California Resources Corporation (NYSE:CRC) announced on September 17 that it had agreed to sell its Uinta Basin **** ets, located mostly in Utah and Colorado, to an undisclosed buyer for $90 million in cash. The company had come to own the Uinta **** ets, which span about 100,000 net acres, after it acquired Berry Corp last year. However, CRC considered them non-core to its operations. The net proceeds from the sale will be used for shareholder returns and other corporate purposes.
Francisco Leon, President and CEO of California Resources Corporation, commented:
"Today's transaction strengthens our business. The monetization of our Uinta Basin **** ets sharpens our focus on California and captures additional value from the Berry merger. This transaction enhances our capital allocation flexibility, allowing us to invest in higher-return opportunities within the Golden State and supports our shareholder return strategy. The sale also helps offset the purchase price of our recent midstream transaction."
The transaction is expected to close by year-end, subject to the receipt of certain third-party consents and other customary conditions.
The sale will allow CRC to redeploy the $90 million toward **** ets that are central to its operating strategy while avoiding additional capital commitments to Uinta. The company already stated in its Q2 earnings call that Uinta has higher capital intensity, higher break-evens, lower crude quality, higher transportation and operating costs, and steeper declines. Therefore, the sale removes a portfolio distraction at a time when CRC is concentrating investment in California infrastructure and production.
#uinta #assets #transaction #capital
Francisco Leon, President and CEO of California Resources Corporation, commented:
"Today's transaction strengthens our business. The monetization of our Uinta Basin **** ets sharpens our focus on California and captures additional value from the Berry merger. This transaction enhances our capital allocation flexibility, allowing us to invest in higher-return opportunities within the Golden State and supports our shareholder return strategy. The sale also helps offset the purchase price of our recent midstream transaction."
The transaction is expected to close by year-end, subject to the receipt of certain third-party consents and other customary conditions.
The sale will allow CRC to redeploy the $90 million toward **** ets that are central to its operating strategy while avoiding additional capital commitments to Uinta. The company already stated in its Q2 earnings call that Uinta has higher capital intensity, higher break-evens, lower crude quality, higher transportation and operating costs, and steeper declines. Therefore, the sale removes a portfolio distraction at a time when CRC is concentrating investment in California infrastructure and production.
#uinta #assets #transaction #capital
2 hours ago
