California Resources Corp Q4 FY2025 earnings call

Francisco started by highlighting 2025 results with production growth, record financials, and capital returns despite commodity price decline. CRC's core strength is conventional reservoir base with low declines, large inventory. Regulatory progress with new drill permitting and approvals. Integrated strategy includes advancing CCS (California's first commercial-scale CCS project at Elk Hills in commissioning phase) and power platform with multiple counterparties. Cleo then discussed 2025 financials: Q4 adjusted EBITDAX $251M, free cash flow $115M; full-year adjusted EBITDAX $1.25B, free cash flow $543M. 2026 guidance includes capital spending ~$450M, net production expected to increase 12% to 155,000 BOE/day with oil ~81% of volume, ~2/3 oil production hedged at 65 Brent.

Not explicitly detailed by product segment in absolute financial figures and revenue contribution percentages as the transcript focuses on overall performance rather than breaking down by specific product segments

2026 guidance: Expect ~$1 billion of adjusted EBITDAX at 65 Brent, capital spending ~$450M, drilling, completions, work over capital ~$280-$300M supporting four-rig program, net production expected to increase 12% year-over-year to midpoint of 155,000 BOE/day with oil representing roughly 81% of volume, two-thirds of oil production hedged at 65 Brent.

Not explicitly discussed in detail in the transcript

Q: Scott Hanold asked about 2P inventory update, permitting, and 2026 program.

A: Francisco and Cleo responded on 2P reserves, permitting progress, capital efficiency, etc.

Q: Betty Jang asked about CCS approval and power to CCS opportunity.

A: Response on CCS commissioning, EPA approval, and power project market outlook.

Q: Zach Parham asked about cost reductions and capital allocation.

A: Discussion on synergies, cost reductions, and long-term capital allocation plans.

Q: Kalei Ackerman asked about gas and Elk Hills Power resource adequacy.

A: Response on gas market dynamics and resource adequacy benefit.

Q: Josh Silverstein asked about Uinta Basin and Huntington Beach.

A: Discussion on Uinta Basin asset evaluation and Huntington Beach asset optimization.

Q: Nate Pendleton asked about CO2 storage project timeline.

A: Response on CCS project progress and potential.