California Resources Corporation (NYSE:CRC) Q3 2023 Earnings Call Transcript

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Noel Parks: Okay. Great. And just sort of a general question. It’s clear, as you described the different projects, you’ve already disclosed the ones you’re in the process of putting together that there are a lot of moving parts going on all at once. And I wonder, in your exploration of different opportunities, is there much opportunity that you see in sort of like specifically the waste gas type of industrial plant, whether it’s water treatment or I don’t know how far along sort of carbon capture from ag sources is in the state. But just anything you can tell me about that would be great.

Francisco Leon: Yes, absolutely. So like I said, there’s a lot of synergies between what we’re doing and what California wants to have happen. And a lot of the waste, you can talk about forest management that we have issues with fires in the state, part of it is the lack of forest management. And we have companies like NLC who we announced are partnering today that are looking for that ag waste. We’ll spend the money to clean up the forest and then we can turn that into clean energy. So that’s part of the overall objective, part of the strategy we’re trying to advance here. But maybe I’ll turn it over to Chris Gould for any additional comments he has here.

Chris Gould: Yes. Just to build up on that, when you look at the proximity of our reservoirs, they are in the Central Valley. They’re very close to ag waste in terms of feedstocks and that’s why you see several of these projects are utilizing waste for the production of these renewable fuels, including NLC. So we are doing that and we’re doing it where it strategically makes sense relative to the advantage we have where our CTV storage reservoirs are located. The same is true in Northern California with CTV II through V. That is in a very strategically located near forest waste and forest trimmings, which as Francisco mentioned, are a huge challenge that we can help solve for the state by using that as a feedstock. And in addition to the proximity to that feedstock, the reservoirs and the greenfields are in proximity to the demand centers to the west, such as the Bay Area for the products that get created out of that.

So again, location, location, location. It’s very important where these reservoirs are. We’re a first mover in that core space and that region and we feel advantaged towards these waste product streams.

Noel Parks: Great. Thanks a lot.

Operator: And ladies and gentlemen, that’s all the time we have for questions today. I’d like to turn the conference back over to the management team for any closing remarks.

Francisco Leon: Thank you for joining us today. We will be presenting at several investor conferences in November and December and also in early 2024. We look forward to seeing everybody soon. Thanks again.

Operator: Thank you. Ladies and gentlemen, this concludes today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines, and have a wonderful day.

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