California Resources ends 2014 with $6.4 billion debt; management considers JVs, asset sales

By Lisa Kerner

Charlotte, N.C., March 25 – California Resources Corp. has no near-term debt maturities or “liquidity events,” and deleveraging remains a priority, according to presentation materials from the Scotia Howard Weil 43rd Annual Energy Conference held Wednesday in New Orleans.

The Los Angeles-based oil and gas exploitation and production company is reviewing options to spin off debt. In November, the company reduced its capital program to operate within its cash flows.

At year-end, long-term debt totaled about $6.4 billion. Debt included a $1 billion unsecured term loan and $5 billon of senior unsecured notes.

Total debt to capitalization was 71%, and total debt to last 12 months adjusted EBITDAX was 2.5 times.

California Resources can incur an additional $1.5 billion through Dec. 31, 2016 under its senior unsecured RCF and intends to borrow an additional $300 million to fund working capital requirements.

The company received a 24-month amendment to its revolver and term loan, according to presentation slides.

Management is assessing alternatives to optimize shareholder value, including joint ventures and asset monetization.

According to California Resources, its capital budget is internally funded and “lives within free cash flow after debt service.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.