California Resources’ proved reserves
As of December 31, 2015, California Resources’ (CRC) proved reserves totaled ~644 MMboe (million barrels of oil equivalent), a decrease of ~124 MMboe from December 31, 2014. California Resources attributed the decrease in estimated proved reserves to depressed commodity prices. In 2015, CRC recorded negative price-related revisions of ~153 MMboe to its proved reserves.
Now, the majority (~70%) of California Resources’ proved reserves are located in the San Joaquin Basin in California.
As of December 31, 2015, ~75% of California Resources’ proved reserves are PD (proved developed) and ~25% are PUD (proved undeveloped). As of December 31, 2015, ~72% of California Resources’ proved reserves consisted of crude oil, ~19% of natural gas, and ~9% of natural gas liquids.
According to CRC’s 2015 annual report, the discounted value of its reserve base at the end of 2015 was ~$4 billion.
California Resources’ reserve replacement ratio
California Resources’ reserve replacement ratio also fell significantly in 2015. California Resources’ reserve replacement ratio in 2015 was -114%. The reserve replacement ratio indicates the number of barrels of oil equivalent a company adds to its reserve base in relation to the amount of oil and gas it produces.
According to California Resources’ 2015 annual report, the changes from year-end 2014 estimated proved reserves to year-end 2015 estimated proved reserves included:
- drilling additions and extensions of ~36 MMboe (attributed to CRC’s capital program)
- positive performance revisions of ~45 MMboe
- property acquisitions of ~6 MMboe.
These additions were offset by yearly production of ~58 MMboe and net downward price revisions of ~153 MMboe.
Other upstream companies
As of December 31, 2015, other upstream companies like Denbury Resources (DNR), Pioneer Natural Resources (PXD), and Devon Energy (DVN) have proved reserves of ~289 MMboe, ~664 MMboe, and ~2,180 MMboe, respectively. The Energy Select Sector SPDR ETF (XLE) generally invests at least 95% of its total assets in oil and gas–related equities from the S&P 500.