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Business Wire 3-Oct-2018 7:30 AM
Company Details Strategic Approach to Deliver Long-Term, Value-Driven Growth and Issues Preliminary Third Quarter and Year-to-Date 2018 Financial and Activity Estimates
California Resources Corporation (NYSE:CRC) will host its 2018 Analyst & Investor Day today Wednesday, October 3, 2018 from 8:30 a.m. to approximately 11:45 a.m. EDT in New York, New York.
Todd A. Stevens, CRC's President and Chief Executive Officer, said, "CRC adheres to a strategic approach to deliver value-driven results throughout our assets and operations. Our diverse portfolio of conventional assets provide robust and competitive returns while our laser-focus on operational excellence captures synergies and efficiencies to drive margins across our core and growth areas. As we align our business with mid-cycle pricing, we remain committed to our strategic priority of a disciplined VCI-based capital allocation designed to accelerate value creation. We remain focused on thoughtfully developing our stacked pay reservoirs and leveraging our infrastructure to increase crude oil production and drive both margin expansion and cash flow to further strengthen our financial position. To drive shareholder value, CRC will continue to be guided by our core principle of living within cash flow, and will target 10% to 15% of discretionary cash annually toward ongoing balance sheet strengthening."
CRC's Value-Driven Strategic Approach
At this investor meeting, senior management will provide additional detail regarding CRC's strategic approach to deliver value-driven growth over the near and long term. Highlights of the Company's strategic priorities and value creation efforts include:
Preliminary Third Quarter and Year-to-Date 2018 Financial Results1
In conjunction with this investor event, CRC also issued certain preliminary third quarter and year-to-date 2018 financial and activity estimates that it expects to report, including:
CRC will provide detailed third quarter 2018 financial results and fourth quarter guidance on Thursday, November 1, 2018 when it plans to report full financial details for its quarter and year-to-date performance.
1 The third quarter and year-to-date 2018 financial results are preliminary estimates. The company's books and records for the applicable period are not yet finalized and actual results may differ, possibly substantially.
2 Reconciliation of Adjusted EBITDAX to net income for Q3 2018: approximately $120 million of preliminary estimated net income; plus interest and debt expense, net of approximately $95 million and depreciation, depletion and amortization of approximately $130 million; partially offset by other non-cash items including an estimated derivative gain of approximately $50 million. Reconciliation of Adjusted EBITDAX to operating cash flow for Q3 2018: approximately $175 million of preliminary estimated net cash provided by operating activities plus cash interest of approximately $70 million and working capital changes and other adjustments of approximately $55 million. Core adjusted EBITDAX removes the transitory effects of settled hedges and the significant run-up in our stock price of approximately $50 million to $100 million.
3 Reconciliation of Adjusted EBITDAX to net income for YTD18: approximately $65 million of preliminary estimated net income; plus interest and debt expense, net of approximately $280 million; depreciation, depletion and amortization of approximately $375 million; and over $60 million of other non-cash items. Reconciliation of Adjusted EBITDAX to operating cash flow for YTD18: approximately $400 million of preliminary estimated net cash provided by operating activities; plus cash interest of approximately $285 million; working capital changes of approximately $90 million; and other smaller adjustments. Core adjusted EBITDAX removes the transitory effects of settled hedges and the significant run-up in our stock price of approximately $175 million to $225 million.
2018 Analyst & Investor Day Webcast Information
Formal presentations from management will take place between 8:30 a.m. and 11:45 a.m. EDT, which will be available to the public via webcast. A link to the live audio webcast and accompanying presentations will be accessible from the Investor Relations section of CRC's website at www.crc.com. The event will be archived on CRC's Investor Relations page for replay shortly following the conclusion of the day's presentations. A digital replay of the conference call will be archived for approximately 12 months and available online on the Investor Relations page at www.crc.com.
About California Resources Corporation
California Resources Corporation is the largest oil and natural gas exploration and production company in California on a gross-operated basis. The Company operates its world-class resource base exclusively within the State of California, applying complementary and integrated infrastructure to gather, process and market its production. Using advanced technology, California Resources Corporation focuses on safely and responsibly supplying affordable energy for California by Californians.
Forward-Looking Statements
This document contains forward-looking statements that involve risks and uncertainties that could materially affect CRC's expected results of operations, liquidity, cash flows and business prospects. Such statements include those regarding the Company's expectations as to future:
Actual results may differ from anticipated results, sometimes materially, and reported results should not be considered an indication of future performance. While CRC believes the assumptions or bases underlying its expectations are reasonable and makes them in good faith, they almost always vary from actual results, sometimes materially. We also believe third-party statements we cite are accurate but have not independently verified them and do not warrant their accuracy or completeness. Factors (but not necessarily all the factors) that could cause results to differ include:
Words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "goal," "intend," "likely," "may," "might," "plan," "potential," "preliminary," "project," "seek," "should," "target, "will" or "would" and similar words that reflect the prospective nature of events or outcomes typically identify forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
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