California Resources Corp. narrowed its losses during its first quarter by more than half, enabling the state’s largest oil and natural gas producer to beat analysts who expected greater losses.
From its Chatsworth headquarters, California Resources said adjusted net loss was $43 million (-$1.02 a share), compared to an adjusted net loss of $100 million (-$2.60 a share) for the same period a year ago. Analysts expected a loss of $1.26 a share, according to Thomson Financial Network.
Revenue increased to $590 million from $322 million a year ago, also beating analysts’ estimated revenue of $486 million.
The company noted in its earnings report that year-over-year per-barrel crude oil prices rose 38 percent to more than $50 a barrel, including settled hedges. It also continues to use cash to reduce debt, and said that the two joint ventures formed during the quarter will provide up to $550 million of investment incrementally to accelerate development.
CRC said including that additional money, it will increase this year’s capital plan to $400 million to $425 million, including up to $150 million for drilling and completion for the joint ventures.
“We are excited to get back to investing in and growing our business,” Chief Executive Todd Stevens said in a statement. “These joint ventures will bring forward investment to unlock the value of our resource base for our partners and shareholders."
California resources announced earnings after the market closed Thursday. Shares closed down $1.13, or about 10 percent, to $10.16 on the New York Stock Exchange.