California Resources Corporation announced on July 15 it has entered into a Restructuring Support Agreement (“RSA”) with holders of approximately 84% of the Company’s 2017 term loans, 51% of the Company’s 2016 term loans and its Elk Hills midstream joint venture partner, Ares Management L.P. (“Ares”). We inherited a significant amount of debt when we were spun off from Occidental Petroleum in 2014. We’ve reduced our debt by more than $1.7 billion over the past five years while living within cash flow. We believe the restructuring will get us where we need to be to move forward successfully.

To implement the terms of the RSA, the Company and certain of its subsidiaries have filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. Upon plan confirmation, the implementation of the RSA would reduce CRC’s debt substantially, enabling the Company to operate safely through the current downturn in commodity prices and establishing a solid financial foundation to enhance future value creation.

On July 17, 2020, CRC received approvals from the U.S. Bankruptcy Court for the Southern District of Texas for the First Day Motions related to the Company’s voluntary Chapter 11 petitions filed on July 15, 2020. At the hearing, the Court granted CRC interim approval to access new Debtor-in-Possession (“DIP”) financing of over $1 billion to support the Company’s working capital needs. In addition, CRC received Court approval to access and use cash collateral. The court also signed orders that authorize CRC to continue to pay or honor obligations to royalty and landowners in the ordinary course of business. The combination of these resources will enable CRC to continue operating safely through this process.

CRC has consistently operated within cash flow, significantly reducing the outsized debt burden we inherited from Occidental Petroleum at our December 2014 spin-off. However, today’s unprecedented market conditions, including oversupply and reduced demand due to COVID-19, require that we further reduce our debt through a Chapter 11 process. CRC will emerge from Chapter 11 as a strong, healthy company committed to providing Californians with safe, affordable, reliable and locally produced energy, good-paying jobs and millions of dollars in annual government revenues for vital public services for many years to come. We take this role very seriously, and our commitment to ensuring a safe, diverse and resilient supply of energy from California resources will not change.

CRC’s portfolio of world-class, low-decline assets and our integrated infrastructure provide us significant operational flexibility which, coupled with our commitment to displace imported energy with our oil and natural gas production under the most stringent regulations, continues to distinguish us from many oil and gas operators. We are dedicated to the diverse communities where our employees live and we operate. We have a track record of disciplined financial and operational decisions, as well as sustainable and safe operations.

Additional Information

The Company has set up a toll-free hotline to answer questions about this corporate restructuring. The hotline can be accessed by calling (855) 917-3506. The Company has also posted FAQs, Court filings and information about the claims process at

Forward-Looking Statements

The information presented herein includes forward-looking statements that involve risks and uncertainties that could materially affect our expected results of operations, liquidity, cash flows and business prospects. For a discussion of these risks and uncertainties, please refer to the “Risk Factors” and “Forward-Looking Statements” described in our Annual Report on Form 10-K and the “Forward Looking Statements” described in our press release issued on July 16, 2020. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “goal,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “project,” “seek,” “should,” “target,” “will” or “would” and similar 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, except as required by applicable law.

Investor Contact

Joanna Park

Vice President,
Investor Relations

(818) 661-3731
Email Investor Relations

Media Contact

Margita Thompson

Senior Vice President,
Public Affairs & Community Outreach

(818) 661-6005
Email Communications

Transfer Agent

American Stock Transfer and Trust Company, LLC

Shareholder Services

6201 15th Avenue
Brooklyn, NY 11219
(866) 659-2647

Oil and Gas Royalty Interest Owners

California Resources Corporation

Attn: Land Administration
900 Old River Road
Bakersfield, CA 93311
(855) 272-5519
Owner Relations Help Desk

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