Blog: CALIFORNIA RESOURCES CORP : Results of Operations and Financial Condition, Regulation FD Disclosure, Other Events, Financial Statements and Exhibits (form 8-K) –

Item 2.02. Results of Operations and Financial Condition.

On August 3, 2022, California Resources Corporation (“CRC”) issued a press
release (the “Press Release”) announcing its financial condition and results of
operations for the three and six months ended June 30, 2022. A copy of the press
release is furnished as Exhibit 99.1 to this report on Form 8-K, and is
incorporated herein by reference.

Item 7.01. Regulation FD Disclosure.

In the Press Release, CRC also announced the transaction described in Item 8.01
below. See the above-described press release furnished as Exhibit 99.1 to this
report on Form 8-K, which is incorporated herein by reference.

The information furnished in this report (including in Item 2.02) shall not be
deemed “filed” for purposes of Section 18 of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities
of that section, nor shall such information be deemed incorporated by reference
in any filing under the Securities Act of 1933, as amended (the “Securities
Act”), regardless of any general incorporation language in such filing, except
as shall be expressly set forth by specific reference in such filing.

Statements contained in the exhibit to this report (including in Item 2.02) that
state CRC’s or its management’s expectations or predictions of the future are
forward-looking statements intended to be covered by the safe harbor provisions
of the Securities Act and the Exchange Act. It is important to note that CRC’s
actual results could differ materially from those projected in such
forward-looking statements. Factors that could affect these results include
those mentioned in the documents that CRC has filed with the Securities and
Exchange Commission (the “SEC”).

CRC undertakes no duty or obligation to publicly update or revise the
information contained in this report, although CRC may do so from time to time
as management believes is warranted. Any such updating may be made through the
filing of other reports or documents with the SEC, through press releases or
through other public disclosure including disclosure in the Investor Relations
portion of CRC’s website.

Item 8.01.  Other Events.

On August 3, 2022, CRC, acting through its subsidiaries, entered into a Joint
Venture and Investment Agreement, and a series of other agreements, with BGTF
Sierra Aggregator LLC (“Brookfield”) to form a joint venture for the development
of a carbon management business in California, including to develop projects for
the capture, transfer and/or storage of carbon dioxide. The joint venture will
initially be conducted through four newly created joint venture entities: (i)
Carbon TerraVault JV HoldCo, LLC (“JV HoldCo”), (ii) Carbon TerraVault JV
Storage Company, LLC (“Storage Company”), (iii) Carbon TerraVault JV
Infrastructure Company, LLC (“Infrastructure Company”) and (iv) Carbon
TerraVault JV Storage Company Sub 1, LLC (“Storage Company Sub 1”). Storage
Company and Infrastructure Company will be wholly owned by JV HoldCo. Storage
Company will build, install, operate and maintain CO2 storage facilities.
Infrastructure Company will build, install, operate and maintain CO2 capture
equipment and transportation assets, and may provide funding as projects
develop. Storage Company Sub 1, a wholly owned subsidiary of Storage Company,
holds rights to inject CO2 into CRC’s 26R reservoir in the Elk Hills Field for
permanent CO2 storage. Brookfield will acquire a 49% interest in JV HoldCo in
exchange for an initial investment of $137 million, payable in three equal
installments upon completion of certain milestones. The first installment of
$45.7 million was funded on August 3, 2022. Brookfield has committed an initial
$500 million to invest in CCS projects that are jointly approved through the
joint venture, inclusive of the initial $137 million investment. The joint
venture is targeting the injection of 5 million metric tons per annum and 200
million metric tons of total CO2 storage development. Brookfield could
additionally invest over $1 billion in the strategic partnership assuming it
fully participates in these projects. CRC will provide operational and support
services to JV HoldCo.



Item 9.01 Financial Statements and Exhibits

(d)  Exhibits

     Exhibit No.                                           Description
         99.1                  Press Release, dated     August 3, 2022.
         104                 Cover Page Interactive Data File (embedded within the Inline XBRL



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