California Resources Sells Uinta Basin Assets for $90 Million
California Resources Corporation (NYSE:CRC) has agreed to sell its Uinta Basin assets, spanning approximately 100,000 net acres in Utah and Colorado, for $90 million in cash. The company acquired the assets as part of last year's Berry Corp acquisition but deemed them non-core. Proceeds from the sale will be used for shareholder returns and corporate purposes. The transaction is expected to close by year-end after securing third-party consents. Uinta contributed only 2.5% of CRC’s oil production and about 8% of its natural gas output in Q2, so removing it should have minimal impact on overall operations. The sale also helps offset the $63 million cost of CRC's recent acquisition of Crimson Midstream Holdings. While the financial benefit may be limited unless proceeds are redeployed effectively or returned to shareholders, management argues that Uinta’s higher costs and lower returns justify its divestiture.
Tickers: $CRC
Topics: asset sale capital allocation oil and gas shareholder returns