CRC - Earnings call transcript Q4 2021 | California Resources Corporation

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Operator

Good day and welcome to the California Resources Corporation Fourth Quarter Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] I would now like to turn the conference over to Joanna Park, Vice President of Investor Relations and Treasurer. Please go ahead.

Joanna Park

Thanks. Corporation's XXXX Resources call. California to Fourth conference Quarter Welcome Officer, President is Executive Vice Participating several Financial Team. call CRC McFarland, of President well and the members Chief Executive on today's Leon, Mac Chief Executive as Francisco Officer, and as and I'd have slides Investor that on www.crc.com. we our section of website, highlight like our to provided Relations slides provide quarter fourth results. additional These information and into our operations website provided to financial also have information well our the measures directly we financial discussed reconciling our And measures in GAAP most comparable on earnings as as non-GAAP release. and Today's contains certain conference call other projections Forward-Looking Statements. subject And these statements and risks are to to results cause differ. may actual uncertainties and

available Additional our our company's for results following information the in website. cause A the could XX-Q available factors on to and differ made replay XX call that days on are XX-K. be will

With additional to As our of limit remarks. the reminder, have a primary to turn we Mac. a for and I their question-and-answer at that end time follow-up. the call We that, participants questions will over ask now prepared allotted one

Mac McFarland

Great. Joanna. XXXX the which for CRC you, year the repositioned future. we in was Thank

and XXXX, level In strength decline We our free barrels of low continued safety core operations, environmental CR safe, reliable in production future. business highest for per XXX,XXX cash the the intensity streamlined generating cash and and by oil We seems that while did CRC. equivalent flow of the providing business inception of record. maintaining the since our million of in low zero-carbon strong CRC's to strategy free production day we and flow of carbon -- the our demonstrated Carbon gas fuel by $XXX advanced deliver Management our on model

XX,XXX active in we of previously business management with a our which just exited on impact of portfolio BOE our elaborate strategy, XXXX XXXX on portfolio of included insurer and mirror Furthermore, demonstrating assets. additional page activity February to as continued this with the intensity expect in see management you rationalized presentation. operated interest the assets, working BOE interest field reflects production. flat provide lost guidance. in carbon our year optionality. by fields also also portfolio the under production, the announced the but on also key Active divestiture we has divesting focus a can of which our the sale of X,XXX XX our approximately We exit this portfolio CRC's per element and in We day further, we from acquisition non-core lower through the And in loss non-operated and Francisco been accompanying production allows XXXX us on which expect fully CCS XXXX, details per future to basically tools oil and will day

we'll were very to strategy side, we management advance carbon the in XXXX On XXXX. in our business continue and active

We potential are forward exploring project technology structures, and future expanding providers. our numerous stakeholders, financing moving partners, with milestones, new business and and our discussions by progressing with CTV options, deal

to provide discussions Carbon million plan these year. details X the additional per tons admitter X CTV annum advancing and this for are We on TerraVault later for discussions we first

our goal targeting the preparing filing annum receive incremental details and stay storage of for sequestration. total XXXX end recurring injection is five puts end allows discussions year. the for in the targeted tons more in meet by or of path scale filed that projects of solution the us XXXX. these injection it CTV permits tons XXXX. commercial of to to for interest That is our to continue already tons VI of the metric prospects five on a While Class new permits million us of CRC we filing the applications of is be we theme XXX significant for By of in and EPA Further, our the inclusive the this are have million on CTV X. million to permit applications, per discussed, carbon track applications additional by by

the in dialogue and few from we the which on constructive fairly past with CTV continues the timing the our received been, X. known combination comprehensive of previously comments the permits for XXR, expectations. have EPA as is months, Over be, and of outlined AXAX, has The to EPA support

these our this CRC value are of Management to With the that first XXX Carbon scalable data Net Zero can space of company tons an million well-positioned G&A. believe seriously process, metric a and California solution county's Carbon to creating business environmental on see you'll We in a make coupling to is working our shareholders. operating and and previously applications pending future. current the we projects across In perspective significant represented -- us permits, to and to with early leadership, investment -- capital the commercial deploying real curve after with and our would consistent new completed with Ambition strategy management for while will only our disclosed develop stage analysis experience, This local also agencies both in X $XX tangible zero-carbon EPA carbon capital, commitment and file and low economic we pour them XXX business. with next We XXX land-use Management tons, advancing investment provide initial with million not this look development addition for this In deploy and permit is believe several significant our from but millions returns. carbon as to tons California's couple OpEx, approximately forward initial see enduring advancing allows the do of environmental impact for million dollars CTV expect and decades the type next slides, X. unlock for advance under And we're CTV year. metric XXXX, by

financial maintain free solid our to plan generation. foundation flow cash we and Lastly,

forecast with E&P XXXX million By assets cash net EBITDA, business foundation efforts support $XXX strength to our into our free nearly $XXX of leverage of Looking adjusting further expected generate has to our our than less goals, turn the in the divestitures, investments aspirations, management carbon before million strong employees. and multiple that our and a is CRC after flow liquidity provides future of core for highlighting debt over our financial initiatives. for current and half a of a strategic and a our

strategy. program end robust of position, program dollars We're our currently $XXX the fixed are a dividend XXXX. million. repurchase of result financial a X.X% overall raising this $XXX approximately by share extending maintaining increase which expanding XX% doing our in shareholder and by our And This to from million the the to As return strategy, represents the we increase current are through we program. yields

with call over you COVID-XX your joining And and on As possible in the your impressive efforts. of for during ongoing appreciate Delivering to thank XXXX those always, the turn CRC. a dealing in all without these employees. was truly is all remarkable. this Francisco. with none CRC like I'd year, interest today contributions for We call the as team as our results Francisco. to I'll well transformative the of of that, thank

Francisco Leon

us on Thanks, everyone you for call. this afternoon Mac. Good thank joining and

day, dynamics objectives. return carbon health 's to XXXX, effects. our our During day. key oil horizontal relatively norms. payback Market CRC's within this uniqueness streams, and high produced and low addition divestitures barrels net commodity By year of flat all continue across production in to strategic pursuing maintenance a -- adjusting of transformation, per CRC mine of product. for achieved realizations opportunities, of the the XX,XXX historical In of range intensity and PSC equivalent inventory for projects after to our of realizations The net of CRC XXX,XXX company the throughout strong XXXX XXXX all California select acquisitions barrels quick remain per showcase oil that expect and our we demand oil

slides and an As laid in XXXX environment, price cash increasing million conjunction commodity contracts. loss a derivative commodity our out we with experienced on $XXX in hedging

-- RBL. As of were are put of losses on majority hedges as from these a that legacy requirement the XXXX the reminder, a put were

the and cost on XX, efforts the proud team. side of of particularly to Turning Slide the business of operations our I'm

BOE declined from XX% the relatively when commodity the $X.XX are cost a excluding similar more costs, Our period. nearly per XXXX the XXXX in to PSC remarkable were comparative conditions results pre-COVID These on operating increased effects, environment. operating compared we prices modestly when XXXX by energy considering

As are a from as natural although benefits costs, natural gas higher reminder, prices our CRC increase prices higher gas gas. long net energy natural we

year, Throughout repurchase commitment free shares CRC yielded CRC's million and and program OpEx due $XXX primarily throughout shareholders. quarterly estimated contributed cash program, $XXX maintained in Our on of of the over buying XXXX our flow our XXXX XXXX, efforts, of and the in XXXX opportunities shares returning returns CRC our drilling which our million. of announced initiating EBITDAX approximately XX% to cash demonstrated results In share of quarter declined and to $XXX backlog the million year-over-year, we XXX%. of workforce record through cost-saving X.X a These production our approximately or free dividend to to investment million largely strength flow back by invested financial maintenance million to level capital. reductions. previously This of shareholder wellhead due approximately costs IRRs $XXX year ongoing fourth G&A

SCC flow-generation carbon $XX declining leverage value cash capital year-end. at view, billion allows the than we represents to at significant of further E&P activities. that our deploy XXXX by turn fund to us low end investment Management reserves continue oil-weighted of to our the business at is our is which built million $X The cash of from and expands $X.X our our price of in value. double to half In strong balance of as Carbon current rare shareholder at Our close proven ratio financial capability sector. more and The to assets year-end brands, our reused intensive enterprise unique our than to and foundation enhanced net self-fund a deck our was energy low PV less returns evidenced million additional continued CRC which by up a our $XX billion cash is XXXX $XXX

and As step was million. produced $XX per portfolio, XXXX, proceeds carried portfolio's The divested Field, than in for our into which intensity approximately of CRC Lost cost in net Field our XXXX Hills Lost we average. one day structures it's XX% had X,XXX highest Hills carbon of our the barrels non-operated higher of oil approximately

the and the cost our to brings perspective storage pursue, ambitions, a low closed forward can our CRC reduces of on of goals. Xst, and generators. the of XXX% and transaction management February capture, Lost carbon XXXX, part intensity be transaction, transport, in As carbon future towards structure, further right that This this COX steam produced from retained value complements our Hills deployed

bolster further credit commitments million liquidity to In able commitments facility and now $XXX by which adding our our up their $XX from addition million transaction, $XXX revolving to this we were to million. has of

outlook our on to operational Moving XX. XXXX Slide

maintain oil December at potential to XXXX expect December adverse despite exit to the higher oil previously production transaction from XXXX prices. and We discussed our of PSCs portfolio impacts exit

every financial in of guidance a there per the decrease presentation. increase effects for with provided Brent day approximately applies sorry, result X,XXX X,XXX with As on net of barrel $XX in why opposite details PSC every production additional approximately of in production. reduction per higher production BOE The per our our earnings of We've $XX shows prices, to supplemental Brent, our day -- This a lower rule materials slide we our day PSCs. also thumb, is gain oil as oil in net BOE the is oil metrics.

team additional reduce our successful off controllable it our operations X% as drilling non-energy horizontal an by to BOE program. builds further is Our expected costs

the has rigs throughout plan operations drilling four Our XXXX year. in current

maintenance impact CGPX. supplemental downtime provide quarter X,XXX capability. gas on that plant's Hills our increase As we earnings production day -turnaround also California. In production, the expected at our you not full-year Elk quarter, processes levels expect per The production. low plant, us revenue undergoing from full streams production, natural of pre have CRC fields. are a first it helps from our further required all quarter appro of costs, or approximate is gas to a -- integrated aware, impact intensive It's 'XX. infrastructure XXXX, and an reduce low we're on optimize turnaround first approximate The but decline, and XX-year and the large cryogenic only benefits the an will to capital across plant per second our day surrounding BOE X,XXX and BOE return And by from NGLs CRC's

from the 'XX. we pull this deals procurement timing lower summer of forward to expected While summer expected end-year in to during to this maintenance turnaround of was the start benefit the of better cost period 'XX, decided and

of strategy, guidance future capital Our growth our and with financial, the operational, allocation consistent boast is which prioritizes XXXX CRC.

guidance expect performance. per barrel, First, barrels to is $XX.XX continue production net day. XX,XXX XXXX to our on operational above expected production and current we Based CRC's at our worth of per strong average Brent oil be

allow to production $XXX capital shareholder roughly After work to million potential to further $XX drilling exit with is guide, in Brent flat includes and is $XX for Second, into CGPX exit environment. million $XXX oil million carbon price in returns, our capital million our covering our would million close December strength free EMP million we the deployed of the of deliver approximately flow expect upgrade business. over completion business integrity, our mechanical an the other underscoring program our at capital keep field of December remaining approximately $XXX to $XXX from $XXX projects. of midpoint turnaround, investments, and our to and This management these and before cash

deployment very capital Finally, evidenced Management the share and program by am about our outlook, the towards increase of repurchase CRC's I Carbon forward current our of excited as our business. position strength and

growth to our and the back for will annual analysis results forecasting which and business. in provided attachments and flow returns turn release. of now our Management remarks. to earnings note closing shareholder operational sustainable detailed Thanks XXXX translate have guidance further could additional quarterly we Carbon that in the into over cash significant free with are We Please our I and call and financial optionality our Mac

Mac McFarland

of, has on Yes. there Thank numbers, returns. production future. our provide uniquely Net goals the to meet positioned asset cash net and building the CRC the management remain you, and a for committed into carbon the and Zero overall we'll get priorities upon that Francisco lot with of needed energy shareholder one, our getting in that in and Q&A. tomorrow fuel us the today to We base to flow but the two, allows Look,

we in base and production I'll for questions an As turn footing. for CRC to inventory now decline with Thank open with low represents a CRC flows transition the line energy back your the believe unique large you operator. call. cash us and opportunity joining stable We'll it solid and interest you significant investment, coupled financial on a today's for for thank

Operator

before a If will the speaker Instructions] begin pick up now [Operator the will keys. [Operator We question-and-answer to pressing session. At our phone, please you time, were Instructions] handset your assemble using this we pause momentarily roster.

of be First question Capital Markets. Scott Hanold will from RBC

Scott Hanold

morning, Hey, guess good all you out I afternoon. good to there.

MacMcFarland

Hey, Scott.

Scott Hanold

I feel and terms X X, quarter step as strategy last my to questioning, I to over you have as and guys in the goals going look back the XX repetitive be like but last the to somewhat CRC. transformed months I'm of of

a it's excitement particular, I later like answer from is, to now moving first Management desire I answers year, is business right, feels you lot to the I more to think you And the do last them? answer they inbound -- of they bit of is of of guys question a you find impatience, Carbon is of getting from bit guess fall want and a in on think know sooner need types a that participate this -- those Carbon you little that provide met motivated this the do clarity of something? a the investors I the million tons I certainly you by could do end details is, there it And TerraVault? in to remain if was with in everybody but the need what of One couple the think feel do than that committed are to status what first that I interest get more year, things. to and wants feel us like some questions a

MacMcFarland

Thanks for Scott. Yeah, question. the

it me see stab goes. first where at let So take that we'll and then the

what as time. -- is have in we Carbon shown, as think these Strategy I take I that Day, significant the our -- back would that did say take we projects,

over the being being and I development think deployed capital years showed as the timeframe we years.

as, said believe we've what still past, item, working we which in space. longest is are the As on and see is, time and permitting securing we advancing lead pour the

are and And across by said, building emitter up. We're why or we've space critical pour the the time as up the always XXXX of Eventually, there end doing it's get which yet that permits. so. we we to of COX source frame signing will storage. so for where remain the we committed the to not that's through that is we The cross path

it done. hasn’t is -- announcements were been think been there morning, the some not done. but has biggest this question is, of been deals not amount significant a these I deals have There recent there

first things doing underwrite I'll it's by whether a there working to And takes. be deciding work then we minimum lot place parties contracts, volumes, with lot is price it discovery, of kind never executable done. which a call minimum to. on to that contracting, are of could it'd a to out can And been so contracts of take-or-pay that in requiring that There's this a put need project that, discovery, themselves our activities, counter has we deciding

work that on that, financials, on also and financials. impact way as through impact your has an conditions terms so, And have you their

motivated So become with time California working in place working time, because the And regulatory Carbon same think of remain substantial motivated we California, are know, of to at it our opportunities. many And as is we leading a they're it. do you such things transition. over as and is know, LCFS, counterparties do investors some even compelling doing as energy a look I state, we it the business think is are a our through nation by with I to going price And discovery. people through And the to to as the that. more these at why reason the think have Management people

there stop that. see Chris to and me add Gould has sustainability's Officer to Let if anything to

Chris Gould

Mac. Thanks, Yeah.

covered I it. in think that. of the you terms add aspect I just would And motivation to

As Mac covered that of XXXX. the the XX% of -- under by goal reduction segments said, are that that of -- are California the has a part zero net the parts

EFI, million And is of that certainly there emission the And those So sorts estimated million in that of addressable million market. of for tons sources. California, XX remind that addressable annum motivation is everybody of XXX CCS. alike X/X total and will a of that per approximately our by emissions I tons Stanford, is roughly XX

So from a my the in California. a demand meaningful is large perspective, we're great context the scale of that seeing of that's indication pipeline in

Scott Hanold

Okay.

are clarify it's you admitters. they need what in to to these the you push they of convince discussions they very need find with of Just a to clear this need and do? one of to or more there issues the terms thing, do Do do on or pull them why

MacMcFarland

is Yes. need. Scott, what the I is of everybody would I that think aware say

it -- from stick. a cost as to $XX flow ton they the regulations it It it if went and Scott, carbon you're because Some doing the a you given. stick caret is CCA, more find of business to like via that stream people and gone have incremental basically the greenhouse see a that up $XX look are you allowances as like a ton can credits I'm an in I of a have the aware, price. XX% which which gas impending, view the just sure makes call cash going will, Other will people

a that a cost will to looking think I penalty more of like these see have regulations in people business remove. doing you'll

this on an the the price and fairly have they it Scott, about it will steps come see on need this the engaged They're but as very first which people, I with business remove of or So tanks the Ts from revenue in agreement tell projects, whether that but they understand is to we're impatience And cost the doing is need. and all get I are associated will long-lived -- I necessary, it, this, the in doing which place they new thing a It's patience take stream. them and on think I'm to very discovery. getting myself, is you these -- time, permitted. short Cs the

put So have the carbon. place you some to

Scott Hanold

it. Got

Okay.

second $XX or Carbon what I spending spending Now on that sense, on Management dollars, that is projects question, makes my just What million then million, $XX do? the are million, going capital to accomplish? the guess on capex, projects. to you CCS $XX, and that $XX going is of you're

MacMcFarland

future, Yeah. there ready and a wells piping, trying X Again, Carbon and the going midstream. done plugging we're and nothing if get field, so in abandonment than and and injection doing wells needs of is gas the site other to there's you the and will, so -- these the depleted are that in TerraVault oil completely advance to in be that the

Scott Hanold

you. Thank Understood.

Operator

Bank next America will The Doug of be question of from Leggate

MacMcFarland

Doug. Good afternoon,

Operator

Doug line open a is muted. your your is if to line you question. ask wish Perhaps

on ready. the question always will move you're you next then to KeyBanc. Doug when from Mariani We re-queue Leo can of

Leo Mariani

Just on wanted in a here guidance XXXX. the to ask oil question

Just in want is in 'XX? oil you exit you I or occurring guess a day a it we have exit a So 'XX Do so where are to situation seeing lower I as 'XX sure barrels flat day the I'm this. barrels exit being which X,XXX ' a clear, of is XX? is day same the pretty are X,XXX divestiture what you but actually asking about barrels growth XXXX? X,XXX factoring than is, in 'XX of That's understood exit talked make

MacMcFarland

through. chart, Yeah. lot you. page for answer This question that Leo, think, detail, of you in in will XX walk our presentation I'll but I let accompanies And that me the Francisco earnings a let point me release. let -- to you Francisco this covers

Francisco Leon

loss into so of entry taking Leo, answer yes, account divestiture. is flat the Yeah. exit to the

bring drilling we we we're going divested So drilling the the with that rigs. the to that barrels with offset wedge forward four

Leo Mariani

XXXX? on California here environment you're regulatory you around well environment, that maybe you talk can talk the current What Is two handful And around a permitting permit just Okay. inventory Can have in the to us a backlog? is in you kind much drilling tell That's only and how of there all side, you kind helpful. oil year of can to it of that? or of months?

MacMcFarland

at. -- just that place permitting page on our described the XX. Francisco on let feel about we that me very Leo, Well, comfortable. we're covered wedge program, drilling Page the talk We as

is We rig overall have county. two a and tied to flexible in it so we rigs to return fashions permits fashions out necessarily not I that believe upon particular and plan going that activity think not anything, of in things we'll multiple in are issued up plan we of Counsel, the lawsuit permits. that itself we is to accommodate now Kern in litigation hand Mike, implement to obviously, one that County four on, clear us being reason that moving our Preston, built in nature. hopefully development and program want that not year in look say there right about suit? that we've But, is, already when the us that, can Kern it's this here and in around, allows that our normal Mike is you and area they're add will impact that The General depending and why to EIR that at

Michael Preston

have we that say just suit delayed a year-end. would I or think the hand whether in as result not are things through permits of I

have this we that we're than permits year. planning wells drill have to We more

lawsuit have resolved suit. on you we've raised on in IR constructive the as near-term E forward long-term. that the And depending in around process is versus already -- that whether issues that we a the gotten So regulators are flexibility we've with had the dialog indicated,

Leo Mariani

Okay.

MacMcFarland

we off of edge. that the drilling it that this, based deliver in say this, would as as I Leo, can just our confident simply permits program and as hand are we our

Leo Mariani

Okay.

the helpful. I a issuing state Or, days? is these side now? guess kind much Now, the way there their maybe of itself actually that's kind is little the in gridlock right permits on of CalGEM side, really And

Michael Preston

ahead. go will I Mac,

MacMcFarland

Yes.

Sorry.

Michael Preston

There stimulation of outside that impact cyclic issues around permits may are methods as Kern don't WST, around permit for getting County. high-pressure types We're us, other well steaming. know, of production you

get issues that. impact process, others litigation Kern So try county, that the that feel constructive but a we have In other on an of has unstick has us. us in permit to slowed are working industry to there the meantime, this dialog We the we'll think really are impacting have with that. that the like the don't been and regulator within side we

Leo Mariani

guys. Thanks Okay.

MacMcFarland

Thanks, Leo.

Operator

And the next is ahead. with from Leggate America. Please question Doug of Bank go

Doug Leggate

Good morning, on I'm and I button had so my the called you you on you. and up hit sorry. hung when guys. I name, wrong phone, speaker

I So am so sorry.

happened. what that's disclosure, full Just

MacMcFarland

No worries, Doug.

Doug Leggate

couple I of got a questions.

the sequestration So Mac, economics touched turbocharged change, I carbon climate pursuing the we've event. movement I'm of kind to around And separate permits the before, in permits? that EUR know any the obviously, are would there on wedded questions of any this there in side and or the an Leo's Because if but of so, state? then is regulator light curious, -- what just just you on be isolation from

MacMcFarland

permanent understood focused sequestration Carbon doing it? now that think What or to say for -- not that been to I would past. think not wed is will carbon wouldn't past we use not The recovery, I of enhanced or in so doing a just will. the say storage it as carbon are of of we right permitting are And part. COX recent California future, recovery, is storage even come heels solutions done flood of or the because think is has right recent message recovery if oil something that now that It where I Yes, the sure that to I'm plus you tend Are has it for the wed not storage I oil storage. on I oil I on solutions. wed

you to we of that at I not CalCapture in the formation Hills. based flood say carbon as which we I it premise to So are our using recovery continue know, wed advance was wouldn't for wed the it. COX it are to Stevens or Elk the would say on that project, capturing and

when do that you or in are an you when CI are continuing -- off So And and the COX basically are doing creating it, flood, negative grabbing get of you creating to of COX use zero really we crude science industrial you storing fact, by source, carbon that. the to if to. down have potential look you it you're believe are or at

now is CalCapture. looking in that storage it the have advanced continuing getting which sequence, the something going And right it -- we'll think evaluate the future. that to I doing in future. done, then be is in to is to have towards So But an we're eye

Doug Leggate

to modest on the one point, is that away, you want of puts your don't understanding but permitting? the fair, thinking labour fair a think missing way I Do point story presumably. path back I things years we a market's know from do some at about is but the growth Thanks. theoretically of the the that think guess you of of that's conclusion think successful several it's that's you I

MacMcFarland

have recovery primary flood, our crude fields, have across the flood, think tremendous that secret opportunity. recovery is from I a and I water we when think you -- to a I that we no that's COX there's vast it's we focused where mean, which -- such no why it's of obviously are is production next now -- of that that a majority possible you then low form is after floods. intensity water right carbon the go

-- we're So

Doug Leggate

Right.

MacMcFarland

thinking we're the on focused but we're -- about storage. now right it,

Doug Leggate

one mean, to I'll it it guys a strategy thinking obviously really pretty if a just but there. fewer XXXX, tolerate RBL. Thank me are in inflection what to you you're as My if XXXX. kind hedging hedging. about had beyond holds you. can into a And I seems just do going last the to is have wondering you how that I'm Thanks. leave you shame Okay. on question is if you're strip tremendous where quick that the of

MacMcFarland

So you're we exactly -- right.

to things been And have active We the do RBL. per we hedging. have doing

well the as our most So up buying I doing in to And leaving to the that for the is $XX incremental rolling but strike on $XX of upside the swaps upside. words, know position discussion the there. up as were leaving rolling $XX puts, so our other hedge puts, of again what to put were of there the some protect there part, some been or doing we've that downside. the either puts But out

So to both. has been some that's put on of because combination the the are -- puts our of philosophy that a have RBL some swaps hedging of be been it the per

Doug Leggate

stuff, Great sorry fellas, the mishap. and about thanks,

MacMcFarland

Hey, no Doug. Take problem, care.

Operator

GoldenTree. question is from of Seeve next Eric The ahead. Please go

Eric Seeve

Hey the for few guys. Thanks questions. call. A

are $XX First, being Is there on it million includes type of that's making spent also year ten that in higher other than per sounds a $XX CGPX, or once things years I that and project. normal that facilities may know a that million like would the that facilities included be or are higher-than-normal because capex capex, year? on in it

MacMcFarland

we've as operations vessel lot trying you're that XX-years where fuel shows in presentation let to the integrated, lot I'll that it's pressure a a the you management, into get typical to No, but as plant, have required right well every surface of more is onetime, you we've down page gathering I you a -- described, know we're to Eric. not systems, etc. of got find do water vessel on one-time, plant regulatory Francisco well. but a just you get as you inspections the know, facility inspections that doing that absolutely This details, we Hey, is a if shut spend, have an power XX page to here, remove the got you that,

capital? do you to on Francisco So want elaborate the

Francisco Leon

No, Eric. happy Yeah. to,

XXX yeah, plus workover So NCN versus or minus. the or

oil maintain to our the activity So that's production.

of you CGPX from out, out, facility once one-time a then normal or you say, average year pointed fairly that so have the And ten you a it's back would type -- standpoint. have As is every a, you I or a expenditure. years which

still to on year versus capital years $XXX that number production, over that. it's do though so really items We the liked mechanical a is solar, I maintain are we guided that but like we're still plays million this But around out, is CGPX is commit we to this coming some would have of have where work. is the integrity some XXX. lower XXX We there What have inside why -- small but bids some corporate one-time -- year going one-time, up to item. investment average seeing the multiple and solar is say items that in we IT one-time

the watch to continue performance and drilling. horizontal So our of

So our a capital but ultimately thing that's E thing one -- P one the answer, TPPX from that's and is capital. the

Operator

over any question-and-answer remarks. will back conference This for McFarland session. concludes turn our closing the I now to Mac

Mac McFarland

We strong assets think CRC, goodbye. returns Yeah, to a strategic strong financial again, as the for a believe believe carbon, and call which with allows to upon that We today. by business. in these as we objectives, call, that, With repurchase on quarterly and CRC thank share positioned well very uniquely management provide to low joining I everybody us our your shareholder have appreciate dividends. through growing carbon position we being low build and We appreciate you is today's pursue decline interest.

Operator

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

your Have day. You a may disconnect lines. great now

California Resources (CRC) 24 Feb 222021 Q4 Earnings call transcript