CRC Guides to $134M Q3 Loss on Commodity Derivatives
CRC sits 24% above its 52-week low of $43.245.
Summary
California Resources expects a $134 million loss from commodity derivative settlements in Q3, driven by $122 million from oil sales hedges and $12 million from natural gas purchase hedges. The company says the weak oil price realization relative to Brent is not a long-term run rate and should improve. This follows the 8-K filed earlier today with the same preliminary figures, but the news adds management's forward-looking commentary. The loss is material relative to recent quarterly earnings and will pressure Q3 results.
At the time of this announcement, CRC was trading at $53.64 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $4.8B. The 52-week trading range was $43.25 to $71.98. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.