CRC - Earnings call 4 2023 | California Resources Corporation

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Operator

Good day, and welcome to the California Resources Corporation Fourth Quarter and Year-End 2023 Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Joanna Park, Vice President of Investor Relations and Treasurer. Please go ahead.

Joanna Park

Welcome to California Resources Corporation's Fourth Quarter and Year-End 2023 Conference Call.

come Molina. CEO, will our Leon; today Nelly CFO, comments from Francisco our and Prepared

prepared we to our questions. one Following remarks, Please take available follow-up. limit your to your questions one and will primary all be

or these on of filings. Our results events. expectations. obligation We future factors in undertake may statements and new release update to Actual our due no current earnings remarks statements materially in forward-looking result today described include information as based a differ our to SEC

We our when with important to they on will free and pending We Aera. available charge merger contain be this of also discuss and merger the our on other SEC's encourage you will website relevant information. will available website. read Copies of statement documents proxy because our

the participating as will be proxy solicitation about and and proxy information merger our our individuals statement. their such officers in provided interests, directors our Additional in

information GAAP have on reconciling comparable directly non-GAAP provided discussed as the release. most measures financial well our as financial We earnings also in today measures website our to

to I the turn call Francisco. will over now

Francisco Leon

Joanna. a you, weeks about everyone, Thank with merge when us. for agreement Aera ago exciting announced to call we our X just we Energy. and I realize, joining Welcome, held thanks

comments have brief, share do we to will So keep our important some relatively information but we with you.

We will today. cover topics X

XXXX asset to carbon position our build our significant our in and value created These strengthen steps and lower to and strategy will took continue we us how XXXX We decisive our beyond. to business. First, steps results summarize our value management shareholders. to grow base, costs

real with cover an update business, estate and portfolio merger will Aera. Second, on our we CCS

deliver will of XXXX steps it another results. summarize outlook will take our we year Lastly, strong and to

talk about the a year. XXXX. over Let's lot last accomplished We

capital a strong low forecasted. we by we which achieved had base deploying operations a with decline, than year less had E&P Our

with enhance rate, recordable innovative these margins. team Our the during to total on period safety. In and XXXX, the cost the and reduce things We incident a team continued excluding continued to accomplished achieved ways lowest COVID. find focus company's new

carbon Class will Our reach as first for continued as first-mover of VI CCS state's build future the for the the management permits we EPA's decarbonization the of that milestones, business accelerate release California. such to

In were technology hub, air selected the such addition, California capture partnership in leading direct funding. DOE and Climeworks with Avnos for DAC as companies,

continue that We to is energy a prove kind company. different CRC of

annual production maintain can sheet and levels flow. cash asset our to combination, maintain that half be to also to quality We a base of half us declines, gas with to low other investors. This which, our cash generate have strong used using means cash meaningful and flow. have free coupled the allow is oil This a balance fields strong realizations, powerful discretionary us return about with allowing

Over building the of last over position. after-tax cash have returned X strong also billion while a we $XXX flows, cash which to years, shareholders, generated million of $X.XX we

once the cash peers. value further capabilities generation merger these completed, and with proposition differentiate Aera, Our CRC will from strengthen

an about launched to We across business. in and the $XX reduce streamline initiative achieved run we XXXX, annual cost During savings. cost sustainable rate million operations

our focused managing our operations. cost look and remain on we improvement continuous As existing ahead, structure we will of

no CRC with accomplish better state operate proven combination goals. Aera. than help successfully its has ability the anticipated its to California our in to example is There

out-of-state local will Aera is to post-close. environment. create out-of-country and and XX to good upside, on deliver will the and which footing for enterprise reduce California's scale, which us for the very breakevens company's stronger and will merger with we synergies supply, months a the million stronger against transaction energy put Our potential importantly, annual suppliers, compete within of $XXX fit, The with complementary

space, for own premium our decarbonize doubled than as emissions. more capture sectors well be the and better we'll to as hard-to-abate our economy to positioned we for Aera, With

us capacity the choice. pore will space increased partner Our of make

are our Basin, we state. well parts We sign management confident, and the brownfield expand carbon rapidly will other Joaquin as San in as business in additional both of greenfield to projects the from

XXXX, VI applications These storage strategically CTV CTV we tons for reservoirs, XX emission to in adding IV X located In major reservoirs new proximity submitted and California of Class EPA are Northern COX V, metric incremental sources. in an capacity. permit million storage

that greenfield XXX,XXX X CCS. tons projects metric Throughout year X and XXXX, of per added we advanced brownfield

California. X projects these and of proposed at in our Northern were clean were CTV Elk Hills, All energy park

the a week, for our Kern hold XXR EPA County will permit. hearing final This and draft

years, X we're injection final bring social receive final XXR preparing reservoir, project could team economic, with been capture gas of excited COX. it and for tons about metric past this make to the has pre-combustion Elk and announced the the we at benefits cryogenic the we our Once environmental California. for carefully plan permit Over previously the decision annual processing plant, to a investment XXX,XXX on of Hills expected our event,

an This and in will way for the the by project, power injection almost CRC's pave end enable CCS carbon will Elk emissions of plant reduction first COX Hills intensity X% of XXXX. and be from the the first

Hills and year XXR clean metric project tons XXX,XXX will also per tons hydrogen, for This permits COX provide CTV VI CRC Class at advance XX over project. sequester will Elk I. will hydrogen of nearly of of day Receipt our per

continue this this to FID Brookfield project. equity look second potential XXXX. We a will half investment to evaluate in in the of project and CRC

further forward We updates accretive CCS have later year. other this works look deals sharing the in and to

Before This me of Field. parcel, value into our about provides the X.X financial to estate we that to on million portfolio. estate we let announce give X potential Nelly real I cost developer. an transaction results, million. Huntington have some Apache cover I'm for real update to an good which sell and plug to Fort entered operations Beach happy known to a hand $X on remove indication as about $XX you wells agreement it finished Recently, of infrastructure, abandonment local a over a and surface us acre the

XX you Huntington we acres field barrels plan know, about There, X-mile Pacific about wells plug so We a track on have XXX of the Highway idle XXXX. XX that per along oil day. Beach. mature many permanently produces to active As a and or and we X,XXX at of operate Coast about located abandon during

to As are for to we unique road. the we and additional rezoning, today's advance acid continue property, diligence remediate sale deck. this down due other There the reentitlement in prepare details will

over cover to hand it Nelly financial now I'll And to results. Nelly?

Manuela Molina

Francisco. Thanks,

sheet cash near a solid at expectations liquidity, balance with leverage and flow, a with free ample Our XXXX financial results exceeded X ratio higher-than-expected year-end.

sustainable returns We flow strong to discipline our capital cash using shareholders. cash have carefully maintain a sheet priorities, and balance balanced to

lower our average was initial of per with entry with volumes. of reservoirs oil of made exceptionally possible gross net improved expectations. XXXX, in $XXX initially demonstrating performed comprising XX% to efficiency expected total with exit year our approximately production capital the for This In with million, day, our production operations. well declining The line than X%, BOEs was capital an XX,XXX

in our half reflected delivered run business XXXX be us year. in $XX will second cash cash flow. results and million rate results. savings we initiative, free million to year, strong allowed in operations, of million the These implemented annual financial the through We transformation the flow of in our from in debt $XX For which $XXX reduce $XXX XXXX by million

We to will with combination cash returns shareholders ability. to continue enhances a prioritize this and Aera

to In XXXX, free our cash we returned shareholders. of nearly half

repurchase or its XX% $XXX X million buyback our last of returned through a XX% end We debt. was XXXX. the generated share flow of and dividends increased nearly the total term and years, of authorization program the buybacks, by extended billion recently $X.XX Over cash free total to under to

the again. we our Aera intend to of closing dividend raise Upon merger, once

better quarter $X.XX me in quickly generated million in which in the of results let results, diluted released We or adjusted we or fourth per early and summarize share. January. million than preliminary $XX free Now, net income cash $XX were flow our line

driven from higher Our strong costs quarterly operating results were net margin power lower and sales. by

per and of transformation we effect to the efforts margins. production oil XX,XXX were XX,XXX day. a business last quarter BOEs of year initiative Non-energy part per averaged Fourth partial averaged improve costs actioned day, below reflecting our expectations, as barrels savings

around We ended day. a $XXX completed million billion of had million also $XX per about $X in about year nearly sale interest which an Mountain, with associated nonoperated We the barrels reduction in XXX and liquidity, cash. of

the and accelerating We with results, expanding as value. the are balance of into of strong XXXX and trajectory sheet, business the we foundation XXXX, portfolio very our pleased look our the exceptional

Next, outlook next Francisco for talk will year. about

Francisco Leon

Thanks, Nelly.

XXXX your questions, I want the quickly call take opening outlook. discuss Before to our to

midpoint the half expected total cash from free XXXX, or For operations. investments expect million range again prioritized flow our we of of capital $XXX in generation have about guidance our cash and of

plan, current program. expected and our to at $XX will XXXX, In capital cash share returns $XXX shareholders approximately the our $X.XX business buyback and Brent opportunistic dividends is This through to and in NYMEX, flow. free million support generate our using

strong will In debt sheet. continue we and addition, to reduce balance our maintain

operating With cost date, be nonenergy the to nearly savings are achieved costs lower year-over-year. X% expected to

of average and about resumption to Kern resolution day, in the per the and EIR multiyear current program permit XX% that anticipates drilling a X full half successful litigation of expect We with XX,XXX a a This approvals assumes BOEs level program. normalized XXXX, rig a around second production oil. year of starting of plan support County

with million County and expectation In similar X-rig to 'XX is program capital permits, $XXX to our decline, CRC we X% not total a X% to run than program, case, to able expected litigation program. longer million and a $XXX to plan an Kern drilling of EIR takes a receive

process be X if multiyear clear, increase activity a improvement rigs will supports to only permitting program. drilling we To

near Aera we on laser-focused merger term, the are closed. getting the In

year. the will second that expect the in of the We transaction half close

in for full the have provided first quarter our information some detailed stand-alone year. for and CRC We deck

Aera CRC is and and with our us more today, stronger well anticipated combination resilient. will positioned incredibly make financially

our skill Our conventional energy. to people lower has enhance and finding ways margins with important safely are and local California and innovative business energy carbon today, supply

the about on business, through excited accelerating growth leadership in of we California. management horizon role see our the the our We're and carbon prospects decarbonization

CRC. your your and in investment for Thanks today time

questions. lines please the Operator, open for

Operator

comes first Capital [Operator Hanold with Markets. question The Scott Instructions] RBC from

Scott Hanold

start of receiving but path, make you running dual the up them? go process? receiving does old to gas actually not accumulate process? mean, out permits? you Just Kern permits the and Would like? the litigation curiosity, does all that of be able favor you're rigs into ramping County, are permits what you if are look in you oil you And under as XXXX -- receiving you And are if know I I a original are

Francisco Leon

workovers. not Scott, so we're doing, wells. we are receiving for is new capital What permits getting permits though, for

CRC that Then multiple capital in years, to workovers the corporate performed way the the at single high somewhere then decline digits. look we all-in and is OpEx drill to decline has now adding, you decline if brings -- So to business, stay-flat our a scenario, get wells. very first, low for new workovers

full expect with a not year permits we base in 'XX, program is we similar XXXX. that so investments, So reinstated. if that repeatable, we we to no come a in and X% we to XXXX we right we on 'XX we that Kern a today. in that that it's with year rig is deliver do now, permits for results you can the program, After feel said program, said get and saw last And decline. very hand a X continue but we're sitting also through, into we'll County incremental to did that can EIR X% What in have did

have on enough we permits hand. So

to resolved. this We have visibility workovers the doesn't scenario County get able on where model be have repeatable Kern into to

Scott Hanold

Okay. program the rig And that Is currently said just run as I to -- resolved, to don't if you permits you in well? clarify, 'XX EIR isn't that hand what you to have if heard? X

Francisco Leon

permits -- Yes, years have hand correct. in We would have that multiple we can. of we

Scott Hanold

it. Got Okay.

management to guess of in Okay. the the Obviously, comment going to side, I I'm stick topics then permits. cover on public And the period. you're

the all you comment the that things period a have limited some probably of say, color positive And it why you moved way? was now. interesting frame guess, the hopefully I of looks approval kind like Any time EPA on, getting but in there's anything have you heard from fact, a time thought frame? could late that type color final the appreciate I of that more June-ish on if So to would right you any the timeline

Francisco Leon

Yes.

that's, it. how So VI I thinking excited wouldn't the XX-day it's the still checking we any tracker see about to getting timeline. agreed with we've much right as a now. is to about information. EPA way And comment continue It's on terms comment the of go permit, tracker. consistent that's public with within the We've in public on do we We've EPA period say in Class the milestones been delays. a we period, the public -- very there's what again,

to on been the ground. it of We've the hearing is We're to what years we're multiple but a to over little to this preparing. Chris today turn getting point, a perspective get maybe The ready bit with I'll give on hearing EPA. for

So there's a a goes lot like day today. into that excitement, of preparation lot of a

So maybe, Chris?

Chris Gould

mentioned, Kern conducted Great is very the EPA jointly by County. today it's it's well as question, X yes. final hearing Francisco -- as Scott, the because being timely as as as Region workshop, well

forward to of looking the that So today. conclusion

those the period the with referenced. Indiana Wabash by That's workshops of that there you As Class have Francisco X completion the that VI been today, other in recall, -- been comparison comment had none. in would XX-day up there's to

supportive, today person, about fact, So to been we the virtually later, this. the have of it. community a in can say and largely communities really opportunity And encouraged imagine, including participate Kern see by in County the I've from and have you been -- excited transition. have as had all about them to what public in we're that's the and or energy the comments to

to have therefore, There those is to level a of support broad in been And really that all looking of forward we able tonight. we're workshops. observe

set after around EPA X the X public second which the that into the that is for X to schedule final roughly middle tracker. always to permit, tracker -- we accounted based which on is on is months year inclusion have comments that EPA's today, in the hearing, X months for of see of You'll those guidance a the has why

Operator

of Akamine question The America. Kalei comes from of next Bank

Kaleinoheaokealaula Akamine

goes pursuing Bank to Akamine where question Beach, estate America. of Huntington It's Kalei from real My first this you're unlock. valuation

as a valuations. us additional So surprised disclosures I think I provide But thanks it the of helps think pace the for the what range of is remediation.

rates the by the If wells, pace process. measured be of you easily multiyear could simply plugging a this

That's on So you hoping comment that that can playing timing first see the part. how you out?

do at see phased the that And wedge be, of second part some you would because the to Beach how out? be needs point, value Huntington the at PDP

Francisco Leon

this X.X Kalei, for more so yes, Fort we're Apache, to very $XX property, able excited million. about sell acres being

valuation. per acre it's So an $XX million

to the provide market. so And that that proof be to was to needed -- able point we

their and The we to objective valuation. right? larger capitalizing along, us that There's right, offer if property, to nothing XX the right get comes acres Huntington today in recognition would so on Beach, the is price, meaning, optimize back in ultimately, holding from sell the value stock the valuation

view. then we That's our optimal lot the only Now, soon development field, would priced to the continuous as as we as we that again, it sell offer. we If today, of the can. look and a take there's not abandonment to into sold the of steps gets that's If that we case, get and have reentitlement abandonment at to not remediation valuation.

there's that the value land. assuming of be which we're But that is be multiyear going well best then it's again, steps the CRC abandonment number find reentitlement, to going prepared a to to -- and a a the for of process, to the handle,

to the are We property. to City the And that We to more this of long accelerate have The the the Commission. higher we not going is of Lands the sort development, some of what's to fully. the to with The Beach. So we be These we reentitle highest work which offer property clear ball, talk real control what with State ultimately Commission. pace need of an But ultimately, the we're will how to to we time to Huntington need Coastal use advance through estate ability the the that should indicator best to be. be abandonment. the work is can We need the abandonment can going so going the abandonment, take. and -- is out. take processes

keep again, yes, better we the value, to is it So objective field. It's to sell could the today, which producing here. the maximize

We self-funding, we have program. sight process can use the taking self-contained of continue we'll until get where And cash about the the abandonment, gross benefit have for deduct. that that a to barrels abandonment doing property on the are we to pay we X,XXX of we without big line a that a sell land which can

So control negotiations discussions completely more anything again, really property. It's I read the the about piece can because we abandonment of wouldn't the city with officials and into reentitlement the and that.

think takes I this So I to take a unlock. few years would --

say years we're as is for but the don't maximize is full I to we value get that forward completed. to process quickly what can. sure, X try to pushing We and would we to know So as started value bring X the and forward

Kaleinoheaokealaula Akamine

a sense there. And transaction Aera the that I the appreciate to makes put question It you. My of Yes. present that to more that. pathway value is the becomes more value valuable that you there the it, second into work to deal. goes maximizing

So is push through talk out, And spend you whether us that increased means you annual to top about what Can an ability there talk of about And activity is? liability our that what your that's on terms that that, in a can understanding liability. or rate? of retirement other is means? to it

Francisco Leon

Yes.

-- are been of abandonment have aggressively pursuing abandonment CRC and and Aera So wells. on both very plugging

they think very I have historically consistent spend with ours. that is the

really can't I comment.

in tend the a the the We shallower. little We get haven't properties on further But information need bit rest Aera put along be closing terms of to deal. out Aera. to the of

basis. of terms we the go more may debt have I -- differences they much between also but wellbores, more forward. have they as provide asset in will the So But to limited color more

on the get more we we'll the to get the any HSR do But as process. of we that so proxy of closer haven't We information assets. released filed as detail the completion in

been should on to for let's water so reuse both wellbores to technology ARO programs rights -- CCS. but be we've point deploy the wells for sides, say -- abandoning in energy, we We're as So programs, place. good clean looking also again, have for

So and we a having at lives look as California wellbore multiple uses. multiple in

So through at Aera to that the lens. have to assets -- excited look

Kaleinoheaokealaula Akamine

Aera to it moderate on last based say, spend? wellbores, reuse the were if you able the pace is you So fair be to would that comment, see of opportunities to to the

Francisco Leon

for used our be opportunities, be for be we're that of can wellbore, and exciting -- for Aera be that. surface looking Yes, at way. that separate the If treated good, water that's going an opportunities really a Kalei, bringing reuse you actively same agriculture. drilling want to There's to And portfolio, applied would and produce much option. better don't existing we wellbores can to

clean We're the energy heat to rocks at that enhanced geothermal footing the from technology on things looking to decades -- like surface. multiple uses in to steam bring try for also

we're uses, lot fruition. think money technology So of these we're looking to multiple lives to that a to multiple places to deploy some that to there's, California. I bring bring at wellbores, like said, to excited I and And

Operator

Nate with The Stifel. comes next Pendleton question from

Nathaniel Pendleton

you have Building At on support for revenues. a the historically earlier to local seems some for communities on that the such XXR speak is and permit, community. a energy about the for you as oil CCS some can been in dependent from high California? to see California projects, broad gas related Specifically documents moment comments, transition level, there role when that it supporting reading draft through of the us

Francisco Leon

a in revenues you stations. government libraries in Nate, pushing state -- unique state of But roads -- oil has on really market for have Chris. a communities that's a where support favor and very the we'll think absolutely, the But pay and I'll and an pave tag-team that have we this I fire to Yes, transition. California, to and gas energy the to relied have also we with

collected the lot it that a life community. by A cash tax that's quality really flow counties, for of and revenue the supports of the

counties and some environmental everybody and the into that the not So receives. state, also the and to away of needs only from income but oil gas the a new transition requirements satisfy, technology supplement

the extremely well. one We has anything been platform So we're deliver better able exclusive, on not oil can our gas and -- and be imports, to do to carbon low see excited that but continue to investments gas, comes but technology and CRC the also from advancing than that clean the mutually both oil side.

the in leader, solutions being our those as and for up the us state. cementing to trying drive really that on see we leadership both So the right end place

any ask But maybe, Chris I'll has to more he see if comments.

Chris Gould

already the installations. that's the to gas energy the I'd build-out that, to the is would add been of energy willingness to county, in I It largest addition the example the The in to provided the oil has county just give transition. solar Yes. execute ability on and solar provides on now. that and right? It's state prolific demonstrated

heart So in the transition, moving it's a it regard. and really track record has that the of forward of energy

great Carbon of they capture's just the that do why that forms wind we're a build on business. the can other next demonstrated with and it's opportunity other set already they've to and energy. solar And success that place confident that's

Nathaniel Pendleton

on Thanks enable staying COX outside update is on COX regulations that detail. provide any would And potential boundaries? you for there for of pipeline the can state field of transportation the CCUS,

Francisco Leon

Yes.

at Cleanup So Bill -- looking we're Senate Bill. -- XXX this XXX is a

agenda the June for the when budget We or it the in to around May legislature announced. be expect is

been So bill administration the and We've pushing our there. there's and and group representative to support forward for. we anticipating believe with views there. that's legislative from engaging legislators progress this California make sure Resources have some the we And

that XXXX. get addressed it's confidence So going to in

reminder, there could at to the could work level also able California first. the not there is regulations if to a As that happening get FEMSA work also is federal also

first. is Is looking but the Feds, California through CCS advance we're to there it's regulation? it pipeline can So of it a question who really get or

Aera. lot field our we where We greenfield that's that projects doing boundaries. within strategy what of activity projects the we're with also brownfield And are working announced and on a a now

advancing is and If field the state projects technology type that you CCS be the decarbonizing to the boundaries, stepping we look you're of is to start the in generator demonstration that terms to contain think can for start pipeline all cash regulations being have we going through. a come into test within able flow projects, emissions as

But able the need going to COX we're to to going in move is state to successful reaching throughout pipelines state. its ultimately, if be objectives, be the

to a either of through through the XXX regulations. or resolution, state getting forward process federal looking So

Operator

The next comes ROTH question Mariani from Leo with MKM.

Leo Mariani

I wanted to bit on XXXX CRC. focus production CapEx the guidance little stand-alone a and for for

to Just decline. X is a that's rigs guide, that year. here. number kind I of wanted little make above, production like bit for running the right guess midpoint looks sure thought, At the little your you kind maybe probably of the understood that X-rig numbers a more I of said of you're annual program, had second I the of guys around guide a in half given in the the I but that what with that year. second you've doing half know X% that kind about of a are

a million of a $XXX clearly, you're capital, than just you with guide the in And X I 'XX, year maintenance respect but the kind maybe this bit that's to running capital the low guys activity. rig that, first only $XXX to $XXX just maintenance half. your of million less And given capital. in little of about know then million And talked kind is level,

of some you maybe on kind difference this. there's and just loop So the the this maybe that close guide explain some of could year timing

Francisco Leon

Leo. Yes,

we announced of about barrels Mountain, last sold end Round we -- that at the XXX property year. So remember, the the we -- sold

to So when there, weather at here asset you're decline, also sale. we We've the need looking there's factor year. that impact an some the as had in you started

and the get where from level power at XX,XXX reservoir also to X Hills so perspective, Elk ultimately capital way we're can under it million can to stay-flat our $XXX looking items. year, we're up to that to ramp scenario, a XXXX talked of throughout and we the onetime rigs, looking scenario is had the million plant BOEs at at $XXX a look about capital that less to But we where includes we before. The that -- maintenance some with BOE maintain

that a So happen, now that rigs, as that, that's then when able or to time what higher scenario. do hadn't have we're we we the what see some we be if incremental that developed would solving for permits -- to haven't achieve for were in we the and scenario

So accrues $XXX get flow the prices million about about the year, or for put the And X-rig you and $XXX steps free million. capital free at of not million to to assume, the $XXX then that million program $XXX If to down it's just we program resolution we're maintain roughly less. right? flow about county $XXX the current around million, step $XXX the capital to so then that $XXX million, we able to million down a cash cash and of

and our deliver are demonstrated the end, what low assets which at So those team are to on rough wanted to X-rig to X% able X% math numbers. as already we've with program, our We is provide a the the decline. bookings

now that's stay-flat on to model. and to levels able be your to We activity, you bookings a also So case, restoring to provide the triangulate going wanted normal and back both have right?

Leo Mariani

wanted little just here. for of cash first range. that then a up sense And the fourth to of quarter wanted helpful. other expectations the looks It I couple provided and on year cash That's a to bit numbers guidance came quarter in for on get previously taxes on 'XX Okay. taxes. above follow in like the a full

kind limited in in last third you to have was of And It quarters. anything didn't those quarter, of buybacks, then like have the with fourth down kind respect few then looks stepped quarter. and share in the

should on there's the perhaps some Aera of sense to into think get wanted heading restrictions and about how just I due So we that XXXX, to a that deal.

great. could provide of here on of any are pretty not this it kind you year, would important the So be or buybacks process whether part clarity

Francisco Leon

Yes.

predict tax asset. taxes, of timing. and cash on a had There's what That's Mountain of We're taxpayer full always on to seeing the the a the you're XQ. a side, to Round in terms timing it's we be the on So basis. cash going gain difficult quarterly incremental tax in

So of I plug tax taxpayer. it before. the gave But think, into model. a We've first lumpy. you to we're be could full your numbers And day, disclosed we that quarter cash also end the at the

ultimately, you that Mountain but saw again. last the due -- So the to increase Round quarter in the is

Operator

Parks Brothers Research. The from Tuohy Noel next question Investment comes with

Noel Parks

Just a questions. couple of

remarks, is with wondering, it deals what about set wondering could just you're of matter your allowing a to it like I going you a series CCS I'm the have Aera quickly talk more a that in ahead. little is companies look up, so if more across a you because anything? of that was enterprise or matter companies. greenfield closed you helping bit heft? And geographies acquisition, that to would And do Or brownfield just you're a projects to mentioned and simplify combined speed potential So with deals confident a larger get of things more of does broader more it this just the have

Francisco Leon

Yes.

is really So in pore in very ways. the County, helpful multiple to which Kern deal able we space Aera We're like. add more

pore million tune are that So in XX backyard. tons of of space fields in to incremental the our

to, market. very tons through helpful. and if year. discussions aggregate entry different storage ongoing, per thinking the brownfield XX our to is all There's it's different connecting excited The we're emitters capacity -- metric talking about we're we're emissions points about as people the So we having different of some million sites,

the I to bring can it? And develop how do cash to ultimately, we're think where pore forward. COX, do And be be as about positioned pipes. really, we're and So the you connect it's you potential more store It's is exciting through. we it? going at think -- to quickly, that's space is where able need receive So the flows it's market what well to and we large

developing northern part have of new we spaces pore more -- brings it's potential, as deplete pore is and into by production exciting it's through and proposition of space space, and whether California. our have the a some acquiring brownfield Aera's our the that own or that reservoirs we certainty again market. the just anything increasing can an pore bring reducing the We're fields a will future that in on more lot potential, that bolt of Kern projects But to other County

those the the to capture control, brings emissions So of and I reservoir, going emissions easy top want Now that within table as emissions that there's within you right? discussed, if Aera think to fully full be so or generation greenfield, those -- of are to emissions. to a to about those in of scenario the have best co-location, case bringing forward, control on have the confidence you is our

with showed incentives. gas line to get processing certainty that percent finish we highest the more the much our to the gives us pre-combustion project, of and As

and floating of So do in they portfolio. to Aera cogens through steam through us emissions allows the that that have some the

how bring So those is going lot we is traditional and multiple but a for the team business the properties to tackle to the thing Aera the current owner one gas on for try and to Aera through reasons. and our was is those those sooner synergies, to deal going probably -- to life and think look like accelerate And expecting. oil and bring than the

Noel Parks

handover office Or involvement? of Class like and permit? Once the final further sort post steps of like approvals. to terms that in change other EPA comes Sort happens, takes either the about the VI that same approval, next DOE lead? of permanent approval, entity, or the what permits a somebody subsequent thinking for what then and upon district be it Great. will and, wonder, federal of Great. And does regulatory milestone I the after that such course, is

Francisco Leon

working where the Kern parallel local is that first So of the have they're permits the permit. closely running we're EPA a a Kern gate. to And VI with place. federal is in also the get County County, all It's to agency approves of the out permit. path but Class And primary project going

Chris turn to more I'll in it that to describe detail. maybe So

Chris Gould

the right? Yes. referencing, so Receipt and permit process then the but EPA, then process The first permit first to Well, you conditional will. final -- county, that to on use Francisco ultimately then in if as injection comes FID, out, that, continues with construct with we begin the XXXX us, of planned. go and we was the

in do the the do we XXQ VI throughout the the able project. reporting, what's verification, we permits with conditions and life pre-injection continue the is level, management doing obviously, then credits. committing Class forth set right, testing And more county hand, that field we'll both at in in and the to of lead the broadly ultimately, to the Obviously, that EPA And with at be continue the continue do next, But carbon to we'll being to that's process to complying an as and hand. for requirements then permits advance immediately like terms the as claim with we'll up specifically ongoing permits accordance there's EPA things after we're are injection. ultimately, there, to level monitoring, of what any as go then those well in first in but the permit like in

complete and first and on it's near-term to for that move and construction to verification So things injection ongoing of and monitoring steps a nature.

Operator

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

Francisco Leon

and Thanks seeing conferences be for investor We'll in Thanks look at us a we March, you. today. to joining presenting lot. several forward

Operator

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

disconnect. You may now

California Resources (CRC) 28 Feb 242023 Q4 Earnings call transcript