California Resources Corp (CRC) 2024 Q3 法說會逐字稿

Good day, and welcome to the California Resources Corporation third-quarter 2024 conference call. (Operator Instructions). Please note this event is being recorded.

您好，歡迎參加加州資源公司 2024 年第三季電話會議。（操作員說明）。請注意此事件正在被記錄。

I would now like to turn the conference over to Joanna Park, Vice President of Investor Relations and Treasurer. Please go ahead.

我現在想將會議交給投資者關係副總裁兼財務主管喬安娜·帕克 (Joanna Park)。請繼續。

Good morning, and welcome to California Resources Corporation's third-quarter conference call. Following our brief prepared remarks, members of our leadership team will be available to take your questions.

早安，歡迎參加加州資源公司第三季電話會議。在我們準備好的簡短發言之後，我們的領導團隊成員將可以回答您的問題。

By now, I hope you have had a chance to review our earnings release and supplemental slides. We have also provided information reconciling non-GAAP financial measures discussed to the most directly comparable GAAP financial measures on our website as well as in our earnings release.

到目前為止，我希望您有機會查看我們的收益發布和補充幻燈片。我們還在我們的網站和收益發布中提供了將討論的非公認會計原則財務指標與最直接可比較的公認會計原則財務指標進行協調的資訊。

Today, we will be making some forward-looking statements based on current expectations. Actual results may differ due to factors described in our earnings release and in our periodic SEC filings. As a reminder, please limit your questions to one primary and one follow-up as this allows us to get more of you on today.

今天，我們將根據當前預期做出一些前瞻性陳述。由於我們的收益發布和定期向 SEC 提交的文件中描述的因素，實際結果可能會有所不同。提醒一下，請將您的問題限制為一項主要問題和一項後續問題，這樣我們今天就能了解更多有關您的問題。

I will now turn the call over to Francisco.

我現在將把電話轉給弗朗西斯科。

Thanks, Joanna. Good day, everyone. By all accounts, this has been a very strong year for CRC with excellent progress on several fronts. We are bigger and financially stronger following our combination with Era Energy. We have successfully integrated Aera's talented workforce into CRC to form California's largest producer with a portfolio of high quality, low decline and low capital intensity conventional fields.

謝謝，喬安娜。大家好。從各方面來看，今年對於 CRC 來說都是非常強勁的一年，在多個方面都取得了出色的進展。與 Era Energy 合併後，我們規模更大，財務實力更強。我們成功地將 Aera 的優秀員工隊伍整合到 CRC 中，形成了加州最大的生產商，擁有高品質、低衰退和低資本密集度的傳統油田組合。

Our statewide portfolio of assets and long-duration development inventory allows for flexible capital allocation opportunities through workovers and sidetracks to offset natural declines in our reservoirs. We have executed on our business strategy, demonstrating an ability to acquire assets and rapidly capture synergies to enhance returns and grow cash flows.

我們全州範圍內的資產組合和長期開發庫存可透過修井和側線作業提供靈活的資本配置機會，以抵消油藏的自然衰退。我們已經執行了我們的業務策略，展示了收購資產和快速捕捉協同效應以提高回報和增加現金流的能力。

In regards to Aera, we are ahead of schedule as we have already implemented more than 55% of the $235 million in annual synergies. Our track record of growing cash flow per share is a core competency in a rapidly consolidating industry. We are an innovative energy solutions provider, helping California decarbonize, essential and hard-to-abate industries while attracting new partners and green capital to the state. And we offer a very compelling investment proposition for existing and prospective shareholders.

就 Aera 而言，我們比計劃提前了，因為我們已經實現了 2.35 億美元年度協同效應的 55% 以上。我們每股現金流成長的記錄是快速整合產業的核心競爭力。我們是一家創新能源解決方案提供商，幫助加州實現重要且難以減少的產業脫碳，同時吸引新的合作夥伴和綠色資本來到該州。我們為現有和潛在股東提供非常有吸引力的投資建議。

Our equity is underpinned by the PDP value of our conventional assets and our carbon business is gaining momentum with multiple projects in various stages of development. In addition, the combination of our natural gas production with power generation HES was well positioned to monetize excess power capacity to meet this rapidly accelerating electricity demand in California. CRC has a very bright future.

我們的股權受到傳統資產的 PDP 價值的支撐，我們的碳業務正透過處於不同開發階段的多個專案獲得動力。此外，我們的天然氣生產與 HES 發電相結合，能夠將過剩的發電能力貨幣化，以滿足加州快速增長的電力需求。CRC有著非常光明的前景。

Before taking your specific questions, there are 3 things I want to discuss. First, Nelly will give us a summary of our third quarter results. Second, I will provide an update on our carbon management business and the key projects we're advancing. CRC is a sustainability leader and our assets are uniquely positioned to provide efficient, reliable and near-term energy solutions. Lastly, I will share some early thoughts on 2025.

在回答你的具體問題之前，我想討論三件事。首先，內莉將為我們總結第三季的業績。其次，我將介紹我們的碳管理業務和我們正在推進的重點項目的最新情況。CRC 是永續發展領域的領導者，我們的資產具有得天獨厚的優勢，能夠提供高效、可靠和近期的能源解決方案。最後，我將分享一些關於 2025 年的早期想法。

Although full guidance will come out in normal course next February, we wanted to highlight our top priorities. Let's get started with a recap of our third-quarter results. Nelly?

儘管完整的指導意見將於明年二月正常發布，但我們想強調我們的首要任務。讓我們開始回顧一下我們的第三季業績。耐莉？

Thank you, Francisco. Our operating results exceeded expectations, driven by strong production, improved operational efficiencies and and lower cost when compared to last quarter. Reservoir performance remained resilient due to the workover program, which effectively manages our production declines. Third quarter production averaged 145,000 barrels of oil equivalent per day and oil averaged 113,000 barrels per day.

謝謝你，弗朗西斯科。與上季相比，由於強勁的生產、營運效率的提高以及成本的降低，我們的營運業績超出了預期。由於修井計劃，油藏表現保持彈性，有效控制了我們的產量下降。第三季日均產量為 145,000 桶油當量，石油日均產量為 113,000 桶。

Oil sold at 96% of Brent after hedges. We generated $402 million in adjusted EBITDAX and $141 million in free cash flow. Results benefited from cash costs that came in approximately 4% below our guidance. In just one quarter and despite weaker commodity prices and merger-related payments, we rebuild our cash balance to more than $200 million and rewarded owners with peer-leading shareholder returns. Our liquidity remains robust at $1.15 billion, and we are committed to reducing debt to our leverage target level in 2025, while continuing our dividend and share repurchase programs.

對沖後，石油以布蘭特原油價格的 96% 出售。我們產生了 4.02 億美元的調整後 EBITDAX 和 1.41 億美元的自由現金流。業績受益於現金成本，比我們的指導值低約 4%。在短短一個季度內，儘管大宗商品價格和合併相關付款疲軟，我們仍將現金餘額重建至超過 2 億美元，並以同行領先的股東回報回報所有者。我們的流動性保持在 11.5 億美元的強勁水平，我們致力於在 2025 年將債務減少到我們的槓桿目標水平，同時繼續我們的股息和股票回購計劃。

We continue to maintain capital discipline and delivered strong quarterly results on lower-than-expected capital of $79 million. This decrease is mainly related to lower-than-expected capital deployment after high-grading our work over projects. We have a track record of returning meaningful cash to shareholders with approximately $965 million returned to shareholders since 2021. In the third quarter, we returned $76 million to shareholders or more than half of the quarter's free cash flow. This was comprised of $34 million in dividends and $42 million in share repurchases.

我們繼續保持資本紀律，並以低於預期的 7,900 萬美元資本交付了強勁的季度業績。這一下降主要與我們對專案工作進行高評級後的資本部署低於預期有關。我們擁有向股東返還大量現金的記錄，自 2021 年以來，我們向股東返還了約 9.65 億美元。第三季度，我們向股東返還了 7,600 萬美元，佔該季度自由現金流的一半以上。其中包括 3,400 萬美元的股息和 4,200 萬美元的股票回購。

If you have questions on our quarterly financial results, Francisco and I will be happy to answer them at the end of our remarks.

如果您對我們的季度財務業績有疑問，弗朗西斯科和我將很樂意在發言結束時回答這些問題。

Francisco, back to you.

弗朗西斯科，回到你身邊。

Thanks, Nelly. Now let's talk about our growing carbon management business. We continue to experience significant interest in our carbon management business from various stakeholders as we make progress in helping solve the dual challenge of quickly reducing California's industrial emissions while delivering reliable and affordable energy. We all share a common goal to safely and rapidly decarbonize California. In our carbon terrible release, we provided some exciting new information, including three major updates.

謝謝，內莉。現在讓我們來談談我們不斷成長的碳管理業務。隨著我們在幫助解決快速減少加州工業排放同時提供可靠且負擔得起的能源的雙重挑戰方面取得進展，我們繼續感受到各利益相關者對我們的碳管理業務的濃厚興趣。我們都有一個共同的目標，就是安全、快速地使加州脫碳。在我們的碳可怕版本中，我們提供了一些令人興奮的新信息，包括三個主要更新。

First, Current County unanimously approved our conditional use permits for CTV I at Elk Hills. For the EPA tracker, we expect to receive our final EPA Class 6 permits for CTV I 26-hour reservoir next month. Shortly after receipt of the EPA permit, we expect to FID and break ground on our first carbon capture to storage project at our Elk Hills gas processing plant.

首先，目前縣一致批准了我們在麋鹿山 CTV I 的有條件使用許可證。對於 EPA 追蹤器，我們預計下個月將收到 CTV I 26 小時水庫的最終 EPA 6 級許可證。在收到 EPA 許可證後不久，我們預計將在 Elk Hills 天然氣加工廠進行 FID 並破土動工實施我們的第一個碳捕集至封存專案。

Next, we recently signed a brownfield MOU to develop carbon solutions for a leading California power company which will allow for up to 1.5 million metric tons per annum of CO2 sequestration. While important to CRC, this partnership is uniquely aligned with California's goal to decarbonize by 2045. I'll take a moment to explain the significance of this MOU. California's regulators have highlighted the importance of carbon sequestration and acknowledge that decarbonizing power is critical as this high-emitting industry is vital to grow our economy.

接下來，我們最近簽署了一份棕地諒解備忘錄，為一家領先的加州電力公司開發碳解決方案，每年可封存高達 150 萬噸二氧化碳。這種夥伴關係雖然對 CRC 很重要，但與加州到 2045 年脫碳的目標有著獨特的契合。我將花點時間解釋這份諒解備忘錄的重要性。加州監管機構強調了碳封存的重要性，並承認脫碳電力至關重要，因為這個高排放產業對我們的經濟成長至關重要。

Our new MOU with Whole Street Energy, a leading power provider in the state that desperately needs more clean power today is aligned with ours and the state's climate objectives. Natural gas is necessary to power in California today and combining it with CCS will deliver net [ GEO ] power, which is needed to achieve the state's climate goals. California's own Senate Bill 100 states, 100% of retail electricity sales be sourced from renewable and CO carbon resources by 2045.

我們與 Whole Street Energy 簽署的新諒解備忘錄與我們和該州的氣候目標一致。如今，天然氣是加州供電所必需的，將其與 CCS 結合將提供淨 [GEO] 電力，這是實現該州氣候目標所需的。加州參議院第 100 號法案規定，到 2045 年，100% 的零售電力銷售將來自再生能源和二氧化碳碳資源。

At CRC, we're doing our part to lead California's decarbonization, but we need regulators to do their part and take fast action on CO2 pipeline regulations to enable the installation of new pipes. This will allow carbon to be safely captured, transported and stored. Our CTV subsidiary is rapidly scaling today with nearly 4.2 million metric tons per annum of CCS projects under consideration and other substantial agreements in discussion.

在 CRC，我們正在盡自己的一份力量來引領加州的脫碳，但我們需要監管機構盡自己的一份力量，對二氧化碳管道法規採取快速行動，以便安裝新管道。這將使碳能夠被安全地捕獲、運輸和儲存。如今，我們的 CTV 子公司正在迅速擴大規模，每年有近 420 萬噸 CCS 專案正在考慮中，其他重大協議正在討論中。

And lastly, we continue to explore multiple opportunities in connection with new AI data centers in California. Having existing power required to run these centers coupled with the desire to decarbonize that power, creates a unique first-mover advantage for CRC. Data centers are expanding rapidly across the country, with contracts for nuclear, SMRs and geothermal energy sources receiving attention. We believe that natural gas power generation with CCS is the best option for tech companies in California, given the expansive existing infrastructure and the ability to reduce emissions.

最後，我們繼續探索與加州新人工智慧資料中心相關的多種機會。擁有營運這些中心所需的現有電力，加上對電力脫碳的渴望，為 CRC 創造了獨特的先發優勢。資料中心正在全國迅速擴張，核能、中小型反應器和地熱能源合約受到關注。我們認為，考慮到現有基礎設施的廣泛性和減排能力，採用 CCS 的天然氣發電是加州科技公司的最佳選擇。

We are positioning CTV as California's energy solutions provider, with the goal of making data centers carbon-free. Together, we can attract and retain highly technical, high-paying jobs and encouraging new investments in our state with the aim of meeting California's aggressive decarbonization goals and helping ensure the reliability of an already taxed power grid. We hope to have more to report soon on CRC's role in creating the carbon-free digital bridge between energy and tech.

我們將 CTV 定位為加州的能源解決方案供應商，目標是使資料中心實現無碳化。我們可以共同吸引和保留高技術、高薪的工作崗位，並鼓勵在我們州進行新的投資，以實現加州積極的脫碳目標，並幫助確保已經徵稅的電網的可靠性。我們希望很快能有更多關於 CRC 在建立能源和技術之間的無碳數位橋樑方面的作用的報告。

Let me close out our remarks with some preliminary thoughts on 2025. Over the last few weeks, we have seen tremendous volatility in oil prices. With this backdrop, we have taken steps to provide near-term cash flow certainty through our significant hedge positions. For the full year 2025, roughly 72% of our oil production is hedged at an average floor price of $67 per barrel. These positions underpin our merger assumptions and support our cash flow.

讓我以對 2025 年的一些初步想法來結束我們的演講。在過去的幾周里，我們看到油價的巨大波動。在這種背景下，我們已採取措施，透過我們的重要對沖頭寸提供近期現金流的確定性。2025 年全年，我們大約 72% 的石油產量以每桶 67 美元的平均底價進行對沖。這些立場支撐了我們的合併假設並支持我們的現金流。

We are confident that we have the right strategy, and our 2025 priorities are clear.

我們相信我們擁有正確的策略，並且 2025 年的優先事項也很明確。

We will maintain our strong balance sheet and improve our bottom line. Through continued capital discipline, delivery of area-related synergies and the strength of our near-term hedges, we expect to generate significant cash to both reduce total debt and return meaningful cash to investors. In the E&P business, we will proactively manage our low natural declines with a combination of workovers, sidetracks, and new wells with permits on hand.

我們將保持強勁的資產負債表並提高我們的利潤。透過持續的資本紀律、提供與地區相關的協同效應以及我們近期對沖的力度，我們預計將產生大量現金，以減少總債務並向投資者返還有意義的現金。在勘探與生產業務中，我們將結合修井、側線鑽探和現有許可證的新井，積極管理我們的低自然遞減率。

We plan to start 2025 with a 1-rig program, which we can sustain through 2026. In Carbon Terravault we will add scale in our leading carbon management business, entering into agreements with new brownfield and greenfield emitters. After years of planning, we're moving closer to our target to inject CO2 into CTV 1 by the end of 2025. In 2025, we will once again demonstrate the strength of our power business. We have resource adequacy contracts in place that will increase these payments by 50% year-over-year to approximately $150 million in 2025.

我們計劃從 2025 年開始實施 1 台鑽機計劃，該計劃可維持到 2026 年。在Carbon Terravault，我們將擴大我們領先的碳管理業務的規模，與新的棕地和綠地排放者簽訂協議。經過多年的規劃，我們正在距離 2025 年底向 CTV 1 注入二氧化碳的目標更近了。2025年，我們將再次展現電力業務的實力。我們已簽訂資源充足性合同，到 2025 年，這些付款將年增 50%，達到約 1.5 億美元。

Lastly, we will aggressively pursue additional cash flow generating opportunities. We are in an unrivaled position to provide solutions for AI data centers the powered industry expansion and other new industries looking to enter our great state. We are a different kind of energy company, and we look forward to unlocking the value of our business for the benefit of our shareholders and our fellow Californians.

最後，我們將積極尋求額外的現金流產生機會。我們處於無與倫比的地位，可以為人工智慧資料中心、推動產業擴張以及其他希望進入我們偉大國家的新產業提供解決方案。我們是一家不同類型的能源公司，我們期待釋放我們的業務價值，造福我們的股東和加州同胞。

With that, we can now open the line for questions.

這樣，我們現在就可以打開提問專線了。

(Operator Instructions) Scott Hanold, RBC Capital Markets.

（操作員說明）Scott Hanold，RBC 資本市場。

Thanks think I want to start with the [ haul ] energy MOU you signed. Obviously, significant in two ways. I think it's your largest agreement to date. And obviously, it's a brownfield situation, you did highlight, obviously, CO2 pipeline regulation in California would be needed -- can you provide -- two things. One, could you provide thoughts on where you think that is right now and a time line of that being addressed?

謝謝，我想從您簽署的[運輸]能源諒解備忘錄開始。顯然，這在兩個方面都很重要。我認為這是你們迄今為止最大的協議。顯然，這是一個棕色地帶的情況，你確實強調了，顯然，加州需要對二氧化碳管道進行監管——你能提供嗎——兩件事。第一，您能否提供您認為現在的情況以及解決該問題的時間表？

And number two, any kind of context around that agreement relative to location of assets in California that would be the first likely area you'd be looking at for that? And what would it take for you to do front-to-end versus just the storage piece.

第二，與加州資產所在地相關的協議的任何背景，這將是您首先考慮的可能領域？與僅儲存部分相比，您需要做什麼才能完成前端到端的工作。

Scott. So yes, regarding CO2 pipelines, that's definitely going to be needed to scale the business to where we want to take it. There's a significant market demand and a market need to reduce emissions. I think our MOU with [ Whole ] Street proves that there's market appetite and -- this is also going to be needed to attract data centers in California. So I think this transaction or this potential transaction highlights the market need to get there.

斯科特.所以，是的，關於二氧化碳管道，肯定需要將業務擴展到我們想要的地方。減少排放有龐大的市場需求和市場需求。我認為我們與 [ Whole ] Street 的諒解備忘錄證明了市場的胃口，而且這也是吸引加州資料中心所必需的。因此，我認為這筆交易或這項潛在交易凸顯了市場實現這一目標的必要性。

So the next step to be able to scale the business because this will certainly be one of many opportunities we bring to the table will be the connectivity on pipe. As we talked about before, we have 2 ways to think about pipelines. One is a California can roll make around their SB [indiscernible] 5 build to be able to regulate pipelines throughout the state. But we also are looking at the federal government, and I believe they're going to start the drafting our potential pipeline legislation soon. So we definitely needed to scale the business as we think about our portfolio of greenfield and brownfield.

因此，能夠擴展業務的下一步是管道連接，因為這肯定是我們帶來的眾多機會之一。正如我們之前談到的，我們有兩種思考管道的方法。其中之一是加州的可滾動製造，圍繞其 SB [音訊不清晰] 5 構建，能夠監管全州的管道。但我們也在關注聯邦政府，我相信他們很快就會開始起草我們潛在的管道立法。因此，在考慮我們的綠地和棕地投資組合時，我們肯定需要擴大業務規模。

We like the combination of two new fuels with greenfield existing emitters with brownfields, but this is just a start, right? And the evidence of the market support the evidence of the market needs are going to be critical to take this going forward. So the nice thing is we were able to be -- continue to be very selective as we advance the permitting process and getting to this first-ever CUP permit at Kern County awaiting the EPA.

我們喜歡將兩種新燃料與現有排放源和棕地結合，但這只是一個開始，對吧？市場的證據支持市場需求的證據對於推動這一進程至關重要。因此，令人高興的是，我們能夠繼續非常有選擇性地推進許可流程，並在克恩縣獲得第一個 CUP 許可，等待 EPA。

We're able to now get to the next stage of our development, which is this brownfield emitter portfolio that we've been building. So excited that we got here with Whole Street to announce an MOU today. We're not being specific at this point on project details. There's still things to work through. But we're building the queue.

我們現在可以進入下一階段的開發，這就是我們一直在建造的棕地發射器產品組合。很高興我們今天與 Whole Street 宣布簽署諒解備忘錄。目前我們還沒有具體說明項目細節。還有一些事情要解決。但我們正在建立隊列。

We're building that inventory or brownfield emitters and a lot more to go.

我們正在建造庫存或棕地排放器以及更多的東西。

I appreciate the context. And as my follow-up, obviously, the political landscape is been pretty dynamic, we'll say, in the last month or so. And obviously, but the change that Kern bought last night, how do you think about the prior agreements that you've signed were they very reliant on the IRA bill that was put out there? Or do you think if there is some uncertainty in the IRA dollar, that changes those prior agreements really from a financial perspective, don't change for you all too much.

我很欣賞這個背景。作為我的後續行動，顯然，我們可以說，在過去一個月左右的時間裡，政治格局非常活躍。顯然，但是克恩昨晚購買的改變，你如何看待你之前簽署的協議，如果它們非常依賴那裡提出的愛爾蘭共和軍法案？或者你認為如果 IRA 美元存在一些不確定性，這從財務角度真正改變了那些先前的協議，對你們來說不會改變太多。

Yes. We headed into the election looking at the aspects of the IRA that we're working through as bipartisan. So if you look at carbon capture and sequestration, it's really been done nationally. There's a lot of interest in states that have both the emissions and the capability to sort of irrespective of the -- if they're red or blue states, we think this is the right compromise solution, right, to use your existing infrastructure and retrofit with CCS.

是的。我們在選舉前研究了我們作為兩黨合作正在解決的愛爾蘭共和軍的各個方面。因此，如果你看看碳捕獲和封存，你會發現這確實是全國範圍內完成的。人們對那些既有排放量又有能力的州很感興趣，無論它們是紅州還是藍州，我們認為這是正確的折衷解決方案，對吧，使用現有的基礎設施和改造與CCS。

So we went into the election thinking it's bipartisan. Certainly, Red State CO2 for EOR, so we don't see that changing at all. So we think this -- the IRA is the right thing to bring more technology and investment forward, but as we think about our California projects, there's multiple ways to ultimately meet these projects viable, right? So IRA is one component. We feel very, very good about that.

所以我們在參加選舉時認為這是兩黨合作的。當然，紅州二氧化碳用於 EOR，所以我們認為這種情況根本不會改變。所以我們認為，IRA 是推動更多技術和投資的正確之舉，但當我們思考我們的加州計畫時，有多種方法可以最終實現這些計畫的可行性，對嗎？所以 IRA 是其中一個組成部分。我們對此感覺非常非常好。

We also have the LCFS program here locally. And -- but what we're starting to also develop is both the voluntary credit market is starting to take hold, but then you also are going to start seeing a premium value to having clean electrons and clean products, right? That's where the bringing the data centers, and it doesn't have to be data centers, right? It could be really any customer that sees value in having clean baseload power or clean lower carbon intensity fuels, that will come to the table and really benefit on CCS.

我們在當地也有 LCFS 計劃。而且 - 但我們也開始開發的是自願信貸市場開始佔據主導地位，但隨後您也將開始看到擁有清潔電子和清潔產品的溢價，對嗎？這就是引入資料中心的地方，而且不一定是資料中心，對吧？實際上，任何認為擁有清潔基載電力或清潔低碳強度燃料的價值的客戶都會參與進來，並真正從 CCS 中受益。

So if you look at the entirety of the incentives, and the market opportunity, we don't see an over reliance on one versus the other. We think the whole kit is going to be ultimately what's needed to make this the CCS, the carbon management business really take off nationally, but for us specifically in California, we see multiple ways to win, multiple ways to bring these projects forward, and we don't see that changing at all with the election.

因此，如果你看看整個激勵措施和市場機會，我們不會看到對其中一種的過度依賴。我們認為整個工具包最終將是使CCS、碳管理業務在全國真正起飛所需的東西，但對於我們特別是在加利福尼亞州來說，我們看到了多種獲勝方式，多種方式來推動這些項目，而我們認為這種情況不會因選舉而有任何改變。

Kalei Akamine, Bank of America.

卡雷‧阿卡明 (Kalei Akamine)，美國銀行。

I guess, first, it's really good to see some definition forming around the option value in your portfolio. As you know, we've been pretty constructive on your power business and the opportunity to take some of those was behind the meter if there's demand for clean baseload power, we think that you guys are well positioned to provide it. And I guess that brings me to the MOU.

我想，首先，很高興看到圍繞您的投資組合中的選擇價值形成一些定義。如你所知，我們對你的電力業務非常有建設性，如果有清潔基荷電力的需求，我們就有機會抓住其中一些，我們認為你們有能力提供它。我想這讓我想到了諒解備忘錄。

I don't think it's coincidence that this comes after receiving the surface permit, you've got the Class 6 pencil in for December. Can you give us a sense of the work that's been building up behind the Class 6 and in anticipation of that milestone, and whether we should expect even more news flow after getting that permit.

我不認為這是在收到地面許可證後發生的巧合，你已經在 12 月拿到了 6 級鉛筆。您能否讓我們了解一下 Class 6 背後正在進行的工作以及對這一里程碑的預期，以及我們是否應該在獲得許可後期待更多的新聞流。

Yes, we -- thanks, Kalei, for the question. So Yes, we've been talking about our Class V permit for 3 years. So it's great to finally get there where we achieved this milestone in first ever, right? So we can't dismissed the amount of effort that went into decisioning the company to get this permit in Kern County for a conditional use really testament to the team about being able to create value and ultimately bring these projects forward.

是的，我們——謝謝卡雷提出的問題。是的，我們已經談論 V 級許可證 3 年了。所以很高興終於到達了我們有史以來第一次實現這一里程碑的地方，對吧？因此，我們不能忽視該公司在決定在克恩縣獲得有條件使用許可證所付出的巨大努力，這確實證明了該團隊有能力創造價值並最終推動這些項目。

It is an important milestone, but we're not done. We see -- I mean, clearly, the EPA permit should come next in tracking towards next month. And -- but as we've been thinking for several years now on the magnitude and impact of the business, there is significant work, as you say, in understanding first, where the value chain ultimately fits. And just to recap, we see a state that wants to be carbonized. We see a state that by law needs to decarbonize.

這是一個重要的里程碑，但我們還沒完成。我們看到——我的意思是，很明顯，美國環保局的許可證應該在下個月的跟踪中緊隨其後。而且，正如我們多年來一直在思考業務的規模和影響一樣，正如您所說，首先要了解價值鏈最終適合的地方，還有大量工作要做。回顧一下，我們看到了一個想要碳化的狀態。我們看到一個國家依法需要脫碳。

We have carbon taxes, a greenhouse gas tax that emitters paid today, we see a real need to find and extend the life of a lot of great infrastructure that's already in place. and paid for by other emitters.

我們徵收碳稅，即排放者今天繳納的溫室氣體稅，我們看到確實需要找到並延長許多已經到位的大型基礎設施的壽命。並由其他排放者支付。

So when we looked at the landscape, we saw this opportunity to deploy capital alongside with Brookfield across the value chain -- in -- but as you go through a first of a kind, then you have people that want to take the weight -- let's wait and see CRC can deliver. I think the proof point is there that we were making really good progress that we're ahead of anybody else in the state. And you can see that with our MOU today. The -- and that I believe the SEM will apply to data centers. You see a real need, a market need, but then when you drive on a first-of-a-kind solution like natural gas combined cycle with CCS, I think it's legitimate for people to say, okay, is this real or not.

因此，當我們審視情況時，我們看到了與布魯克菲爾德一起在整個價值鏈上部署資本的機會，但當你經歷第一次的時候，就會有人想要承擔重任——讓我們拭目以待CRC 能否交付。我認為證據就是我們正在取得非常好的進展，我們領先於州內的其他任何人。您可以透過我們今天的諒解備忘錄看到這一點。我相信 SEM 將適用於資料中心。你看到了真正的需求，市場需求，但是當你採用諸如天然氣聯合循環與 CCS 之類的首創解決方案時，我認為人們有理由說，好吧，這是否真實。

And I think we're right there, right? So yes, to the question of, do I -- would I expect more, absolutely. The markets strive for these solutions, and we're ready to provide them.

我想我們就在那裡，對吧？所以，是的，對於這個問題，我絕對會期望更多嗎？市場正在尋求這些解決方案，而我們已準備好提供它們。

Obviously, you can't speak to other conversations other than to say that I would expect more to come in the coming months. as we have a finite resource, which is port space. These reservoirs will get full over time. So I think the time has come to bring in the right partners, the right long-term partners that ultimately get a clear benefit from being able to do storage and capture of CO2.

顯然，除了說我預計未來幾個月會有更多內容之外，你不能談論其他對話。因為我們的資源是有限的，那就是港口空間。隨著時間的推移，這些水庫將會充滿。因此，我認為現在是時候引入合適的合作夥伴，合適的長期合作夥伴，最終從二氧化碳封存和捕獲中獲得明顯的好處。

I appreciate that, Francisco. This is my really quick follow-up. So last week, the regulators at FERC pushed back on Susquehanna plant going behind the meter. Can you talk a little bit about why the California market is different than EGM? And I'll leave it there.

我很感激，弗朗西斯科。這是我的快速跟進。因此，上週，聯邦能源監管委員會 (FERC) 的監管機構拒絕了薩斯奎哈納工廠進行電錶計量的決定。您能談談為什麼加州市場與 EGM 不同嗎？我會把它留在那裡。

Yes. And I won't speak to what's happening in other states and I might not know the details to speak to them. But what's the dynamic in California is unique. We laid out already, there's mandates to be carbonized. And this is not about -- there's both carrots and sticks around that ultimately to make these companies viable going forward, they need to find a solution to store that CO2.

是的。我不會談論其他州正在發生的事情，我可能不知道與他們交談的細節。但加州的動態是獨一無二的。我們已經制定了碳化的要求。這並不是說胡蘿蔔加大棒，最終為了讓這些公司能夠繼續前進，他們需要找到解決方案來儲存二氧化碳。

We can continue our goal is to lower emissions. So when we think about what's in place in California, there's a significant penetration of renewable solar and wind, and there's an appetite to move away from natural gas power. -- well, as we do that, what we've seen is a cost increase to consumers and electricity. We've also seen a lack of reliability in the system. So as we think forward as to okay, what do we need to do, so will deliver both, right, that they should not be mutually exclusive.

我們可以繼續實現降低排放的目標。因此，當我們考慮加州的情況時，再生太陽能和風能的滲透率顯著提高，人們有放棄天然氣發電的興趣。 ——嗯，當我們這樣做時，我們看到的是消費者和電力成本的增加。我們也發現系統缺乏可靠性。因此，當我們思考我們需要做什麼時，我們將同時實現這兩個目標，對吧，它們不應該是相互排斥的。

We can lower emissions and we can provide reliability.

我們可以降低排放並提供可靠性。

We think it's this infrastructure that's in place that today acts more as peaking speakers and not a space lower, these are going to be great solutions for the state. And the key is to take some of these power behind the meter that's not servicing the communities, but it also can be used to attract new businesses that ultimately have a great benefit for California. So the dynamics are different here. We have excess capacity in natural gas generation. We're going to make it clean, and we're going to -- we like to bring it behind the meter.

我們認為，正是這種基礎設施如今更多地充當峰值揚聲器而不是較低的空間，這些將成為該州的絕佳解決方案。關鍵是要利用一些不為社區服務的電力，但它也可以用來吸引新企業，最終為加州帶來巨大利益。所以這裡的動態是不同的。我們的天然氣發電量過剩。我們要讓它變乾淨，我們想要──我們喜歡把它帶到儀表後面。

Betty Jiang, Barclays.

蔣貝蒂，巴克萊銀行。

It's definitely great to see the momentum that you're seeing in the current management business. But as those activities start to pick up and you're imminent to FID, the -- your own gas processing carbon capture project. starting for next year. How should we be thinking about the CapEx -- the capital allocation that you expect to put into the carbon management business next year? And just help us remind us like what percentage of the capital is being spent at the CRC level versus what's being funded at the subsidiary JV level?

很高興看到當前管理業務的發展勢頭。但隨著這些活動開始增多，您即將進行 FID，即您自己的天然氣加工碳捕獲專案。從明年開始。我們該如何考慮資本支出－您預計明年投入碳管理業務的資本配置？請幫我們提醒我們，CRC 層級的資本支出與子公司合資企業層級的資金佔比分別是多少？

Yes, Betty, thanks for the question. So our first project, 35R is our own carbon capture project of an existing facility pre combustion of CO2, we're going to strip out the CO2 from the gas stream. Expect to get to FID on that project very shortly after we receive -- we have receipt of the EPA permit it's basically the last remaining condition precedent to move forward on the project. As we stated before, that project is less than $20 million is, I would say, a relatively simple modification of the existing plant.

是的，貝蒂，謝謝你的提問。因此，我們的第一個項目 35R 是我們自己的碳捕獲項目，是對現有二氧化碳預燃燒設施進行的，我們將從氣流中去除二氧化碳。預計在我們收到 EPA 許可證後不久就會對該專案進行最終投資決定，這基本上是推進該專案的最後一個剩餘先決條件。正如我們之前所說，該項目不到 2000 萬美元，我想說的是，對現有工廠進行相對簡單的改造。

We also have the injector very, very close by things like 4,000 feet away. So very short pipe the facility really exists and it can be modified -- so low capital project, and we'll disclose the details once we reach FID. And so I would say 2025, it will depend on other projects that we may bring to the table. But for now, when we have line of sight to and we communicated to the market is just this project 25R in terms of capital. The run rate of the business is a combination of permits and termination of people cost.

我們的噴射器也非常非常接近，距離大約 4,000 英尺。非常短的管道該設施確實存在並且可以進行修改——如此低的資本項目，一旦我們達到最終投資決定，我們將披露細節。所以我想說 2025 年，這將取決於我們可能提出的其他項目。但目前，當我們看到並向市場傳達的只是這個項目在資本方面是25R。企業的運作率是許可證和人員終止成本的組合。

So that's disclosed in our financials, small amount of run rate OpEx and G&A to move these projects forward.

因此，我們的財務報表中揭露了這一點，即少量的運行費率營運支出和一般行政費用，以推動這些項目向前發展。

The big capital projects will come later as we advance the capture transport and storage business in particular to brownfield emitters. And that's where we have a great partnership and joint venture with Brookfield, where if you recall, we have the ability to sell down a portion of the port space, 49% working interest in the port space at $10 per ton, that ultimately helps us finance the capital costs on the CRC business effectively, we could become a self-funding business as we move the ball forward.

隨著我們推動捕集運輸和儲存業務，特別是針對棕地排放者，大型資本項目將在稍後推出。這就是我們與布魯克菲爾德建立良好合作夥伴關係和合資企業的地方，如果你還記得的話，我們有能力以每噸10 美元的價格出售一部分港口空間，即港口空間49% 的工作權益，這最終對我們有幫助如果能夠有效地為 CRC 業務的資本成本提供資金，隨著我們的推進，我們可以成為一家自籌資金的企業。

So I would say 2025 should be a year of further proof points further market evolution. I would expect more emitters of the different industries to come in and partner with us expect to continue advancing in those fronts. But capital for the most part, should be limited in '25 to more the 35R projects that we're launching this year. And then we'll see in 2026, we should be ready to talk about further larger capital investments.

因此，我認為 2025 年應該是進一步證明市場進一步發展的一年。我預計會有更多不同行業的排放者加入並與我們合作，期望繼續在這些領域取得進展。但大部分資金應該限制在 25 年，以支持我們今年推出的更多 35R 項目。然後我們會看到，到 2026 年，我們應該準備好討論進一步更大規模的資本投資。

That's really helpful. My follow-up is on cash return and buy back specifically. The third quarter, we see the first full quarter of error impact and seeing the free cash -- the cash flow generation capability of the business. The adjusted free cash flow is $171 million this quarter, and then you bought back only $42 million. It's a bit less than I thought you are capable of doing.

這真的很有幫助。我的後續是現金返還，具體是回購。第三季度，我們看到了第一個完整季度的錯誤影響，並看到了自由現金——企業的現金流產生能力。本季調整後的自由現金流為 1.71 億美元，然後你只回購了 4,200 萬美元。這比我想像的你能做的要少一些。

So as we look forward to the business protected by hedges. So should we be expecting that buyback pace to pick up or any reason that it wouldn't?

因此，我們期待受到對沖保護的業務。那麼，我們是否應該預期回購步伐會加快，或者有什麼理由不會加快？

So the first point to raise, Betty, is we see tremendous value in our stock. If you think about all the business lines that we have, the business opportunities, all the catalysts that we have and great to see the first catalyst starting to arrive with our MOU today, we don't see the value captured in the stock, so as long as that continues, we'll continue buying back our shares aggressively.

因此，貝蒂，首先要提出的一點是，我們看到我們的股票具有巨大的價值。如果你考慮我們擁有的所有業務線、商機、我們擁有的所有催化劑，並且很高興看到今天第一個催化劑開始隨著我們的諒解備忘錄而到來，我們看不到股票中捕獲的價值，所以只要這種情況持續下去，我們就會繼續積極回購我們的股票。

We bought back -- if we have a share repurchase program since 2021. And if you look at the track record over the last 4 years, we've used about 65% of our free cash flow to buy back shares, right? So that's the indication of the past. As you point out, the ERA transaction brings more stability, bigger scale and more cash flow to the business. We -- as we closed the Aera transaction, we took our cash levels down to 0, and then we rebuilt it in one quarter to over $200 million, right, just to showcase again the -- it showcases the capacity, the cash flow capacity of the business.

如果我們自 2021 年以來有股票回購計劃，我們就會回購。如果你看看過去 4 年的業績記錄，我們已經使用了大約 65% 的自由現金流來回購股票，對吧？這就是過去的跡象。正如您所指出的，ERA交易為企業帶來了更多的穩定性、更大的規模和更多的現金流。我們——當我們完成 Aera 交易時，我們將現金水平降至 0，然後我們在一個季度內將其重建到超過 2 億美元，對吧，只是為了再次展示——它展示了能力，現金流能力的業務。

So we still have about $600 million remaining under the board authorization on the share buyback. And we evaluate it every day. We look at ways to deploy capital in a smart way. And like I said, we have a lot -- we see a lot of value in the stock. So we haven't been prescriptive on a go-forward basis as to how many shares we're going to buy, but we've -- I think we can look at our track record as evidenced of what we've done and what we might be heading if the opportunities continue.

因此，根據董事會授權，我們仍有約 6 億美元的股份回購剩餘。我們每天都會對其進行評估。我們研究如何以明智的方式部署資本。就像我說的，我們有很多——我們看到股票有很大的價值。因此，我們還沒有就未來要購買多少股票做出規定，但我們——我認為我們可以看看我們的業績記錄，以證明我們已經做了什麼和做了什麼如果機會繼續存在，我們可能會前進。

So we -- the nice thing about our cash generation business and the hedge book is -- we also can bring down debt.

因此，我們的現金產生業務和對沖帳簿的好處是，我們還可以減少債務。

We have about $240 million of 2026 bonds outstanding. We're also looking at that. Those are callable at par starting next year. So that's the commitment that you have with CRC. We'll manage a very strong balance sheet and our liquidity and deploy capital in a way that ultimately rewards investors in different forms.

我們有約 2.4 億美元的 2026 年未償還債券。我們也在關注這一點。從明年開始，這些債券可以以面額贖回。這就是您對 CRC 的承諾。我們將管理非常強大的資產負債表和流動性，並以最終以不同形式回報投資者的方式配置資本。

So that's where I'll leave it on the shareholder return policy.

這就是我將把它留在股東回報政策上的地方。

David Deckelbaum, TD Cowen.

大衛·德克爾鮑姆，TD·考恩。

I was curious, just as you think about 2025, obviously, there was an outperformance in the upstream business on just capital deployment this quarter. As you integrate the Aera assets and you think about -- you kind of gave some bookends around production guidance for next year. But as you think about optimization, was some of that optimization and high-grading workovers this quarter more of a onetime thing? Or do you see freezer opportunities as you kind of look through that portfolio where you could significantly lower capital expenditures next year as you kind of look at the high grading?

我很好奇，正如你對2025年的看法一樣，很明顯，上游業務在本季的資本部署上表現出色。當你整合 Aera 資產並思考時，你就為明年的製作指導提供了一些書擋。但當您考慮優化時，本季的一些優化和高等級修井工作是否更像是一次性的？或者，當您查看該投資組合時，您是否看到了冷凍機會，當您考慮高評級時，您明年可以顯著降低資本支出？

Yes. No, first of all, we see a lot of opportunities as we continue to integrate. We now have the hands on the steering wheel. We'll have a really good sense of the opportunity set and the capacity of the business. Yes, the bread and butter of California is through workover some sidetracks and those are great projects that make really good returns and help offset the decline.

是的。不，首先，隨著我們不斷整合，我們看到了許多機會。現在我們的手已經放在方向盤上了。我們將對機會集和業務能力有非常好的認識。是的，加州的生計就是透過修復一些側線而實現的，這些都是偉大的項目，可以帶來非常好的回報，並有助於抵消下降的影響。

I would not say that the third quarter is evidence of any sort of onetime activity. I think that it's the continuation of the business is to continue to really focus on those type of projects on a go-forward basis.

我不會說第三季是任何一次性活動的證據。我認為業務的延續就是繼續真正關注這些類型的專案。

We obviously are not going to guide today to 2025 in terms of specifics, but we see a very similar trajectory of the business in 2025 from an E&P perspective in terms of our capital deployment in terms of activity set in terms of decline rates. So -- it's a steady business in that we can do a lot of the blocking and tackling by surveillance, base management, workovers inside track and expect that to continue as we keep getting a lot of -- we've been rebuilding the permit inventory as well.

顯然，今天我們不會就具體細節來指導 2025 年，但從勘探與生產的角度來看，我們在資本部署方面看到了 2025 年的業務軌跡，並根據遞減率設定了活動。所以——這是一項穩定的業務，因為我們可以透過監視、基地管理、軌道內修井來完成大量的封鎖和處理工作，並預計隨著我們不斷獲得大量許可，這種情況將繼續下去— —我們一直在重建許可證庫存以及。

So we see the same similar trajectory into next year as we've had this year. And it was great to see the production coming in strongly as it did. That's just a testament to the quality of the assets and the quality of the team that runs on.

因此，我們看到明年的軌跡與今年的軌跡相同。很高興看到製作如此強勁。這只是資產品質和營運團隊品質的證明。

I appreciate the color there. And congrats, obviously, on the MOU on the carbon storage side. I am curious if you have an update on just your views on the solar market as it relates to your our surface acreage is obviously something that you had highlighted last quarter. I think you guys had around 84, 85 megawatts of projects in development. As you kind of consider all of the solutions for increasing power generation in the state.

我很欣賞那裡的顏色。顯然，祝賀碳儲存的諒解備忘錄。我很好奇您是否有關於太陽能市場的最新看法，因為這與您上季度強調的我們的地面面積顯然有關。我認為你們正在開發大約 84、85 兆瓦的專案。當您考慮增加該州發電量的所有解決方案時。

Obviously, there's a huge opportunity with carbon capture and a clean energy source from existing emitters. How are things progressing on the solar side? And are you seeing -- how would you kind of weigh the demand for opportunity between solar and use of surface acreage versus inbounds around carbon capture?

顯然，碳捕獲和現有排放者的清潔能源蘊藏著巨大的機會。太陽能方面的進度如何？您是否看到，您將如何權衡太陽能和地表面積使用與碳捕獲方面的入境之間的機會需求？

Yes, it is very complementary. As the largest mineral acreage holder in the state in a pretty significant surface owner a lot of solar projects are enabled through our land. We have the ability to bring more solar solutions into California. So those are progressing well. And it's going to be part of the portfolio of clean energy that we offer.

是的，這是非常互補的。作為該州最大的礦產面積持有者和相當重要的地表所有者，許多太陽能計畫都是透過我們的土地啟用的。我們有能力為加州帶來更多太陽能解決方案。所以這些進展順利。它將成為我們提供的清潔能源產品組合的一部分。

But I really don't want to stop the conversation there. If you think about -- would we have battery solutions and more traditional battery solutions that we're considering. But were you so have a great opportunity to bring what's called Enhanced geothermal into California.

但我真的不想就此停止談話。如果你想一想，我們是否有電池解決方案以及我們正在考慮的更傳統的電池解決方案。但是，您是否有一個很好的機會將所謂的增強型地熱引入加利福尼亞州？

And that is using the heat from reservoirs and natural heat from reservoirs or in the steam flooding to create Clean Energy. And that's using basically the earth as a battery and the ability to bring that energy is something that hasn't really excited as well. So we're looking at many fronts, whether it's to provide backup power for data centers or to further make the great green we see ourselves of incubators of these technologies in more so because we have the reservoirs. We have the land. We have the -- in a lot of cases, the interconnectivity to make these projects go from great idea generation into solid solutions.

這是利用水庫的熱量和水庫或蒸汽驅的自然熱量來創造清潔能源。這基本上是使用地球作為電池，而帶來這種能量的能力並沒有真正令人興奮。因此，我們正在考慮許多方面，無論是為資料中心提供備用電源，還是進一步使我們看到的這些技術的孵化器更加綠色，因為我們有水庫。我們有土地。在很多情況下，我們擁有互連性，可以使這些項目從偉大的創意轉變為可靠的解決方案。

So it's -- we're building that portfolio that it's not just solar like I said, is traditional geothermal enhance geothermal, it's battery storage.

所以，我們正在建立這樣的投資組合，它不僅僅是像我說的那樣的太陽能，是傳統的地熱增強地熱，它是電池儲存。

And we really like how this business is heading as again, as we mentioned many times, it's the -- it's a full solution platform, and it's embracing the California's trajectory to decarbonize. We also won lower emissions and our projects are going to deliver.

我們真的很喜歡這項業務的發展方向，正如我們多次提到的，它是一個完整的解決方案平台，它正在擁抱加州的脫碳軌跡。我們還贏得了較低的排放量，我們的專案即將實現。

Josh Silverstein, UBS.

喬許·西爾弗斯坦，瑞銀集團。

So I had a couple of upstream questions for you guys. First, just on oil realizations. I'm curious what you guys see potentially happening down the road, given the recent news of a California refinery shutting down and maybe perhaps other shutting down. I know you guys are more linked to Brent. Do you see any of the discount or the -- I guess, the discount that you guys have to Brent or the improve the higher realization relative to WTI changing at all from this over the next few years?

所以我有幾個上游問題想問你們。首先，僅談石油的實現。鑑於最近加州一家煉油廠關閉以及其他煉油廠關閉的消息，我很好奇你們認為未來可能會發生什麼。我知道你們與布倫特的關係更密切。您認為未來幾年內，您對布蘭特原油的折扣或相對於 WTI 的更高變現是否會改變？

Yes. No, appreciate the question. The -- I think the reality is that just to remind the audience is California consumes a lot of oil through gasoline and jet fuel. I think where California is 1/10 of the entire consumption of gasoline and about 1/3 of the jet fuel. So the demand is still very much there.

是的。不，感謝這個問題。我認為現實是，只是為了提醒觀眾，加州透過汽油和航空燃油消耗了大量石油。我認為加州的汽油消耗量佔全部汽油消耗量的 1/10，約佔航空燃油消耗量的 1/3。所以需求還是很大的。

So then if you look at the refining capacity of the state, we have about 1.5 million barrels that get produced to refining in that, say, compared to the California production of close to 300,000 barrels a day, more than 1/3 coming from CRC.

因此，如果你看看該州的煉油能力，我們大約有 150 萬桶石油用於煉油，相比之下，加州每天的產量接近 30 萬桶，其中超過 1/3 來自 CRC 。

These refineries were built for California crude, in the bit you have, you look at the Nelson complexity, the ability to create jet fuel and other products to this. That's what these refineries need today. So we use our crude as a blending source. So as you bring lighter crude or high sulfur crude from other states or countries, a lot of foreign country imports there's a strong preference for our crude to blend it. So that's why you continue to see very high realizations even on our heavy crude that trades above WTI in California.

這些煉油廠是為加州原油建造的，在你所掌握的資訊中，你可以看到尼爾森的複雜性、製造噴射燃料和其他產品的能力。這就是這些煉油廠今天所需要的。因此，我們使用原油作為混合來源。因此，當您從其他州或國家進口輕質原油或高硫原油時，許多外國都會進口，因此人們強烈傾向於將我們的原油混合。因此，即使我們在加州的重質原油交易價格高於 WTI，您仍然會看到非常高的變現。

So -- but maybe I'll turn it to JBVs to see if he has anything else to add.

所以——但也許我會將其轉給 JBVs，看看他是否還有其他需要補充的內容。

I think Francisco basically captured the estimate of this $1.5 million demand versus $300,000 native production. It's a nice ratio. These refineries really built to accrue, and that's not changed. It could change, but it would take capital investment, which I think right now, we'd find most refiners reticent to make. So I think for the time being, we're going to continue to see strong demand for our products in particular.

我認為弗朗西斯科基本上捕捉到了 150 萬美元的需求與 30 萬美元的本土產量的估計。這是一個不錯的比例。這些煉油廠確實是為了增值而建造的，這一點沒有改變。它可能會改變，但這需要資本投資，我認為現在大多數煉油廠都不願意投資。因此，我認為目前我們將繼續看到對我們產品的強勁需求。

Got it. Next one is I'm curious what you guys need to do to implement and execute on the remaining $100 million of the Aera synergies, you've done a really good job on the financing and G&A side. It looks like the bulk of the $100 million is more operational related. So what needs to happen for you guys to execute on that?

知道了。下一個問題是，我很好奇你們需要做什麼來實施和執行 Aera 剩餘的 1 億美元協同效應，你們在融資和一般行政費用方面做得非常好。看起來這 1 億美元中的大部分與營運相關。那你們需要做什麼才能執行呢？

Yes, I appreciate the question. That's an absolutely tremendous job by the team. And we talked about it as we announced the Aera merger. This is a unique fit of assets. They're right next to each other, have been run independently for decades.

是的，我很欣賞這個問題。這對團隊來說絕對是一項艱鉅的工作。我們在宣布 Aera 合併時討論了這個問題。這是一種獨特的資產組合。它們彼此相鄰，並且已經獨立運作了幾十年。

So when we talked about synergies and the confidence we had on those -- it wasn't just about rightsizing an organization and thinking about the organization, we are really focused on a lot of the operational synergies. You can see in our slide deck, the disclosure we have between G&A and OpEx. And ultimately, we see a natural progression of synergies, focus on supply chain focus on infrastructure optimization and employ optimization. But I'll pass it over to Omar Hayat to provide more color and some examples on where the next $200 million will come from.

因此，當我們談論協同效應以及我們對此的信心時，這不僅僅是關於調整組織規模和思考組織，我們真正關注的是許多營運協同效應。您可以在我們的幻燈片中看到我們在 G&A 和 OpEx 之間的揭露。最終，我們看到協同效應的自然發展，專注於供應鏈、基礎設施優化和員工優化。但我會將其轉交給 Omar Hayat，以提供更多資訊和一些關於下一個 2 億美元將來自何處的示例。

Yes. Thank you. So the way to think about synergies is really think about it on a time line. But what we have done so far is we have executed the projects that we can execute fast and deliver value, which is the workforce optimization and the supply chain contracts reevaluating them moving the combined company to more favorable contracts now that we have doubled our scale.

是的。謝謝。因此，考慮協同效應的方法實際上是按時間線來考慮。但到目前為止，我們所做的是，我們已經執行了可以快速執行並提供價值的項目，即勞動力優化和供應鏈合同，重新評估它們，使合併後的公司能夠獲得更有利的合同，因為我們的規模已經擴大了一倍。

The next thing in the line is really around infrastructure consolidation. And what we're looking at here is leveraging our proximity to Era assets. and connecting those assets to move the products in the most economical direction. So what I mean by that is that if you look at power, while we feed most of our operations with our own generated power and therefore, can provide power at a low cost, there are still leases and assets that are on PG&E power at a higher cost.

接下來的事情實際上是圍繞基礎設施整合。我們在這裡關注的是利用我們與 Era 資產的接近程度。並將這些資產連結起來，將產品推向最經濟的方向。所以我的意思是，如果你看看電力，雖然我們用自己發電的電力來滿足我們的大部分業務，因此可以以低成本提供電力，但仍然有PG&E 電力的租賃和資產以較低的價格使用。

So we look at the opportunities to bring those assets at a lower energy cost by power provided from our own assets. Similarly, if you look at gas, we are net producers in Elk Hills and let consumers in Belridge, a true major field. So we have recently connected those 2 fields. And we'll look at moving the gas in the right direction based on prices and consumption. We also have a lot of capacity in our cryogenic gas plant at Elk Hills, and not all our assets are connected to that plant.

因此，我們尋找機會透過我們自己的資產提供電力，以較低的能源成本來實現這些資產。同樣，如果你看看天然氣，我們是埃爾克山的淨生產商，並讓消費者在貝爾里奇，一個真正的主要油田。所以我們最近連接了這兩個領域。我們將考慮根據價格和消耗將天然氣推向正確的方向。我們位於埃爾克山的低溫氣體工廠也擁有大量產能，但並非我們所有的資產都與該工廠相連。

So there is a large opportunity we see in bringing gas to CGP and extract natural gas liquids in the future.

因此，我們認為未來將天然氣引入 CGP 並提取天然氣液體將有很大的機會。

And comments that were made earlier by Jay and Francisco, we now produce quite an array of oil in terms of API gravity, and our marketing team continuously works with operations to look at the right brands to send to refineries to optimize our realization prices.

Jay 和 Francisco 早些時候發表的評論是，我們現在生產的 API 比重相當多的石油，我們的行銷團隊不斷與營運部門合作，尋找合適的品牌發送到煉油廠，以優化我們的實現價格。

And then finally, the water is the same way. There are disposal capacities. We have access disposal capacity in some areas. We are [indiscernible] and others. So we'll consolidate to optimize cost around water movement.

最後，水也是一樣的。有處置能力。我們在某些​​地區擁有無障礙處置能力。我們是[音頻不清晰]和其他人。因此，我們將進行整合，以優化水運的成本。

So those are just some of the examples around infrastructure consolidation.

這些只是基礎設施整合的一些例子。

Scott Gruber, Citigroup.

史考特‧格魯伯，花旗集團。

I covered a lot of ground. So just one for me given the MOU announced. I'm curious, is big tech interested in directly underwriting capture on gas plants? Are you having those types of conversations? Or is it kind of the broader market forces here and the incentives in place that's really underpinning the interest for capital to come into the space.

我涵蓋了很多內容。鑑於諒解備忘錄已公佈，我只提供一份。我很好奇，大型科技公司是否有興趣直接承保天然氣工廠的捕獲？你有這些類型的對話嗎？還是這裡更廣泛的市場力量和適當的激勵措施真正支撐了資本進入該領域的興趣。

Just curious how direct or indirect, that big tech driver is today when it comes to capture on gas plants.

只是好奇，在天然氣工廠的捕集方面，現今的大型科技驅動力是多麼直接或間接。

I think we're about to find out. The -- when you have a project that really very few people have -- no one has at the stage we have, which is the ability to take great infrastructure natural gas combined cycle power and then do CCS to lower emissions. It really solves for everything that we think Big Tech is looking for as they develop AI. So why are we not seeing announcements across the U.S. because it doesn't exist, right?

我想我們即將找到答案。當你有一個很少人擁有的專案時，在我們所處的階段，沒有人擁有這種能力，即利用大型基礎設施天然氣聯合循環發電，然後進行 CCS 來降低排放的能力。它確實解決了我們認為大型科技公司在開發人工智慧時所尋求的一切。那麼為什麼我們在美國看不到任何公告，因為它不存在，對嗎？

But you see the power hungry they are looking in every direction to get their hands on power as they compete for market share.

但你會看到他們對權力的渴望，他們在爭奪市場份額時向各個方向尋求權力。

So what does that ultimately stand in terms of interest, I think it's high. Is there an underwriting capacity we don't know yet. And that's where having these proof points of permits, that's where we're having the showcase of what we can bring to the table today at Elk Hills with really what's a one-stop shop of land, water, fiber networks, our port space for CCS, we think it's going to be an attractive proposition. So it's really about capitalizing a first-mover initiative that now becomes what we think is going to be a market leader. And that also gives us time to be selective to make sure we have the right partner, the right capital structure and the [ white right ] return profile for our investors, right?

那麼，就興趣而言，這最終意味著什麼，我認為它很高。是否有承保能力我們還不知道。這就是擁有這些許可證證明點的地方，這就是我們今天可以在麋鹿山展示我們可以帶來什麼的地方，真正的一站式商店，包括土地、水、光纖網路、我們的港口空間CCS，我們認為這將是一個有吸引力的提議。因此，這實際上是為了利用先行者的舉措，該舉措現在將成為我們認為將成為市場領導者的東西。這也讓我們有時間進行選擇性，以確保我們擁有合適的合作夥伴、合適的資本結構以及為投資者提供的[白權]回報，對嗎？

So that's what we're ultimately working towards, and we'll be happy to announce when we have an update.

這就是我們最終努力的目標，我們會很高興在有更新時宣布。

That's great. And certainly, a great solution. I guess, in terms of cadence, in your view, after you kind of work through the small stock of nuts that we can restart, do you think the interested and capture on gas plants and takes a meaningful step higher? Is that where we kind of need to progress through.

那太棒了。當然，這是一個很好的解決方案。我想，就節奏而言，在您看來，在您完成了我們可以重新啟動的少量堅果工作之後，您是否認為對天然氣工廠感興趣並捕獲並邁出了有意義的一步？這是我們需要進步的地方嗎？

Yes, absolutely. I think that should be the natural progression that we see in the state. We see a lot of opportunity. I mean, we really are just getting started. And this brownfield conversation of can this be something that CRC executes, I think we prove that today that we can.

是的，絕對是。我認為這應該是我們在州內看到的自然進展。我們看到了很多機會。我的意思是，我們真的才剛開始。這個棕色地帶的對話是否可以由 CRC 執行，我想我們今天證明了我們可以。

But there's a lot of market appetite behind this. And yes, I look forward to to bring in more projects forward so that we can talk about.

但這背後有很大的市場需求。是的，我期待著提出更多項目，以便我們可以討論。

Leo Mariani, ROTH.

利奧·馬裡亞尼，羅斯。

I wanted to just follow up on the drilling permit situation. It seems like that CalGEM has been kind of rethinking that for many, many months now. And I was just curious if there was kind of any update there. Are there any actual drilling permits coming out of CalGEM to you or others that you guys could kind of talk about? I certainly know there's workover and inside track permits or whatnot, but just curious if there's any update there.

我想跟進一下鑽探許可證的情況。似乎 CalGEM 已經重新思考了很多很多個月了。我只是好奇那裡是否有任何更新。CalGEM 是否向您或其他人發放了任何實際的鑽探許可證，您可以討論一下？我當然知道有修井和內部軌道許可證之類的，但只是好奇是否有任何更新。

Yes, Leo, thanks for the question. So yes, multiple avenues to get permits back on track. There's the Kern County environmental impact report that we've -- we talked about -- we also are pursuing what's called a conditional use permit. In particular, through the CUP or conditional use permit, we're seeing good progress made by the other operators. Over the last 2 quarters, we've seen about 80 new permits to other operators in the state.

是的，利奧，謝謝你的提問。所以，是的，有多種途徑可以讓許可證重回正軌。我們已經討論過克恩縣環境影響報告，我們也尋求所謂的有條件使用許可證。特別是，透過 CUP 或有條件使用許可，我們看到其他業者取得了良好進展。在過去 2 個季度中，我們看到該州其他業者獲得了約 80 個新許可證。

And they basically have taken the same path that we're taking. And it's basically doing conditional use permit field-level squat not county-wide but specific to fields. And that's a process that we're undertaking. Now we have some of the biggest fields in the California and most of our CUP submissions have been in around 4 fields Elk Hills, one Avista, Kern front and Belridge combined, they make up about 85% of our proved undeveloped reserves.

他們基本上採取了與我們相同的道路。它基本上是在進行有條件使用許可的田間佔地，不是在全縣範圍內，而是針對特定田地。這就是我們正在進行的一個過程。現在，我們在加州擁有一些最大的油田，我們提交的大部分CUP 資料都位於Elk Hills 左右4 個油田、Avista、Kern front 和Belridge 的1 個油田，它們合計約占我們已探明的未開發儲量的85%。

So we see different pads that can get us back to permits. We still see a potential resolution in the second half of next year. We're working through it and watching the Kern county make progress on their adoption of revised ordinance. And we also are working with CalGEM to satisfy the requirements of the [indiscernible]. So lots of work happening.

因此，我們看到了可以讓我們重新獲得許可的不同墊子。我們仍然認為明年下半年可能會出現解決方案。我們正在努力解決這個問題，並觀察克恩縣在通過修訂後的條例方面取得的進展。我們也與 CalGEM 合作以滿足[音頻不清晰]。很多工作正在進行中。

We see some good progress on -- with other operators, so the smaller operators. We're also seeing really good progress on workovers and sidetrack. So those are coming in as per usual, so we're growing in confidence that our resolution is coming. It's hard to predict when. It's difficult to pinpoint timing, but we do see constructive discussions depending on the permit.

我們看到與其他運營商以及較小的運營商合作取得了一些良好進展。我們也看到修井和側線作業方面取得了非常好的進展。所以這些都像往常一樣到來，所以我們對我們的解決方案即將到來越來越有信心。很難預測什麼時候。很難確定具體時間，但我們確實看到了根據許可進行的建設性討論。

Okay. Appreciate that. And then earlier, you mentioned certainly the need in the state to get some pipeline regulations in place on the CO2 side. Just wanted to get a sense. I know that was something that might have been getting discussed in the legislature over the summer.

好的。很欣賞這一點。早些時候，您確實提到了該州需要在二氧化碳方面製定一些管道法規。只是想了解一下。我知道這個夏天立法機關可能會討論這個問題。

Do you sense that there's been any real progress there? Or is this issue just kind of slipped, maybe there was other priorities. And do you have expectations this can get taken up again by the legislature, maybe early next year when things are back in session.

您是否感覺到那裡有任何真正的進展？或者這個問題只是被忽視了，也許還有其他優先事項。您是否期望立法機關可以再次討論這個問題，也許是明年初，當會議重新開會時。

Yes, that was my expectation. There's a lot of support and a lot of interest in the legislature to lift the moratorium on CO2 pipelines. And I think it's just a matter of who comes first, right. So we see California moving in that direction. We see the federal government also trying to address it.

是的，這就是我的期望。立法機關對取消二氧化碳管道的暫停獲得了許多支持和興趣。我認為這只是誰先來的問題，對吧。所以我們看到加州正在朝這個方向發展。我們看到聯邦政府也在努力解決這個問題。

Again, we need one. One of the 2 were satisfied, but really, what we see is California has an opportunity to move forward and ultimately capture an advantage that we have over the rest of the country by doing this earlier and attracting significant capital into the state. That's the opportunity.

同樣，我們需要一個。兩人中的一個感到滿意，但實際上，我們看到的是加州有機會向前邁進，並通過更早採取行動並吸引大量資本進入該州，最終獲得我們相對於全國其他地區的優勢。這就是機會。

We've been conveying that to legislatures and Yes, I would expect it to be picked up at the next session as we move forward. And -- but it's all connected, right? I think if you start delivering the proof points so there's a market need, there's permits flowing on the subsurface this is a natural step to look at ways to bring in existing pipelines that can be retrofitted to transport CO2 as a natural next step. So continue to have those constructive conversations, and I do expect the conversations to continue as the session begins again next year.

我們一直在向立法機構傳達這一點，是的，我希望隨著我們的進展，它將在下次會議上得到採納。而且——但這一切都是相互關聯的，對吧？我認為，如果你開始提供證據，那麼就有市場需求，有許可證在地下流動，這是自然而然的一步，尋找引入現有管道的方法，這些管道可以進行改造以運輸二氧化碳，作為下一步的自然步驟。因此，請繼續進行這些建設性對話，我確實希望隨著明年會議再次開始，這些對話能夠繼續下去。

Michael Scialla, Stephens.

麥可夏拉，史蒂芬斯。

If you do find that big tech is willing to underwrite the decarbonization of power plants, you have a large Cogen plant there at Midway Sunset. Was wondering if all the capacity there is needed to power that field? Or is there excess capacity there like you have an out hills that could be used by a customer? And do you have any plans to decarbonize that plant?

如果你確實發現大型科技公司願意為發電廠的脫碳提供資金，那麼你在中途日落島就有一座大型熱電聯產工廠。想知道是否需要所有容量來為該領域提供動力？或者那裡是否有多餘的容量，就像您有一個可以供客戶使用的山丘一樣？您有計劃使工廠脫碳嗎？

Yes. So if you look at the power generation that ultimately push to CRC, we have over 850 megawatts of power generation throughout the state through multiple plants. And we're looking -- we use less than half of the capacity for the oil field. The rest of it participates in resource adequacy and goes to the grid. We're always looking to optimize what's the best -- what ultimately delivers the greatest value to our shareholders.

是的。因此，如果你看看最終推動 CRC 的發電量，我們透過多個發電廠在全州擁有超過 850 兆瓦的發電量。我們正在尋找——我們使用的油田產能還不到一半。其餘部分參與資源充足性並進入電網。我們一直在尋求優化最好的東西——最終為我們的股東帶來最大的價值。

So I don't want to be prescriptive about any other plant. I mean we talked about CalCcapture, which is Elk Hills. We will do CCS there or evaluating cost benefit on everything else in the portfolio. But we're long power. We like owning power assets in the state.

所以我不想對任何其他植物做出規定。我的意思是我們談論了 CalCcapture，即 Elk Hills。我們將在那裡進行 CCS 或評估投資組合中其他所有項目的成本效益。但我們是長期力量。我們喜歡在該州擁有電力資產。

We think this is a great compromise solution to do CCS or natural gas generation. So that's our plan going forward, right? So there's -- that's the opportunity is how much of this capacity can determine to firm contracts, long-term PPAs, whether it's with Big Tech or someone else, that's the opportunity that in front of us, and that's what we're pursuing as aggressively as we can.

我們認為這是 CCS 或天然氣發電的一個很好的折衷解決方案。這就是我們未來的計劃，對吧？所以，這就是機會，即這種能力在多大程度上可以決定確定合約、長期購電協議，無論是與大型科技公司還是其他人，這就是我們面前的機會，這就是我們所追求的目標盡我們所能積極進取。

Got it. And then with Elk Hills, any that portion, you have the excess there that goes to the grid now. Is that I guess, tied to the grid or what would be if you did have an opportunity to have a customer there? How much is that free to go to the customer?

知道了。然後，對於麋鹿山，任何那部分，現在都有多餘的部分進入電網。我猜是不是與電網有關，或者如果你確實有機會在那裡擁有客戶的話會怎麼樣？免費提供給客戶的費用是多少？

Yes. So the way to think about it. So the plant generates about 550 megawatts. About 1/3 of that power is consumed by our E&P operations. That means 2/3 really doesn't have a home.

是的。所以要考慮一下這個方法。因此該廠發電量約為 550 兆瓦。其中約 1/3 的電力用於我們的勘探與生產業務。這意味著 2/3 確實沒有家。

So we put it in the grid at whatever the spot prices are throughout the year. then we participate separately for that excess capacity on resource adequacy, which is basically standby power when the grid is particularly taxed, typically in the hotter months of the year. you have contracts with different groups throughout the state that ultimately pay for that standby capacity.

因此，無論全年現貨價格如何，我們都會將其放入網格中。然後我們單獨參與資源充足性的過剩產能，這基本上是當電網負擔特別重時的備用電力，通常是在一年中最熱的月份。您與全州不同的團體簽訂了合同，最終支付備用容量的費用。

So we've been participating in the resource adequacy program for years. And we've seen that the contract value go up where we talked about this in '24, we've made $100 million for being on that standby power or having the standby power to California, that will move to $150 million of contracted value in 2025. But it's really more of a we -- it's capacity that ultimately doesn't really have a home, and that's why it goes to the grid. We have the ability to bring it all behind the meter. And we think that's consistent with what California wants, which is to make more of the grid as renewable as possible.

因此，我們多年來一直參與資源充足計劃。我們已經看到合約價值上升，我們在 24 年談到這一點，我們已經因為使用備用電源或在加州擁有備用電源而賺了 1 億美元，這將在 2019 年達到 1.5 億美元的合約價值。 2025 年。但它實際上更多的是我們——它的容量最終沒有真正的家，這就是它進入電網的原因。我們有能力把這一切都放在儀表後面。我們認為這與加州的願望是一致的，即讓更多的電網成為再生能源。

So the plan is can we bring in partners, can we ultimately use that -- have a usable power in a way that's optimized. And we think it's tech, it could be others that ultimately value that baseload power with CCS for their own businesses, right? It could be manufacturing, it could be chip manufacturing could be other sort of industries.

因此，我們的計劃是我們能否引入合作夥伴，我們能否最終利用它——以優化的方式擁有可用的力量。我們認為這是技術，其他人最終可能會為自己的企業重視 CCS 的基本負載能力，對吧？可能是製造業，可能是晶片製造，也可能是其他產業。

And the key is to be able to find that customer base that can take the power behind the grid. So those are the dynamics that we have to work with. Right now, we feel good about resource adequacy, and we're certainly participating in that. but that is ultimately a decision that we make as we try to optimize the value of our excess power.

關鍵在於能夠找到能夠為電網提供電力的客戶群。這些就是我們必須應對的動力。目前，我們對資源充足性感覺良好，當然我們正在參與其中。但這最終是我們在努力優化過剩電力價值時所做的決定。

Noel Parks, Tuohy Brothers.

諾埃爾·帕克斯、圖伊兄弟。

Just had a few things I wanted to ask. Just wondering, could you talk about sort of the relative maybe momentum and timing you're seeing between brownfield projects versus with emitters versus your discussions on new generation of projects like for data centers. I'm just wondering, is that the basics of the terms that are the main things that are in discussion? Or is it sort of more complexity around, I don't know, risk sharing as you set an agreement in motion?

只是有幾件事想問一下。只是想知道，您能否談談您所看到的棕地項目與排放者項目與資料中心等新一代項目之間的相對動力和時機。我只是想知道，這是正在討論的主要術語的基礎知識嗎？或者，我不知道，當你制定協議時，風險分擔是否更加複雜？

Yes. So it's -- we've talked about CRC being catalyst-rich and it's great to see the catalyst starting to arrive. And so yes, the combination of brownfield versus greenfield. As we said before, brownfield, the key there will be the connectivity, the physical connectivity between the emitter and the and the storage side. So that's why the conversation around CO2 pipelines is important.

是的。所以，我們已經討論過 CRC 富含催化劑，很高興看到催化劑開始出現。是的，棕地與綠地的結合。正如我們之前所說，棕地的關鍵在於連接性，發射器和儲存端之間的物理連接。這就是為什麼圍繞二氧化碳管道的對話很重要。

But then think about it maybe from a different perspective.

但後來想想也許從不同的角度來看。

We're going to build these greenfield projects on top of Elk Hills they're going to have -- we're going to have renewable natural gas. We're going to have clean hydrogen. We're going to have renewable diesel. Once we look for market opportunities to deploy the clean fuels -- you could also come to these emitters and provide an import of that fuel to ultimately lower their emission footprint, right? So there's a lot of synergistic elements to how we're thinking about the portfolio.

我們將在麋鹿山頂部建造這些綠地計畫——我們將擁有再生天然氣。我們將擁有清潔的氫氣。我們將擁有再生柴油。一旦我們尋找部署清潔燃料的市場機會，您也可以向這些排放者提供進口燃料，以最終降低其排放足跡，對吧？因此，我們對投資組合的思考有許多協同因素。

And it's different aspects of the projects still need to work, and we do need that build projects, we also need connectivity but we're excited about being the solutions provider in the state of California, and we see us particularly well positioned and more advanced than others to be to be able to capture that market share. So we're excited to run towards that end. A lot of details to work out, but the -- I think it should be clear that the market opportunity is very strong.

項目的不同方面仍然需要工作，我們確實需要建設項目，我們也需要連接，但我們很高興成為加利福尼亞州的解決方案提供商，我們看到我們處於特別有利的位置並且更先進比其他人能夠佔領該市場占有率.因此，我們很高興朝著這個目標努力。有很多細節需要解決，但我認為應該要清楚的是，市場機會非常強大。

I see that we're past the top of the hour. This concludes our question-and-answer session. I would like to turn the conference back over to Francisco Leon, for any closing remarks.

我發現我們已經過了最晚的時間了。我們的問答環節到此結束。我想將會議轉回弗朗西斯科·萊昂，讓其發表閉幕詞。

Thank you so much for joining us today. We will be presenting at several investor conferences in both November and early December and look forward to seeing everybody on the road. Thanks.

非常感謝您今天加入我們。我們將在 11 月和 12 月初舉行的幾次投資者會議上發表演講，並期待與大家見面。謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。

Goodbye.

再見。