In the last trading session, the stock price of California Resources Corp (NYSE:CRC) declined more than 3% to close the day at $16.04. The decline came at a share volume of 1.69 million compared to average share volume of 2.02 million.
Todd Stevens, the CEO and President of California Resources, said that they have been extremely delighted with their team’s performance as they almost doubled the drilling activity in Q3 2017 versus the prior quarter. Their corporate plan has always remained to focus on value. One way they have achieved this is through their drilling efficiencies.
In addition, they are especially thrilled about the remarkable performance from the Buena Vista Nose region and their redevelopment wells based in the Los Angeles Basin. They consider they will close this year at an activity level boosted by capital from JV partners and cash flows. As the industry advances toward their philosophy of doing within cash flow and not targeting production at all costs, they continue to implement against their financial and operational objectives with this key principle in mind. They are also delighted to be progressing with an amendment to address their bank credit facility maturity and agreements.
For Q3 2017, California Resources posted net loss of $133 million versus net income of $546 million, for the comparable period of 2016. Operational performance was stronger YoY due to higher gas and oil sales partly offset by increased production costs from added downhole maintenance activity.
The company reported that non-operating income showed a gain in Q3 2016 from debt-reduction initiatives. Adjusted net loss came at $52 million in Q3 2017 versus an adjusted net loss of $71 million, for the comparable period of 2016. The Q3 2017 adjusted net loss discounted non-cash derivatives losses worth $72 million and a net charge of $9 million for other infrequent and unusual items.