18 Aug

Analyzing California Resources’ 2Q17 Revenues

WRITTEN BY Nicholas Chapman FEATURED IN Company News, Insights, & Analysis

California Resources’ 2Q17 revenues

For 2Q17, California Resources (CRC) reported revenues of ~$516.0 million, which was much higher than Wall Street analysts’ consensus of ~$482.0 million. It reported crude oil (USO) and natural gas (UNG) revenues of ~$439.0 million, net derivatives gains of ~$43.0 million, and other revenues of ~$34.0 million. That means that most, or ~91.0%, of CRC’s revenues came from crude oil and natural gas sales.

Analyzing California Resources’ 2Q17 Revenues

Sequentially, CRC’s 2Q17 revenues were lower by ~13.0% when compared to 1Q17 revenues of ~$590.0 million. However, on a year-over-year basis, its 2Q17 revenues were ~63.0% higher than 2Q16 revenues of ~$317.0 million.

Despite the steep year-over-year decrease in 2Q17 production, higher realized prices for crude oil (USO), natural gas liquids, and natural gas (UNG) impacted CRC’s revenues positively. CRC’s crude oil realized price increased to $46.95 per barrel in 2Q17 from $41.41 per barrel in 2Q16. We’ll look at CRC’s production in the next part.

How CRC’s quarterly revenues are trending in 2017

For 1Q17, California Resources (CRC) reported ~21.0% higher revenues of ~$590.0 million than Wall Street analysts’ consensus of ~$486.0 million. Sequentially its 1Q17 revenues were ~31.0% higher than 4Q16 revenues. On a year-over-year basis, CRC’s 1Q17 revenues were ~83.0% higher than 1Q16 revenues.

For 1Q17, CRC reported crude oil (SCO) and natural gas (UGAZ) revenues of ~$487.0 million, net derivatives gains of ~$73.0 million, and other revenues of ~$30.0 million. That means that most, or ~82.0%, of CRC’s revenues came from crude oil and natural gas sales.

Peers

CRC’s peer Devon Energy (DVN) reported revenues of ~$3.2 billion, which was lower than Wall Street analysts’ consensus of ~$3.3 billion. The First Trust ISE-Revere Natural Gas ETF (FCG) invests in natural gas producers. The Vanguard Energy ETF (VDE) invests in the broader energy market.

Next, let’s take a look at California Resources’ 2Q17 operational performance.

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