California Resources Corp. is an oil and natural gas exploration and production enterprise based in Los Angeles, California. It is the largest oil and natural gas exploration and production company in California on a gross-operated basis. The Company applies integrated infrastructure to gather, process, as well as market its production.
California Resources has a dedicated workforce of about 4,000 California employees and contractors. The Company’s acreage position in California comprises roughly 2.4 million net acres spanning California’s four major oil and gas basins.
California Resources operates its world class resource base solely within the State of California. Additionally, it gathers, processes, and markets oil and gas products to marketers, California refineries, and other buyers that have access to transportation and storage facilities. Furthermore, California Resources generates and sells electricity to the grid and to others via contractual agreements.
The State of California has five of the top 12 fields in the lower 48 states as ranked by total production. California Resources operate in four of these fields and in all four major basins in California (San Joaquin Basin; Los Angeles Basin; Ventura Basin; Sacramento Basin). The Elk Hills and Wilmington fields serve as the Company’s flagship operations.
The Company generated operating cash flow of more than $400 million in 2015. In 2015, California Resources reduced its per barrel cash costs by 13%, excluding interest.
For Q2 2016, California Resources’ production was about 140,000 barrels of oil equivalent per day. This is roughly the midpoint of the Company’s guidance range.
California Resources is emphasizing cost controls. At its Elk Hills field, its operations teams have managed down per unit and per well cost considerably over time.
Regarding Field Automation, the Company applies the most up-to-date automation technology and surveillance software in combination with a centralized operating strategy. This is to safely and efficiently operate wells, production facilities, and gas plants throughout its extensive acreage.
California Resources operates a hi-tech cryogenic gas processing plant at the Elk Hills Field in Kern County. The plant’s capacity of 200 million cubic feet per day brings Elk Hills’ total gas processing capacity to over 540 million cubic feet per day.
The Company’s portfolio has more than 125 independent oil and gas prospects. The majority of these have stacked pay potential. In addition, they are directly comparable to either producing fields or some of the Company’s important discoveries.
California Resources is concentrating on fiscal responsibility. For the first half of 2016, the Company generated positive free cash flow after capital, excluding working capital, of $76 million. As the Company said in its earnings call, “… demonstrating our ability to live within our means.”
Free cash flow generated can be used for dividends, expansion, debt reduction, as well as other initiatives, programs – or whatever a company desires. Free cash flow measures how much money a business produces after accounting for capital expenditures.
California Resources will host its Q3 2016 financial results conference call this Thursday, November 3, at 5:00 pm Eastern Daylight Time. The Company’s earnings will be released following the market close on Thursday.