California Resources’ 2Q17 production
For 2Q17, California Resources (CRC) reported total production of 129.0 Mboepd (thousand barrels of oil equivalent per day), which is below the midpoint of its 2Q17 production guidance range of 128.0 Mboepd–133.0 Mboepd. The majority of California Resources’ 1Q17 production came from the San Joaquin basin in California, where CRC reported production of almost 90.5 Mboepd.
California Resources’ quarter-over-quarter production growth peaked in 1Q15. It reported its highest ever production of 166.0 Mboepd in 1Q15, but since then, its production has been on a continuous decline. The decline in production can be attributed to reduced capital investments. CRC’s 2Q17 production volume of 129.0 Mboepd is its lowest ever production volume reported. Sequentially, its 2Q17 production is lower by ~2.0% compared to 1Q17 production of 132.0 Mboepd. Its 2Q17 production is lower by ~8.0% compared to 2Q16 production of 140.0 Mboepd.
In a 2Q17 earnings press release, while commenting on the activity levels and production growth, CRC’s president and chief executive officer Todd Stevens said, “During the second quarter of 2017, we expanded our capital activity utilizing joint venture capital. Our team safely ramped up activity to 7 rigs and continued to identify efficiencies and cost savings. In fact, recent wells delivered stronger-than-expected performance at lower-than-expected costs. We expect to build on this success in the third quarter and remain on track to grow production in the second half of the year.”
In 2Q17, California Resources reported total crude oil (USO) production of 83.0 MBbls (thousand barrels) per day and natural gas liquids production of 16.0 MBbls per day. Thus, CRC’s total liquids production came in at 99.0 MBbls per day in 2Q17, which is ~77.0% of its total production in the same quarter. In 2Q17, the company reported natural gas (UNG) production of 182.0 MMcf (million cubic feet) per day, which is ~23.0% of the total production in the same quarter.
For 2Q17, California Resources, along with its joint venture partners, expects production in the range of 127.0 Mboepd–132.0 Mboepd.
CRC’s peer Devon Energy (DVN) expects 2Q17 total production volume in the range of 526.0 Mboepd–546.0 Mboepd.