dedication to the communities and areas where we live and work.”

• Achieved a ‘Grade A’ certification from MiQ for methane emissions performance in the Los Angeles Basin, marking the first such certification for oil and gas operations in California and the Rocky Mountain region.
• Eliminated 311 gas venting pneumatics, aligning with 2030 methane reduction goals and demonstrating a proactive approach to minimizing environmental impact by reducing methane emissions by over 260 metric tons per year.
• Delivered more than 112 million barrels of water for agricultural use, exceeding internal consumption and supporting local agriculture.
• Launched the Carbon TerraVault I Elk Hills Community Benefits Plan, committing 1% of each project investment toward programs and partnerships that provide transformative benefits to local communities in Kern County.

Upcoming Investor Conference Participation

CRC will be participating in the following events in March 2025:

• DEP THRIVE Energy Conference on March 5 in Houston, TX
• Morgan Stanley Global Energy & Power Conference on March 6 in New York, NY
• CERAWeek 2025 on March 10 to 12 in Houston, TX
• 37th Annual ROTH Conference on March 17 in Dana Point, CA
• 2025 NYSE Investor Access Day on March 20, Virtual

CRC’s presentation materials will be available on the day of the event on its website. See the Events and Presentations page under the Investor Relations section on www.crc.com.

Conference Call Details

A conference call and webcast is planned for 1 p.m. ET (10 a.m. PT) on Monday, March 3, 2025. To participate in the call, dial (877) 328-5505 (International calls dial +1 (412) 317-5421) or access via webcast at www.crc.com. Participants may also pre-register for the conference call at https://dpregister.com/sreg/10194600/fe015c8aa0. A digital replay of the conference call will be available for approximately 90 days.

_{¹ See Attachment 3 for the non-GAAP financial measures of operating costs per BOE (excluding effects of PSCs), adjusted net income (loss), adjusted net income (loss) per share – basic and diluted, net cash provided by operating activities before changes in operating assets and liabilities, net, adjusted EBITDAX, free cash flow, adjusted general and administrative expenses and capital efficiency including reconciliations to their most directly comparable GAAP measure, where applicable. See Attachment 2 for the 1Q25 and 2025 estimates of the non-GAAP measures of adjusted EBITDAX and adjusted general and administrative expenses, including reconciliations to its most directly comparable GAAP measure.
² The total value of shares purchased includes approximately $2 million and $1 million in both the years ended December 31, 2024 and 2023 related to excise taxes on share repurchases, which was effective beginning in 2023. Commissions paid were not significant in all periods presented.
³ Excludes restricted cash of $18 million.
⁴ MOUs and CDMAs are non-binding agreements. The projects and transactions described in an MOU or CDMA are subject to certain conditions precedent, typically including the negotiation of definitive documents, a final investment decision by the parties and receipt of EPA Class VI permits and other regulatory approvals.
 ⁵ Margin from purchased commodities is calculated as the difference between revenue from purchased commodities and costs related to purchased commodities, and excludes costs of transportation.
⁶ Electricity margin is calculated as the difference between electricity sales and electricity generation expenses.
⁷ 1Q25 guidance assumes Brent price of $76.54 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $3.38 per mcf. Total year 2025 guidance assumes Brent price of $73.05 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $3.49 per mcf. CRC’s share of production under PSC contracts decreases when commodity prices rise and increases when prices fall.}

About California Resources Corporation

California Resources Corporation (CRC) is an independent energy and carbon management company committed to energy transition. CRC is committed to environmental stewardship while safely providing local, responsibly sourced energy. CRC is also focused on maximizing the value of its land, mineral ownership, and energy expertise for decarbonization by developing CCS and other emissions reducing projects. For more information about CRC, please visit www.crc.com.

About Carbon TerraVault

Carbon TerraVault (CTV), CRC’s carbon management business, is developing services to capture, transport and permanently store CO2 for its customers. CTV is engaged in a series of proposed CCS projects that if developed will inject CO2 captured from industrial sources into depleted reservoirs deep underground for permanent sequestration. For more information, visit carbonterravault.com.

Forward-Looking Statements

This document contains statements that CRC believes to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical facts are forward-looking statements, and include statements regarding CRC’s future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and plans and objectives of management for the future. Words such as “expect,” “could,” “may,” “anticipate,” “intend,” “plan,” “ability,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “guidance,” “outlook,” “opportunity” or “strategy” or similar expressions are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Additionally, the information in this report contains forward-looking statements related to the recently announced Aera merger.

Although CRC believes the expectations and forecasts reflected in its forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond its control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause CRC’s actual results to be materially different than those expressed in its forward-looking statements include:

• fluctuations in commodity prices, including supply and demand considerations for CRC’s products and services, and the impact of such fluctuations on revenues and operating expenses;
• decisions as to production levels and/or pricing by OPEC or U.S. producers in future periods;
• government policy, war and political conditions and events, including the military conflicts in Israel, Lebanon, Ukraine and the Middle East;
• the ability to successfully execute integration efforts in connection with the Aera Merger, and achieve projected synergies and ensure that such synergies are sustainable;
• regulatory actions and changes that affect the oil and gas industry generally and us in particular, including (1) the availability or timing of, or conditions imposed on, EPA and other governmental permits and approvals necessary for drilling or development activities or its carbon management segment; (2) the management of energy, water, land, greenhouse gases (GHGs) or other emissions, (3) the protection of health, safety and the environment, or (4) the transportation, marketing and sale of its products;
• the efforts of activists to delay prevent oil and gas activities or the development of CRC’s carbon management segment through a variety of tactics, including litigation;
• the impact of inflation on future expenses and changes generally in the prices of goods and services;
• changes in business strategy and capital plan;
• lower-than-expected production or higher-than-expected production decline rates;
• changes to estimates of reserves and related future cash flows, including changes arising from CRC’s inability to develop such reserves in a timely manner, and any inability to replace such reserves;
• the recoverability of resources and unexpected geologic conditions;
• general economic conditions and trends, including conditions in the worldwide financial, trade and credit markets;
• production-sharing contracts’ effects on production and operating costs;
• the lack of available equipment, service or labor price inflation;
• limitations on transportation or storage capacity and the need to shut-in wells;
• any failure of risk management;
• results from operations and competition in the industries in which it operates;
• CRC’s ability to realize the anticipated benefits from prior or future efforts to reduce costs;
• environmental risks and liability under federal, regional, state, provincial, tribal, local and international environmental laws and regulations (including remedial actions);
• the creditworthiness and performance of its counterparties, including financial institutions, operating partners, CCS project participants and other parties;
• reorganization or restructuring of its operations;
• CRC’s ability to claim and utilize tax credits or other incentives in connection with our CCS projects;
• CRC’s ability to realize the benefits contemplated by its energy transition strategies and initiatives, including CCS projects and other renewable energy efforts;
• CRC’s ability to successfully identify, develop and finance carbon capture and storage projects and other renewable energy efforts, including those in connection with the Carbon TerraVault JV, and its ability to convert CDMAs to definitive agreements and enter into other offtake agreements;
• CRC’s ability to maximize the value of its carbon management segment and operate it on a stand alone basis;
• CRC’s ability to successfully develop infrastructure projects and enter into third party contracts on contemplated terms;
• uncertainty around the accounting of emissions and its ability to successfully gather and verify emissions data and other environmental impacts;
• changes to CRC’s dividend policy and share repurchase program, and its ability to declare future dividends or repurchase shares under its debt agreements;
• limitations on CRC’s financial flexibility due to existing and future debt;
• insufficient cash flow to fund its capital plan and other planned investments and return capital to shareholders;
• changes in interest rates;
• CRC’s access to and the terms of credit in commercial banking and capital markets, including its ability to refinance debt or obtain separate financing for its carbon management segment;
• changes in state, federal or international tax rates, including CRC’s ability to utilize its net operating loss carryforwards to reduce its income tax obligations;
• effects of hedging transactions;
• the effect of CRC’s stock price on costs associated with incentive compensation;
• inability to enter into desirable transactions, including joint ventures, divestitures of oil and natural gas properties and real estate, and acquisitions, and its ability to achieve any expected synergies;
• disruptions due to earthquakes, forest fires, floods, extreme weather events or other natural occurrences, accidents, mechanical failures, power outages, transportation or storage constraints, labor difficulties, cybersecurity breaches or attacks or other catastrophic events;
• pandemics, epidemics, outbreaks, or other public health events, such as the COVID-19 pandemic; and
• other factors discussed in Part I, Item 1A – Risk Factors.

CRC cautions you not to place undue reliance on forward-looking statements contained in this document, which speak only as of the filing date, and CRC undertakes no obligation to update this information. This document may also contain information from third party sources. This data may involve a number of assumptions and limitations, and CRC has not independently verified them and does not warrant the accuracy or completeness of such third-party information.

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