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Charts in Focus: CRC’s 3Q16 Production Costs and Margins

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California Resources’ production costs and margins

Excluding hedges, in 3Q16, California Resources (CRC) reported a positive cash margin and a negative total margin.

Gains on crude oil (USO) hedges helped California Resources to increase its cash margin, reducing the deficit in its total margin.

In 3Q16, other upstream companies Diamondback Energy (FANG), Pioneer Natural Resources (PXD), and EOG Resources (EOG) also reported positive cash margins.

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Definitions

Production cash cost = LOE (lease operating expenses) + production and ad valorem taxes + transportation expenses + G&A (general and administrative) cash expenses + interest expenses

Total production cost = cash cost + DD&A (depletion, depreciation, and amortization)

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