CRC - Earnings call transcript Q1 2019 | California Resources Corporation

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Operator

Good day, and welcome to the California Resources Corporation First Quarter 2019 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Scott Espenshade. Please go ahead, sir. Mr. lost. is line your Espenshade,

Scott Espenshade

first [Audio Chief Gap] Thank provided of again Tom. Todd Resources I'll Relations on call. today's call Executive I'm the conference Scott Officer. is Corporation's executive California Officer, from financial as call into provide several you. portion have members most to federal Executive Officer; cause or results, Executive certain President other and President These in Land. start XXXX Senior Espenshade, that conference well Smith, and slides like Participating projections results Vice their our President highlight and security the that Relations as and our additional measures measures directly for our comparable Today's in these quarter statements CRC GAAP implied non-GAAP Stevens, contains expressed website Welcome are available team. our first Chief differ quarter Investor and Mark Senior and to I'd to uncertainties Investor to Vice Chief earnings slides Relations section Financial discussed operations www.crc.com. Investor risk meaning additional release. actual in website, our the laws. may financial of to and information. insight of we on those statements in plus subject and is of statements. within reconciling forward-looking Also, information These

on website following for least transcript when which the today's Additional earnings will is available following our filed ask release. being days and cause will review in that We'd A be information on the be available, to made call. cautionary factors on later that XX-Q, and XX which could a it, available company's our results statement available is today. the at differ call, you replay

over questions a of would to our that participants for at prepared similar their a have earnings will limit ask a up. now Todd. plus As time follow Q&A and the remarks we I allotted to call a reminder, primary, the end turn

Todd Stevens

to Thank call. demonstrated with you, enhances business as differentiated progress expected navigating align conditions scale adjust flow. quickly to great ability made to flexibility and commodity provides value-driven our our thank our which well We sheet. our program, for market of California, of everyone XXXX in and world-class first started significant our today's diversity quarter from earnings operations benefits and model while optionality balance a the capital price you towards as Scott, attending our portfolio, strengthening that the CRC and exceptional with CRC cash volatility.

late call, this we moved our activity number on through quarter. to As volatility of as the the to earnings rigs year highlighted our and we in XXXX the lowered entered last and reduced we we respond

career world's that of thirst the our consume focuses produces landscape. XX% sent standard provides crude. cash I represent our fourth the well mineral There's and California's budget the the CRC of vital a always, As class this of other margins providing progressive Kuwait with is over inherently and Arabia, underpin energy basis, enables standalone a petroleum state energy. state's just last context California's is the dream. one recent To enhancing cash our and path Saudi largest a to value places industry values. its and the By to Californians global by we Californians XXXX activity Iraq consume outside of amount American state beyond rights Commission billion the human year, this meet the Californians general-fund year. to in substantially cars Native lot and and middle shareholders, energy. Last incredible achieve and oil imports for revenues. Californians On is of immense $XX flow, state within State and aligned the and that by products, labor, on maximizing comparison, modern oil. state safety, lifestyle, our drop our has benefit to industry for an gas we're Lands the interest equivalent every owners importing the of environmental produced investments. XX% been living and California plan consumer largest under high consumers, California's California to out paying, of our legislative oil and and an in workforce trucks. local contributes leading production start doesn't want of gas of the which need, effectively

values Long For XX irresponsible would and $X.X is increase and years operations Angeles for Long and the billion export alone diminish Beach. example, that last generated reliance the on Los state, both over City in standards misguided. share our much Legislation don't the our of Beach needed countries imported environmental County revenue, that have from public jobs, oil

imported State in to shipping industry fuel In fact, of gallons and native just nearly of California critical further emissions. year, per year. increasing of our marine would oil and production burns over burn policymakers would additional Replacing Sacramento million recognized an XXX oil with per marine already in overall these workforce. fuel million gallons across a worldwide facts Responsible the imported XXX

to leadership it in prevail there has thoughtful past. the is expect We as

high-quality development of low proved advantage resource and strength the base. of XX, are of factor for quarters supported ratio competitive greatest long highlights declining of nature three as CRC's One base developed team. our rely ahead, R/P provides category, our low continued in nearly This in by ahead, is healthy opportunities by a reserves as our reserves. pipeline that live predictable highlights The exceptional our low California capital long nearly majority life, risk which further Looking XP resource the well in our operated our this intensity, proved low assets. growth risk,

barrels this that of of meets exceeds XXX or pipeline joint venture also $XX of internal continued our currently significant highlights million VCI At interest. at has inventory actionable over through metric oil-equivalent our been validated of inventory factor Brent. billion The and oil X barrels that our is $XX stands equivalent Brent, Another strength resource our base above X.X.

Finally, per further approximately finding economics by run with pleased CRC's resource over have, continue made in our capital borrowing advantage, that and to prudent margin cycle billion. the of expansion. were last are to cost which valuable I'm CRC's our barrel our say cash our yesterday, base $XXX reaffirmation resource our attractive just which at years. also We'll with organic validated $X.X leverage low has development and resources the demonstrated aids strategically investment. value-driven advantage was to full F&D costs, and translate three This

crude We oil. flat relatively quarter of expect with the primarily end second through production from focused investments the the year, on

to needed XXXX pursue hedge many enhance which allocation. planned throughout on capital and of relative could higher allow While was cash are This to flow CRC generate cash to of book be the $XX remainder on prices there our program. realized and to Based volatility. be depend year, for factors year to current flow. free substantial amount program, continue we the our the will prepared significant, as it upon believe for point prices disciplined appear remain responsive, We the future the will particularly capital our Brent we based ultimately size of strip, free

enable activity, in to discretionary strengthening or towards that our objective to will XX% flow our applying cash the to XX% end. of free transaction this from sheet. potential dedicate more flow addition towards proceeds This our balance achieve CRC of will cash We

XXX% all carry consisted barrel in the operatorship pause progressed during as in valuation On XX,XXX through quarter continue burden. cash of our $XXX we with carry balance a with our several $XXX to crude counterparties, closed E&P of deep of remaining for our oil flowing field all these following discussions. approach have the at Hills of debt in transaction reflects oil transaction be Lost our XXXX. We Lost sheet a the above a in consideration there field our million yesterday, million. steamflood retain discussions barrels are a we certain The during maintain to of zones on fourth X,XXX total of Hills We selling interest shallow the the per development a and the investment working strategic non-operated XXXX. know of wells a private million. ways CRC XXX producing the achieve approximately will per produced on multiple we of front, multiple point, in market On and to This covers day. interest net a downturn we carry. excess our XX% XX% asset reducing rights. of monetization oil This intend sale, objective $XX that including company Prior to of of our and minimum

is minerals assets on infrastructure producing and of portfolio transactions. diverse Our interest including fronts, many properties, generating

side, program plants, sense occasional for capital a flat they continue first is during one EBITDAX to due of to be this pursue operational excellence, at We to expected to our during across other operations. we although, on to despite ensure our We the Production energy relatively to reliability, high We're cash solid our our the shareholders. and quarter quick was With and operations. thanks downtime million. flow posted laser was a JVs, against down to scale and also as first bring quarter the higher structure from slightly level on operation $XXX prior the forward team's focus downtime continuity consistently time able turnaround quarter our large execute maintain given value makes factors, CRC's of maintain gas costs. cost

about including hedges. from benefited up also we crude which quarter, the year-over-year, oil XX% were realizations, During higher

crude that Brent for International crude the As crude as in California California refineries which, attractive grade remain analogous you high has waterborne know, ideal. market. CRC is we CRC's received pricing drives demand. based complex

Additionally, the cash the well Maritime to instead California for crude Organization At the factors through spec year, shift Mark. and future. turn of state in our hedges of I same first for diesel. standards over now produce are base the the to we strong performance refineries low-sulfur in on gasoline the for foreseeable and our native product position place quarter These underpin the thoughtfully next demand to Details International affirmations, will borrowing call the sulfur cycle. opportunistically time, same CRC flow, our putting

Mark Smith

maintaining base the within of first delivering quarter performed our flat as Todd. production the asset in Thanks, expected while year, CRC's guidance costs. range, relatively production

remains expect of quarterly of our share. Hills EBITDAX net transaction, production year current Lost After million income of $X.XX $XX our operational performance equivalent of margin oil our during XXX,XXX in driving value. the base diversity the We registered to optionality barrels economics contributing and end focus asset the flat under margins EBITDAX as on million, we the underscoring or adjusted strong, of per capital XX% through of as quarter, and day overall well relatively of first per $XXX Our diluted production the program.

with sooner activity basin operations Los highlighted, Capital wells, Angeles Los lower Hills primarily in in on Todd responded towards fourth in limited core cash Basin efficiency. development our continued a sequential with Huntington We Ventura including As work-overs Vista steep capital the first program, flat resilience. the the our and the quarter properties, focus of Elk prices Sacramento experienced in on The on area well capital remarkable field, activity By drilled Angeles the quarter basins. on to commodity continued quarter initiating while and and we both flow directed directed Joaquin the and saw and Buena last quickly a both XXXX Wilmington activity Beach We wells, San fields. to instead relying no thorough expected production of year. to maintaining show was decline new XX aligning surveillance. began a Joaquin and drilling largely San in by basis,

controllables to record to to our Capital delivered the low from generation value flow cash extend opportunistic resources. and During the Brit program, underpin in asset controlled our program XXXX, and healthy quarter, and margin, decline hedges of on our track capturing capital our internally consistent funded with capitalizing high we supplement base look the full world-class we base proven JV differentials capital our

financial position. we've multiple monetization As of to portfolio strengthen assets our have our within we opportunities large discussed,

garnered As our cash, we in $XXX $XXX considerations excluding over revolver. the Hills Lost million and that's noted, million Todd transaction to pay of applied which down

our good commitment point our consider progress to made of another the value in which In pleased lien addition, debt reduction to of that market the validation the transaction, demonstrating Lost debt our billion. we've the purchased quarter, repurchases commitment notes total effective debt during balance Hills of bank strengthening. lowering first million advise face sheet in to strengthening. a $XX and the our million, Through external an of I'm borrowing at second CRC for our to proceeds we $X.X group in balance quarter, from aggregate base price our open billion $X.X XX yesterday, reaffirmed sheet

details turning day XXXX, we the first for performance of that's to period. average XXX,XXX of over of quarter Boe per X% the produced Now, the financial our first up prior the year an quarter, during

up Our oil which production was XX,XXX the X% performance included period. per over day, prior averaging year barrels

results power XXXX included the earlier outages. PSC that Todd well as as plant quarter First downtime effects, gas negative mentioned

to continue based pricing We and of differentials in registering first benefit XX% of hedges. the the premium realizations of Brent before from Oil Brent XXXX. effective were quarter robust,

of expected the cash a of in Our were per continuing pricing party were or kept by higher our markets. prices, $X.XX local quarter barrel per came were flat prices, $XX.XX stated per bulk flow within first Brent, Natural cost prior cost compelling underpins hedge sporting $XXX magnified enhanced year which period. storage NYMEX in our third million of focus the XX% by relatively program Boe, of average our trends program, controllable limited cost NGL realizations barrel. stronger versus per the California. at gas for of reflect at for face range. energy than price of realized commodity realizations Despite to realized within on Production and capital to seasonality our by our guidance the $XX.XX XXX% an barrel XXXX

corresponded our been Excluding were and of costs line would majority our General PSC first per guidance production costs the range. per effects, Boe. Boe, quarter in quarter The in quarter the equity-based increase have cash-settled, incentive previous drove first compensation with $X.XX administrative $X.XX stock XX% levels increase all costs CRC a higher over at during organization. to price the the which of

plus quarter. changes rewards stock income our the taxes income, came discussed, a volatility on value cost expected. every the cash-settled, in than valorem on in previously Taxes our are stock-based introduced paid mark-to-market as and in the ad which largely our are other our of our and because portion comprised to we've based price ground counties, paid As of the of resource are statement, of GHG

to down to discretionary level of was our a XX% of fourth was from $XXX of of prices favorably same million, our XXXX. cash the Cash count of quarter EBITDAX first XX% $XXX the rolled up change of million quarter of lowered cash move from first the year. XXXX. as affected business responsiveness of This to investments program XXXX funded levels capital of diluted $XX the reported Adjusted quarter capital model, and flow are XXXX by capital For quick of the funded stock our part from on including first the or such by our level. items non-cash of action flow, activities and fourth analysts, We quarter XX% attributable cash rig rigs derivative from CRC drilling. our adjusted internally prudently to of quarter, quarter the expected net stable approximately for the the volatile $X.XX quarter rigs XXXX unusual and capital items, reflecting infrequent from of fourth $XXX million generated generation our other a the earnings share. working XX%. during activity our capital our core of through internally for rapidly first in end or JV excluded last we commodity focused off margin flow quarter the pivot and by XXXX, our negative level have a reported EBITDAX during to comparing $X.XX In of flexibility at of fourth reduced per by high first gains $XX our Adjusting broad rigs first quarter losses of end as This to as that recalibrate operational investment we we free common to generally the loss diluted would quarter operating net flow demonstrates per first in flows. XX portfolio year, million and million. plans total with million periods XXXX, and quarter, been cash adjust income moved allows program adjusted the us A six control share. by the XXXX in non-cash $XXX

of we'll a proven record value of to accordingly have continue to adapt respond on just track see a focusing it We wide range and and in environments.

half in Our day target In X,XXX flows periods. philosophy we up recently generally to our put day added and positions. regarding month XXXX spreads, certainty XX to provide hedge total first our over per barrels continues on and barrels XXXX, to refer Please first support to more XX,XXX of XX of for barrels of capital our month per barrels of XX,XXX of details to for hedging the XX% and oil swaps second production, the earnings the the to release covering cash and order volume program, respectively. XX,XXX our bringing hedge quarters

As look of strengths, working we take and scenarios. actionable low-risk value our projects, in value range We dynamic our and inventory developing price our capture metrics business our which ahead, life of VCI of capital play the facilitate is deliver to a our across varying will designed to pride long to extensive flexible to continue we allocation assets. utilizing full model, high-quality,

for our of results Q&A second to as over I'll from as Todd. have Additionally, designed happy the I'll integrated a other the earnings Please CRC that and that quarter you shareholders. of may we for XXXX as be it items value detailed well to as relentless well can back key to We'll infrastructure call. during adjusted add ways for now our we questions both note any of operational continue analysis to benefit on provide turn take drive identify our scale, we excellence. a aspects portion more release. in information attachments on guidance information the

Todd Stevens

of low with Mark. on able and asset program, Brent flow CRC generation. optionality is our cash controllable. continued deliver and consistent diverse quarter meaningful our focus first base with and Thanks, controlling disciplined solid predictable CRC to decline our the in register healthy realizations demonstrating results capital XXXX, quarter importantly, margins after a to centers that on a based results, quarter,

on of simplifying de-risk lowering overall the utilizing sheet, while we joint to ventures debt, asset In base. and resilient unlock the remain keenly of balance level potential CRC's full addition, focused our

take to We your are questions. happy now

Operator

question-and-answer session. question We the go our America. Akamine will begin Instructions] Kalei Bank of Please from ahead. comes now from [Operator today first And

Kalei Akamine

started your about the legislation AB-XXX attention in is Todd, opening in to the be odds to process and remarks, you ask you quarter? addressing the will by talk and off this the bill where dates this a paying over to latest ask any should we course but to important you not the California I'm passing, handicap of I going that of legislative

Todd Stevens

really obviously our to in Kalei, and years. think have remember, I ways, early speculate our record of state in you process it's Yes, issues bill and on track of policy affect but many done CRC other constructive communities for bills, or proven we and legislative this that topical this but to outreach prematurely a got we've

going talked passed now into it and of Appropriations that process Assembly -- out new. into continue So addressed where this there the when I Assembly Senate, about Assembly of when Committee. goes, the on fact It Committee. essentially all up -- are think its -- the environmental, you the this this sits chance, take the have to over to like the would employee with impacts, a we the some this and then of then was it bills go idea, it in and could it's chance, current really the economic go is, to But form zero, State side then, are we appropriation up And it Governor's new, Senate the for would of Governor's Committee account anyone to or I to In full if to it passed a it think through then October, bill Session -- And end end that, Senate to and desk. and go was it's in not these way pass it into earlier, up I time, odds out give have think thought to then Senate. made no the Committee, it and Legislative that, would assign would will to somehow to by then that. its zero, said, go it be of where about there out out desk. in have as pass the of in if timeframe, don't sits substantially would close wasn't pass that we this and the it. the fairly it out and if I September you form other of ending end if if that and -- is the anything But it an the not current it an some the sometime

Kalei Akamine

and want this monetizing you like rationale, appreciate priced about about Hills, now Lost grows. just understand why little pretty, you philosophy improve upstream little favor bit your better. broader Why that fairly asset a bit your asset? just to My looks on It the could if can as second that. the answering Wondering a share question, in flows? a cash deal I

Todd Stevens

around know, and we is metric. VCI -- compete rank order on for you everything VCI that metric look as we CRC we Capital. our And our inventory our Yes, done things for

think monetizing cash internal while that we because to think things within or a way while probably look remaining going if we and don't monetize carry be it potentially our live our it'll the for flow, then what on our we XX% effect, asset, could it, be makes is And could in a JV, repeat is While that we forward. a I interest didn't in having create operatorship control of transferring did would here JV, sense. capital effectively hybrid interest, think at JV we there

we're grow we I now of here. and with the an potential like that new in with that on JV think the And that the really And the this and got for in also economics know, the is to and monetization future. capital compete deep to company's asset to you remember, value kind we has it -- get you hopefully, retain here the pleased capital monetization, as California with And and improve operator rights the is fairly is this the upfront hybrid with Lost the is we're this asset, pleased horizons. pretty win-win think what shallow -- that different to prolific XXX the over And producing opportunity invest talking so is we did about really so, but we're we steamflood opportunity Hills. at the this was monetized here

Operator

comes your ahead next with go from Micheloto Silvio our And Mizuho. Please question. question with

Paul Sankey

This really you if Sankey it go California won't Silvio One as this I so stuff on on when is heavily not, -- me. alongside the stock what probably anywhere? is wasn't with my question quick is question said, hit just a why follow-up or surprise a know this did don't is Paul the and but

Todd Stevens

years I is heightened this we… many awareness this think for there -- of activity we've California many, had type in and given

Paul Sankey

for in and this years Silvio refining many we've because I before. Yes, sort through movie and of as cover California been well many,

Todd Stevens

an a see year. you tax you in this, California, severance you To proposed like idea, give this have

get that And hasn't the way activism through all think, a of has of gone never and a the they've elsewhere. system. fruition. wasn't gateways it's to years, has that its the I legislation there's here and years, I through the of think has heightened been California, year one but ballot to for think misguided the Again, on and for in it work in kind the measure, gone including XX awareness Colorado you come irresponsible I proposed probably last to

was and when they everyone. that sold think first And very there but week, I AB-XXX the questions of think think remember and I the last we legislation frankly, later the about I asked with and at it, these dealt like in they published fundamentals it awareness somebody, of and reckless name misguided said, all. when day So I spooked just can't past, you I -- down California that the haven't of terrible changed economy. had We've type think

that mean. ordinary think, understand So what people eventually come will business, and mean, things is through, I of across and to thoughtful work again, we it's in this will bear Sacramento

Paul Sankey

Understood.

quick really it deeper ability bit I quite oil? don't --- it the heck, last, drill you can -- wondering, is a was on you change over could that or now of could you how So change eight if happier as talking them the number contractually lot you talked intrigued rigs a just been now question was about and I be to I degree your you've to understand I you dig months you the probably extraordinary what as that you been flexibility you -- which you about, ask in as seems rigs the can through, as what's think able will of I but could highlighting pick volatility up rapidly again.

you you. any Thank For about example, have that. observations other

Scott Espenshade

Good Yes, Paul, question.

highlights chain also here it in our the supply think but really market for I services California. asset base,

the assets asset at and independent. buried look our major you of have when base, a think super I we really

assets, almost operating effectively of operatorship. obviously one sales have now our ceded we've we every over we lost So control

activity, when that ability anyone state. deep stay deep but rigs, medium the leave they typically that leave the We're in grasp. that else's the quickly really most the the have state, state. not type shift rigs, you complex the iron So the shallower It's The we the of rigs, doesn't to in the our really more supply are behalf. iron rigs within type think California, the will and of in chain, services about of

and price active because rigs and through this downturn both to workover So were able rigs driller, operator in in to optionality drilling have the state, kind you're largest of we've we, in to inception. had us we manage to able enable most being since this the this flexibility

us our to manage flow cash our able for appropriately. to important and be activity, been it's So manage

Operator

Molchanov our Please go question from Pavel comes with And next Raymond James. ahead.

Pavel Molchanov

in I encouraging that -- is legislature? the this anybody ask from about any Governor's apologies, another To the effort your going knowledge, but -- or is AB-XXX. one office to there I'm pushing

Todd Stevens

ask it business, are this, industry, hard send citizens Not with of think kind want think activists, if to against up exception our people, agriculture, not up and long scenes to who the back irrational line in responsible you to will to my I knowledge that to of just us of were be some everyone the that's pushing all I else probably but that and find a pre-industrial the behind age. someone the Sacramento

Pavel Molchanov

Any the there that, of what and say? some Newsom, own may the oil his process for media And what gas will Okay. in issue be to are he that indications and of Governor, kind sense near policy the future. reporting any on plans in

Todd Stevens

know We here which try the the renewables a what so of value and know, in the -- Sacramento in I drives have we've the effectively, industry state to approach, to and he's no I what the and in day. into prevail more will what it's also a say be I more drive done -- but end brings you system, driving understands at driven that he our thoughtful heads But, the and the and understands meantime. just is think drives think, state, also speculative the premature think been it'd to balanced around state, that me economy, anything I know the indication, and

Pavel Molchanov

topic, same groups obviously, and and opposing -- in oil involved or labor Okay. either mean And they it? been for this or of are outside I or process that shepherding any the outside groups are anybody lobbying the but I'm lastly against gas or outside of on AB-XXX then there of that, bill have environmental otherwise

Todd Stevens

have the I that I people groups. been been you're know that business to, side, labor as but on other trying the opposed aware have think groups Again, has of been for the agricultural groups. de-industrialize that community we're groups, our bill, to country only environmental

the have vast think I folks on side and as I majority this our said, and of been see like irresponsible reckless. frankly,

Operator

And Sneeden with Guggenheim. our next comes Please question from go ahead. Sean

Sean Sneeden

at is us of or the Mark, remaining the inclusive all and actually off. Lost you post little Is just, transaction at junior guess closing that what I bit? this a start the gets borrowing on like base the should point revised we you talk about also just Can basket that can to buybacks? Hills remind expect

Todd Stevens

commodity Todd. know, the Lost Sean, this as the we've in borrowing been of was you pulled risen we and What base, base. as is, not out have say is things Hills prices borrowing thoughtful I'll

we've this the look done to thoughtful be through as monetize whether will it'd been process assets borrowing adjustment royalty things base. or So and we and this our to be infrastructure. no And a or producing

get So Mark other the into with that question. I'll said, let

Mark Smith

for Yes, comment to you for constituted that repurchases we build the stands described of assets able Hills Sean, million. assets purposes in the to were Lost so credit basket $XXX based non-borrowing which -- basket at following now that on agreement, Todd's

Sean Sneeden

past, we help to I I think of how think guess like And try borrowing of think assets, the remaining some how the about valuations about and we in that? there guidance directional is our kind you've should around any -- kind talked the shape but about And about when potential can royalties around you kind thinking of non to based of that? think

Todd Stevens

our we look to been we're like if it's in invest I a process and go approach, earlier, what monetizing things. in JV us, our time-frame, and Capital. said a the at And reasonable of see and with assets the investment for that all an value. accelerate with through We'll going don't capital window value want or to for different we inventory at of looking of the we the I our mean, above

sale. are We a to get We conducting makes a shareholders. value not that fire sense for want our

Hills. looking everything and were business, from comprehensive assets, upstream really a you infrastructure this as in everything -- set between. here a from assets just not have we we felt to and a We of So to then was Lost that's at midstream, royalties -- win-win like with know,

also that to negotiation and venture. been continuing that, just not we had evaluate for as we're new joint active outlined but in of kind ventures, before for and So, joint meaningful I've

the I end the is you what targeting of understand So, we're one thing, do we're for looking at that going things, day. to just makes something that we're many to think sense this not and at only

Mark Smith

in to producing think that assets. base are to it infrastructure And what's it Sean, infrastructure borrowing Todd tying in for -- frame assets oil you. is is, Todd The base and significant again considered assets. Those way non-borrowing said is about gas the what described helping to

hand as based have we do assets, -- maintain have other. see a such the assets very borrowing good keep infrastructure we the as the in and potentially we us on include in know, And them with select with right one Lost the -- Hills non-borrowing exclude working would properties, will that JV, other relationship and closely So terms work the potential may something it them assets to with the with have et and you front flexibility we banks that non-borrowing or base on preserve base would cetera. and of that order a in the will to the seat

Sean Sneeden

kind That you there that something Got of Hills a front? we've JV mentioned Hills you to about or And the sense. JV transaction that this come on kind it. think then, the the of that and had of Is hybrid more as potential year. talked Lost for previously is makes still transaction Lost Todd,

Todd Stevens

in size. negotiations still also JVs No, we with active similar JVs are larger with and some

Operator

from Bank Gregg America. our last come question Brody will ahead. go And with Please of

Gregg Brody

so associated and -- heard production I that Hills X,XXX that our right, per I did sure Just to day? say it number that net you make mentioned with Lost I -- wanted you

Todd Stevens

was it X,XXX owned the before day. quarter, Just of the first in a when XXX% per us, was barrels by it oil sale,

Gregg Brody

Yes, I thought I misheard.

non-operating to you keep reductions that's a So result and it XX%. of G&A so XXX% a XXX%, you moving any -- have you'll Did as will position?

Todd Stevens

that modest some for coming we're would the going is at level vast from an operator opportunity majority it's new to It the to the purchase. OpEx. G&A field of be best, But have

Gregg Brody

the oil -- -- oil, it's when your think look I right? it's is field, And XXX% I heavy you. that Got so

Todd Stevens

Correct.

Gregg Brody

what sure NGLs and a forma I as will forward? -- kind -- guess simple you figure the just actually to natural I out gave be production X.X it's you by barrels going day so what dozen of -- that gas wasn't and it's guidance -- oil, pro the XXX% I Did just by adjusting

Todd Stevens

coming say, this this we'll off both and just oil I and is guidance and basically closed roughly yesterday. you on we as be coming then, flattish heard, Mark we out gave think We off X,XXX and barrels a day

Gregg Brody

total total oil And I production or production the it's on or both. flattish guess be both. will crude

Operator

session. conclude for Stevens turn to like would conference the I to will question-and-answer back Todd our remarks. this over any And closing

Todd Stevens

interest to for in California's participating strong XXXX. time first on political move of quarter call and throughout and forward landscape. all We and plan Thank today's your performance CRC's you replicate fundamentals the

Aided unrelenting be Thank on cycle model our of the and the an with consistent to excellence, low-risk resource is capture deliver low road. decline forward by continue by We to guided focus capital look allocation, flows to value operational our shareholders. built on business expected to disciplined value full We cash high-quality, base. perform the through you. and you our to seeing aligned

Operator

today's concluded. now conference is for you The attending Thank presentation.

You may disconnect. now

California Resources (CRC) 4 May 192019 Q1 Earnings call transcript