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Behind California Resources’ 1Q17 Revenues

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CRC’s 1Q17 revenues

For 1Q17, California Resources (CRC) reported revenues of ~$590 million, which was ~21% higher than the Wall Street analyst consensus of ~$486 million. For 1Q17, CRC reported crude oil (USO) and natural gas (UNG) revenues of ~$487 million, net derivatives gains of ~$73 million, and other revenues of ~$30 million. This means that ~82% CRC’s revenues came from crude oil and natural gas sales.

Sequentially, CRC’s 1Q17 revenues were ~31% higher than its 4Q16 revenues. On a YoY (year-over-year) basis, CRC’s 1Q17 revenues were ~83% higher than its 1Q16 revenues.

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California Resources reported lower production in 1Q17 than in 1Q16. Despite this fact, CRC’s 1Q17 realized prices for crude oil (USO), natural gas (UNG), and natural gas liquids improved significantly, which impacted CRC’s revenues positively. CRC’s crude oil realized price rose to $50.24 per barrel from $36.39 per barrel.

Peers

By comparison, Marathon Oil (MRO) reported revenues of ~$1.1 billion, which was ~46% higher than its ~$730 million in 1Q16. MRO’s revenue increase was mainly driven by higher realized prices for natural gas (UNG), crude oil (USO), and natural gas liquids production. MRO’s United States average realized crude oil price in 1Q17 rose ~72% to $48.46 per barrel, as compared to $28.21 per barrel in 1Q16.

Notably, the Energy Select Sector SPDR ETF (XLE) invests at least 95% of its total assets in oil and gas companies. The Direxion Daily Energy Bull 3X ETF (ERX) is a leveraged ETF that invests in domestic companies from the energy sector.

Now let’s take a look at CRC’s production.

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