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California Resources’ Cash Flow and Production: Chart in Focus

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Sep. 23 2016, Updated 2:04 p.m. ET

California Resources’ free cash flow normalized to production

In 2Q16, California Resources’ (CRC) reported FCF (free cash flow) normalized to total production of ~-$5.97 per boe (barrel of oil equivalent), which is ~$7.47 lower compared to 2Q15.

As the chart above shows, California Resources’ free cash flow normalized to total production has fallen substantially in the last quarter. This decline was mainly due to much lower operating cash flows as a direct result of lower realized crude oil prices (USO) and lower hedging effectiveness.

For 2Q16, other upstream companies—like Murphy Oil (MUR), Energen Corporation (EGN), and Denbury Resources (DNR)—have also reported lower year-over-year FCF normalized to total production.

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