CRC Earnings Prediction
The chart below shows how CRC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CRC sees a +1.87% change in stock price 10 days leading up to the earnings, and a +1.30% change 10 days following the report. On the earnings day itself, the stock moves by +0.51%. This data can give you a slight idea of what to expect for the next quarter's release.
CRC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
926.00M
52.55%
-7.12%
Gross Margin
49.78%
-17.45%
-9.09%
Operating Margin
19.22%
-22.22%
-23.37%
Net Margin
3.56%
-88.51%
-89.71%
EPS
0.36
-86.15%
-90.48%
No Data Available
CRC Earnings Analysis
California Resources Corp Corporation (CRC.N) Earnings Conference Call
Positive
Exceptional Year Performance: 2024 was an exceptional year for CRC, with successful execution of key targets and meaningful cost reductions.
Strategic Partnership Announcement: The company announced a significant deal with National Cement, validating its carbon management business model and ability to provide solutions for industrial partners.
Oil and Gas Production Strength: CRC is California’s largest oil and gas producer, supported by quality proved reserves and a deep inventory, which unlocks significant synergies.
Strong Operational Performance: The company achieved net production of 141,000 BOE per day and realized oil prices at 99% of Brent, demonstrating strong operational performance.
Strong Financial Performance: Adjusted EBITDAX for the quarter was $316 million, and free cash flow generated was $118 million, reflecting disciplined execution and cost control.
Cost Reduction Achievement: The company reduced combined operating and transportation costs by 4% compared to initial guidance, totaling $344 million.
Production and Decline Rates: CRC closed out 2024 with gross production of 163,000 BOE per day and maintained a low annual gross decline of about 6%.
Investment and Cost Reduction: The company plans to invest $285 million to $335 million in 2025, with expected controllable cost structure estimated to be nearly 16% lower than the pro forma combined 2023 organization.
Oil Production Hedging Strategy: More than 70% of expected 2025 oil production is hedged at an average price of $67 per barrel, reducing commodity price risk.
Resource Adequacy Payment Increase: The resource adequacy power capacity payments are expected to increase by 50% to $150 million, enhancing revenue streams in natural gas marketing and power.
Strong Liquidity Position: CRC has more than $1 billion of liquidity and has rebuilt cash on hand to over $350 million at year-end, reflecting the strength of its conventional asset business.
Shareholder Return Commitment: The company returned about 85% of 2024 free cash flow to shareholders through dividends and share repurchases, demonstrating commitment to shareholder returns.
Negative
Earnings Miss Report: California Resources Corporation missed earnings expectations with a reported EPS of $0.91, falling short of the anticipated $0.96.
Production vs. Market Expectations: Despite achieving a net production of 141,000 BOE per day, the company faced challenges in meeting market expectations for earnings, indicating potential operational inefficiencies.
G&A Expense Reduction: The company reported a decline in G&A expenses by 10% quarter over quarter, which may suggest previous inefficiencies that needed addressing.
Cash Flow vs. Earnings Concerns: While the company highlighted a strong cash flow generation of $355 million, the overall earnings miss raises concerns about the sustainability of this performance going forward.
Production Decline Forecast: The anticipated production for 2025 is estimated at about 135,000 BOE per day, which is lower than the current production levels, indicating a potential decline in output.
Competitive Challenges in Carbon Management: The company is facing significant competition in the carbon management sector, which may impact its ability to secure contracts and maintain profitability in this emerging market.
CRC FAQs
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CRC Earning Call Sentiment
California Resources Corporation (NYSE:CRC) Q4 2024 Earnings Call Transcript
CRC.N
3.69%Positive
The earnings call presents a mixed picture. Despite a strong shareholder return plan and strategic initiatives like carbon management and AI data centers, EPS fell short of expectations, and management was vague on synergies and project timelines. While the financial health appears robust with reduced G&A expenses and strong liquidity, the lack of clear guidance and execution risks in new projects temper optimism. Given the market cap, the stock is likely to experience a neutral movement of -2% to 2% over the next two weeks.
