California Resources Corp. suffered massive losses during the first quarter, yet still managed to beat Wall Street expectations on earnings.
The Chatsworth oil and gas producer reported an adjusted loss of $100 million (-26 cents a share) for the quarter ended March 31, compared to an adjusted net loss of $97 million (-25 cents) for the same quarter a year ago.
Analysts on average expected a loss of 31 cents a share.
However, the company fell way short on revenue. It reported revenue $322 million, down 44 percent. Analysts were looking for $424 million, according to Thomson Financial Network.
Chief Executive Todd Stevens cited low oil prices as the reason for the losses, but he complimented his team for controlling those losses.
“Despite the lowest quarterly commodity prices realized by California Resources Corp. to date, we generated the same amount of operating cash flow after working capital this quarter compared to the prior year period, allowing us to reduce our outstanding debt through free cash flow while maintaining sufficient liquidity to operate our business,” Stevens said in a statement. “We expect 2016 will be a year of blocking and tackling for our operations teams to continue their strong performance.”
The company announced results after market close Thursday. Shares closed Friday down 16 cents or 8.5 percent to $1.73 on the New York Stock Exchange.