California Resources Corp. beat Wall Street estimates on revenue for the first quarter.
The Valencia oil and natural gas producer reported on Thursday adjusted net income of $102 million ($1.22 a share) for the quarter ending March 31, compared with an adjusted net loss of $8 million (-16 cents) in the same period a year earlier. Revenue decreased 37 percent to $363 million.
The single analyst who follows the company expected revenue of $285 million but did not forecast on earnings, according to Thomson Financial Network.
Mark McFarland, chief executive of the company, said during a conference call with analysts to discuss the quarterly earnings that the strong first quarter generated $120 million in free cash that will allow the company to start a $150 million stock repurchase program.
California s move to stop hydraulic fracturing permits by 2024 will likely do little to speed up the current decline in output, but any crackdown on production would boost the state s dependence on imported crude.
California was once the third-largest oil producer in the US behind Texas and Alaska, according to US Energy Information Administration data. In the early 1980s, crude output in the Golden State reached 1 million b/d, behind Texas 2.5 million b/d and Alaska s 1.7 million b/d.
But as of January 2021, California ranks seventh among oil-producing states at 364,000 b/d, trailing Texas (4.66 million b/d), North Dakota (1.1 million b/d), New Mexico (1.09 million b/d), Alaska (464,000 b/d), Oklahoma (426,000 b/d), and Colorado (373,000 b/d).
California s Newsom orders an eventual end to fracking in the state worldoil.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from worldoil.com Daily Mail and Mail on Sunday newspapers.
Gov. Gavin Newsom s order Friday follows multiple failed legislative attempts to prohibit hydraulic fracturing in the state.
(Bloomberg) Californian Governor Gavin Newsom will ban new hydraulic fracturing permits in the coming years as the state pushes to eliminate net greenhouse-gas emissions by 2045.
His order Friday to halt new permits by January 2024 follows calls from environmental groups for executive action after two Democratic state senators failed to pass legislation that would prohibit fracking altogether in 2023. The bill aimed to protect communities that are most impacted by the oil production technique, which involves blasting a mix of water, sand and chemicals underground to unleash oil from shale rock.