Adjusted EBITDAX for Q2 2025 was $324 million, exceeding consensus expectations due to strong commodity price realization, higher production, and lower operating costs.
CRC delivered record quarterly returns to shareholders, returning nearly $290 million in Q2 2025, which was more than 260% of free cash flow.
First half 2025 costs were down approximately 11% from the second half of 2024, driven by lower G&A expenses, nonenergy operating costs, and taxes other than income tax.
Free cash flow generated was $109 million for the quarter, or $165 million before changes in working capital.
Net total production was 137,000 BOE per day with average realizations at 97% of Brent before hedges and 100% after hedging.
Impact of California CPUC Rate Decisions on Earnings and Operations
The final decisions from the California Public Utilities Commission (CPUC) in January significantly increased water and electric rates for 2025-2027 and 2023-2026 respectively, positively impacting earnings.
Management highlighted that these rate decisions are expected to contribute to higher revenue and earnings stability moving forward.
The company is preparing to file its next electric rate case in early 2026 and a water rate case in July 2026, indicating ongoing regulatory engagement.
The CPUC's adoption of the Monterey-Style Water Revenue Adjustment Mechanism (MRAM) introduces a new rate adjustment approach that could influence future revenue volatility.
Adjusted net loss from other businesses increased by $4.2 million or $0.11 per share, mainly due to higher interest expense at the holding company.
Net income improvements were driven by higher margin from new rates at the Oregon gas utility, contributions from SiEnergy, increased water utility earnings, and renewables.
Northwest Natural Holdings reported adjusted net income of $315,000 or $0.01 per share for Q2 2025, compared to a loss of $2.8 million or $0.07 per share in Q2 2024.
Operating expenses increased due to higher payroll, benefits, depreciation, and interest expense.
SiEnergy posted net income of $1 million or $0.03 per share in Q2 2025, performing in line with expectations after acquisition.
Water segment net income increased by $1.8 million or $0.04 per share, driven by new rates and acquisitions.
Year-to-date adjusted net income was $92.1 million or $2.28 per share for 2025, up from $61 million or $1.60 per share in the same period last year.
Dafinchi