California Resources Corporation Receives First Class VI Permits for CO2 Sequestration in Depleted Reservoirs

California Resources Corporation receives first EPA Class VI permits for CO2 sequestration in depleted reservoirs at Elk Hills Field.

Quiver AI Summary

California Resources Corporation (CRC) has announced that it has received the nation’s first Class VI permits from the EPA for the underground storage of carbon dioxide (CO2) in depleted oil and natural gas fields at its Elk Hills Field in Kern County, California. This milestone allows CRC’s carbon management business, Carbon TerraVault (CTV), to advance significant clean energy projects, with the 26R reservoir expected to store up to 38 million metric tons of CO2 at an injection rate of 1.46 million metric tons annually. CRC highlights its commitment to environmental stewardship and leadership in carbon capture and storage solutions, as well as the collaboration with Brookfield in the Carbon TerraVault Joint Venture aimed at developing infrastructure for these initiatives.

Potential Positives

• California Resources Corporation (CRC) received the nation's first Class VI well permits from the EPA for CO2 sequestration in depleted oil and gas fields, marking a significant milestone in the carbon capture and storage sector.
• The 26R reservoir, with an expected annual injection capacity of 1.46 million metric tons of CO2, positions CRC as a leader in developing vital clean energy projects in California.
• CRC’s collaboration with Brookfield in the carbon management business, Carbon TerraVault, enhances its capabilities to offer industrial partners effective carbon management solutions.
• This achievement aligns with CRC's commitment to environmental stewardship and energy transition, showcasing its potential to maximize value through decarbonization initiatives.

Potential Negatives

• The announcement of the Class VI permits highlights regulatory and operational dependencies, including a 30-day petition period and the necessity for additional construction approvals before CO2 injection can safely commence.
• The reliance on the successful execution of projects and authorization processes creates significant uncertainties around the company's future operational success and financial performance.
• The press release emphasizes numerous risks and uncertainties associated with CRC's operations, which could negatively impact investor confidence and perceptions of stability.

FAQ

What are Class VI permits for CO2 sequestration?

Class VI permits are regulations that allow for the underground injection and storage of carbon dioxide in specific geological formations.

Where is the 26R reservoir located?

The 26R reservoir is located at CRC’s Elk Hills Field in Kern County, California.

What is Carbon TerraVault's role in CCS?

Carbon TerraVault develops services to capture, transport, and permanently store CO2 for customers implementing carbon capture and storage (CCS) projects.

How much CO2 can the 26R reservoir store?

The total estimated capacity of the 26R reservoir is up to 38 million metric tons of CO2.

Who are the partners in the Carbon TerraVault Joint Venture?

The Carbon TerraVault Joint Venture is a partnership between CRC and Brookfield, with CRC owning 51% and Brookfield 49%.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$CRC Insider Trading Activity

$CRC insiders have traded $CRC stock on the open market 11 times in the past 6 months. Of those trades, 1 have been purchases and 10 have been sales.

Here’s a breakdown of recent trading of $CRC stock by insiders over the last 6 months:

• OMAR HAYAT (EVP - Operations) has traded it 2 times. They made 0 purchases and 2 sales, selling 16,016 shares.
• MICHAEL L. PRESTON (EVP, Chf Strategy Officer & GC) has traded it 2 times. They made 0 purchases and 2 sales, selling 83,000 shares.
• NOELLE M. REPETTI (Senior VP and Controller) has traded it 2 times. They made 0 purchases and 2 sales, selling 18,770 shares.
• FRANCISCO LEON (President and CEO) has traded it 4 times. They made 0 purchases and 4 sales, selling 20,000 shares.
• CHRISTIAN S KENDALL purchased 20,895 shares.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$CRC Hedge Fund Activity

We have seen 131 institutional investors add shares of $CRC stock to their portfolio, and 121 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• CANADA PENSION PLAN INVESTMENT BOARD added 10,506,895 shares (+inf%) to their portfolio in Q3 2024
• OAKTREE CAPITAL MANAGEMENT LP added 2,046,753 shares (+inf%) to their portfolio in Q3 2024
• VANGUARD GROUP INC added 1,078,932 shares (+13.4%) to their portfolio in Q3 2024
• BLACKROCK, INC. added 590,015 shares (+5.8%) to their portfolio in Q3 2024
• WEISS ASSET MANAGEMENT LP added 534,450 shares (+inf%) to their portfolio in Q3 2024
• FMR LLC removed 440,817 shares (-16.1%) from their portfolio in Q3 2024
• BOSTON PARTNERS removed 419,838 shares (-100.0%) from their portfolio in Q3 2024

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

Represents Nation’s First Class VI Permits to Sequester CO

₂

in Depleted Oil and Natural Gas Fields

LONG BEACH, Calif., Dec. 31, 2024 (GLOBE NEWSWIRE) -- California Resources Corporation (NYSE: CRC) and its carbon management business, Carbon TerraVault (CTV), today announced receipt of final Class VI well permits from the Environmental Protection Agency (EPA) for underground injection and storage of carbon dioxide (CO

₂

) into the 26R reservoir, located at CRC’s Elk Hills Field in Kern County, California. The 26R reservoir is part of CTV’s joint venture with Brookfield.

“We are proud to have received the state’s first Class VI permits, enabling us to advance critical clean energy projects in California,” said Francisco Leon, CRC’s President and Chief Executive Officer. “This milestone underscores our leadership in the carbon capture and storage sector and highlights our capability to deliver carbon management solutions to key industrial partners across the state.”

26R is one of two depleted oil and natural gas reservoirs that comprise the CTV I storage site, with an expected injection rate of 1.46 million metric tons of CO

₂

storage per annum. Total estimated capacity of 26R is up to 38 million metric tons.

About Carbon TerraVault

Carbon TerraVault (CTV), CRC’s carbon management business, is developing services to capture, transport and permanently store CO

₂

for its customers. CTV is engaged in a series of proposed CCS projects that if developed will inject CO

₂

captured from industrial sources into depleted reservoirs deep underground for permanent sequestration. For more information, visit carbonterravault.com.

About Carbon TerraVault Joint Venture

Carbon TerraVault Joint Venture (CTV JV) is a carbon management partnership focused on CCS development formed between Carbon TerraVault I, LLC, a subsidiary of CRC, and Brookfield, to develop both infrastructure and storage assets required for CCS development in California. CRC owns 51% of CTV JV with Brookfield owning the remaining 49% interest.

About California Resources Corporation

California Resources Corporation (CRC) is an independent energy and carbon management company committed to energy transition. CRC is committed to environmental stewardship while safely providing local, responsibly sourced energy. CRC is also focused on maximizing the value of its land, mineral ownership, and energy expertise for decarbonization by developing CCS and other emissions reducing projects. For more information about CRC, please visit www.crc.com.

Forward-Looking Statements

This document contains statements that CRC believes to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical facts are forward-looking statements, and include statements regarding CRC's future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and plans and objectives of management for the future. Words such as “expect,” “could,” “may,” “anticipate,” “intend,” “plan,” “ability,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “guidance,” “outlook,” “opportunity” or “strategy” or similar expressions are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.

Although CRC believes the expectations and forecasts reflected in its forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond its control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause CRC's actual results to be materially different than those expressed in its forward-looking statements include:

• 
  fluctuations in commodity prices, including supply and demand considerations for CRC's products and services, and the impact of such fluctuations on revenues and operating expenses;
  


• 
  decisions as to production levels and/or pricing by OPEC or U.S. producers in future periods;
  


• 
  government policy, war and political conditions and events, including the military conflicts in Israel, Lebanon, Ukraine, Yemen and the Red Sea;
  


• 
  the ability to successfully execute integration efforts in connection with CRC's merger with Aera Energy LLC, and achieve projected synergies and ensure that such synergies are sustainable;
  


• 
  CRC’s ability to rely on the Class VI permits depends in part on (i) the expiration of a 30-day waiting period during which petitions concerning the permits may be submitted to the EPA and the satisfactory resolution of any such petitions, (ii) completion of construction of sequestration wells and surface facilities that are consistent with permit requirements and are approved by the EPA, and (iii) final authorization from the EPA to inject CO
  
  ₂
  
  ;
  


• 
  regulatory actions and changes that affect the oil and gas industry generally and CRC in particular, including (1) the availability or timing of, or conditions imposed on, EPA and other governmental permits and approvals necessary for drilling or development activities or its carbon management business; (2) the management of energy, water, land, greenhouse gases (GHGs) or other emissions, (3) the protection of health, safety and the environment, or (4) the transportation, marketing and sale of CRC's products;
  


• 
  the efforts of activists to delay or prevent oil and gas activities or the development of CRC's carbon management business through a variety of tactics, including litigation;
  


• 
  the impact of inflation on future expenses and changes generally in the prices of goods and services;
  


• 
  changes in business strategy and CRC's capital plan;
  


• 
  lower-than-expected production or higher-than-expected production decline rates;
  


• 
  changes to CRC's estimates of reserves and related future cash flows, including changes arising from its inability to develop such reserves in a timely manner, and any inability to replace such reserves;
  


• 
  the recoverability of resources and unexpected geologic conditions;
  


• 
  general economic conditions and trends, including conditions in the worldwide financial, trade and credit markets;
  


• 
  production-sharing contracts' effects on production and operating costs;
  


• 
  the lack of available equipment, service or labor price inflation;
  


• 
  limitations on transportation or storage capacity and the need to shut-in wells;
  


• 
  any failure of risk management;
  


• 
  results from operations and competition in the industries in which CRC operates;
  


• 
  CRC's ability to realize the anticipated benefits from prior or future efforts to reduce costs;
  


• 
  environmental risks and liability under federal, regional, state, provincial, tribal, local and international environmental laws and regulations (including remedial actions);
  


• 
  the creditworthiness and performance of CRC's counterparties, including financial institutions, operating partners, CCS project participants and other parties;
  


• 
  reorganization or restructuring of CRC's operations;
  


• 
  CRC's ability to claim and utilize tax credits or other incentives in connection with its CCS projects;
  


• 
  CRC's ability to realize the benefits contemplated by its energy transition strategies and initiatives, including CCS projects and other renewable energy efforts;
  


• 
  CRC's ability to successfully identify, develop and finance carbon capture and storage projects and other renewable energy efforts, including those in connection with the Carbon TerraVault JV, and its ability to convert its CDMAs and MOUs to definitive agreements and enter into other offtake agreements;
  


• 
  CRC's ability to maximize the value of its carbon management business and operate it on a stand alone basis;
  


• 
  CRC's ability to successfully develop infrastructure projects and enter into third party contracts on contemplated terms;
  


• 
  uncertainty around the accounting of emissions and its ability to successfully gather and verify emissions data and other environmental impacts;
  


• 
  changes to CRC's dividend policy and share repurchase program, and its ability to declare future dividends or repurchase shares under its debt agreements;
  


• 
  limitations on CRC's financial flexibility due to existing and future debt;
  


• 
  insufficient cash flow to fund CRC's capital plan and other planned investments and return capital to shareholders;
  


• 
  changes in interest rates;
  


• 
  CRC's access to and the terms of credit in commercial banking and capital markets, including its ability to refinance its debt or obtain separate financing for its carbon management business;
  


• 
  changes in state, federal or international tax rates, including CRC's ability to utilize its net operating loss carryforwards to reduce its income tax obligations;
  


• 
  effects of hedging transactions;
  


• 
  the effect of CRC's stock price on costs associated with incentive compensation;
  


• 
  inability to enter into desirable transactions, including joint ventures, divestitures of oil and natural gas properties and real estate, and acquisitions, and CRC's ability to achieve any expected synergies;
  


• 
  disruptions due to earthquakes, forest fires, floods, extreme weather events or other natural occurrences, accidents, mechanical failures, power outages, transportation or storage constraints, labor difficulties, cybersecurity breaches or attacks or other catastrophic events;
  


• 
  pandemics, epidemics, outbreaks, or other public health events, such as the COVID-19 pandemic; and
  


• 
  other factors discussed in Part I, Item 1A – Risk Factors in CRC's Annual Report on Form 10-K and its other SEC filings available at www.crc.com.
  

CRC cautions you not to place undue reliance on forward-looking statements contained in this document, which speak only as of the filing date, and it undertakes no obligation to update this information. This document may also contain information from third party sources. This data may involve a number of assumptions and limitations, and CRC has not independently verified them and does not warrant the accuracy or completeness of such third-party information.

This press release was published by a CLEAR® Verified individual.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.