California Resources Corporation Reports $912 Million in Revenue and $115 Million Net Income in Q1 2025

California Resources Corporation (CRC) reported significant financial improvements in its latest 10-Q filing for the first quarter of 2025, driven largely by the acquisition of Aera Energy LLC in July 2024. The company generated total operating revenues of $912 million, a substantial increase from $454 million in the same period last year. This revenue growth was primarily fueled by a 90% rise in oil, natural gas, and natural gas liquids sales, which reached $814 million compared to $429 million in Q1 2024. The net income for the quarter was $115 million, translating to earnings per share of $1.27, a notable recovery from a net loss of $10 million, or $(0.14) per share, in the prior year.

The Aera Merger has had a profound impact on CRC's financial performance, as the company integrated Aera's operations, which significantly increased its production capacity. The merger added approximately 63 MBbl/d of oil production, bringing total net production to 141 MBoe/d, consistent with the previous quarter. However, the company faced challenges with lower average realized oil prices, which decreased by $5.16 per barrel to $72.01, reflecting broader market volatility influenced by OPEC+ production adjustments and U.S. tariff expansions.

Operationally, CRC has made strides in managing costs, with total operating expenses rising to $726 million from $464 million year-over-year, primarily due to increased production taxes and greenhouse gas taxes associated with the Aera assets. General and administrative expenses decreased to $72 million from $95 million, attributed to workforce reductions and lower compensation-related costs following the merger. The company also reported a decrease in depreciation, depletion, and amortization expenses, which fell to $131 million from $142 million, reflecting adjustments related to the Aera asset valuation.

Looking ahead, CRC is focused on maintaining its financial flexibility while navigating the current commodity price environment. The company has reaffirmed its capital investment program for 2025, estimating expenditures between $285 million and $335 million, with a significant portion allocated to oil and natural gas operations. CRC's liquidity position remains strong, with $214 million in cash and cash equivalents and $983 million available under its revolving credit facility as of March 31, 2025. The company is also committed to its Responsible Net Zero goal, aiming for an 80% reduction in greenhouse gas emissions by 2045, which reflects its strategic focus on sustainability alongside operational growth.