California Resources Corp (CRC) 2025 Q2 法說會逐字稿

Good day, and welcome to the California Resources Corporation Second Quarter 2025 Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Joanna Park, Vice President of Investor Relations and Treasurer. Please go ahead.

大家好，歡迎參加加州資源公司2025年第二季電話會議。（操作說明）請注意，本次活動正在錄影。現在我將把會議交給投資者關係副總裁兼財務主管喬安娜·帕克。請繼續。

Good morning, and welcome to California Resources Corporation's Second Quarter 2025 Conference Call. Following prepared remarks, Members of our leadership team will be available for questions. By now, I hope you've had a chance to review our earnings release and supplemental slides. We have also provided information reconciling non-GAAP financial measures to comparable GAAP financial measures on our website and in our earnings release. Today, we will be making forward-looking statements based on current expectations. Actual results may differ due to factors described in our earnings release and SEC filings. As a reminder, please limit your questions to one primary and one follow-up as this allows us to get to more of your questions.

早安，歡迎參加加州資源公司2025年第二季電話會議。在發言結束後，我們的領導團隊成員將回答問題。希望您現在已經有機會查看我們的收益報告和補充投影片。我們也在我們的網站和獲利報告中提供了將非GAAP財務指標與可比較GAAP財務指標進行調節的資訊。今天，我們將根據目前的預期發表一些前瞻性聲明。實際結果可能因我們在獲利報告和提交給美國證券交易委員會的文件中所述的因素而有所不同。再次提醒，請將您的問題限制為一個主要問題和一個後續問題，這樣我們才能解答您的更多問題。

I will now turn the call over to Francisco.

現在我將通話轉給弗朗西斯科。

Good morning, everyone. Thanks for joining us. We're excited to share today's update with you. As you can see from our release last night, 2025 is shaping up to be a very solid year. Our teams are executing extremely well, driving strong operational performance, strategically advancing our carbon and power platforms and returning meaningful capital to our shareholders.

各位早安。謝謝您的參與。我們很高興與您分享今天的最新消息。從我們昨晚發布的報告中可以看出，2025 年將是相當穩健的一年。我們的團隊執行力非常強，推動了強勁的營運業績，從策略上推進了我們的碳排放和電力平台，並為股東帶來了可觀的回報。

Let me walk through a few highlights before handing it over to Clio to discuss quarterly results. First, we delivered record quarterly returns to shareholders. We returned nearly $290 million this quarter, more than 260% of our free cash flow. These record returns were largely related to a discounted share repurchase from ICA facilitating an orderly reduction in their ownership.

在將季度業績報告交給 Clio 討論之前，讓我先簡要介紹幾個重點。首先，我們為股東帶來了創紀錄的季度回報。本季我們返還了近 2.9 億美元，超過我們自由現金流的 260%。這些創紀錄的回報主要與從 ICA 以折扣價回購股票有關，從而有序地減少了他們的持股比例。

Our actions reflect our strong conviction in the value and upside we see in our stock. Next, we've implemented era related merger synergies ahead of schedule. About a year ago, we announced this transformative merger and committed to delivering meaningful synergies. We fulfilled that commitment three months ahead of schedule, fully implementing our $235 million target. Importantly, the net present value of these synergies over the next 10 years is estimated at approximately $1.4 billion. That's about two-third of the announced deal value or more than 100% of the value of our equity issued at the time of the transaction. We've demonstrated our ability to identify value-accretive combinations execute seamless integrations and unlock long-term value through scale and operational synergy.

我們的行動體現了我們對公司股票價值和上漲潛力的堅定信念。其次，我們提前實現了與時代相關的合併綜效。大約一年前，我們宣布了這項具有變革意義的合併，並承諾實現有意義的綜效。我們提前三個月完成了這項承諾，全面實現了 2.35 億美元的目標。重要的是，這些協同效應在未來 10 年的淨現值估計約為 14 億美元。這大約是已公佈交易價值的三分之二，或超過我們在交易時發行的股權價值的 100%。我們已經證明了我們有能力識別增值組合，執行無縫整合，並透過規模和營運協同效應釋放長期價值。

Third, strong operational performance has enhanced our full year outlook. Year-to-date, operational execution and reservoir performance have exceeded expectations. By building on this momentum with the addition of a second rig we strengthened our outlook, resulting in a roughly 7% increase in adjusted EBITDAX. A few weeks ago, we were encouraged by the California Energy Commission's response to Governor Newsom directive to ensure fuel reliability during the energy transition. We welcome the state's greater collaboration with refiners and our industry. The state is actively working to improve the oil and gas permitting process and we expect additional details once the legislature reconvenes in mid-August.

第三，強勁的營運業績提升了我們全年的業績預期。今年迄今為止，營運執行和油藏性能均超出預期。透過增加第二個鑽井平台，我們鞏固了這一勢頭，增強了我們的前景，從而使調整後的 EBITDAX 增長了約 7%。幾週前，加州能源委員會響應紐森州長關於確保能源轉型期間燃料可靠性的指示，令我們倍感鼓舞。我們歡迎州政府與煉油企業和我們行業加強合作。該州正在積極努力改進石油和天然氣許可流程，我們預計在立法機構於 8 月中旬重新召開會議後，將公佈更多細節。

If approved, these reforms could give us greater flexibility to access our extensive inventory while being mindful of shareholder returns. We applaud the governor's leadership to advance solutions that address affordability, protect local jobs and reduce foreign oil dependence.

如果獲得批准，這些改革將使我們能夠更靈活地利用我們龐大的庫存，同時兼顧股東回報。我們讚賞州長在推動解決住房負擔能力、保護當地就業和減少對外國石油依賴方面的領導力。

Clio, over to you.

克里奧，該你了。

Thanks, Francisco. I'll start with a review of our second quarter results and financial highlights.

謝謝你，弗朗西斯科。我將首先回顧我們第二季度的業績和財務亮點。

Our focus on base production management continues to deliver results. We recorded net total production of 137,000 BOE per day with average realizations at 97% of Brent before hedges and 100% after hedging. Nearly all of our costs for the second quarter were within or in some cases, below the lower end of our guidance. Importantly, our first half 2025 costs were down approximately 11% from the second half of 2024, reflecting lower G&A expenses, lower nonenergy operating costs and lower taxes other than on income. With continued cost discipline and the benefit of aero-related synergies, we've now reduced nearly all of our 2025 operating expense items by about 7% when compared to our original outlook, even as we anticipate higher energy costs and increased levels of activity in the second half.

我們對基礎生產管理的重視持續成效。我們記錄到每日淨總產量為 137,000 桶油當量，避險前平均實現價格為布蘭特原油價格的 97%，避險後為 100%。第二季幾乎所有成本都達到了預期範圍的下限，有些甚至低於預期範圍。重要的是，我們 2025 年上半年的成本比 2024 年下半年下降了約 11%，這反映出一般及行政費用、非能源營運成本和所得稅以外的其他稅收有所下降。憑藉持續的成本控制和航空相關綜效，我們已將 2025 年幾乎所有營運費用項目較最初的預期減少了約 7%，即便我們預計下半年能源成本將上升，業務活動水準也將提高。

This performance underscores our ability to effectively manage realization higher-than-expected production and lower operating costs. We generated $109 million of free cash flow or $165 million before changes in working capital, demonstrating the resilience and cash generating power of our assets. Now on our capital returns to shareholders. We returned a record $287 million in the second quarter, bringing year-to-date shareholder returns to nearly $422 million. This quarter's returns were largely driven by a strategic $228 million block repurchase from ICAS executed at $46 per share.

這項績效凸顯了我們有效管理並實現高於預期產量和降低營運成本的能力。我們產生了 1.09 億美元的自由現金流，或在營運資本變動前產生 1.65 億美元的自由現金流，證明了我們資產的韌性和現金產生能力。現在來說說我們向股東返還資本的情況。第二季我們返還了創紀錄的 2.87 億美元，使今年迄今的股東回報接近 4.22 億美元。本季收益主要得益於以每股 46 美元的價格從 ICAS 進行的 2.28 億美元戰略性大宗回購。

Since combining with Ara, we've now repurchased approximately 45% of the equity issued at the time of the merger at an average price, reflecting about a 13% discount to the merger closing price. This has further enhanced the economics of an already accretive deal. Repurchases to date have utilized available cash on hand, reinforcing our long-term capital allocation priorities of delivering shareholder returns, maintaining balance sheet strength, and enhancing shareholder value. Since the inception of our share repurchase program, we returned nearly $1.5 billion to shareholders in dividends and share repurchases, representing approximately 86% of cumulative free cash flow over the last four years. We have slightly over $200 million remaining under our current share repurchase authorization, which was recently extended through June 2026.

自與 Ara 合併以來，我們已以平均價格回購了合併時發行的約 45% 的股權，較合併完成價格折讓約 13%。這進一步提升了這項原本就具有增值效應的交易的經濟效益。迄今為止的股票回購均利用了現有現金，這鞏固了我們長期資本配置的優先事項，即為股東帶來回報、保持資產負債表的穩健性以及提升股東價值。自從我們啟動股票回購計畫以來，我們已透過股利和股票回購向股東返還了近 15 億美元，約佔過去四年累計自由現金流的 86%。我們目前的股票回購授權還剩下略多於 2 億美元，該授權最近已延長至 2026 年 6 月。

Looking ahead to the second half of 2025, we are operating from a position of strength. Our leverage remains low at 0.7times. We have an undrawn revolver, and total liquidity remains robust at over $1 billion. We've had solid execution year-to-date, but it gives us the confidence to raise full year production guidance lower both cost and drilling capital expectations and increase our adjusted EBITDAX forecast. We are now expecting a 9% improvement in our 2025 free cash flow outlook before working capital, even after adjusting for lower oil prices versus our initial assumptions.

展望2025年下半年，我們處於有利地位。我們的槓桿率仍然很低，只有0.7倍。我們還有未提領的循環信貸額度，總流動資金仍充裕，超過10億美元。今年迄今為止，我們的執行情況良好，這讓我們有信心提高全年產量預期，降低成本和鑽井資本預期，並提高調整後的 EBITDAX 預測。我們現在預計，即使在考慮到油價低於我們最初假設的情況下，2025 年的自由現金流前景（不計營運資本）也將改善 9%。

All in all, a very solid quarter. Back to you Francisco.

總的來說，這是一個非常穩健的季度。弗朗西斯科，把機會交給你了。

Thanks, Clio. Before we move to Q&A, let me quickly mention a couple of other items. Near term, we're focused on getting California's first CCS project into operation. CTV JV received construction authorization from the EPA. This was a big milestone as it was the first EPA awarded authorization to construct for our Class 6 project.

謝謝你，克里奧。在進入問答環節之前，我想先快速提一下其他幾件事。近期，我們的重點是讓加州第一個碳捕獲與封存（CCS）計畫投入營運。CTV JV 已獲得美國環保署的施工許可。這是一個重要的里程碑，因為這是我們 6 級專案首次獲得美國環保署的施工許可。

We expect to complete construction of the Class 6 wells at or around year-end 2025. Pending the receipt of final regulatory approvals, we will be ready to inject early in 2026. As we continue to maximize the value of our assets, we're actively engaged in discussions with multiple potential counterparties to supply power with a pathway to CCS from the Elk Hills power plant and CTV CO2 storage reservoirs for a decarbonized energy solution.

我們預計將於 2025 年底左右完成 6 級油井的建造。待獲得最終監管部門批准後，我們將於 2026 年初開始注射。為了持續提升資產價值，我們正在積極與多家潛在交易對手進行洽談，以期透過埃爾克山發電廠和 CTV 二氧化碳儲存庫提供電力，並實現碳捕獲與封存，從而提供脫碳能源解決方案。

To add, there are several exciting developments on the regulatory front driven by the California Public Utilities Commission. The proposed reliable and clean power procurement program could unlock a new market for our carbon management platform.

此外，在加州公共事業委員會的推動下，監管方面也出現了一些令人振奮的進展。擬議的可靠清潔能源採購計劃可以為我們的碳管理平台開闢新的市場。

In closing, we have a differentiated business model, benefiting from an integrated strategy and are uniquely positioned to support California's energy transition. Our high-return oil developments complement our expanding carbon management and power platforms. It's well known that California has some of the highest energy costs in the country.

總之，我們擁有差異化的商業模式，受益於一體化策略，並具備獨特的優勢來支持加州的能源轉型。我們高回報的石油開發項目與我們不斷擴展的碳管理和電力平台相輔相成。眾所周知，加州的能源成本位居全美最高之列。

Fortunately, CRC is positioned to provide cleaner and more affordable in-state production which California needs while advancing decarbonization solutions across the central industries. As the next generation of energy infrastructure continues to develop, CRC has the assets and people to lead a changing energy landscape. One that demands affordability, reliability and responsibility. CRC truly is a different kind of energy company.

幸運的是，CRC 能夠提供加州所需的更清潔、更經濟實惠的州內生產，同時推動核心產業的脫碳解決方案。隨著下一代能源基礎設施的不斷發展，CRC擁有引領能源格局變化的資產和人才。一個要求價格合理、可靠且負責任的公司。CRC確實是一家與眾不同的能源公司。

Operator, let's open the line for questions.

接線員，我們來接聽提問電話。

(Operator Instructions)

（操作說明）

Scott Hanold, RBC Capital Markets.

Scott Hanold，加拿大皇家銀行資本市場。

Thank you. Francisco, you had mentioned the improving regulatory environment in California, and it sounds like there's things going on a multitude of fronts. Maybe attacking one of them specific to oil and gas permitting. There are two avenues in which you've addressed in looking at getting permits, which includes, obviously, the current con litigation that appears to be nearing a resolution. Can you give us your sense of -- what is your view of these events? And how does that shape your current perspective on when you could receive new oil and gas permits? And as you look at all the things happening in California, like what are their priorities, first and foremost, like where do you think you're going to see the initial benefits of any kind of regulatory changes?

謝謝。弗朗西斯科，你曾提到加州的監管環境正在改善，聽起來很多方面都在改變。或許是針對其中某個專門負責石油和天然氣許可的機構。在尋求許可方面，您已經考慮了兩種途徑，其中顯然包括目前似乎即將解決的合約訴訟。您能否談談您對這些事件的看法？那麼，這會如何影響您目前對何時能夠獲得新的石油和天然氣許可證的看法？當你觀察加州正在發生的一切時，例如他們的首要任務是什麼，你認為任何監管變革的最初好處會在哪裡出現？

Scott, thank you for the question. Yes, we have a very dynamic and we're optimistic about all the changes happening in California. The state is actively looking to resolve the permitting situation and to help stabilize local production. A lot of conversations, which we feel are very constructive and what the governor appears to be signaling is that they're going to -- he's going to instruct the legislature to provide a fix for permitting in the state.

斯科特，謝謝你的提問。是的，我們充滿活力，並且對加州正在發生的一切變化持樂觀態度。州政府正在積極尋求解決許可問題，並協助穩定當地生產。我們認為，雙方進行了許多建設性的對話，州長似乎也暗示，他將指示立法機構解決該州的許可問題。

Right now, the legislature is on a summer break, and we expect more details to come out when they reconvene in mid-August. So it's tough to speculate as to ultimately what the outcome is going to be. But we've been building the company for this moment. We're well positioned. We're at the table, and we're ready to provide solutions. The answer really to California's energy challenges is that we need to be both affordable and clean and that is local production, and that's the CRC barrel. So we will see in terms of time line. It's hard to predict. Like you said, there's a lot of different fronts are being advanced, including the current county EIR litigation. But we see the leadership obviously rising up to the challenge and looking to stabilize local production and we're ready to go when that happens. So once the legislature reconvenes we'll have a few weeks in session, where we will know the outcome of those discussions sometime in September, early October.

目前立法機構正處於夏季休會期，我們預計在 8 月中旬復會時會公佈更多細節。因此，很難預測最終結果會如何。但我們一直都在為這一刻努力。我們處於有利地位。我們已做好準備，隨時提供解決方案。解決加州能源挑戰的真正答案是，我們需要既經濟實惠又清潔，而這需要本地生產，這就是 CRC 桶。所以，時間安排上我們拭目以待。很難預測。正如你所說，目前有很多不同的方面正在推進，包括目前的縣級環境影響報告訴訟。但我們看到領導層顯然正在迎接挑戰，並尋求穩定本地生產，一旦這種情況發生，我們就準備好行動了。因此，一旦立法機構重新召開會議，我們將有幾週的會期，屆時我們將在九月或十月初知道這些討論的結果。

Betty Jiang, Barclays.

Betty Jiang，巴克萊銀行。

Hi, good morning to you guys. It's really impressive to see the quarters -- the recent quarters showing stronger production with lower CapEx consistently. Could you just elaborate on what's driving that underlying capital efficiency improvements and how that could inform your go-forward maintenance CapEx outlook?

大家好，早安。看到這些季度業績真是令人印象深刻——最近幾個季度，在資本支出持續下降的情況下，產量卻持續成長。能否詳細說明一下推動資本效率提升的根本原因，以及這些提升將如何影響您未來的維護資本支出預期？

Yes, Betty, thank you. So we've been now operating with the air assets for a year. It's clear that those assets are just performing extremely well. the combination of strong assets with the CRC plus era operational leadership, it's been just phenomenal to watch and the performance, if you measure it in terms of gross production continues to outperform expectations and certainly what we underwrote when we did the deal.

是的，貝蒂，謝謝你。所以，我們已經使用這些空中資源來運作一年了。很明顯，這些資產的表現非常出色。強大的資產加上 CRC Plus 時代的卓越營運領導力，其表現令人矚目，如果以總產量來衡量，其業績持續超出預期，當然也超出了我們當初進行交易時的預期。

So it's been just a year of quarter-over-quarter success in the team managing the basic client extremely well. We had guided to a range of $500 million to $600 million in terms of maintenance capital -- but I think we're comfortable today to say we will be at the lower end of that range. And once we get permits back on track and once we have the full information as to how that's going to work. We'll come back with an updated number, but certainly, we see the capital efficiency and the trend lines being very favorable so far.

所以，過去一年來，團隊在管理基礎客戶方面取得了季度環比的成功，表現非常出色。我們之前預計維護資本支出將在 5 億至 6 億美元之間——但我認為現在我們可以比較有把握地說，實際支出將處於該範圍的下限。一旦許可證審批流程恢復正常，並且我們掌握了所有相關信息，以了解具體運作方式。我們會盡快提供更新的數據，但可以肯定的是，到目前為止，我們看到的資本效率和趨勢線都非常有利。

That's helpful. A follow-up to you, Clio. Just on cash tax benefits. Thank you for the guidance for 2025. How do you see that saving evolving in 2026 and beyond.

那很有幫助。克里奧，這是給你的後續問題。僅就現金稅收優惠而言。感謝您對2025年的指導。您認為2026年及以後，儲蓄政策將如何發展？

Hi Betty. Great question. Let me frame a little bit the broader impact of the bill, and I'll jump into our outlook for '26. But -- we see a lot of benefits from the one big beautiful bill for us and how it will help us really bring more clean and reliable energy to California. There's many pockets of improvement there. The bill really improves the long-term economics for both our E&P and our carbon management businesses it restores and locks in really key tax incentives, notably 100% bonus depreciation and immediate R&D expensing -- but it's also a win for our carbon management business.

嗨，貝蒂。問得好。讓我先概括一下這項法案的更廣泛影響，然後再談談我們對 2026 年的展望。但是——我們看到這項宏偉的法案為我們帶來了很多好處，它將幫助我們真正為加州帶來更多清潔可靠的能源。那裡有很多方面需要改進。該法案確實改善了我們勘探與生產業務和碳管理業務的長期經濟效益，它恢復並鎖定了非常關鍵的稅收優惠，特別是 100% 的額外折舊和立即研發費用扣除——但對我們的碳管理業務來說也是一次勝利。

Our CCS projects are earlier stage and capital-intensive by nature. So the features you see in the bill, such as R&D expensing, bonus appreciation and also the additional interest deductions, those really enhance our project economics. So Betty, as it stands today, we expect about $35 million in cash tax savings for this year. So that's a nice add to our free cash flow story. But if you look ahead and what that could mean for future years, we expect our cash taxes as a percentage of EBITDAX, that, that will decrease from the low double digits to high single digits. So to give you a sense of scale over a five-year horizon and assuming current activity levels and a Brent price environment cumulative tax savings to be in the $80 million to $150 million range. And obviously, additional activity would drive incremental savings there.

我們的碳捕集與封存專案處於早期階段，本質上是資本密集專案。因此，您在法案中看到的研發費用扣除額、獎金增值以及額外的利息扣除等條款，確實提高了我們項目的經濟效益。所以，貝蒂，就目前情況來看，我們預計今年將節省約 3,500 萬美元的現金稅。這無疑為我們增加自由現金流了不少好處。但展望未來幾年，我們預期現金稅佔 EBITDAX 的百分比將從兩位數低點下降到個位數高點。因此，為了讓您了解五年內的規模，並假設當前的活動水準和布蘭特原油價格環境，累計節稅額將在 8,000 萬美元至 1.5 億美元之間。顯然，增加活動將帶來額外的節省。

So all in all, the bill relief that supports our free cash flow story, and it provides some additional tailwind for our carbon management business.

總而言之，這項法案減免措施有利於我們的自由現金流，並為我們的碳管理業務提供了一些額外的推動力。

Scott Hanold, RBC Capital Markets.

Scott Hanold，加拿大皇家銀行資本市場。

Yes, thanks. I was kind of curious on Page 7, you all highlighted some of the general project returns that you all have going on in the second half of this year. Could you give us some color as you think about, again, the potential of getting new well permits maybe in sometime in 2026.

好的，謝謝。我有點好奇第 7 頁的內容，你們重點介紹了今年下半年正在進行的一些整體專案回報。您能否就再次考慮在 2026 年某個時候獲得新油井許可證的可能性，給我們一些看法？

How does -- how do those well breakevens compared to a workover side track? And if you had new permits to maintain production, what is sort of the optimal mix of the three?

這些油井的損益平衡點與修井側線相比如何？如果你獲得了維持生產的新許可證，那麼這三者的最佳組合是什麼？

Hey Scott, yes. So as a reminder, we're running two rigs right now. We added our second rig in June primarily, it's going to be drilling side tracks for the rest of the year. And we also have a full year 2026 already permitted for those two rig lines with a mix that would be similar to this year, workovers and sidetracks.

嘿，斯科特，是的。再次提醒大家，我們目前正在運行兩台鑽孔機。我們在六月添置了第二台鑽機，它今年餘下的時間將主要用於鑽探側軌。我們已經為這兩條鑽井生產線獲得了 2026 年全年的許可，其作業組合將與今年類似，包括修井作業和側線作業。

As permits come back as we get the ability to drill new wells. I mean you can see that the returns or implied returns with very low breakeven prices will be will be very additive to the portfolio and the flexibility that we have. So it's difficult to pinpoint as we are still in a permit-constrained environment the what ifs, but we see a very deep inventory of projects.

隨著許可證的陸續發放，我們將獲得鑽探新井的能力。我的意思是，你可以看到，在損益平衡價格非常低的情況下，收益或隱含收益將對投資組合和我們所擁有的靈活性產生非常大的增益。由於我們仍處於許可證限制的環境中，因此很難準確指出各種可能性，但我們看到了大量的專案儲備。

As a reminder were conventional assets which really you look at the quality of the rock. We're not tight shale that needs very high capital-intensive long laterals with state tracks, what we do is, it's about pressure support. It's about injection rates. It's about bypassed oil. So -- we feel the inventory, and it's several decades of good attractive inventory as we go and increase recovery factors. So the rest of words, we see those incremental wells being very competitive to what we have today.

需要提醒的是，傳統資產其實是指岩石的品質。我們開採的不是需要大量資金投入的長水平井和州級軌道的緻密頁岩，我們開採的是壓力支撐。關鍵在於注射速率。這是關於旁路石油的問題。所以——我們感受到了庫存，而且隨著時間的推移，未來幾十年都將是優質且有吸引力的庫存，回收率也會不斷提高。所以，從其他方面來看，我們看到這些新增油井與我們今天擁有的油井相比非常有競爭力。

Josh Silverstein, UBS.

瑞銀集團的 Josh Silverstein。

Yes, thanks guys. Clearly, you had mentioned you plan to retire the remainder of the 2026 note in the second half of this year. After that, how are you thinking about free cash flow allocation going forward you don't have another maturity until 2029. So how are you thinking about the buyback? I know you were just opportunistic, but is there more of a game plan to have kind of a percentage allocation? Or how would you think about that? Thanks.

是的，謝謝大家。顯然，您曾提到計劃在今年下半年償還剩餘的 2026 年到期債券。之後，您打算如何分配未來的自由現金流？您在 2029 年之前沒有其他到期債務。那麼，你對回購有什麼想法呢？我知道你只是抓住機會，但是有沒有更周密的計劃，例如按比例分配資金？或者你會怎麼想？謝謝。

Sure, Josh, and I appreciate the question. Let me start by reemphasizing that we're committed to driving long-term shareholder value and providing shareholder returns. It's really a core part of our value proposition and our track record in this regard, really speaking for itself. We've returned about $1.5 billion in dividends and share repurchases since the program inception and really, that's roughly 30% of our current market cap. You asked what we're going to do on the buyback side. I mean, looking forward, we plan to remain opportunistic with share repurchases.

當然可以，喬希，感謝你的提問。首先，我要再次強調，我們致力於提升股東的長期價值，並為股東帶來回報。這確實是我們價值主張的核心部分，我們在這方面的過往業績也足以說明一切。自從該計劃啟動以來，我們已透過股息和股票回購返還了約 15 億美元，這實際上約占我們當前市值的 30%。你問我們回購方面會怎麼做。我的意思是，展望未來，我們計劃繼續抓住機會進行股票回購。

We still have over $200 million available under our share repurchase program, and we extended that through June 2026. And we feel good about the performance of our assets and our free cash flow trajectory. But that being said, we're being thoughtful. I mean if you look at just this year, we've already returned capital at scale. We've returned 178% of free cash flow back to our shareholders.

我們仍有超過 2 億美元的資金可用於股票回購計劃，我們將該計劃延長至 2026 年 6 月。我們對公司資產的表現和自由現金流的趨勢感到滿意。但話說回來，我們還是會認真考慮的。我的意思是，僅就今年而言，我們已經大規模地返還了資本。我們已將178%的自由現金流返還給了股東。

And in the second half of this year, we need to balance any incremental buyback activity with our other strategic priorities, and you flag them. We're on track to redeem the remainder of our 2026 notes during the second half. So for us, longer term, I'd say it's about taking a balanced approach here. We're going to stay disciplined, but also focused on long-term value.

今年下半年，我們需要平衡任何新增的股票回購活動與我們的其他策略重點，您也指出了這些重點。我們預計在下半年贖回剩餘的 2026 年到期債券。所以對我們來說，從長遠來看，我認為關鍵在於採取平衡的方法。我們將保持自律，但同時也專注於長期價值。

Got it. And then on the CCB one project, I think you guys have moved from year-end early '26 as the new first injection days. I think this was from some of the delays there. Can you just talk about broadly how your construction is going? Would you have been on track for the year and '25 1st injection? Just an update there would be great. Thanks.

知道了。關於 CCB 一號項目，我認為你們已經將 2026 年初的首次注資日期從年底提前到了現在。我認為這是由於那邊的一些延誤造成的。您能大致談談您的施工進度嗎？您是否已經按計劃完成了今年的計劃，並於 2025 年進行了第一次注射？更新一下情況就太好了。謝謝。

Josh, yes, so we are on track to be done with construction by the end of the year. We talk about ready to inject and by the end of the year. What that means is that we take care of things that we control, which is getting the project ready -- and to go what's more difficult to handicap is the speed for the EPA to give the final approval. And that's what we're signaling early 2026.

喬希，是的，所以我們預計在年底前完成建設。我們討論的是準備注射，到年底就能完成。這意味著我們要做好我們能控制的事情，也就是讓專案做好準備——而更難控制的是環保署最終批准的速度。這就是我們預計在 2026 年初發出的信號。

Part of it is holidays, part of it is first mover. We are the furthest along of any company in the U.S. in terms of moving forward a Class 6 permit from permit to execution. So there's -- there's an expectation that the EPA is going to react quickly, but ultimately, we don't have a precedent to compare to. But -- we'll be ready with construction and ready to inject by the end of the year and start with our first project early in '26.

一部分原因是假期，一部分原因是搶佔先機。就推進 6 類許可證從獲得許可到最終執行而言，我們是美國所有公司中進展最快的。所以，人們期望美國環保署能夠迅速做出反應，但歸根結底，我們沒有先例可以藉鏡。但是——我們將在年底前完成施工並做好注水準備，並在 2026 年初啟動我們的第一個專案。

Kale Akamine, Bank of America.

Kale Akamine，美國銀行。

Hey, good morning guys. Francisco, Clio. I want to start with maybe I'll follow up on the permitting front. And I appreciate that we're going to have to wait on the Newson bill. But wondering if you can comment on the details of that proposal. My understanding is that there's kind of the P&A piece where every two wells P&A will allow one new drilling permit. Do you see that P&A piece as a bottleneck? Or do you think there's already sufficient industry activity to build a healthy permitting queue?

嘿，各位早安。弗朗西斯科，克里奧。我想先跟進一下許可審核方面的情況。我知道我們還需要等待紐森法案的通過。但我不知道您能否就該提案的細節發表一下看法。我的理解是，每封井（P&A）兩口井，就會允許頒發一張新的鑽井許可證。你認為P&A環節是瓶頸嗎？或者您認為目前行業活動已經足夠活躍，可以形成健康的審批流程？

Kale, yes, I would say details, I wouldn't run with any details at this stage. There's a proposed language. There's still a few weeks before we know what certainty Certainly, we're aware of the plug-in requirement. But we already have a very aggressive P&A program already. So it's something that, as we've adapted and built a California made E&P company. This is something that we do as part of our stewardship of the assets, and we do it extremely well in a very efficient way.

凱爾，是的，我會說細節問題，但在這個階段我不會透露任何細節。有一種擬議的語言。距離確切結果還有幾週時間。當然，我們已經意識到插件的要求。但我們已經制定了一項非常積極的防災減災計畫。所以，隨著我們不斷發展壯大，我們最終打造了一家加州本土的油氣勘探開發公司。這是我們履行資產管理職責的一部分，而且我們做得非常出色，而且效率也很高。

So as we move forward, we don't see a P&A requirements as being something that ultimately gets in the way from a CRC perspective. So we continue to adapt and difficult to speculate on exactly what the solution will be. But we're really excited about the ability to showcase the asset base and this just phenomenal inventory that we've built over the years and almost 2 million acres of minerals behind it with very high NRI. So I think the focus is going to be on the California return, the California come back on oil and gas and were being very having very constructive conversations to get that unlocked so it benefits the affordability concerns that Californians have.

因此，展望未來，我們認為從 CRC 的角度來看，P&A 要求最終不會成為阻礙。因此，我們仍在不斷調整，很難準確預測最終的解決方案是什麼。但我們非常高興能夠展示我們的資產基礎，以及我們多年來累積的龐大資產儲備，還有近 200 萬英畝的礦產資源，其淨收益指數 (NRI) 非常高。所以我認為重點將放在加州的復甦上，加州石油和天然氣的復甦上，我們正​​在進行非常建設性的對話，以釋放這一潛力，從而有利於解決加州人對負擔能力的擔憂。

I appreciate those details, Francisco. Maybe just a reference item. How many wells are you P&A this year? Or how many do you plan to do on a given annual year basis?

弗朗西斯科，我很欣賞你提供的細節。或許只是個參考資料。今年你們計畫封堵多少口油井？或者，您計劃每年完成多少個？

Yes. I think what we disclosed publicly is we're averaging about 1,500 wells per year.

是的。我認為我們公開披露的資訊是，我們平均每年開鑿約 1500 口油井。

Got it. I appreciate that. My second question is on the potential Elk Hills PPA. What do you think your current breakeven is to leave the grid? And I appreciate that there's many individual pieces and they're very nuance -- but maybe if you could address one specifically, what do you think you're going to get for resource adequacy in 2026?

知道了。我很感激。我的第二個問題是關於埃爾克山購電協議的潛在問題。你認為目前退出電網的損益平衡點是多少？我知道這其中包含許多獨立的部分，而且非常微妙——但如果您能具體談談其中一點，您認為到 2026 年資源充足性會達到什麼水平？

Yes, we're still not ready to guide until 2026 on any front. We still see the print for '25 highest ever resource adequacy for 2025 in a state that's very short a reliable power, we see a long-term success on that program, but we don't want to put any numbers in '26. We still haven't placed any contracts in motion. What we're also thinking about is really how do we get the market to price the value of that power generation into our multiple. And that's how we keep talking about a number of customers that could come behind the meter and take that power and a premium to what we make today and give us the duration on the contract.

是的，在任何方面，我們目前都還無法對2026年之前的情況做出任何預測。我們仍然看到 2025 年的印刷品顯示，在一個電力供應非常短缺的州，2025 年的資源充足率達到了有史以來的最高水平，我們看到了該計劃的長期成功，但我們不想對 2026 年做出任何預測。我們目前還沒有啟動任何合約程序。我們也在思考，如何讓市場將發電的價值納入我們的倍數定價。這就是為什麼我們一直在談論一些客戶可能會加入電錶，獲得電力，並支付比我們今天賺取的更高的價格，同時延長合約期限。

That's been the focus and to stay on that front, we're making really good progress on what I would say are framing discussions and have interest from several groups. We remain very encouraged and our focus is on making the right deal. So where near term, we don't -- you still are looking at potentially participating in the resource adequacy program is that right deal that has the long-term contract that ultimately will add significant value to the shareholders.

這一直是我們的重點，為了繼續朝著這個方向努力，我們在框架討論方面取得了非常好的進展，並且已經引起了幾個團體的興趣。我們仍然備受鼓舞，我們的重點是達成正確的交易。因此，就近期而言，我們並不——您仍然需要考慮參與資源充足性計劃的可能性，那就是達成一項合適的長期合同，最終為股東創造重大價值。

So in our conversations with customers, it's clear that we -- that they need power now -- that's obvious. But clean power is still very much a priority. So reliable clean power in a state like California, it's going to come from natural gas with CCS. And we're convinced that's the winning strategy and when we keep pushing forward to align the best contract so that we can add value to our power business.

因此，在與客戶的交流中，我們很清楚地了解到，他們現在就需要電力——這是顯而易見的。但清潔能源仍是重中之重。因此，像加州這樣的州，可靠的清潔能源將來自採用碳捕獲與封存技術的天然氣。我們堅信這是致勝之道，我們將繼續努力爭取最佳合同，以便為我們的電力業務增加價值。

Zach Parham, JPMorgan.

Zach Parham，摩根大通。

Hey, thanks for taking my question. Just wanted to follow up on the Elk Earls power plant and a potential power deal there. Can you give us a sense of potential timing for signing something? I know you're in negotiations that have talked about having conversations. But is that likely to be something that happens later this year? Is 2026, a possibility? Kind of how are you thinking about that from a timing perspective?

嘿，謝謝你回答我的問題。我只是想跟進一下埃爾克厄爾斯發電廠以及那裡可能達成的電力交易。您能否大致透露簽署協議的可能時間？我知道你們正在進行談判，談判中也談到了進行對話。但這種情況有可能在今年稍後發生嗎？2026年有可能嗎？從時間安排的角度來看，你是怎麼考慮這個問題的？

Yes, Zack, we still are very much focused on it, and our plan is to provide an update before the end of the year. There's a lot of interest. There's a lot of conversations happening we highlighted on the script another evolution of a story, which is the CPUC in California is considering adding carbon capture alongside with nuclear and hydro into the reliable and clean power procurement program. So there's clearly not only market signals or regulatory support for the type of projects that we're going to -- we're pursuing.

是的，扎克，我們仍然非常關注此事，我們的計劃是在年底前提供最新進展。大家對此很感興趣。有許多對話正在進行，我們在劇本中重點介紹了故事的另一個發展階段，那就是加州公共事業委員會 (CPUC) 正在考慮將碳捕獲技術與核能和水力發電一起納入可靠清潔電力採購計劃。所以很明顯，對於我們即將開展的這類項目，不僅有市場訊號或監管支持，還有我們正在推進的項目。

We're also seeing M&A in the state, so buyers of existing power plants that are not in California coming into California and talking about carbon capture, the solution. We're also seeing hyperscalers doing deals in natural gas in other parts of the country. So we see -- we have an advantage in the portfolio that we'll capitalize on that advantage. And the feedback we're getting is current count is going to be a great site for development of data centers. We have a firm stream of natural gas. We have land, we have permitted port space, and we have existing power generation -- this is not a turbine in back order. This is an actual and running power plant that has an extremely high reliability. So we see the AI and hyperscaler market looking to -- for what we have and very much pursuing something to announce later this year. So the time line hasn't changed and continue to be excited about the prospects and the conversations we're having.

我們也看到加州出現了併購活動，一些不在加州的現有發電廠的買家來到加州，討論碳捕獲解決方案。我們也看到超大規模企業在全國其他地區進行天然氣交易。所以我們看到——我們在投資組合方面具有優勢，我們將利用這一優勢。我們得到的回饋是，目前的場地非常適合發展資料中心。我們有穩定的天然氣供應。我們有土地，我們有核准的港口空間，我們也有現有的發電設施——這不是一台缺貨的渦輪機。這是一個實際運作中的發電廠，可靠性極高。因此，我們看到人工智慧和超大規模資料中心市場正在展望——就我們目前的情況而言，我們正在積極尋求在今年稍後宣布一些消息。所以時間表沒有改變，我們對前景和正在進行的對話仍然感到興奮。

Thanks. And then my follow-up on cash return. I mean, you opened very aggressive none recently. The other portion of that has been your dividend. How do you think about dividend growth over the medium and long term?

謝謝。然後是我關於現金回報的後續跟進。我的意思是，你最近開局非常激進。另一部分就是你的股息。您如何看待中長期股息成長？

Yes. We've been very successful in having a combination of buybacks and a fixed dividend. As it relates to the fixed dividend, we like the growth model -- and we've grown our dividend every year for the last four years. So it's a key part of our shareholder return policy and something that we evaluate with our Board of Directors every year.

是的。我們透過股票回購和固定股利相結合的方式取得了巨大成功。就固定股息而言，我們喜歡成長模式——而且在過去的四年裡，我們每年都提高了股息。因此，這是我們股東回報政策的關鍵部分，也是我們每年與董事會一起評估的內容。

So -- it's something that we think our shareholders really value and appreciate and it's something that will continue to be in part of the package of shareholder cash return to the shareholders every year. So that's a main stay, and we'll continue to evaluate for a potential further increase.

所以——我們認為股東們非常重視和讚賞這一點，而且這將繼續作為每年股東現金回報方案的一部分。所以這是目前的主力軍，我們將繼續評估是否有進一步成長的可能性。

David Deckelbaum, TD Cowen.

David Deckelbaum，TD Cowen。

Good afternoon, Francisco, Clio. Thanks for taking my questions. Francisco, I wonder if we can go back to just the maintenance capital conversation, just appreciating that you all will update that number once permitting becomes a little bit more clear, but I'm curious, just as you kind of sit today, maybe clearly, you could chime in on just the management of the free cash profile. How -- if you had an unconstrained permitting environment, how quickly would you look towards to move to maintenance in the current commodity environment?

下午好，弗朗西斯科，克里奧。謝謝您回答我的問題。弗朗西斯科，我想知道我們是否可以回到維護資本的討論上來，我知道一旦許可情況更加明朗，你們都會更新這個數字，但我很好奇，就你目前的情況而言，或許你可以就自由現金流的管理發表一下看法。如果審批環境不受限制，在目前的商品環境下，您會以多快的速度考慮轉向維修工作？

David, thanks for the question. So the way we think about streamlining our permits is that we'll have a lot more flexibility in the portfolio. And it's another tool to add to our very successful shareholder return program. We have grown cash flow per share every year, and that's what permit constraints and lower pricing. And so we feel that we're extremely well set up. So if you think about what we have, we have a very strong, solid balance sheet.

大衛，謝謝你的提問。因此，我們認為簡化許可證流程的方式是，我們將擁有更大的靈活性來管理我們的投資組合。這是我們非常成功的股東回報計畫的另一個補充工具。我們每年的每股現金流都在成長，因此才允許存在一些限制和降低定價。因此，我們感覺我們已經做好了萬全的準備。所以，想想我們擁有的資產負債表，我們擁有非常強勁、穩健的資產負債表。

The team is executing superbly and there's a very strong foundation of assets with production that have very low declines and low capital intensity. So permits, new permits will give us an ability to also deliver value by drilling our extensive inventory. So the way to think about it is a way to enhance what we've already delivered over multiple years.

團隊執行力出色，擁有非常強大的資產基礎，這些資產的生產損耗率很低，資本密集度也很低。因此，新的許可證將使我們能夠透過鑽探我們豐富的儲量來創造價值。所以，我們應該這樣理解：這是一種加強我們多年來已經取得的成就的方式。

So what that means in terms of shareholder returns is we will be looking for the best mix to deliver that continued growth on cash flow per share. So we don't look at maintenance production as the objective. We look at growth in cash flow per share, the objective. So yes, we keep in mind that commodity environment, we keep in mind where the stock is trading, and we keep in mind the returns on our wells, and that all goes into the mix as we make capital allocation decisions.

因此，就股東回報而言，這意味著我們將尋求最佳組合，以實現每股現金流的持續成長。所以我們並不把維持性生產視為目標。我們關注每股現金流的成長，這是我們的目標。所以，是的，我們會考慮到大宗商品市場環境，我們會考慮到股票的交易情況，我們會考慮到油井的收益，所有這些因素都會納入我們的資本配置決策考慮之中。

So -- it's going to be a great showcase of what the inventory is looking to do, but always focus on what's the best way to return capital to shareholders. So -- it's something that we'll address with more specificity once we know exactly what we have in terms of new permits. In the meantime, we have full permits for the remainder of the year for the two rigs, and we can continue that going into next year for 2026.

所以——這將是對庫存表現的一次很好的展示，但始終要關注如何以最佳方式為股東帶來資本回報。所以——一旦我們確切地知道我們獲得了哪些新許可證，我們將更具體地討論這個問題。同時，我們已獲得今年剩餘時間這兩個鑽井平台的全部許可證，並且可以將許可證延續到明年，即 2026 年。

So more of the same great returns with some enhancements that will come from drilling inventory.

因此，在鑽探庫存增加的情況下，仍將獲得與以往同樣豐厚的回報，並實現一些成長。

I appreciate the color, Francisco. And maybe just as a follow-up to that, you talked about the permit backlog, and I know that the company had pivoted a bit this year to applying for conditional use permits under Kalgim. At this point, what has the experience been like? And with a two-rig program, what's the backlog in terms of drilling years at this point?

弗朗西斯科，我很喜歡這個顏色。或許可以作為後續問題，您談到了許可證積壓的情況，我知道該公司今年已經稍微調整了策略，開始根據 Kalgim 的規定申請有條件使用許可證。到目前為止，你的體驗如何？如果採用雙鑽井平台方案，目前積壓的鑽井作業年資是多少？

Yes. So we continue -- so as I mentioned earlier, the conversations right now are trending to a legislative fix on permits, and that's what the language that was floated around publicly from the governor's office.

是的。所以我們繼續——正如我之前提到的，目前的討論趨勢是朝著透過立法解決許可證問題的方向發展，這也是州長辦公室公開流傳的措辭。

That is separate from what we had been talking about, which was the Kern County ER litigation and the conditional use permit, right? So regulatory versus legislative fixes. So we continue to move all things in parallel. We see there was a revised EIR that was approved at the county and is heading back to the trial court for consideration. And we also having continued to work to satisfy the requirements on the conditional use permits.

這和我們之前討論的克恩縣緊急事務管理署訴訟和有條件使用許可的事情是兩回事，對吧？所以，是選擇監理措施還是立法措施？所以，我們繼續並行推進所有事項。我們看到，縣內已經批准了一份修訂後的環境影響報告，現在這份報告將回到審判法院進行審議。同時，我們也一直在努力滿足有條件使用許可證的要求。

So none of that has been slowed down, but the focus and attention is on a legislative fix that ultimately will be the best path forward to get permits back on track. So the inventory in terms of the duration of that inventory, it depends on the ultimate outcome of the discussions. There's different ways that we can ultimately get back to drilling more wells. But we haven't had any issues with sidetracks and workovers, and we continue to permit those and continue to build that inventory beyond 2026.

所以這些工作都沒有放緩，但重點和注意力都集中在立法改革上，最終將是使許可證發放重回正軌的最佳途徑。因此，庫存的持續時間取決於討論的最終結果。我們最終可以透過多種方式恢復鑽井作業。但是，我們沒有遇到任何關於支線和修路的問題，我們將繼續允許這些作業，並繼續在 2026 年後增加庫存。

So progress continues and across multiple fronts. And I think we'll have a few updates by the end of the legislative session so that we can true up to where we are and where we think the future will be.

因此，進展仍在繼續，而且是在多個方面。我認為在立法會議結束之前，我們會有一些更新信息，以便我們能夠準確地了解我們目前所處的位置以及我們對未來的展望。

Nate Pendleton, Texas Capital.

內特·彭德爾頓，德克薩斯資本。

Good morning. Congrats on the strong quarter, with my first question, I wanted to dig a little deeper into the Class V permitting process. Can you share any thoughts on how permitting is progressing for the A12 reservoir and your other CTV projects -- also maybe if you could touch on any meaningful changes you have seen now that the new administration has had a little bit of time to make their mark.

早安.恭喜本季業績強勁，我的第一個問題是，我想更深入地了解第五類授權流程。能否分享一下A12水庫和其他CTV專案的審批進度？另外，您能否談談新政府上任以來，有哪些實質的改變？

Thanks for the question. I'll turn it to Chris to provide more details on EPA Classics.

謝謝你的提問。我將請克里斯詳細介紹EPA Classics。

Nate, yes. The EPA tracker continues to be the best estimate out there for timing. We continue to see progress on all the permits that you see there through CTV 6, continue to have a constructive dialogue with EPA, particularly on the back of the first-of-a-kind and applying the learnings from 26R. Nowhere is that more evident than with A1, A2, as you know, in the same complex as 26R are -- so very close cousin, if you will, very sort of conducive to applying those learnings. I remind you that, that A1, A2 is also part of the Kern County conditional use permit, which was final. So -- we do see the estimate is likely for a draft permit for A1, A2 this year, and we see the rest of the permits as the tracker is a good estimate. There are estimates. So things can always change, but it looks reasonable to us.

是的，內特。美國環保署的追蹤器仍然是目前對時間估算的最佳工具。我們看到，透過 CTV 6，所有許可證都取得了進展，我們繼續與 EPA 進行建設性對話，尤其是在首創之後，並應用了 26R 的經驗教訓。這一點在 A1、A2 上體現得最為明顯，正如你所知，它們與 26R 屬於同一個複合體——所以可以說是非常近親，非常有利於應用這些知識。我提醒您，A1、A2 也是克恩縣有條件使用許可證的一部分，該許可證已最終生效。所以——我們看到今年 A1、A2 的草案許可證估計很有可能獲得批准，而其餘許可證的批准情況，根據追蹤器來看，也是一個不錯的估計。有一些估算數據。所以情況隨時可能變化，但我們認為這是合理的。

And the BPA is committed to expediting permits, putting more resources behind the different EPA regions. So we're encouraged by the signal to streamline permits on that front and look forward to receipt of incremental Class 6 permits in the very near term.

BPA致力於加快許可證發放速度，為EPA各區域投入更多資源。因此，我們受到這項訊號的鼓舞，將簡化這方面的許可證審批流程，並期待在不久的將來收到更多 6 類許可證。

Got it. Thanks. And maybe staying on CTV. On Slide 16, you added a comment about expecting support for CO2 pipeline transportation from California legislators. Can you provide some details on what you're seeing on the pipeline front.

知道了。謝謝。或許還會繼續留在CTV。在第 16 張幻燈片中，你添加了一條評論，表示希望加州立法者支持二氧化碳管道運輸。您能否提供一些關於管道方面的具體情況？

Yes. It's another area need where we're very encouraged about the progress. There's legislation that's advancing through the California legislature and that would support the construction of CO2 pipelines. The Assembly Bill 881 would basically lift the moratorium on interstate CO2 pipelines. The bill has a lot of momentum. It's currently sitting in the Senate. If it passes the legislature and signed by the governor by mid-October, the bill will be in effect by January 1, 2026.

是的。這是我們另一個亟需改進的領域，我們非常欣慰地看到目前的進展。加州立法機構正在推動一項立法，該立法將支持二氧化碳管道的建設。881號議會法案基本上將解除對州際二氧化碳管線建設的禁令。該法案勢頭強勁。目前該法案正在參議院審議。如果該法案在 10 月中旬之前獲得立法機關通過並由州長簽署，則將於 2026 年 1 月 1 日生效。

So -- we've seen -- we haven't seen this much support and momentum in two or three years where we've been working on this. So we remain very optimistic that this is an important step towards unlocking the scale of carbon management, and we're seeing a lot of good support and dialogue with California leadership around this topic.

所以——我們看到——在過去兩三年我們致力於這項工作的過程中，我們從未見過如此多的支持和動力。因此，我們仍然非常樂觀地認為，這是釋放碳管理規模的重要一步，我們看到加州領導層就此主題給予了許多良好的支持和對話。

And I understand that there is time for two last questions.

我知道還有時間回答最後兩個問題。

Michael Ferro, Pickering Energy Partners.

Michael Ferro，Pickering Energy Partners。

Hey, good morning. Thanks for taking my question. It was positive to see the company step in and repurchase shares from ICA when they came to market in June. Now ultimately, the future intentions of these shareholders are unknown. But would you say that CRC is still well positioned to kind of step in again and help support these sellers if they come to market? And if so, would that require an expansion of the authorization program?

嘿，早安。謝謝您回答我的問題。令人欣慰的是，該公司在 ICA 於 6 月上市時出手回購了其股票。現在，這些股東的未來意圖最終仍是未知數。但您認為，如果這些賣家進入市場，CRC 是否仍有能力再次介入並為他們提供支援？如果真是如此，是否需要擴大授權程序？

Yes. So we absolutely stand ready. We see a tremendous amount of value in our stock. And we started the year what are the first local period came in, and we said we would step in if there was any interest from shareholder exiting. And then we followed through ended the block that we announced earlier. And -- so we continue to stand ready in terms of making sure the exit of any sponsor is efficient -- but what we have seen is subsequent to us stepping in, there's ICAV, we believe, sold another 1 million shares and to a third-party showing that there's a very efficient market and a lot of liquidity for our shares and a lot of appetite for our shares. So we would believe strongly in the buyback program, and we see a lot of catalysts coming that are not recognized in the value of the company. So as we rebuild cash, as we look at paying down debt, buyback continues to be very much an element of our cash return strategy.

是的。所以我們已經做好了萬全準備。我們認為我們的股票具有巨大的價值。今年年初，第一個本地時期到來了，我們表示，如果股東有意退出，我們將介入。然後我們按照先前宣布的計劃，結束了封鎖。因此，我們將繼續做好準備，確保任何發起人都能有效率地退出。但我們看到的是，在我們介入之後，ICAV（我們相信）又向第三方出售了 100 萬股，這表明我們的股票市場非常高效，流動性很強，而且市場對我們的股票需求很大。因此，我們非常看好股票回購計劃，我們看到了許多尚未反映在公司價值中的催化劑。因此，在我們重建現金流、償還債務的過程中，股票回購仍是我們現金回報策略的重要部分。

That's great. Thank you for the details. Just a quick follow-up on production taxes. It looked like they came in pretty low this quarter and helped drive some of the quarterly beat versus our model. At the back half of the year, production tax guidance kind of looks similar to the 1Q rate again. So can you inform us on what some of the drivers are for why the production taxes pouch stepped down so much as they did in the second quarter?

那太棒了。謝謝你提供的詳細資訊。關於生產稅，我再補充一點。本季他們的表現似乎相當低，這有助於推動季度業績超越我們的預期。下半年的生產稅收指引看起來與第一季的稅率大致相同。那麼，您能否告知我們，導致第二季生產稅收入大幅下降的部分原因是什麼？

Yes, mike, we can. We had accrued at a higher rate, assuming a higher increase than is the one that we saw. So that's the adjustment that you saw on the production taxes. It's a catch-up.

是的，麥克，我們可以。我們原本以更高的速度累積財富，因為我們預期成長速度會比實際看到的還要快。這就是你看到的生產稅調整。這是在追趕進度。

Scott Gruber, Citigroup.

史考特‧格魯伯，花旗集團。

Yes, good morning. Francesco, I want to come back to the upstream investment strategy. if there is an unconstrained permitting environment, your tax position has improved. Is there any appetite not just to maintain production, but to recapture some lost volumes? Or -- is that really a question about other calls on capital. You obviously have the carry on the carbon management side. But just curious how you weigh recapturing lost volumes? Or is that off the table?

是的，早安。弗朗西斯科，我想再談談上游投資策略。如果審批環境不受限制，你的稅務狀況就會有所改善。是否有意願不僅維持產量，而且重新奪回一些失去的銷售量？或者——這實際上是關於其他資金需求的問題嗎？顯然，你們在碳管理方面負有責任。我只是好奇，您如何權衡恢復損失的銷售量？或者說，這個方案根本不可能？

Yeah, I mean, as I indicated, the way we look at managing the business is around cash flow per share. That's what we think is the metric that drives stock performance and shareholder value.

是的，我的意思是，正如我所指出的，我們看待業務管理的方式是圍繞每股現金流展開的。我們認為，這才是驅動股票表現和股東價值的關鍵指標。

We have been in a permit constrained environment for a few years but have been able to grow cash flow per share and also with lower pricing, and the focus has been on buybacks and cost cutting exercises and synergies around the era merger.

幾年來，我們一直處於許可證受限的環境中，但我們仍然能夠提高每股現金流，同時降低定價，重點放在股票回購、成本削減措施以及圍繞時代合併的協同效應上。

So in an unconstrained case now we have the ability to move the top line and We have, we look forward to the flexibility and added element to continue driving cash flow per share. At the end of the day it's not growing the business, the production just for the sake of growing, it's about growing cash flow. And so if we find the right combination of opportunities, we're going to invest into, an unconstrained environment to a level that we feel maximizes that cash flow per share. So I. Don't want to be prescriptive about rigs or about activity at this stage until we can cross into the unconstrained permitting scenario, but our commitment is to continue to drive shareholder value in the combination of everything we have at our disposal in terms of cost structure efficiencies, in terms of buybacks, and in terms of investment. So that's that's the way we think about the business. It's all about cash flow and cash flow, growing that cash flow every year.

因此，在不受限制的情況下，我們現在有能力提升營收，我們期待這種靈活性和新增因素將繼續推動每股現金流的成長。歸根究底，企業發展不是為了發展而發展，而是為了增加現金流。因此，如果我們找到了合適的投資機會組合，我們將在一個不受限制的環境中進行投資，投資水準將達到我們認為能夠最大化每股現金流的程度。因此，在進入不受限制的許可階段之前，我不想對鑽井平台或活動做出具體規定，但我們的承諾是繼續利用我們所掌握的一切資源，包括成本結構效率、股票回購和投資，來提升股東價值。這就是我們對這項業務的思考方式。一切都與現金流有關，現金流需要逐年成長。

That makes sense. -- the detail. And then a follow-up on the asset level detail on Slide 15, obviously, your recovery factors. (inaudible)

這很有道理。 ——細節部分。然後，在第 15 張投影片上，顯然還有關於資產層面細節的後續討論，即您的回收因素。（聽不清楚）

Excuse me, Mr. Gruber. I'm sorry you're breaking up. Would you please state your question.

打擾一下，格魯伯先生。很遺憾你們要分手了。請您提出您的問題。

I'm curious on the recovery factors you show on Slide 15. How much more running room do you think you have to squeeze those recovery factors higher?

我對您在第 15 張投影片中所展示的恢復因素很感興趣。你認為還有多少提升空間可以提高這些恢復係數？

Yes. We have truly world-class reservoirs and fantastic rock here. And you might be surprised to see recovery factors that are as high -- but the reality is we have a lot of room to grow. We've seen fields in California that get up to 70%, 75% recovery. And so we have a massive running room. And you can do the math, incremental 1% recovery factor adds millions of barrels of reserves.

是的。我們這裡擁有世界一流的水庫和優良的岩石。你可能會驚訝地發現復甦係數如此之高——但現實是我們還有很大的成長空間。我們在加州見過一些田地，其作物回收率高達 70%、75%。因此，我們有很大的運行空間。你可以算算，每提高 1% 的採收率，就能增加數百萬桶的儲量。

So the benefit of not having to deal with very tight rock that doesn't flow that doesn't have the permeability is that your running room is in the multiple decades of quality inventory. It's about pressure maintenance. It's about making sure you have the right water floods, the right steam floods and see the running room is absolutely an advantage that we're going to be able to showcase. And then looking at the slide, 97% working interest, 91% is I don't think you'll find a lot of -- in the public independents that have the quality of runway and inventory that we have here in California.

因此，不必處理流動性差、滲透性差的緻密岩石的好處是，你的營運空間可以長達數十年，擁有高品質的庫存。關鍵在於壓力維持。關鍵在於確保有合適的水封、合適的蒸汽封，並且運行空間絕對是我們可以展示的優勢。然後看看投影片，97% 的工作權益，91% 的話，我認為你很難在加州這樣的獨立上市公司中找到像我們這裡這樣擁有高品質跑道和庫存的股票。

This concludes our question-and-answer session. I would like to turn the conference back over to Francisco Leon, for any closing remarks.

我們的問答環節到此結束。我謹將會議交還給法蘭西斯科·萊昂，請他作總結發言。

Thanks again for joining us today. We hope to see you at several conferences this fall and hope everybody has a good day. Thank you.

再次感謝您今天收看我們的節目。我們希望今年秋季能在幾場會議上見到您，也祝大家今天過得愉快。謝謝。

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

會議已經結束。感謝各位參加今天的報告會。您現在可以斷開連線了。