CRC - Earnings call 3 2020 | California Resources Corporation

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Operator

Good afternoon, and welcome to the California Resources Corporation Third Quarter Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Scott Espenshade. Please go ahead.

Scott Espenshade

Thank you. Vice Relations. Senior Espenshade, Scott President, Investor I'm Welcome Corporation's Third Call. quarter Conference to California call President President Todd Officer on team. several is Participating today's CRC the Stevens, Officer; well and Executive Leon, members of Financial of Francisco and Executive Chief Vice and as as CRC; Executive Chief

I discussed quarter into website slides These at measures the our financial would the non-GAAP of reconciling slides that information Also, results, our Relations measures Investor earnings provide provided to in information. have highlight insight comparable operations directly available www.crc.com. our our financial third Investor to and GAAP in additional section plus most like additional we portion in release. on website our is and Relations

being and accounting fresh in issued as Please quarter. that CRC due the note a fourth our basis of share is possession, count will and change accounting in implementing to our third start information emergency debtor quarter

the result, not quarter. will the fourth third results As a quarter comparable be to

officially we've accounting. all due and start fresh reminder, in guidance the to our a operations XXXX to withdrawn our As relates emergence that and any

contains actual call from expressed the to laws. or and forward-looking in subject statements may statements projections of differ federal conference Today's security and meanings These that uncertainties statements. these risks results are certain to cause other within implied those

review which on the that in release. XX-Q, later available be will could our that it company's factors in information the filed you Additional We'd cause is results differ cautionary on to earnings today. statements ask

least following call. on will made today's that a and be days our made transcript the at website for replay will following available A be available call XX

to Todd. I will now the turn over call

Todd Stevens

everyone CRC's quarter Thanks, third Scott, earnings call. attending for thank to and you

had best Californians. to results significant balance energy low leverage forward back base reliable a and one affordable, be discussing always decline, CRC. within and deliver We the sustainable look CRC a high-margin, the strong behind of and its peer stable, asset sheet now our has universe. CRC XX has glad world-class With are value to ratios opportunity to Chapter in to us, reporting

of well in for exceptionally are face our to the and Even substantial market thrive we value shareholders. create volatility, situated

First, of share XXXX and governance. Board with and setting our keen and responsibility acknowledge the insight new work commitment. whose values and has beyond. to and our create value to I business, Board in welcome market members in character, already Directors, to for The of We're want shown our investors Board CRC's strategy into deliver excited dynamics

pricing. give realized short those our exposure conventional are decline who to markets, is low a For you of to for known we companies the capital benefits intensity oil our production, in oil introduction quite energy advantaged as are over which a low let me most crude our CRC CRC, new business Brent differentiated and sector.

efficient plants, In our of addition, that CRC suite ability infrastructure, midstream through has highly creation strengthen flow successful a an projects sustainability marketing function power to and trading integrated free cash enviable generate metric. value our and

our shareholders are maintain With in cash track to you needs sheet and We meet strong invite to to the portfolio solid and that right a have financial balance deliver returns foundation, and costs, deliver team down priorities. we a and solid efforts consumer place drive investor confident and value our we to flow.

first balance me new Let about talk sheet. our

Hills. sheet eliminated and JV Our balance the restructuring our midstream simplified has Elk process at

CRC's and to environment. competitive taken improve and optimize be profitable also Brent structure to opportunity cost in price the current we've Additionally, the further

financial a of CRC. maintain on believe sheet the utilize matches the high-quality and crossover for which portfolio our a major assets. investment-grade crest credit we to capital balance right credit foundation, reflect of is metrics to Our We'll strong that our now continue differentiator discipline

over maintain actions well environment, crude in XXXX. efforts our deliver cash cost-cutting and we and third These leaner. oil cost reduction the XXXX CRC's annualizing free have in of between XXXX, made it told, of $XX costs All and lower quarter promote million production flattened achieved Brent $XXX flow. to and difference the ability production G&A, structure a profitably Through a operate

never satisfied. We'll to are to our further ways drive revenues enhance on decrease our structure, we efficiency. However, continue focus and cost

provides Our XXXX unique flow asset investment as multiple our levers with the base develop free CRC new and drive plans. our company for cash Board to we

with have internally $XX Year-to-date, and of that quarters. million second and pre-pandemic from during funded continued period joint only invested invested we capital our CRC a capital amount of $XXX also discipline. demonstrate strong have capital $XX $X of million vast partners. to was We capital invested total the in third with majority of venture of The million, million the

limited have capital quarter. in will the fourth investment We

give and sustainable foundation. deeper elements as into me see dive of you now the strong what Let investment a attributes and CRC's major the of we business our

reinforced have we First, our focus. long-standing value

the past our disciplined generate X within cycle. reducing live have attractive DNA the utilize focus continue to We'll through allocation come returns VCI same We supports have maintained margins cash which to the years. over metric, that CRC capital on costs, respect enhance to investment and investors flow, our on

as we Recall is we maximizing returns. a commodity index this consider, price ensuring rely heavily creation return value cash-on-cash index we value metric that metrics present payback utilize to our every well. new In we on test that or environment, investment are

the million largest situated producer prolific yet fifth the land X with on economy. largest from California value are underdeveloped focus with to in over we Golden acre position, State growing well As

illustrates Californian's month. communities. to and needs dedication commitment technology sustainable, for ingenuity is released culture meet to reliable which This annual workforce ESG and and detailed third energy Finally, and report CRC's that affordable we upon our to built apply contribute commitment of to report long-standing our in leadership, a the to is last sustainability our

XXXX us and also water climate aligns the This goals which sustainability report our our state's carbon, goals. summarizes on for renewables, progress with methane,

their recognized encourage you by As CDP earlier leadership was portfolio at Disclosure an and our industry-leading I sustainability A noted, an I CRC read with Carbon sustainability our this level. projects, has report. to year minus ranking of XXXX

the Our achieving incentive exemplifies annual aligned XXXX directly sustainability is leadership annual near management sustainability state of workforce. tied ESG strategy that aren't our with HES believe directly compensation of milestones, sustainability goals and We the to metrics aspirations CRC's project California. and is

example the fellow Further, a to the that the workforce third quarter our current want diligence provide overcome from specific Californians helping demonstrates I of challenges. our in

heat In August, a supply. with California was state's hit electricity that jeopardized wildfires and the wave significant

reducing rapidly responded for our cogeneration a team our plant demand demand communities. operations Our to electricity conserve and hours restarting peak during by dormant electricity

of and nearly our our newest spotlight Our electricity. state's challenges X/X natural a shine dependence imports than oil, for our of gas of XX% energy California's with more on on XX% liability of

the To California's and in leading California of and implement to and CRC's. apply with the it leaders worldwide our operations. ensure believe more same global goals, sustainability goals climate leading meet to we is encourage that labor that would standards In for policies on safety, environment like environmental goals ambitious we adhere and energy practices doing imported day production every essential improves ESG California's so, we'd producers to and

XXXX. dedication, all I would thank their like throughout employees focus and efforts to our for

plant the this needed challenging year. the maintaining significant the business particularly preserved record of and who in We is day our I'm and field performance energy every cost while savings, delivered delivered pandemic. protected workers have and out that have during day safety proud during and simultaneously day

workers, food, daily all also who continue I'd thank of for needs our medical energy. care essential to California's to meet state's water, like and

support COVID-XX economies on the full have been of vaccines anticipate a return progress demand we economic We petroleum that or a restart long seen struggling to part to will has our our As cost but efforts. restore are an around instrumental restructuring of demand and recovery. partial treatment eventually reduction further world, and is petroleum activity road

elements third quarter core emergence results. some summarize our will Francisco and of

Francisco Leon

everyone. afternoon, Good Todd. Thanks,

who I resilience participate CFO, honored our assets. continue this grateful of as CRC's women in organization First to am and help all, to to showcase the of call tremendous and of I'm lead this new men

We provide technological environmental energy safe, and reliable and using our leadership. innovation will California continue for our to by affordable

XX which We elaborate the I on Exchange emerging New Stock shortly. from will the CRC our on with York began ticker the process, on of details trading restructuring October after

noted, encompasses CRC's disciplined strong operational financial ESG excellence focus, and our Todd As fundamentals, leadership. sustainable solid foundation value

integration capital balance gas sheet. and Even sustainability Our peer-leading core and operations. balance our asset strengthening our return-driven financial cutting-edge oil performance projects our sheet continued with into will emerging be done development defined after discipline, our of not metrics, by are we

In will even least leverage we profile Xx fact, at price target current a in environment. the

to we have of a provide high-level the in million X-year of like exercise shares XX would in million was an have and approximately I term. with warrants X Today, that $XX. X These restructuring months process warrants price short completed total pandemic. details during our

a As Todd crossover mentioned, view credit. we as ourselves

secured is remainder and our processing a of second a net million power Our $XXX million emergence, Ares, Hills we note debt, and on our had note associated $XXX with which the of with consisting lien plant Elk gas facilities million revolver. $XXX by

a has level RBL providing million liquidity ample $XXX of Our commitment at million, emergence. $XXX of

improve balance simplified will Our to ability our sheet cash generate free significantly flow.

to process the a were further between operating efficiencies. organization conducted to last drive of million, our difference G&A analyzing We streamline cost restructuring margins over able review and and during the to and our we $XXX our XXXX by and reduce comparing quarter thorough our third the strengthen XXXX. of year, of third When cost well quarter the

reductions half going expect these We to retain of over forward.

a current with competitive to peer-leading Our structure and price balance financial a actions succeed favorably cost sheet. the CRC industry metrics, stellar in position environment

increasing we to capital will thereby we wells investment. modestly our leads savings While retain recent us during expect to margins, downturn the as to focus return of costs. higher-yielding our on the achieved This we service, operating our majority

In of capital my CRC's assets. previous across role, large I our supervised portfolio allocation

the continue CRC's within approximately an discipline used rely as live average We in NRI flow not high-quality capital in have portfolio strong with portfolio. and of we cash on XX%. highest-return asset projects our This change vast, will will to our allocating to always

bankruptcy-related the figures. financial like to impacted quarter's you with charges third significantly pre-bankruptcy share results this to quarter our Turning were remind also by and count. that I reflect operational and would

in finalize XX-K. be in to our We reflected XXXX expect accounting quarter, the which fourth will start fresh

restructuring double As a through process. in integrity program the COVID-XX them downturn quarter, operating maintains our the second war and facilities, we of Todd a cash noted, price the during and mechanical Saudi-led from capital the safe with price to manner environmentally the that investment the curtailed while of responsible and commodity oil preserving our impact level

of adjusted for was barrels adjusted XX%. quarterly EBITDAX to Net $XXX EBITDAX XXX,XXX million and a margin third production of the per day, oil equivalent leading quarter of an

California oil together robust capital, quarter of gas Brent-linked partially third discipline, in million after bankruptcy capital. offset free strong our flow resulted Our costs, market realizations, cash dynamics funded and $XX with natural internally capital by consistent

$XX reported adjusted quarter, we For the third an million. loss net of

X added team JV to maintenance rigs our controlling on and capital protecting capital to with continued Also, third invested service. million the inventory. during operations OpEx, quarter, this controllables focus internally safely base, to $X the wells the additional during contribution we no September period. building higher-margin during third CRC In return On of the quarter,

For the during produced day per a gas. more respectively. and per detailed barrels XXX look Basin million of per of natural day, consisting and both day net The of feet cubic produced basins BOE oil net Joaquin XX,XXX The San XX,XXX a net basins net produced NGLs XXX,XXX feet produced per and barrels we Ventura -- average and the cubic of BOEs million the per crude production, quarter, per the per Los day. Sacramento XX,XXX Angeles day BOE XX,XXX, X,XXX of day at XXX production,

conditions, start to of cash the started wells the flows. shutting to economic At our due in pandemic, enhance we certain

had the shutting of quarter, third BOE X,XXX per production. we day During

Excluding our continued within perform decline activity, of assets effect rate. industry-leading production significantly our repair well the the and to shut-in reduced

with primarily to imported island For of energy those CRC, the of California's via are new foreign its outside oil you approximately state, crude supertankers. who and being XX% from

the result, relatively realizations As continued reflect commodity XX. Lower have to be versus Brent rest of to a and the our tend strong

barrel. crude in the by XX% quarter during realized third quarter third per price hedges, oil excluding settled realized realized price barrel $XX.XX average effect CRC's $X.XX of of our an of for the prices per registered oil the Brent. of XXXX, enhanced Hedges

to Turning $XX.XX months for to our increased are Prices improvements peers differentials, due period per of came stronger XX% with same premium Prices ended U.S. the levels values quarter XXXX in averaged relative to Brent. in These at sales for barrel along to NGLs. NGL for negotiated our across the still crude. in September and slightly compared XXXX, the XX, NGLs X the to

quarter third per CRC's the during strengthening seasonal X,XXX $X.XX saw markets gas feet and Natural realized averaged XXXX, XXX% cubic or of of prices NYMEX.

oil oil our XXXX, quarter XXXX and production This production. approximately of for XX, December. October in of CRC As includes that XX% hedges has both place our XX% protect expected fourth of November

on earlier today. hedging please our For further posted our slides information and volumes, program see

both $XX.XX our continuous of to BOE. efforts were the Production we $XXX focus XXXX and period, BOE. to which our and lower by compared third controlling were on overall third quarter prior year on production able a Due per quarter basis per on BOE XX% costs, our XX% same costs costs, million safely by to averaged basis for an $XX.XX per or the team's

was in repair primarily fields of as and third surface due from lower of operations quarter fourth across activity well production and cost The well decrease as cost reductions. quarter to savings the XXXX XXXX workforce our

effects, production would costs $XX.XX have PSC third per XXXX our BOE. quarter Excluding been

XXXX. by environment. year-end XX% and reduced in our CRC our to During our We third lower of approximately profitably the XXXX for streamlined restructuring, succeed we compared in organization when commodity further staffing to operate price a quarter

$XX ongoing reduction expenses of reflected in annually, G&A and remainder a result, anticipate the we of cost approximately with costs. production savings in XX% As approximately million employee-related the

costs below retention higher incentive BOE, XXXX quarter court and savings offset reduction. during in were $X.XX our restructuring which general process, third Our the quarter previous of effect awards, by and primarily workforce production. and to the approval These savings averaged lower ongoing with made efforts partially quarter, were due administrative the third per $X.XX cost

our million Third as retention Taxes or million by $XX largely cost, based and in which gas minerals quarter. ad as administrative expected general payments as on well of valorem by of quarter excluding BOE. comprised ground the taxes came $XX in we and greenhouse decreased per year-over-year other $X.XX value income, at incentive in on the than are the third XXXX costs,

our When stock. noncontrolling interest third we for of our income reported quarter In share. the per a $X.XX million Adjusting of of net XXXX, Hills common to $XX Midstream we in and expenses diluted loss the and our noncash had Elk earnings investment attributable also JV, adjusting would with by items, together for generally items restructuring, reorganization unusual infrequent other million. are analysts, as and core loss such have $XX been from that severance excluded net

XXXX $XXX decline to Adjusted quarter, by oil was of the price, due to year million prior XX% pandemic. the EBITDAX for the compared quarter-over-quarter quarter third ongoing in driven from million realized $XXX primarily

adjusted EBITDAX prices. commodity As challenging in by EBITDAX X% EBITDAX prices to XXXX commodity increased from our largely modestly of the remains stands This healthy driven at in increase our markets, third recovered April and quarter XX-month from quarter. margins quarter third in lows, commodity adjusted was the $XXX the XX% trailing higher million. second Despite

million significantly second reported third was CRC cash the quarter which in to prices. flow from to XXXX, than the commodity operations in recovery due quarter, of -- the higher $XX primarily of recovery

In our first months $XXX million $XX cash of compares through year. the the year, and third $XX the investments flow capital approximately X funded million to months generated we favorably of discretionary in the internally first the through which quarter, million of X

organization and to during to also high pivot our expected flow. allow adjust of activity to a to cash has volatile an which CRC in these change our diverse over rapidly control portfolio, continues level us operational our periods

Historically, we particularly record with focusing on proven projects and nimble our a of operations. staying have value-driven track

quickly to throughout As to and such, we order continue to and decisively the price succeed will respond cycle. in adapt

flow. to free our operational unprecedented financial pandemic sector knowledge record are by downturn believe generating ongoing discipline means an cash our We our and while even within an during operate demonstrated and track

to guidance fourth that to adjusted fresh our and our continued we providing analysis accounting, quarter. note the of uncertainties our please earnings Finally, implementation be we items market for have Due not of detailed the will in provided normal start attachments release.

during turn our call Thanks, the of and the any Todd. questions be to back may this portion Q&A now take have will I I'll on over results call. you happy to

Todd Stevens

Thanks, Francisco.

from a emerge value-focused with new in and resilient decline, structure, record. taken capital a have track invest to steps to we you enhance CRC's we with As energy foundation enviable ESG an invite low company conventional,

metrics top provides We our are value creating shareholders. quartile peers. to our attractive looking to compared leverage forward emergence believe with recent our for value a proposition very We

you free a look and investment of and forward flow We have at generating on opportunities to CRC. history program cash the updating

any to floor the open questions. now will I

Operator

Wagner first The question is from Instructions] Wagner Financial. [Operator Stephen with

Stephen Wagner

Todd you guys debt first years, much is the settled nice with your have time frankly, Quite the out it. were last been navigated in Oxy what is it's And has you control. much needed I've that the spin-off in and we CRC. one dumbfounded few I as got my so of much place, a it reorganization. we, of of much X-part a from guess, were needed obviously, many -- shareholders, Francisco, a And over long a biggest wiped us of result out investor clearly, so of know reorganization. presentation. in occurred question. one Number questions

at you're Now of well. as a high even other you fairly guys $XX, energy market, now at and good this reorganized, $XX doing come result right out $XXs a report earnings in now or with companies

So investor Generally, the over have RIA I Ventura. you seems me this to no good here clients, because would stock to bad an on price timing you I does. you day-to-day like never I and generally, like to control and I'm it by the in taste in stock very executives my don't have the much way. with movements, price no was that. But to still folks expect Again, address is situation everything. of shareholders behalf there the address

So you I'd love that. to address

this It is, but bit nice, on company maybe now." we're let to thing nice those a at play. idea as very, be like mentioned I I'll natural renewable your more I'd oil went yourselves. answer seems your that folks you're a little you So to questions. rebranding and renewable "Hey, gas kind on a you very like I'd always that of, to like of -- specific you you expand view It's whole goals. We rebranding. other it looked The a talk more. website,

Todd Stevens

one, Yes, think Stephen. Thanks, first we the emerged. I just

X shareholder We large base, have have shareholders. we different a very and

illiquid So shares. it's highly

think is the you like what I almost is when like out those talk This direct highly a way restructuring. of it's illiquid. come looks I would who folks at about direct It's look listings always it listing like. a

We built at a so alternative thousand the a value a long here trading of day. did a they that's they it the analyst hundred and highly And see maybe in We're positions, appreciate shares restructuring they have following. term. folks few up because CRC their who, lot of no competitive,

willing part their with So to they're so be to going shares. not

a think right like because and until a not when just there's you that. So a much. I yes, won't that lot direct looks about listing it as like too change illiquid fairly it highly as starts, now what trading really But it view

On the them, X a I Ares very There's -- that X/X of and large GoldenTree, and shareholders. who really is more the or so say shares. can bunch what of of that's we have Fidelity, almost

lot. a it's So

this energy. lower-cost and to our when tied part, some part our complementing enough take you of curve other duck has Hills Elk in having fortunate the our the DNA. Oil of complementary always plant electricity during our of electricity, to look power of that advantage with business. into be of at the big in believers But locations are huge that We're how kind of and at is using create by renewable day prices the you that can On with California aren't gas, value. of a our all a our part resources all obviously, particularly been CRC above renewables,

look are of have geothermal, we to #X capital. contemplating. hydrogen and to it with Plus, and with to to do going that And continue can I add for look our item. competes be we on things to be JVs, a that, come want complementary look to We're that we other who is this or are whether oil things at other clearly look at it'd at times, And think gas some assets. money And value. people's lot and people too, our going

people us lease -- and on solar top allowing happen. and few received putting that payments for We already mineral to of have rentals our allowing a quite acreage

probably we sustainability had report is more put but historically, So new, particularly I it that our than think we something not a it's in we highlighted out. I little think brand here just

Stephen Wagner

the guess, and -- I would is thing Okay. that appreciate biggest I I that.

So to and, this out honestly, illiquid, is hell to it you're on the because, price, your it I hate but the of hark but again, share right, who is control, back is selling?

Todd Stevens

know. don't I

Stephen Wagner

that, got "substantial it opportunity", company said in That okay? publicly substantial. $XX. X a I covenants is shareholders" these see that the of, I've what we saying these of only is terms it shareholders. weekend these right. okay, says mean, is to to lot they're what a to see I'll we seen look, mean, are a lot and There it's you earlier, I look I at major mean, and and the I've I mean, fall I So me we've mean, way hey, no maybe gone it doing that. All forward-leading apart. I a look arranged, and a the means probably the shareholder is -- at do need you've opportunity. got the And as honestly, ahead from I you are value $XX X will. deals "large traded of it maybe the CEO but, other loans base. when of really I to But before need like, accept and what guys word do statement, is.

I leave that, why have of us figure again, And selling are the in taste. been after that a of myself. a to bitter to fall cliff guess shares? from it selling. that in Because gone some to $XX months, continues a through people We've very all for somebody's I'll last So week. off the out these X have $XX

Todd Stevens

of shareholders it's bunch but trading were there We that appreciate there's traded, And it's out Thanks, it, very thinly clearly, -- thinly and traded. Stephen. are that. that a

Operator

question with ] is Durand next The Chris from [indiscernible]. [

Unknown Analyst

me? hear you Can

Todd Stevens

and clear. Loud Yes.

Unknown Analyst

Great. Okay.

that. And had spun-off just billion -- what, were Oxy, $X you you against or a maybe in X you years $X $XX ago, PV-XX billion. of what, billion, debt had I'm from X So when around, about

you I what's do blend similar the or so at, going about -- are you $X got question. guess, a what looking big in my you time? billion $X guess, -- have now? was this I You I I'm wondering, that's different billion PV-XX? And just philosophical have just to

Todd Stevens

Yes.

think millstone you when $XXX-plus away split, different debt it, much and -- it for chip the the was capital that at this structure. debt big trying we from billion. pulled about debt the giving our environment, too dealing the peak us thought of price the and to in I post-spin $X.X obviously, of down difference millstone that, oil, December quickly, year. was We're a were We at kind of was $X.X equity under to the able value. the to about absolute end that XXXX. a is chip at early were -- But for big beginning rug billion of And with just out

at Now it's $X.X billion. [ ] our XXX you PV-XX, look if about strip,

capital We have great conventional reservoirs with intensity. low

of I think debt. have don't the millstone because you different opportunity the set that here is

reinvest the with ways when parent. at have type the return or from of ever cash spun-off things us really do in shareholders base we that were we or an weren't alternative for look through can business asset to creative You our former different

Unknown Analyst

Okay. to sell stuff? the you you were still to scrambling guys stuff, are to sell And prior trying bankruptcy,

Todd Stevens

right I ways Hills. sale looking is create wouldn't everything say we're except to I the at scrambling, value. tell we're Elk for always people, at price, Like

a We're with invest conduct That's Board a that, just If out lot -- a forward you we're fashion. and flow. free to some we wants like free know with we of focused us creating and that cash our that, We're shareholders have from we Xx it's or how you better working flow if determined to how buy something flow in it that cash Directors to do strategy want short recently. to to company as and fire Hills, someone in be but own we'll to going what sale. not for cash order. business, in a and PV-XX company we that retain And let know met yet You to the return but of pay on standpoint, value-focused. still as us the Elk we're

Unknown Analyst

CRC Prior changing a a single you Do or dividend share shareholders. back paid policy? to anticipate Okay. never bought that

Todd Stevens

there I into were shares, back we any had we as we rid did a but to wouldn't and never clearly, dividend. went was would are shares, kind of way, very whether a dividend perfect in thought if 'XX bought dividend shareholders back for business. anticipate, it, the -- you we that, dividend, or buying the about And we we spun-off. paying investing modest some But to get shareholders dividend I paid. the the in rewarding yes, a say first we spun-off late of when 'XX, assets as it's pay these paying

you capital about low perfect these of it, However assets, are the low kind think decline conventional, intensity.

Unknown Analyst

the you production what's -- there X,XXX loss when day is COVID off shut What's of And to barrels a... during a Okay. on? the pandemic, the CapEx turn from back them

Todd Stevens

cash had at look creating way sophisticated economic fairly where well-by-well and whether shut-in you it's flow look we when can where -- we This the we a standpoint, CapEx. pattern-by-pattern, more shut-in, downturn, during real us. no have and for from an There's we value

back, that believe, of production production now anything to about almost its economic as worry like it's commitments the X,XXX is the And flow. keeping like now allow only flow as have cash have don't to cash of downturn turn so shutoff, we bottom, where lease maximum positive. use Remember, and flowing. production that, continued makes come bunch that's We'll a we or I workover day. a barrels to we'll and rigs had And back we on the at the

Unknown Analyst

Got you.

producers and And the Tourmaline caller's first, really put shareholders Canadian there. low, good going wish encourage like and and Okay. you to the really up makes forward. you debt up issue, Micro. Well, north prior I happier much I of cost luck to addressing their as And everyone's they look management also that

guys, So you jump anyway, to I'll now. good luck and off

Operator

from [ Dan ]. Investments question is with [Operator Ethan Instructions] next The RAD

Unknown Analyst

warrants, questions. quick though is compared picture for quite get have which higher. right It's $XX. like I Hoping of listing CRC's that coming of even of petroleum the price strike warrants a example, to couple bankruptcy. a a now versus bit just little $XX the to, understand So value the whiting on higher much much out they're for illiquid a the strategy

Number assets on estate to understand two, CRC has. strategy the a should there opportunity be huge and valuation I that real to cash shareholders there. return

Todd Stevens

I Ethan, something about warrants. the So got

You up there. were a little broken

And a were X Creditors struck struck the during warrants the they're settlement of at they're there's obviously, of them, restructuring $XX. Committee. sets with -- Our at and part

monitor The value. do any the own California We in and the other that oil estate. real substantial Huntington quite can be kind building as and value. have continually you estate versus And know, feat. entitling property, gas at question, our real Southern the Beach We has which of a we our surface estate real value

to we to looking real realize gas. be shareholders, come and whether at that value we're shareholders value pandemic So ways, our estate some pure out combination looking it'd as or of that of and this for maximize for or particularly oil

Operator

from question ]. Tim The TDM with next McKee is [

Unknown Analyst

Yes. Gentlemen, were a shares that basically had pandemic in as the share. Chapter bottomed your to and March out we I moved And were declared starting today, $X.XX you found in out at then the about subsequently know June, company in during was XX to investing expected and and continue, they CRCQQ.

myself? be Is major if have no thousand can there is shareholders As be I understand Is dollars, that like there an issue, out? And can only few a to I wouldn't it, anything this that offered? there shares Is recourse. it this but absolutely the worked be were money. something

Todd Stevens

not, structure, this for believe fought hard we sorry restructuring. we where a had prior shareholders. and -- And our is through is parent, we heavily really up. I'm We capital went or it the our this from indebted complicated ended Yes.

Operator

closing question-and-answer our for concludes I back to session. the Todd Stevens turn remarks. like any over to conference This would

Todd Stevens

everyone. work. we have themselves our on assets, They Thanks, while local operating and time of relationships extremely to as conducted productively many vendors, appreciate shareholders. communities with for we the generate have am forward attendance including delivering and and where the have leaders our workforce our during our this has in We state results today's call, new employees and look our live we and to everyone's valuable with of I during proud CRC professionalism uncertainty. cash strengthened pandemic. ability safely the flow

invite energy CRC, we to in Californians. supply, for California you we invest and probably are as reliable probably affordable by We --

Operator

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

may disconnect. You now

California Resources (CRC) 5 Nov 202020 Q3 Earnings call transcript