California Resources Corporation and Macquarie Announce Joint Venture to Invest up to $300 Million in Oil & Gas Properties
April 19 2017 - 7:00AM
Business Wire
California Resources Corporation (NYSE: CRC) and Macquarie
Infrastructure and Real Assets (MIRA) announced today that they
have formed a strategic joint venture in which MIRA has committed
to fund $160 million for the development of oil and gas properties
in California, with a focus on development opportunities in the San
Joaquin Basin. Subject to the discretion of the parties, MIRA may
increase its total investment to up to $300 million.
The initial commitment, relating to multiple development
opportunities in CRC’s Kern Front, Mt. Poso, Pleito Ranch and
Wheeler Ridge fields, is intended to be invested over two years in
accordance with an already mutually approved development plan. MIRA
will fund 100 percent of the development wells in which it will
earn a 90 percent working interest. CRC’s working interest will
revert from 10 to 75 percent upon MIRA achieving an agreed
return.
Todd Stevens, President and CEO of CRC, noted, “We are pleased
to partner with MIRA to bring forward the value of our large and
long lived inventory and help to derisk and accelerate the
development of CRC’s vast resource base. The joint venture also
provides additional flexibility to aid in our deleveraging efforts
through growing our production and cash flow.”
“MIRA is pleased to form this strategic partnership with CRC to
develop these high quality oil and gas properties in a world class
basin,” said Paul Beck, Senior Managing Director in Macquarie
Infrastructure and Real Assets. “We are attracted to CRC’s
operational expertise, technical understanding and substantial
infrastructure in the San Joaquin Basin.”
Forward Looking Statement Disclosure
This press release contains forward-looking statements that
involve risks and uncertainties that could materially affect our
expected results of operations, liquidity, cash flows and business
prospects. Such statements include those regarding our expectations
as to the disclosed joint venture. Factors (but not necessarily all
the factors) that could cause results to differ include:
- commodity price changes
- legislative or regulatory changes,
including those related to drilling, completion, well stimulation,
operation, maintenance or abandonment of wells or facilities,
managing energy, water, land, greenhouse gases or other emissions,
protection of health, safety and the environment, or
transportation, marketing and sale of our products
- unexpected geologic conditions
- equipment, service or labor price
inflation or unavailability
- availability or timing of, or
conditions imposed on, permits and approvals
- lower-than-expected production,
reserves or resources from development projects
higher-than-expected decline rates
- disruptions due to accidents,
mechanical failures, transportation constraints, natural disasters,
labor difficulties, cyber attacks or other catastrophic events
- factors discussed in “Risk Factors” in
our Annual Report on Form 10-K available on our website at
crc.com.
Words that reflect the prospective nature of events or outcomes
typically identify forward-looking statements. Any forward-looking
statement speaks only as of the date on which such statement is
made and we undertake no obligation to correct or update any
forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by applicable
law.
About California Resources
Corporation
California Resources Corporation is the largest oil and natural
gas exploration and production company in California on a
gross-operated basis. The Company operates its world class resource
base exclusively within the State of California, applying
complementary and integrated infrastructure to gather, process and
market its production. Using advanced technology, California
Resources Corporation focuses on safely and responsibly supplying
affordable energy for California by Californians.
About Macquarie Group and Macquarie
Infrastructure and Real Assets
Macquarie Group (Macquarie) is a global provider of banking,
financial, advisory, investment and funds management services.
Macquarie acts on behalf of institutional, corporate and retail
clients and counterparties around the world. Founded in 1969,
Macquarie operates in more than 70 office locations in 28
countries. Macquarie employs approximately 13,800 people and has
assets under management of over $377 billion (as of September 30,
2016).
MIRA is part of Macquarie Asset Management, the asset management
arm of Macquarie.
MIRA pioneered Infrastructure as a new asset class for
institutional investors. For more than 20 years MIRA has been
investing in and managing the assets that people use every day –
extending beyond Infrastructure to Real Estate, Agriculture and
Energy.
None of the entities noted in this news release is an authorized
deposit taking institution for the purposes of the Banking Act 1959
(Commonwealth of Australia). The obligations of these entities do
not represent deposits or other liabilities of Macquarie Bank
Limited (ABN46008583542) (“MBL”). MBL does not guarantee or
otherwise provide assurance in respect of the obligations of these
entities.
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version on businesswire.com: http://www.businesswire.com/news/home/20170419005444/en/
California Resources CorporationInvestor RelationsScott
Espenshade, 818-661-6010Scott.Espenshade@crc.comorMediaMargita
Thompson, 818-661-6005Margita.Thompson@crc.com
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