California Resources’ 3Q16 production
For 3Q16, California Resources (CRC) reported total production of ~138 Mboe (thousand barrels of oil equivalent) per day, which is within its 3Q16 production guidance of 134–139 Mboe per day.
California Resources’ 3Q16 production is ~13.0% lower than 3Q15 production of ~158 Mboe per day. Sequentially, California Resources’ 3Q16 production is ~1.0% lower than 2Q16. Most of the company’s 3Q16 production, or ~96 Mboe per day, came from the San Joaquin Basin in California.
California Resources’ 3Q16 production mix
For 3Q16, California Resources reported crude oil production of 90 MBbls (thousand barrels) per day, natural gas liquids production of 16 MBbls per day, and natural gas production of 193 MMcf (million cubic feet) per day. This means its 3Q16 production mix consisted of ~65.0% crude oil, ~12.0% natural gas liquids, and ~23.0% natural gas.
California Resources’ operational update
CRC didn’t have any drilling rigs running in the first half of 2016. CRC began gradually increasing its activity levels toward the end of 2Q16.
In 3Q16, CRC deployed one drilling rig in the San Joaquin basin, which is focused primarily on steamfloods. It deployed another rig in the Wilmington field in the Los Angeles basin, working on a half-time basis.
CRC drilled and completed 21 wells in 3Q16. The deployment was consistent with CRC’s decision to gradually increase capital investments in response to improvements in the commodity price environment.
California Resources’ production guidance
For 4Q16, California Resources expects production of 132–137 Mboe per day.
For 2016, the company expects a fall in production of 12.0%–14.0% compared to 2015 production of ~160 Mboe per day. CRC’s lower 2016 production guidance can be attributed to lower development capital spending and selective deferral of workover and downhole maintenance activity in the first half of 2016.