California Resources Corp (CRC) 2025 Q3 法說會逐字稿

Good day, and welcome to the California Resources Corporation third quarter 2025 earnings conference call. (Operator Instructions) Please note, this event is being recorded.

大家好，歡迎參加加州資源公司2025年第三季財報電話會議。（操作說明）請注意，本次活動正在錄影。

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

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 third quarter 2025 conference call. Following prepared remarks, members of our leadership team will be available to take your questions. By now, I hope you have had a chance to review our earnings release and supplemental slides.

早安，歡迎參加加州資源公司2025年第三季電話會議。在事先準備好的發言之後，我們的領導團隊成員將回答您的問題。希望您現在已經有機會審閱我們的財報和補充投影片。

We have also provided information reconciling non-GAAP financial measures to comparable GAAP measures on our website and in our earnings release. We will also discuss our pending Barry merger. We encourage you to read our Form S-4 filed on October 14, 2025, as it contains important information. Copies of this and other relevant documents are also available on our website and the SEC's website.

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指標進行調節的資訊。我們也將討論正在進行的與Barry的合併事宜。我們建議您閱讀我們於 2025 年 10 月 14 日提交的 S-4 表格，因為它包含重要資訊。本文件及其他相關文件的副本也可在我們的網站和美國證券交易委員會的網站上查閱。

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.

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. CRC delivered another strong quarter, reinforcing the disciplined performance and strategic focus that set us apart as a different kind of energy company and also positioning us at the forefront of California's energy revival.

各位早安。CRC 又取得了強勁的季度業績，鞏固了我們嚴謹的業績和戰略重點，使我們成為一家與眾不同的能源公司，也使我們處於加州能源復興的前沿。

We have a lot of good news to share this morning. Here's how we're going to structure the call. First, we will open with a list of accomplishments and summarize important recent events. Next, Clio will discuss our third quarter results. Lastly, we will share some early thoughts around 2026.

今天早上我們有很多好消息要跟大家分享。以下是我們安排通話的方式。首先，我們將列舉所取得的成就，並總結近期發生的重要事件。接下來，Clio 將討論我們第三季的業績。最後，我們將分享一些關於 2026 年的初步想法。

Let's start with the highlights. California's energy and regulatory environment is improving in meaningful ways and CRC is well positioned. The recent passage of key legislation has created the most constructive framework we've seen in more than a decade, strengthening oil and gas permitting, authorizing CO2 pipelines and extending the Kapan Invest program through 2045.

讓我們先來看重點。加州的能源和監管環境正在以意義深遠的方式改善，CRC 已做好充分準備。最近通過的關鍵立法創造了十多年來我們所見到的最具建設性的框架，加強了石油和天然氣許可，授權建造二氧化碳管道，並將卡潘投資計畫延長至 2045 年。

Together, these loss help support reliable in-state production while encouraging investment in the state's rapidly rising energy demand. CRC's E&P, CCS and Power businesses can support California's need for energy security and clean energy solutions. Our E&P business continues to perform exceptionally well. Our teams are executing safely, and our assets are demonstrating strong production performance and low base declines.

這些損失加在一起，有助於支持州內可靠的能源生產，同時鼓勵對該州快速增長的能源需求進行投資。CRC 的勘探與生產、碳捕獲與封存和電力業務可以滿足加州對能源安全和清潔能源解決方案的需求。我們的勘探與生產業務持續表現出色。我們的團隊正在安全作業，我們的資產也展現出強勁的生產性能和較低的基數下降率。

With our successful Aera integration behind us, we can now move our annual base decline assumption to 8% to 13%, which is down from 10% to 15% previously. This significant change strengthens our cash flow generation, improves our capital intensity and enhances the value of our large PDP reserve base.

隨著我們成功整合 Aera，我們現在可以將年度基本下降假設調整為 8% 至 13%，低於先前的 10% 至 15%。這項重大變化增強了我們的現金流產生能力，提高了我們的資本密集度，並提升了我們龐大的PDP儲備基礎的價值。

CRC's conventional reservoirs are advantaged with significantly higher estimated ultimate recoveries when compared to shale resource plays. As many of the Lower 48 producers are moving towards lower quality locations, we are well positioned with long duration, high-quality, low-decline reservoirs.

與頁岩資源開發相比，CRC 的常規油藏具有更高的預期最終採收率優勢。由於美國本土48州的許多石油生產商正在向質量較低的地區轉移，我們憑藉儲量豐富、質量高、產量遞減率低的油藏佔據了有利地位。

We believe that this will allow us to effectively replace reserves, maintain production with less capital and deliver consistent results through the cycle. Strong execution and smooth integration remain key strengths of our operating teams.

我們相信這將使我們能夠有效地補充儲量，以更少的資本維持生產，並在整個週期中取得持續的表現。強大的執行力和流暢的整合仍然是我們營運團隊的關鍵優勢。

We recently announced our merger agreement with Berry Corporation. Like Era, this deal was well timed is progressing as planned and will add assets that are adjacent to our current positions, creating meaningful synergies that further enhance our leading operational scale in California.

我們最近宣布了與貝瑞集團的合併協議。與 Era 一樣，這筆交易時機恰當，進展順利，將增加與我們現有資產相鄰的資產，從而產生有意義的協同效應，進一步增強我們在加州的領先營運規模。

Through Aera, we demonstrated our ability to effectively integrate assets, improve operating efficiencies and rapidly capture value. We plan to apply that SIM approach to Berry. Turning to our carbon terrible business. Momentum continues to build. We are well ahead of the competition and close to making history at Elk Hills with our first CCS cash flows.

透過 Aera，我們證明了我們能夠有效地整合資產、提高營運效率並快速創造價值。我們計劃將這種 SIM 方法應用於 Berry 公司。轉向我們這個碳排放嚴重的產業。勢頭持續增強。我們遙遙領先競爭對手，並且即將憑藉我們的首筆 CCS 現金流在 Elk Hills 創造歷史。

Our first carbon capture and sequestration project at our Elk Hills cryogenic gas plant is advancing with construction underway and first CO2 injection expected in early 2026, pending regulatory go ahead. This will be California's first commercial-scale CCS project and a critical step towards realizing the state's decarbonization goals.

我們在埃爾克山低溫氣體工廠的第一個碳捕獲和封存項目正在推進中，建設正在進行中，預計將於 2026 年初首次注入二氧化碳，但需等待監管部門的批准。這將是加州首個商業規模的碳捕獲與封存項目，也是實現該州脫碳目標的關鍵一步。

Now that the CO2 pipeline moratorium has been lifted, our strategically positioned CTV reservoirs across the state have the potential to provide storage solutions for existing brownfield emitters, that don't have the benefit of colocation, creating a true statewide framework for emissions reduction. We are also advancing our regulatory efforts in permitting inventory to expand our statewide storage network.

現在二氧化碳管道禁令已經解除，我們策略性地分佈在全州的 CTV 儲罐有可能為現有的棕地排放源提供儲存解決方案，這些排放源無法享受共址的優勢，從而為全州減排創造一個真正的框架。我們也在推動監管工作，允許庫存擴大，以擴展我們全州的倉儲網路。

We currently have seven Class VI permits under active review with the EPA and are preparing additional applications totaling 100 million metric tons across Central California. As we focus on the most attractive markets for CCS, one thing is clear, California's biggest opportunity lies in delivering clean, reliable power.

我們目前有七份 VI 類許可證正在接受美國環保署的積極審查，並且正在準備在加州中部地區提交總計 1 億公噸的其他申請。當我們關注碳捕獲與封存技術最具吸引力的市場時，有一點很明確，加州最大的機會在於提供清潔、可靠的電力。

The California Public Utilities Commission estimates that incremental power capacity in the state will need to double by 2035 to meet demand. Later on, the projected investment in AI inference targeting major population centers, and it's clear that California is heading towards a substantial power shortfall. While renewable resources and scalable battery storage have a role, they will not be enough to satisfy demand.

加州公共事業委員會估計，到 2035 年，該州新增電力容量需要翻倍才能滿足需求。後來，針對主要人口中心的 AI 推理的預期投資，顯然加州正走向嚴重的電力短缺。雖然可再生資源和可擴展的電池儲能發揮一定作用，但它們不足以滿足需求。

California needs clean, reliable baseload power to enable data center growth while ensuring a reliable grid. State leaders recognize this challenge and have proposed several pathways to address it. With CCS, CRC and CTV are well placed to be part of the solution. Google recently announced plans to deploy natural gas generation with carbon capture for their Illinois data centers.

加州需要清潔、可靠的基礎負載電力，以支持資料中心的發展，同時確保電網的可靠性。國家領導人認識到這項挑戰，並提出了幾種應對途徑。CCS、CRC 和 CTV 完全有能力成為解決方案的一部分。谷歌最近宣布計劃在其伊利諾伊州的資料中心部署天然氣發電和碳捕獲技術。

Here in California, the Energy Commission recently issued a report highlighting that pairing natural gas generation with CCS is a practical and scalable path to the carbonized baseload power across the state's legacy assets. It's clear that leading innovators share this vision, and so do we. CRC and CTV have an unequal portfolio of assets located in the heart of the nation's largest economy.

在加州，能源委員會最近發布了一份報告，強調將天然氣發電與碳捕獲與封存 (CCS) 相結合，是實現該州傳統資產碳基荷電力的切實可行且可擴展的途徑。很顯然，領先的創新者們都認同這個願景，我們也是。CRC 和 CTV 擁有位於美國最大經濟體核心地帶的不均衡資產組合。

We can readily pair existing power generation with carbon capture to rapidly unlock firm, clean baseload power in proximity to major demand centers. We are evaluating multiple opportunities today in this rapidly expanding market.

我們可以輕鬆地將現有發電技術與碳捕獲技術結合，從而在主要需求中心附近快速獲得穩定、清潔的基礎負載電力。目前，我們正在評估這個快速成長的市場中的多個機會。

First, utility and wholesale markets, where front of the meter sales could provide decarbonized baseload power directly into the grid to support system reliability and reduce emissions under the CPUC's newly proposed reliable and clean power procurement program or RC BBB.

首先是公用事業和批發市場，在這些市場中，電錶前的銷售可以直接向電網提供脫碳基荷電力，以支持系統可靠性並根據加州公共事業委員會 (CPUC) 新提出的可靠清潔電力採購計劃 (RC BBB) 減少排放。

Second, we can help meet demand from existing large technology and data center operators. Based on PG&E's interconnection queue, data center request in California have now exceeded 10 gigawatts, reflecting surging energy needs tied to AI, cloud computing and electrification across the state.

其次，我們可以協助滿足現有大型科技和資料中心營運商的需求。根據 PG&E 的互聯隊列數據，加州的數據中心需求現已超過 10 吉瓦，反映出該州人工智慧、雲端運算和電氣化帶來的能源需求激增。

As the AI revolution advances from training to inference, data center sites are expected to shift from prioritizing areas with cheap abundant electricity to low latency areas near major population clusters. As the largest state in the nation with nearly 40 million people and four of the top largest US cities, California screens extremely well.

隨著人工智慧革命從訓練階段發展到推理階段，資料中心選址預計將從優先考慮電力價格低廉且充足的地區，轉向優先考慮人口密集區附近的低延遲地區。加州是美國人口最多的州，擁有近 4,000 萬人口和美國四大城市，因此篩選效果非常好。

As we evaluate our options, it's important that we do the right deal at the right time to create the most value for our shareholders. We're focused on turning an evolving market opportunity into real progress. And earlier today, we took another important step in our natural gas power with CCS strategy in Kern County, as we announced a new partnership with Capital Power to develop carbon management solutions for the La Paloma power facility.

在評估各種方案時，重要的是在適當的時機達成合適的交易，從而為股東創造最大價值。我們致力於將不斷變化的市場機會轉化為實際進展。今天早些時候，我們在克恩縣的天然氣發電與碳捕獲和封存策略方面又邁出了重要一步，我們宣布與 Capital Power 建立新的合作夥伴關係，為 La Paloma 發電廠開發碳管理解決方案。

This builds on our previous announcements with Whole Street and our own project, Cal capture and Elk Hill. These partnerships validate market demand expand scale from front or behind the meter data centers and highlight CRC's ability to connect firm power generation with carbon storage. With strong execution, disciplined growth and a constructive policy environment, CRC is well positioned to lead California synergy come back, one that values both reliability and responsibility.

這是建立在我們之前與 Whole Street 以及我們自己的計畫 Cal capture 和 Elk Hill 的合作公告之上的。這些合作關係驗證了市場需求，擴大了表前或表後資料中心的規模，並突顯了 CRC 將可靠的發電與碳儲存連結起來的能力。憑藉著強有力的執行力、嚴謹的成長和建設性的政策環境，CRC 已做好充分準備，引領加州協同效應的復甦，這種復甦既重視可靠性，也重視責任感。

Clio, over to you.

克里奧，該你了。

Thanks, Francisco. This quarter's operating performance once again exceeded expectations, underscoring CRC's consistent execution operational strength and financial discipline, the hallmarks of our strategy. For the third quarter of 2025, we delivered net production of 137,000 BOE per day, 78% oil, roughly flat quarter-over-quarter on a $43 million D&C and workover capital program.

謝謝你，弗朗西斯科。本季的經營業績再次超出預期，凸顯了 CRC 一貫的執行力、營運實力和財務紀律，這也是我們策略的標誌。2025 年第三季度，我們實現了每日 137,000 桶油當量淨產量，其中 78% 為石油，與上一季度基本持平，這得益於 4300 萬美元的鑽井和修井資本計劃。

Realizations remained above national averages. Oil at 97% of Brent, NGL at 60% of Brent and natural gas improving to 113% of NYMEX. We generated adjusted EBITDAX of $338 million and free cash flow before changes in working capital of $231 million, reinforcing the durability and efficiency of our operating model.

實際收益仍高於全國平均。原油價格為布蘭特原油價格的 97%，天然氣凝析液價格為布蘭特原油價格的 60%，天然氣價格提高至紐約商品交易所價格的 113%。我們實現了調整後的 EBITDAX 3.38 億美元，營運資本變動前的自由現金流量為 2.31 億美元，這進一步鞏固了我們營運模式的持久性和效率。

G&A and operating costs were within guidance and our hedge portfolio continued to provide downside protection, while preserving margins. Capital investment for the quarter totaled $91 million, squarely within plan.

一般及行政費用和營運成本均在預期範圍內，我們的對沖組合繼續提供下行保護，同時維持了利潤率。本季資本投資總額為9,100萬美元，完全符合計畫。

In October, we raised $400 million on attractive terms to refinance Berry's debt ahead of the pending merger. This financing demonstrates our ability to quickly capitalize on favorable market conditions, strategically enhance our balance sheet by lowering costs and extending duration and maintain leverage below 1times.

10 月份，我們以優惠的條件籌集了 4 億美元，用於在即將進行的合併之前為 Berry 的債務進行再融資。此次融資顯示我們有能力迅速利用有利的市場條件，透過降低成本和延長期限來策略性地改善我們的資產負債表，並將槓桿率保持在 1 倍以下。

These proactive steps kick start our synergy capture and position us well for a seamless integration once the merger closes. Our balance sheet remains a key strength. At quarter end, net leverage is at 0.6 times and total liquidity exceeded $1.1 billion, including $196 million of cash and an undrawn revolver.

這些積極主動的措施將啟動我們的協同效應獲取，並使我們為合併完成後的無縫整合做好充分準備。我們的資產負債表依然是我們的關鍵優勢。截至季末，淨槓桿率為 0.6 倍，總流動資金超過 11 億美元，其中包括 1.96 億美元的現金和未提取的循環信貸額度。

In October, we used available cash to redeem the remaining $122 million over 26 senior notes at par. Since then, we've rapidly rebuild our cash balance, ending October with more than $170 million, excluding the high-yield proceeds reserved for the very closing. We have no near-term debt maturities. The next comes due in 2029.

10 月份，我們利用可用現金以面額贖回了剩餘的 26 筆優先票據，總額為 1.22 億美元。從那以後，我們迅速重建了現金餘額，到 10 月底，現金餘額超過 1.7 億美元，還不包括為交易完成預留的高收益資金。我們近期沒有到期債務。下一次預計將於 2029 年到來。

Rating agencies have taken notice. Moody's upgraded CRC's corporate family rating to BA3 and Fitch assigned a positive outlook, citing our consistent cash flow generation, low leverage, disciplined capital allocation and the improving regulatory environment in California.

評級機構已經注意到這一點。穆迪將 CRC 的企業家族評級上調至 BA3，惠譽給予正面展望，理由是我們持續的現金流產生、低槓桿率、嚴謹的資本配置以及加州不斷改善的監管環境。

In addition, our borrowing base was reaffirmed in October at $1.5 billion, while existing and new lenders increased their elected commitments by $300 million to $1.45 billion, further enhancing our financial flexibility. CRC's balance sheet and capital framework remain among the strongest in our sector, giving us flexibility to fund disciplined growth, while sustaining meaningful shareholder returns.

此外，我們的借款基礎在 10 月被確認為 15 億美元，而現有和新的貸款機構將其承諾的貸款額增加了 3 億美元，達到 14.5 億美元，進一步增強了我們的財務靈活性。CRC 的資產負債表和資本框架仍然是我們行業中最強大的之一，這使我們能夠靈活地為穩健成長提供資金，同時維持有意義的股東回報。

During the quarter, we increased our dividend by 5%, reflecting continued confidence in our business and cash generation. Year-to-date, we returned more than $450 million through dividends and share repurchases. Under our current authorization, we have over $200 million of remaining capacity for share repurchases through mid-2026.

本季度，我們將股息提高了 5%，這反映了我們對公司業務和現金流的持續信心。今年迄今為止，我們透過分紅和股票回購返還了超過 4.5 億美元。根據我們目前的授權，到 2026 年年中，我們還有超過 2 億美元的剩餘資金用於股票回購。

The fourth quarter is shaping up extremely well. We expect to benefit from continued stable production, lower costs and new efficiencies. Capital spend will be modestly higher than in the third quarter, mainly reflecting the catch-up of deferred projects and a strategic scope change to our CCS project at CRC's Elk Hills cryogenic gas plant.

第四季情勢一片大好。我們期望從持續穩定的生產、更低的成本和更高的效率中受益。資本支出將略高於第三季度，主要反映了延期項目的追趕以及 CRC 埃爾克山低溫氣體工廠的 CCS 項目的戰略範圍變更。

As we've advanced this project, we've identified an opportunity to upgrade facilities to serve both Bell Ridge and Elk Hills. Improvements that enhance NGL recovery and increase operational efficiency as we prime the facility for carbon capture. This once again demonstrates our team's innovative approach and our focus on value-enhancing initiatives through integration.

隨著計畫的推進，我們發現了一個升級設施的機會，可以同時服務貝爾嶺和麋鹿山。改進措施可提高 NGL 回收率和營運效率，同時為碳捕獲做好準備。這再次證明了我們團隊的創新方法以及我們透過整合來提升價值的舉措。

Importantly, full year capital expenditures are still expected to remain within our previously disclosed annual guidance range of $280 million to $330 million. As we look ahead, CRC is poised to enter 2026 with a premier balance sheet, a flexible capital structure and a resilient production base, all supporting durable free cash flow and long-term shareholder value.

重要的是，全年資本支出預計仍將保持在我們先前公佈的年度指導範圍內，即 2.8 億美元至 3.3 億美元。展望未來，CRC 已做好準備，以一流的資產負債表、靈活的資本結構和穩健的生產基礎進入 2026 年，所有這些都將支持持久的自由現金流和長期的股東價值。

Furthermore, roughly two third of our expected 2026 production is hedged at a Brent floor price of $64 per barrel, ensuring the stability of our cash flow. Our preliminary 2026 plan assumes an average of 4 rigs supported by our strong hedge position and our inventory of existing permits. We plan to operate these rigs using both current permits and those expected following SB 237 enactment.

此外，我們預計 2026 年產量的大約三分之二已以每桶 64 美元的布蘭特原油最低價格進行避險，從而確保了我們現金流的穩定性。我們初步的 2026 年計畫假設平均有 4 個鑽井平台，這得益於我們強大的對沖部位和現有的許可證庫存。我們計劃利用現有許可證和 SB 237 法案頒布後預期獲得的許可證來運作這些鑽井平台。

As always, we will remain disciplined and agile, adjusting our capital program as commodity prices and market conditions warrant. Importantly, our current outlook does not yet include the impact of the pending Berry merger, where we anticipate meaningful synergies once the transaction closes. CRC remains focused on consistent performance, disciplined growth and competitive shareholder returns as we move into 2026.

我們將一如既往地保持嚴謹和靈活，根據商品價格和市場狀況調整我們的資本計劃。重要的是，我們目前的展望尚未包括即將進行的 Berry 合併的影響，我們預計一旦交易完成，將會產生顯著的協同效應。展望 2026 年，CRC 將繼續專注於持續穩定的績效、穩健的成長和具競爭力的股東回報。

And with that, I'll turn it back to Francisco.

好了，現在我把麥克風交還給弗朗西斯科。

Thanks, Clio. 2025 is proving to be a remarkable year for CRC with strong momentum as we head into 2026. We're posting wins across multiple fronts. Robust reservoir performance, the structural improvements in our portfolio, lower cost, a more resilient capital structure and greater alignment between industry and the state to achieve common goals.

謝謝，克里奧。 2025年對CRC來說注定是意義非凡的一年，我們正以強勁的勢頭邁向2026年。我們在多個方面都取得了勝利。穩健的油藏性能、投資組合的結構改進、更低的成本、更具韌性的資本結構以及產業與國家之間為實現共同目標而進行的更緊密的協調。

For the second consecutive year, we will grow our production through strategic transactions and disciplined reservoir management. More importantly, we expect these actions to position us for sustained cash flow per share growth in 2026 and beyond.

我們將連續第二年透過策略交易和嚴格的油藏管理來提高產量。更重要的是，我們預計這些措施將使我們在 2026 年及以後實現每股現金流的持續成長。

We're excited about what lies ahead from closing and integrating Berry to advancing carbon tera vault and call capture and expanding our power and CCS partnerships. Together, these initiatives will allow us to unlock meaningful value for our shareholders. Our focus remains clear, creating considerable and sustainable value for shareholders.

我們對未來的發展充滿期待，從完成對 Berry 的收購和整合，到推進碳儲庫和呼叫捕獲，再到擴大我們在電力和碳捕獲與封存領域的合作夥伴關係。這些舉措將共同為我們的股東創造有意義的價值。我們的目標始終明確，那就是為股東創造可觀且永續的價值。

We believe California is entering a new era for locally produced energy, one defined by abundance, affordability and sustainably produced solutions. California's energy landscape is improving and CRC intends to play a leading role in that transition. CRC is a different kind of energy company.

我們相信加州正在進入本地能源生產的新時代，這個時代的特點是能源充足、價格實惠且可持續生產。加州的能源格局正在改善，CRC 打算在這一轉型過程中發揮領導作用。CRC是一家與眾不同的能源公司。

Operator, we're now ready for your questions.

接線員，我們現在可以回答您的問題了。

(Operator Instructions) Kalei Akamine, Bank of America.

（操作說明）Kalei Akamine，美國銀行。

Good morning, guys. I want to start with the MOU on with Capital Power. It's been our view that brownfield and meters power plants in our vicinity would need to get involved to underwrite the CTV development. So yesterday's announcement in our view was a positive step.

各位早安。我想先談談與 Capital Power 簽署的諒解備忘錄。我們一直認為，附近的棕地和計量發電廠需要參與進來，為 CTV 開發提供擔保。因此，我們認為昨天的公告是一個積極的舉措。

My question concerns your PPA efforts from this going forward. 200 megawatts, [link] would argue that maybe it's not big enough, but if you're collaborating with others, -- and presumably, there's more megawatts on offer.

我的問題是關於你們今後在購電協議（PPA）方面的努力。 200兆瓦，[連結] 可能會有人認為規模不夠大，但如果你們與其他公司合作——而且想必會有更多兆瓦的電力可供出售——那就另當別論了。

So as you think about developing in this business, there are others in the area that you can perhaps pull into this joint effort. So maybe just kind of stepping back, can you talk about maybe next steps for the PPA?

所以，當你考慮在這個行業發展時，或許可以把該領域的其他人拉進這個共同努力的行列。那麼，或許我們可以退後一步，您能談談PPA的下一步計畫嗎？

Kaley, thanks for the question. Yes, we -- the market is getting hot. We're seeing far more opportunities today than we did 12 months ago. And I think the -- as we mentioned in the remarks, having 1 of the hyperscalers, Google, going into natural gas powered with CCS is similar to when you hear the hyperscale is going into nuclear, right?

凱莉，謝謝你的提問。是的，我們——市場正在升溫。如今我們看到的機會比12個月前多得多。而且我認為——正如我們在評論中提到的，谷歌這樣的超大規模資料中心採用碳捕獲與封存技術（CCS）發展天然氣能源，就好比聽說超大規模資料中心開始涉足核能領域一樣，對吧？

So it's a big moment. It's a big market signal. So the vision that we've had for Kern County, which is on slide 7 on our deck, is to build a hub for -- to serve their data centers or the grid but at big scale. And yes, our Cal capture project, our excess power at our own plant is a big component to that. It's an anchor element to it.

所以這是一個重要時刻。這是一個重要的市場訊號。因此，我們對克恩縣的願景（在我們的簡報第 7 頁）是建立一個中心——為他們的資料中心或電網提供服務，但規模要大。是的，我們的加州捕集項目，以及我們自己工廠的剩餘電力，是其中一個重要的組成部分。它是其中的一個核心要素。

But now we're -- as we move with partnerships with both Capital Power and Whole Street, we're putting a significant scale on the map. So as these hypercaters are looking now for more inference, low latency you have a site here that can serve the LA market at scale and decarbonized.

但現在，隨著我們與 Capital Power 和 Whole Street 建立合作關係，我們正在地圖上展現出相當大的規模。因此，隨著這些超級餐飲企業現在尋求更多的推理能力和更低的延遲，這裡有一個可以大規模服務洛杉磯市場並實現脫碳的網站。

So it's coming together. It's coming together nicely and it's the story of not only building data centers or increasing power, which is what everybody is looking for. But we're particularly well positioned on both the gas supply, natural gas supply that we have in basin.

事情正在逐步明朗。事情進展順利，這不僅僅是關於建造資料中心或增加電力供應的故事，雖然這正是每個人都在追求的。但我們在盆地內的天然氣供應方面具有特別有利的地位。

But also take away the CO2 emissions and store them on our side. So it's a nice integrated project and with great partners like Capital Power is a fantastic independent power producer. I think the signal is CCS is here, and this site is going to be an attractive place for us to grow that power demand.

但也要消除二氧化碳排放，並儲存在我們這邊。所以這是一個很好的綜合項目，並且與像 Capital Power 這樣優秀的合作夥伴攜手，Capital Power 是一家非常棒的獨立電力生產商。我認為這表明碳捕獲與封存技術已經到來，而這個地點將成為我們滿足電力需求的理想場所。

So excited about the next steps. And yeah, there's a lot more to come. I think the site continues to -- we continue to find ways to grow different power elements to it and the things are coming together nicely.

對接下來的步驟感到非常興奮。是的，還有更多精彩內容即將到來。我認為網站會繼續發展——我們會繼續尋找方法來增強它的不同功能，而且一切都朝著好的方向發展。

I appreciate that, Francisco. Maybe for the next question, going to your '26 soft guide you highlight a 2% entry to exit decline. When I think about your assets, projects like floods require some time to activate a production response. So I'm wondering about the cadence of that decline. Is it isolated to maybe the first half of the year, while second half of '26 firms up as to as projects come to [bare]?

謝謝你，弗朗西斯科。或許在下一個問題中，您可以參考您的 '26 年軟指南，重點關注 2% 的入場到出場下跌。考慮到你們的資產，像洪水這樣的災害需要一些時間才能啟動生產響應。所以我想知道這種下降的節奏如何。這種情況是否僅限於今年上半年，而2026年下半年的情況會隨著專案的進展而逐漸明朗？[裸]？

Yeah, it's really been building an exceptionally good 2025 in terms of reservoir delivery and the team's performance in managing the assets. We will have -- our plan is to have 4 rigs on [1/1]. So January 1, by then, we would have 4 rigs running -- and no, we expect that to be the entry to exit plan as we lower our base decline assumptions, we're putting capital back to work, primarily in the form of workovers and sidetracks permits that we have in hand. We expect that to be a fairly steady performance throughout 2026.

是的，就儲量供應和團隊資產管理表現而言，這確實為2025年奠定了非常良好的基礎。我們的計畫是──我們計畫──在…上設置4個鑽井平台。[1/1]所以到 1 月 1 日，我們將有 4 台鑽機投入運作——而且，我們預計這將是我們逐步退出的計劃，因為我們降低了基本衰退假設，我們將重新投入資金，主要以我們已掌握的修井和側鑽許可證的形式。我們預計2026年全年業績將保持相對穩定。

Betty Jiang, Barclays.

Betty Jiang，巴克萊銀行。

Hi team, thank you for taking my question. It's really great to see the momentum across the portfolio. My first question is on the upstream side on the PDP decline. It struck me that your PDP decline improved from 10% to 15% to 8% to 13% since like this natural decline don't typically change. So can you just speak to what's driving that improvement? Is that a function of the portfolio or anything else you're doing operationally?

各位同事好，感謝你們回答我的問題。看到整個投資組合的發展勢頭如此強勁，真是令人欣喜。我的第一個問題是關於PDP下降的上游方面。我注意到你的PDP下降率從10%到15%改善到8%到13%，因為像這樣的自然下降通常不會改變。那麼，您能否具體談談是什麼因素促成了這種改善？這是投資組合的因素，還是你們在營運方面採取的其他措施？

Yeah, it's a combination of things. It really is an answer that has several components, Betty. But it's first of all, it's owning great assets and conventional assets are just good rock in assets that our team knows how to manage really well. So as we move the decline rates and now that we are a year plus with the air assets, and we can see that this team can really bring the most out of it, we feel comfortable changing the corporate assumption.

是的，這是多種因素共同作用的結果。貝蒂，這確實是一個包含多個部分的答案。但首先，我們擁有優質資產，而傳統資產只是我們團隊非常擅長管理的優質資產。因此，隨著我們調整下降率，並且現在我們已經擁有航空資產一年多了，我們看到這個團隊確實能夠最大限度地發揮其作用，我們覺得可以改變公司先前的假設。

In terms of tangible things that the team is doing, if you look at 2025 and the composition of our activity, a lot of it was focused on injection and injection at Belridge. So with pressure support in these great reservoirs the oil flows nicely. So the Belridge field is performing extremely well, an asset that we acquired from Aera.

就團隊正在做的實際事情而言，如果你看看 2025 年以及我們的活動組成，你會發現很多活動都集中在 Belridge 的注射和注射上。因此，在這些巨大油藏的壓力支撐下，石油流動順暢。因此，貝爾里奇油田表現非常出色，這是我們從 Aera 收購的資產。

We also, on Elk Hills, it was more about technology, and it's about remote surveillance. So it's -- I mean, it's an AI component of being able to identify wells when they fail and quickly repair those wells, right? So any well that's down, it's cash flow. So our team has been seeing some improvements in that surveillance and that leads us to be able to manage the down list that you have in conventional assets and manage that more effectively.

在埃爾克山，我們也更專注於技術，關注遠端監控。所以——我的意思是，它是人工智慧的一個組成部分，能夠識別故障油井並快速修復這些油井，對吧？所以任何停產的油井都會影響現金流。因此，我們的團隊在監控方面看到了一些改進，這使我們能夠管理您在傳統資產方面存在的故障清單，並更有效地進行管理。

So and those are the two biggest fields. So Belridge and Elk Hills, if you're able to move those reserves, those decline rates shallower that cascades to the rest of the portfolio, right? So -- and it's really just -- I mean, I really want to comment on the team's performance.

所以，以上就是兩個最大的領域。所以，如果你能夠轉移貝爾里奇和埃爾克山的儲量，降低它們的衰減率，那麼這種效果就會波及到投資組合的其他部分，對吧？所以——其實就是——我的意思是，我真的很想評價一下球隊的表現。

I mean, they are just completely on the ball and doing the right things in terms of managing the asset base. So that's how you get conventional assets to perform better. Is this blocking and tackling, it's things like surveillance, things like injections that ultimately pay off big dividends.

我的意思是，他們在資產管理方面做得非常出色，完全在做正確的事情。這就是讓傳統資產發揮更好作用的方法。這是防守反擊嗎？是監視、注射之類的手段最終帶來了巨大的回報。

Great, thank you. My second question is on the Kern County decarbonized power opportunity. As you highlighted in slide 7, it's really great to see the capital power MOU. But what strike [Neal] also is this emerging hub of opportunities that's in Kern County with multiple power plants on top of the CO2 reservoir.

太好了，謝謝。我的第二個問題是關於克恩縣脫碳電力機會的問題。正如您在投影片 7 中所強調的那樣，看到資本實力諒解備忘錄真是太好了。但令[尼爾]印象深刻的還有克恩縣正在崛起的機會中心，那裡有多家發電廠坐落在二氧化碳儲層之上。

So can you speak to the vision that you see that's emerging in this area? How could a potential hub decarbonized power scenario could look like? And what needs to happen to really catalyze that development?

那麼，您能否談談您所看到的該領域正在形成的願景？一個潛在的樞紐脫碳電力方案會是什麼樣子？那麼，真正需要發生什麼才能加速這一發展呢？

Yeah, Betty. So a lot of things have come together very nicely. So -- but it's also a reminder that the California market operates different than other parts of the US. Here, you have a lot of the infrastructure already exists. And it's been -- natural gas fired generation has been sidelined as more and more renewables have come in.

是的，貝蒂。所以很多事情都進展得非常順利。所以——但這同時也提醒我們，加州市場的運作方式與其他美國地區不同。這裡很多基礎設施都已經存在了。事實的確如此——隨著越來越多的再生能源的出現，天然氣發電已被邊緣化。

But then if you take the growth expectations of California power, right? So where we're looking to double in 10 years and triple in 20 years, that growth is not going to be all served by renewables and batteries. So you're going to have to bring in baseload, you're going to have to bring baseload at scale. So we have the ability to take these plants in retrofit for CCS to make them decarbonize, so they can participate in this growing market.

但是，如果你考慮到加州電力產業的成長預期，對吧？因此，我們希望在 10 年內實現翻番，在 20 年內實現三倍成長，但這種成長不會完全由再生能源和電池來實現。所以你們必須引入基礎負荷，你們必須大規模地引入基礎負荷。因此，我們有能力對這些工廠進行改造，使其具備碳捕獲與封存（CCS）功能，從而實現脫碳，使它們能夠參與到這個不斷增長的市場中。

So in Kern County alone, and this is all very close to our -- either within our field boundaries or next to it, we see 2.4 gigawatts of power generation that could serve a growing market. Now when we also saw pipelines, the more autonomous CO2 pipelines being lifted, that brought forward that brownfield idea that we had and b, we're now able to connect -- we'll be able to connect these power plants with our storage sites.

因此，僅在克恩縣，而且這一切都離我們非常近——要么在我們田地範圍內，要么在我們田地旁邊，我們就看到了 2.4 吉瓦的發電量，可以滿足不斷增長的市場需求。現在，當我們看到管道，尤其是更獨立的二氧化碳管道被架設起來時，這讓我們想到了棕地改造的想法，而且，我們現在能夠將這些發電廠與我們的儲能設施連接起來。

And as you see on the map, these are very short distances and some 5 to 20 miles for all these power plants to be able to get to one of our reservoir. So we're building scale on power. We're building scale on emissions. On an aggregate basis, we see about 5.5 million tons of emissions from these plants.

正如你在地圖上看到的，這些距離都很短，所有這些發電廠到我們其中一個水庫的距離只有 5 到 20 英里。所以我們正在透過電力來擴大規模。我們正在擴大排放量。總體而言，這些工廠的排放量約為 550 萬噸。

And if you look at our inventory of permits, we're up to about 9 million tons that we are in some part of the permitting process all in the Central Valley. So it's all coming together. The big part that we were waiting for is that market signal. And the market signal already talked about Google, but also California is looking for decarbonized power, understanding that we're going to have to bring incremental sources.

如果你看一下我們的許可證庫存，你會發現我們在中央谷地有大約 900 萬噸的採礦計畫正在辦理許可證。一切都水到渠成了。我們最期待的就是市場訊號。市場訊號已經提到了谷歌，但加州也在尋求脫碳能源，他們明白我們將不得不引入更多能源。

And we feel retrofit of existing plants that are already there producing power is going to work much better and faster than having new build of any power generation in California, right? So really well positioned to create this hub. LA is within 100 miles; 100 miles is important because of latency requirements as you look for inference.

我們認為，對已經發電的現有電廠進行改造，比在加州新建任何發電廠都要好得多、快得多，對吧？因此，我們擁有得天獨厚的優勢來創造這個中心。洛杉磯在 100 英里以內；100 英里很重要，因為在進行推理時需要考慮延遲要求。

So this is all starting to take shape, where before we talked about a single site with single pore space. Now you can see that it's multiple sites, multiple plants and third parties are coming -- looking for a solution that only CRC can provide.

所以這一切開始逐漸成形，而之前我們討論的只是一個具有單一孔隙空間的單一一位點。現在您可以看到，涉及多個地點、多個工廠和第三方——都在尋求只有 CRC 才能提供的解決方案。

David Deckelbaum, TD Cohen.

David Deckelbaum，TD Cohen。

Thanks for the time and congrats Francisco and Omar and team on several of the milestones achieved to date. I'm probably going to ask you more questions around a lot of things you're going to be asked on today. I want to go back to just the PDP decline.

感謝您抽出時間，並祝賀弗朗西斯科、奧馬爾和他們的團隊迄今為止的多個里程碑式成就。我可能也會問你一些關於今天你會被問到的問題。我想回到只考慮人民民主黨（PDP）衰落的層面。

Curious like as we approach sort of year-end reporting for Francisco or Omar, how you think about are we recovering more oil in place at this point with performance revisions? Or are we shifting more recovery into earlier parts of the reservoirs economic life at this point?

我很好奇，隨著弗朗西斯科或奧馬爾即將迎來年終報告，您認為在業績修正的情況下，我們目前是否已經開採出了更多的石油？或者，我們現在應該將更多的資源回收轉移到油藏經濟壽命的早期階段？

David, thanks for the comments. I'll turn it to Omar to give any incremental highlights. But yeah, these are some of the largest oil fields in the country. And if you look at oil in place, they are in the billions of barrels of oil in place. If you look at the ultimate recovery factors, these are sandstones that have both good permeability and porosity.

大衛，謝謝你的評論。我將把麥克風交給奧馬爾，讓他補充一些重要資訊。沒錯，這些都是全國最大的油田之一。如果看看地下石油儲量，就會發現地下石油儲量高達數十億桶。從最終採收率來看，這些砂岩既具有良好的滲透性，又具有良好的孔隙度。

So the ability to, in a lot of cases, maintain pressure support or to go through a bypassed oil enhances those recoveries. But this is different than sales, right? Sales is all about drilling and completion and about how effective can you make that single event of drilling.

因此，在許多情況下，維持壓力支撐或繞過油層的能力可以提高採收率。但這和銷售不一樣，對吧？銷售的關鍵在於鑽井和完井，以及如何有效地完成這次鑽井作業。

Here, you're managing the reservoir -- and now that we have both permits and a very strong backdrop or from our ability to allocate capital to these projects, we're able to really work on life of field plans to maximize that output, bring a lot of that production forward. But maybe I'll turn it to Omar see if he wants to add anything.

在這裡，你們負責管理油藏——現在我們既獲得了許可證，又擁有非常強大的背景，或者說我們有能力將資金分配給這些項目，我們能夠真正著手製定油田生命週期計劃，以最大限度地提高產量，並提前實現大量生產。不過也許我會問奧馬爾，看看他有沒有什麼補充。

Yeah, thanks, Francisco. And thanks for the question, David. One thing I would add to Francisco's comments is just where we are with these reservoirs in their life cycle. We have a long history of operating these reservoirs. So we have steam floods that started steaming back in '70s, water flood back in '80s.

謝謝你，弗朗西斯科。謝謝你的提問，大衛。我還要補充弗朗西斯科的評論，那就是這些水庫目前處於生命週期的哪個階段。我們經營這些水庫的歷史悠久。所以，我們有從 70 年代開始的蒸汽洪水，還有從 80 年代開始的水洪水。

And the point I'm making is that we understand the behavior very well. So there are very little surprises as you manage PDP. And then you can look for incremental opportunities to shallow the decline. And it's basic blocking and tackling with the EOR projects, you're not going to get better wells, you have a lot of 20, 30 better wells that you manage well and you work on them to gain another barrel or two? And just given the number of wells they add up to a shallower decline?

我的意思是，我們非常了解這種行為。因此，在管理產品開發流程 (PDP) 時，幾乎不會出現任何意外情況。然後你可以尋找逐步減緩下滑趨勢的機會。而對於提高採收率（EOR）專案來說，這其實就是基本的施工和維護，你不會得到更好的油井，你只有二三十口管理良好的油井，然後努力提高它們的產量，爭取再多產一兩桶油？光從油井數量來看，它們的下降幅度應該會比較緩吧？

So the two things that Francisco mentioned earlier, we have been focused on improving the injection side of EOR, both in steam floods and waterfloods. That was most of the work we did in the first half of the year. And then we are focused on getting to the wells that fail quicker through technology. And AI is a big help. It's eliminating a lot of human error.

所以，正如弗朗西斯科之前提到的兩件事，我們一直致力於改善提高採收率的注入方面，包括蒸汽驅和水驅。這就是我們上半年所做的大部分工作。然後，我們將專注於利用技術手段更快地修復那些即將失效的油井。人工智慧在這方面發揮了很大的作用。它消除了很多人為錯誤。

It's eliminating a lot of human lags and we are getting to those opportunities faster. So it's never a single silver bullet. It's a combination of all these factors. Where we are in the reservoirs life cycle where the declines are very predictable. Application of basic blocking and tackling and leveraging technology. Thank you.

它消除了許多人為的滯後，讓我們能夠更快地抓住這些機會。所以，從來沒有一勞永逸的靈丹妙藥。這是所有這些因素共同作用的結果。目前我們正處於水庫生命週期中水位下降非常可預測的階段。運用基本的阻擋和擒抱技巧以及槓桿技術。謝謝。

Appreciate the color, thank you. And then maybe Francisco, can I ask on just the high-level thoughts on the '26 plan, which I think was a pleasant surprise for everyone, just given the capital efficiency. It appears as you kind of approach a maintenance level, I'm curious as with the pending opportunity now for increased permits.

很喜歡這個顏色，謝謝。那麼，弗朗西斯科，我可以問一下您對 2026 年計畫的整體看法嗎？考慮到資金效率，我認為這對每個人來說都是一個驚喜。看起來你們差不多已經達到維護水準了，我很好奇，因為現在有機會增加許可證數量。

It seems like your approach to capital allocation is still very much rooted in maximizing free cash per share, if I have that correct. And I guess how do you think about that in the context of now more or less receiving a call from local governments to increase production in the state?

如果我理解正確的話，你們的資本配置方法似乎仍然非常注重最大化每股自由現金流。那麼，在目前各地方政府紛紛呼籲提高州內產量的情況下，您對此有何看法呢？

Yeah, David. It's a great question. So you're absolutely right. Our focus is on growing cash flow per share. And so you do look at production as one of the components, but it's not the only one. So the way we're thinking about 2026 is a disciplined ramp-up on capital and we have a lot of flexibility.

是的，大衛。這是一個很好的問題。所以你的說法完全正確。我們的目標是提高每股現金流。所以，生產確實是其中一個組成部分，但它並不是唯一的組成部分。因此，我們對 2026 年的設想是穩步增加資本投入，並且我們擁有很大的靈活性。

And one of the things that we talked about, the type of assets that we have, but the ownership of the assets, it's also create a key advantage that we have. We own 100% of our fields. And so we controlled the spend depending on the commodity cycle.

我們討論過的一個問題是，我們擁有的資產類型，以及我們對這些資產的所有權，這也為我們創造了一個關鍵優勢。我們擁有100%的田地。因此，我們根據商品週期來控制支出。

So it allows us to be very efficient. And as you make these assets better, as we've talked about, then your capital deployment becomes one of the highlights -- so the way we thought through it is, as we look for the best and optimal way to grow cash flow per share, it's really through a combination of drilling and also leaving cash to that we can opportunistically buy back shares, right?

因此，這使我們能夠非常有效率地工作。正如我們之前討論過的，隨著這些資產的增值，資本部署就會成為亮點之一——所以我們思考的方式是，當我們尋找提高每股現金流的最佳和最優方法時，實際上是通過鑽探和留存現金以便我們有機會回購股票相結合的方式，對吧？

So I think the combination of two -- of the two with a foundation of a very, very strong hedge book, we have 64% of our oil hedge into 2026. And that's only going to improve once we close the deal with Berry. So that gives us a really good place to start delivering we need to showcase the inventory, and we have a significant runway of great inventory to go after.

所以我認為，將兩者結合起來——再加上非常非常強大的對沖組合基礎，我們64%的石油對沖可以持續到2026年。一旦我們與貝瑞達成協議，情況只會進一步改善。所以這為我們提供了一個非常好的起點，我們可以開始展示庫存，而且我們還有大量的優質庫存可以爭取。

But we've been in a permitting constrained scenario, right? So the reactivation needs to be measured, thoughtful discipline in a way that we can showcase what this business is capable of. But you're right, in terms of the signal from the government is we need more California production.

但我們一直處於審批受限的情況下，對吧？因此，重啟需要採取審慎、深思熟慮的策略，以展現這家企業的實力。但你說得對，從政府發出的訊號來看，我們需要更多加州的產品。

We need more Kern County production in particular. So as the state is looking for increased activity in Kern County, we will look to participate as we look to, first, grow cash flow per share and look for inventory that gets developed.

我們尤其需要增加克恩縣的生產。鑑於該州正在尋求增加克恩縣的活動，我們將尋求參與，首先是提高每股現金流，然後尋找可開發的庫存。

We will look to participate and our contribution is going to be to effectively double our rig count for now. But we'll continue looking and we'll obviously have to see where oil prices are. We'll have to see where our share prices are as we continue to think about capital allocation. But the way we are leaning into 2026, it's a good balance between buybacks and investing in our business.

我們將積極參與，目前我們的貢獻將是有效地將鑽井平台數量增加一倍。但我們會繼續關注，顯然還要看看油價走勢。我們要觀察股價走勢，才能繼續考慮資本配置方案。但就我們邁向 2026 年的方式而言，股票回購和業務投資之間取得了良好的平衡。

Josh Silverstein, UBS.

瑞銀集團的 Josh Silverstein。

Good thanks. Good morning, guys. Maybe just sticking on the decline rates. You had previously discussed around a 6 million to 8 million rig, $500 million capital program in order to keep production flat. Now that you've had this reduction in the base decline rate. I was curious if you could just kind of give us some color as to what that new maintenance level may be for CRC going forward? Thanks.

謝謝。各位早安。或許只要關注下降率即可。你們之前討論過一項價值 600 萬至 800 萬美元的鑽井平台和 5 億美元的資本計劃，以保持產量不變。現在，你們的基本下降率已經降低了。我想請您簡單介紹一下CRC未來的維護水準可能會是什麼樣的？謝謝。

Josh, yeah, I mean, we're below $500 million, clearly. I think with our 2026 preliminary guide. That's the number that you can triangulate around. Now as we mentioned, these numbers do not include the Berry assets. So as we bring -- we closed the Berry merger, we'll refresh that number inclusive of their assets and we'll provide a full corporate number to maintain the maintenance capital to keep production flat.

喬希，是啊，我的意思是，很明顯，我們的收入低於 5 億美元。我認為，根據我們 2026 年的初步指南。這就是你可以用三角測量法推導出的數字。正如我們之前提到的，這些數字不包括 Berry 的資產。因此，隨著我們完成對 Berry 的合併，我們將更新該數字，包括他們的資產，我們將提供完整的公司數字，以維持維護資本，使產量保持穩定。

But on a stand-alone basis, so CRC and Aera assets given the improvements that we showcased in the earnings call today, we're clearly now below $500 million. We've seen Berry be able to maintain their production, total capital, and that's all of the capital with about $70 million, but we need to be able to close the transaction and provide a refresh to the market, but the baseline assumption is improving.

但就 CRC 和 Aera 的獨立資產而言，考慮到我們在今天的財報電話會議上所展示的改進，我們現在的資產顯然低於 5 億美元。我們看到 Berry 能夠維持其生產和總資本，總共約有 7000 萬美元的資本，但我們需要完成交易並為市場帶來新的變化，但基本假設正在改善。

Got it. And then it's been a while since we've gotten an update on the Huntington Beach assets and what you guys are doing there and what the permitting in that process looks like. If you could just provide an update, that would be great.

知道了。我們已經有一段時間沒有收到關於亨廷頓海灘資產的最新消息，也沒有收到你們在那裡開展的工作以及該過程中的許可審批情況的最新消息了。如果您能提供最新進展，那就太好了。

Yeah, absolutely. So things continue to progress well with Huntington Beach. We've made a number of public filings around preliminary development plans, 800 units that could be ultimately built at the site once it's fully approved. That's all part of the process of engaging with the City of Huntington with all the local and regulatory agencies around the project.

是的，絕對的。所以亨廷頓海灘的各項工作進展順利。我們已經就初步開發計畫提交了多份公開文件，一旦該計畫獲得全面批准，最終可能會在該地塊上建造 800 套住宅單元。這是與亨廷頓市以及計畫相關的所有地方和監管機構進行溝通協調過程的一部分。

So things are marching forward. We have a dedicated rig abandoning the wells there as we go. We continue to produce, we have abandoned the wells as we get all the permitting lined up. As we said before, we think this project is going to be ready 2028 time frame. That doesn't mean that there's not a monetization sooner.

所以事情正在向前推進。我們有一台專用鑽孔機，會在作業過程中逐步棄井。我們仍在繼續生產，在拿到所有許可證之前，我們已經停止了油井的生產。正如我們之前所說，我們認為這個項目將在 2028 年左右完成。但這並不意味著不會很快就獲利。

But as we looked at this project in the past, the -- as you re-entitle the land for its best use, which is residential housing and you are able to abandon the wells, you're going to get to an optimal price where the market appetite will be there.

但正如我們過去對這個計畫的考察，當你重新確定土地的最佳用途（即住宅用地）並廢棄油井後，你就能達到一個市場需求旺盛的最佳價格。

We provided guidance on the cost around $200 million to $250 million to abandon the property. That was a 2023 number. We have already made number of abandonments. So that number will come down as we look for that point to monetize the asset in 2028, but things are progressing well.

我們估計放棄該房產的成本約為 2 億至 2.5 億美元。那是2023年的數據。我們已經放棄了很多項目。因此，隨著我們尋找在 2028 年實現資產變現的時機，這個數字將會下降，但目前進展順利。

Nate Pendleton, Texas Capital.

內特·彭德爾頓，德克薩斯資本。

Good morning and congrats on yet another strong quarter. Looking at slide 8 with your existing power generation portfolio and with some of your investments to date, can you talk about your willingness to lean further into the power generation space beyond Elk Hills such as additional plan ownership or additional investment in some more leading-edge power generation solutions?

早安，恭喜你們又一個季度業績出色。結合您現有的發電組合和迄今為止的一些投資，您能否談談您是否願意在 Elk Hills 之外進一步涉足發電領域，例如擁有更多電廠所有權或對一些更前沿的發電解決方案進行更多投資？

Nate. So I would say for right now, the focus is going to be on the feedstock, which is natural gas, low methane emissions gas and certified -- third-party certified gas, which we think is going to be very attractive and we're the largest natural gas producer -- and then on offering a CCS solution on the back end. And that's the way we're positioning the company.

內特。所以我想說，目前重點將放在原料上，也就是天然氣、低甲烷排放天然氣和經過認證的——第三方認證的天然氣，我們認為這將非常有吸引力，而且我們是最大的天然氣生產商——然後在後端提供碳捕獲與封存解決方案。這就是我們公司的市場定位。

I don't anticipate owners of -- ownership of natural gas combined cycle plans beyond what we have at this point. We are looking for other ways to bring power forward, things like fuel cells and geothermal, there's a lot of prospectivity in California for -- for geothermal, there's a lot of appetite on fuel cells to have a CCS solution.

我不認為目前會有更多人擁有天然氣複合循環發電廠。我們正在尋找其他推動能源發展的方法，例如燃料電池和地熱能，加州在這方面有許多發展前景——對於地熱能，人們對燃料電池的碳捕獲與封存解決方案有著很大的需求。

So we're looking to see what's the right mix of providing this both the carbonized, but also baseload power that we need to be able to serve the growing market. So -- but we are the solution on CCS, and we are the feedstock on natural gas.

因此，我們正在尋找合適的組合方式，既能提供碳排放電力，又能提供我們服務不斷成長的市場所需的基本負載電力。所以——但我們是碳捕獲與封存的解決方案，我們是天然氣的原料。

That plays to our strength, and that's where we're going to continue to advance. And as we continue to bring some of these ideas forward more and more technologies, more and more hyperscalers. I think we'll start looking at what we have and to build that vision for a Kern county power platform that we talked about earlier.

這正是我們的優勢所在，也是我們將繼續前進的方向。隨著我們不斷推進這些理念，越來越多的技術、越來越多的超大規模資料中心也將隨之湧現。我認為我們應該開始審視我們現有的資源，並著手建立我們之前討論過的克恩縣電力平台願景。

Thanks Francisco. And as a follow-up from an earlier question on connecting the emitters on slide 7 with the recently passed legislation. Are there any underutilized pipelines right of way around those assets that could be brought in-house or repurposed to serve as the connection of [tissue] there?

謝謝你，弗朗西斯科。作為對先前提出的關於將幻燈片 7 中的排放源與最近通過的立法聯繫起來的問題的後續。這些資產周圍是否有未充分利用的管道和通行權，可以納入公司內部或重新利用，作為連接[組織]的通道？

Yes, absolutely. So as you look at slide 7, and you can see that we showcased the footprint fairly well that has both the fields and the current pipelines. So you can see that this is -- these are right of ways that are owned either by CRC or by other E&P companies. These fields are adjacent to ours sort of these power plants are also adjacent to ours.

是的，絕對的。所以，當你查看投影片 7 時，你可以看到我們已經很好地展示了包括田地和現有管道在內的佈局。所以你可以看到，這些是 CRC 或其他勘探開發公司擁有的通行權。這些田地和我們的田地相鄰，這些發電廠也和我們的發電廠相鄰。

So it's a particularly good place to be able to decarbonize this whole kind of micro grid. And so definitely, there's advantages as we talked about, we own a lot of land. We learn a lot of surface ourselves and that we have partnerships with others that own that land as well. So -- so this is something that -- now that we have the moratorium on pies lifted, that's what we were really waiting on to be able to connect all of these assets, and that's what we're working with Capital and Power and others to try to figure out.

因此，這裡是實現這種微電網脫碳的絕佳場所。所以，正如我們剛才所說，我們擁有很多土地，這肯定是有優勢的。我們自己也了解到很多關於地表的信息，我們也與其他擁有這片土地的人建立了合作關係。所以——所以現在——我們已經解除了對餡餅的禁令，這正是我們一直在等待的，以便能夠將所有這些資產連接起來，這也是我們正在與 Capital and Power 和其他公司合作，試圖弄清楚的事情。

Noel Parks, Tuohy Brothers Investment Research.

Noel Parks，Tuohy Brothers投資研究公司。

Thanks, I was muted. Thanks. I have a couple of questions. So sort of as a reality check, how long has it been since you've had the activity levels at Elk Hills, that you're going to be ramping up into starting next year?

謝謝，我被靜音了。謝謝。我有幾個問題。所以，作為對現實的檢驗，埃爾克山莊的活動水準有多久沒有達到你們明年即將開始的水平了？

Yeah, we've been in a permitting constrained environment since the beginning of 2023. So the improvements that we've had in the past few months around the regulatory framework is a significant milestone for the company.

是的，自 2023 年初以來，我們一直處於核准受限的環境中。因此，過去幾個月我們在監管框架方面所取得的進步，對公司而言是一個重要的里程碑。

Now we have been able to execute capital workovers and sidetracks effectively over that time, but it's new wellbores that we haven't had permits to pursue. But now we have SP-237, so a brand-new law that not only allows for permits in kern County, but it also gives us duration.

這段時間以來，我們已經能夠有效地進行資本修井和側鑽作業，但是我們沒有獲得許可進行新的鑽井作業。但現在我們有了 SP-237，這是一項全新的法律，它不僅允許在克恩縣發放許可證，而且還賦予了許可證有效期。

So it's effectively a 10-year tied to the Kern County EIR. So a 10-year runway -- so how much -- when the last time we had as much support in [Borrego] runway, it's been a very long time. So as we mentioned in our slides, and I think we mentioned publicly before, the stage looking for local production to ramp back up to about 25% of the supply of the state. We've been trending down over the years.

因此，這實際上是與克恩縣環境影響報告相關的 10 年期限。所以，10 年的緩衝期——這到底有多少——上次我們在 [Borrego] 獲得如此多的支持，已經是很久以前的事了。正如我們在幻燈片中提到的，而且我認為我們之前也公開提到過，目前的目標是讓本地生產恢復到該州供應量的 25% 左右。這些年來，我們的業績一直在下滑。

We used to be 40%, 50% of the local suppliers, local E&P companies to the state. That's trended down to about 22%. So the call from the government is to bring more of that California low CI production. And so meaningful changes and meaningful improvements and in terms of the stage view towards local production and as the leading producer in the state.

我們曾經佔該州當地供應商和油氣勘探開發公司總數的 40% 到 50%。這個比例已經下降到大約 22%。因此，政府呼籲引進更多加州低CI（碳離子）產能的產品。因此，從舞台角度來看，本地生產和作為該州領先的生產商，都帶來了有意義的改變和改進。

We have -- we want to do our part to help stabilize the fuel markets and look forward to bringing more production forward.

我們已經——我們希望盡自己的一份力量來幫助穩定燃料市場，並期待提高產量。

Great, thanks. And I'm just sort of thinking that there are so many irons in the fire and different types of catalysts you have at work right now. And as sort of the message of trying to the need to double the state's power production by 2035. So when do you foresee a ramp-up in production for your gas assets, as you look ahead?

太好了，謝謝。我感覺你現在同時在做很多事情，而且有很多不同類型的催化劑在運作。而這傳遞的訊息是，到 2035 年，該州的電力產量需要翻倍。展望未來，您預期天然氣資產的產量何時會提高？

Yeah, it's a function of capital allocation, where the best returns are. And if we look at our 2026 plan with the 4 rigs, we're going to focus on primarily oil. About 80% of the anticipated contribution from '26 activities is only -- so that means 20% gas and NGLs. So that's just a matter of where we are in terms of the returns, again, supported by a very strong hedge book. We see great returns in the projects, the returns that we've outlined before.

是的，這取決於資本配置，也就是哪裡能獲得最佳回報。如果我們看看我們 2026 年的計劃，包括那 4 個鑽井平台，我們將主要專注於石油。在預計 2026 年活動的貢獻中，約 80% 為天然氣和液化天然氣，這意味著 20% 為天然氣和液化天然氣。所以，這只是我們目前的收益狀況的問題，當然，這也得益於我們非常強大的對沖策略。我們看到這些項目帶來了豐厚的回報，正如我們之前概述的那樣。

So natural gas will come if we get either stronger natural gas prices or we have supply agreements to all these groups that need power. Certainly, that will be the call to drill more gas. We have a lot of prospectivity. We have -- we're sitting on these great basins. And depending on what you are in the state, you could have heavy oil in the shallow reservoirs and then deep gas, a few thousand feet below that, right?

所以，如果我們能提高天然氣價格，或是與所有需要電力的族群達成供應協議，天然氣就會普及。當然，這將促使人們開採更多天然氣。我們擁有很大的發展前景。我們坐擁──我們正位於這些巨大的盆地之上。根據你所在州的具體位置，淺層油藏中可能含有重油，而深層油藏中則含有天然氣，位於其下方幾千英尺處，對吧？

So you have a lot of stacked pay and a lot of flexibility in how you can run the assets and allocate capital. So we're looking for where the best returns are. And right now, we're seeing them in oil. But as again, as the market demand changes or increases in particular for natural gas, we will be ready to also pursue some gas on a go-forward basis.

因此，您可以獲得多層級的薪酬，並且在資產管理和資本分配方面擁有很大的靈活性。所以，我們正在尋找回報率最高的地方。而現在，我們已經在石油領域看到了它們。但正如之前所說，隨著市場需求的變化或成長，特別是對天然氣的需求，我們將準備好在未來繼續尋求一些天然氣。

Leo Mariani, ROTH.

Leo Mariani，ROTH。

I wanted to ask a little bit about on the capital plan for 2026. So as you're talking about running 4 rigs continuously for roughly $280 million to $300 million of D&C plus workover capital -- but if I just look at your kind of E&P spend in 2025, it was 200 -- I think it's $245 million to $275 million for kind of 1.5 rigs. So just the proportion seems a little bit out of whack there. So can you kind of help me just kind of square up the numbers a bit there?

我想問一下關於2026年資本計畫的一些情況。所以，您說的是連續運行 4 台鑽機，鑽井和完井費用約為 2.8 億至 3 億美元，加上修井資本——但如果我只看您在 2025 年的勘探開發支出，我認為大約需要 2.45 億至 2.75 億美元才能運行 1.5 台鑽機。所以，那裡的比例似乎有點失調。你能幫我把這些數字稍微整理一下嗎？

Yeah, I think you may be mixing Leo, total capital versus D&C. So the D&C for '25 is lower. We have like you said, 2 rigs, and we didn't start the year with rigs. We stepped into 2 rigs later. We do have a different facility spend and the facility spend that we talked about in this quarter, which is to bring the NGL project forward from Aera.

是的，我認為你可能把獅子座、總資本和D&C混淆了。所以 25 年的 D&C 值較低。正如你所說，我們有 2 台鑽孔機，而年初的時候我們並沒有鑽孔機。之後我們又進入了兩個鑽井平台。我們確實有不同的設施支出，以及我們在本季度討論過的設施支出，即從 Aera 推進 NGL 項目。

And so what we're doing is we're building a pipe from Aera to Elk Hills to bring rich wet gas to well kills run it through our cryogenic plant and extract 1,000 barrels of NGLs. It's a particular legal project because it just follows the natural assets already in place.

因此，我們正在建造一條從 Aera 到 Elk Hills 的管道，將富含濕氣的天然氣輸送到井口，然後透過我們的低溫工廠進行處理，提取 1000 桶天然氣凝液。這是一個特殊的法律項目，因為它只是順應了現有的自然條件。

It's just a more efficient way to extract incremental value from the project. But in terms of the D&C numbers, they're definitely lower for 2025. I don't know if -- what is the number clear --

這只是從專案中提取增量價值的更有效的方法。但就D&C數字而言，2025年的數字肯定會更低。我不知道──這個數字清楚嗎？--

Yeah, absolutely. Leo, you're comparing, obviously, our total capital versus what we're disclosing here related to the activity pickup. But for 2025, capital, we're effectively lining up to stay within our guidance. We haven't changed that. And that spend is all encompassing. It includes, obviously, the oil and gas spend as well as our carbon management spend -- and so that's where you're seeing the delta here as well as our corporate level spend.

是的，絕對的。Leo，很明顯，你是在比較我們的總資本與我們在這裡披露的與業務活動回升相關的內容。但就 2025 年的資本而言，我們實際上正努力保持在預期範圍內。我們沒有改變這一點。而且這項支出涵蓋了所有方面。顯然，這包括石油和天然氣支出以及我們的碳管理支出——因此，這就是您在這裡看到差額的地方，以及我們的企業層面支出。

But going forward, there's definitely significant capital efficiencies those gains have been through the merger with Aera, consolidating those gains has been the story for 2025. And in 2026, you're seeing that come through in the numbers and the efficiency that we're able to get from that capital spend in the $280 million to $300 million range, that's really yielding a very significant arrest of the decline.

但展望未來，透過與 Aera 合併，肯定會帶來顯著的資本效率提升，鞏固這些收益將是 2025 年的重點。到 2026 年，您將從數字和效率中看到這一點，我們能夠從 2.8 億至 3 億美元的資本支出中獲得顯著成效，這確實大大遏制了下滑趨勢。

Okay. And is that largely going to be workovers, which maybe are less capital intensive? Is there kind of a component of new drilling there? Do you have an estimate of that? Just trying to kind of get this a little bit apples-to-apple here.

好的。而這些改造工程是否主要指資本密集度較低的改造工程？那裡是否包含新的鑽探環節？您對此有估算嗎？我只是想盡量做到公平比較。

Yeah, 2026 will continue to be primarily workovers and sidetrack. Roughly speaking, 60%, 70% of the D&C will be in that category. So the rest would be in new wells as new permits start coming in for those.

是的，2026年仍將主要以修路和支線工程為主。粗略估計，60%到70%的D&C病例都屬於這一類。所以剩下的部分將來自新井，隨著新許可證的陸續發放，這些井的產量也會增加。

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。

Thank you. Thanks, everybody, for joining us today. We really look forward to seeing you in upcoming Investor conferences during the winter season. Thank you so much.

謝謝。謝謝大家今天收看我們的節目。我們非常期待在冬季即將舉行的投資者會議上見到您。太感謝了。

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。