Leo P. Mariani's questions to California Resources Corp (CRC) leadership • Q1 2025
Question
Leo P. Mariani of ROTH MKM asked for an explanation for the Q2 production guidance, which implies a decline steeper than the company's typical rate. He also requested a specific update on the status and timeline of the Kern County Environmental Impact Report (EIR) for oil and gas permitting.
Answer
President and CEO Francisco Leon clarified the Q2 BOE decline is a strategic decision to optimize cash flow, not an indicator of asset performance. By altering power plant operations, CRC reduces low-value gas sales to lower overall OpEx. On permitting, he noted the Kern County EIR process is ongoing, but CRC is pursuing multiple successful avenues for permits and has a constructive dialogue with regulators.