California Resources Announces Losses, Joint VentureThursday, February 16, 2017
California Resources Corp. announced fourth-quarter losses that nevertheless beat analyst expectations.
The Chatsworth oil and gas producer reported a loss of $77 million (-$1.83 a share) on revenue of $452 million for the quarter. That compares to a loss of $3.3 billion (-$85.47 a share) for the same quarter last year, when the company took a write-down on assets of $4.8 billion.
Analysts on average expected a loss of $1.64 a share on revenue of $471 million, according to Thomson Financial Network.
For the full year, California Resources reported net income of $279 million in 2016, compared to a loss of $3.6 billion the previous year.
Separately, the company announced a joint venture with Benefit Street Partners, the credit investment division of Providence Equity Partners, to invest in California Resources’ oil and gas properties. California Resources will operate the wells.
The agreement calls for Benefit Street Partners to invest up to $250 million, with an initial $50 million directed toward drilling. Subsequent investments will come in tranches up to $50 million at the discretion of the partners over two years.
“This joint venture is an excellent opportunity for CRC to accelerate development of CRC’s vast underdeveloped resource base and advance our long term deleveraging efforts,” Todd Stevens, chief executive of CRC, said in a statement.
The company announced both the joint venture and financial results after market close Thursday. Shares closed down $1.28, or 6.8 percent, to $17.64 on the New York Stock Exchange.