California Resources CorpCRC

California Resources Corp Segments Disclosure

10-KFiled Mar 3, 20256 min read
SEGMENT INFORMATION
We conduct our business primarily through two reportable segments: (1) oil and natural gas and (2) carbon management. We identified these segments based on the nature of their activities, the types of products sold and services to be provided. Our oil and natural gas segment explores for, develops, and produces oil and condensate, natural gas liquids and natural gas. Our carbon management segment, that we refer to as Carbon TerraVault, is expected to build, install, operate and maintain CO2 capture equipment, transportation assets and storage facilities. Our oil and natural gas segment and carbon management segment operate exclusively in California.

Our chief operating decision maker (CODM) is Francisco Leon, Chief Executive Officer. The CODM uses segment profit or loss to assess the performance of each business, as well as our overall performance, and to make decisions about resources to be allocated to the segment, including capital investments.

Intersegment revenues relates to sales of produced natural gas to our Elk Hills power plant. Direct labor-related costs are allocated to our reportable segments based on job function. General and administrative expenses are allocated to a segment if they directly support a segment's activities. We do not allocate income taxes to our segments. We use proportionate consolidation to account for our share of oil and natural gas producing activities.
The following tables provide segment profit or loss and reconciliations of segment profit or loss to consolidated income before income taxes for the years ended December 31, 2024, 2023, and 2022.

Year ended December 31, 2024
Oil and Natural GasCarbon Management
Total Reportable Segments
Reconciliation of Operating Revenues
Total
(in millions)
Oil, natural gas and NGL sales to external customers
$2,537 $— $2,537 $— $2,537 
Other revenue
7 — 7 — 7 
Intersegment revenues28 — 28 — 28 
Segment operating revenues
2,572 — 2,572 
Other revenues and income(a)
654 654 
Elimination of intersegment revenues
(28)(28)
Total operating revenues
$3,198 
(a)Other revenues and income includes net gain from commodity derivatives, revenue from marketing of purchased commodities, electricity sales and unallocated interest and other revenue.
Year ended December 31, 2024
Oil and Natural GasCarbon Management
Total Reportable Segments
Reconciliation (Income)/Expense
Total
(in millions)
Segment operating revenues
$2,572 $— $2,572 $2,572 
Less:
Operating costs:
Energy operating costs296 — 296 (17)279 
Gas processing costs16 — 16 — 16 
Non-energy operating costs671 — 671 — 671 
General and administrative expenses43 15 58 263 321 
Depreciation, depletion and amortization
354 — 354 34 388 
Taxes other than on income
207 — 207 35 242 
Loss (income) from investment in unconsolidated subsidiaries
— 12 12 (2)10 
Other segment expenses(a)
170 67 237 — 237 
Segment profit or (loss)
$815 $(94)$721 
Other profit or loss(b)
(133)(133)
Unallocated amounts(c)
25 25 
Income before income taxes
$516 
(a)Amounts for our oil and natural gas segment include purchases of wet gas processed by us, power and fuel costs purchased during maintenance at our Elk Hills power plant, transportation costs, asset impairment and accretion expense, net of a gain on asset divestitures. Amounts for our carbon management segment primarily include operating lease costs, interest expense and asset impairment.
(b)Other profit or loss includes margin from purchased commodities and electricity margin.
(c)Unallocated amounts include net gain from commodity derivatives, net loss on natural gas purchase derivatives, transportation costs, interest and debt expense, other operating expenses, net, other non-operating loss, loss on early extinguishment of debt, and interest and other revenue, net of a gain on asset divestitures.
Year ended December 31, 2023
Oil and Natural GasCarbon Management
Total Reportable Segments
Reconciliation of Operating Revenues
Total
(in millions)
Oil, natural gas and NGL sales to external customers
$2,041 $— $2,041 $— $2,041 
Other revenue
17 — 17 — 17 
Intersegment revenue
114 — 114 — 114 
Segment operating revenues
2,172 — 2,172 2,172 
Other revenues and income(a)
629 629 
Total operating revenue
$2,801 
(a)Other revenues and income includes net loss from commodity derivatives, revenue from marketing of purchased commodities, electricity sales and unallocated interest and other revenue.
Year ended December 31, 2023
Oil and Natural GasCarbon Management
Total Reportable Segments
Reconciliation (Income)/Expense
Total
(in millions)
Segment operating revenues
$2,172 $— $2,172 $2,172 
Less:
Operating costs:
Energy operating costs323 — 323 — 323 
Gas processing costs18 — 18 — 18 
Non-energy operating costs481 — 481 — 481 
General and administrative expenses42 12 54 213 267 
Depreciation, depletion and amortization
205 — 205 20 225 
Taxes other than on income
114 — 114 51 165 
Loss from investment in unconsolidated subsidiary— 9 9 — 9 
Other segment expenses(b)
67 45 112 — 112 
Segment profit or (loss)
$922 $(66)$856 
Other profit or loss(b)
(291)(291)
Unallocated amounts(c)
115 115 
Income before income taxes
$748 
(a)Amounts for our oil and natural gas segment include purchases of wet gas processed by us, transportation costs and accretion expense, net of a gain on asset divestitures. Amounts for our carbon management segment include operating lease costs, interest expense and asset impairment.
(b)Other profit or loss includes margin from purchased commodities and electricity margin.
(c)Unallocated amounts include net loss from commodity derivatives, net loss on natural gas purchase derivatives, transportation costs, interest and debt expense, other operating expenses, net, other non-operating income, loss on early extinguishment of debt, and interest and other revenue.
Year ended December 31, 2022
Oil and Natural GasCarbon Management
Total Reportable Segments
Reconciliation of Operating Revenues
Total
(in millions)
Oil, natural gas and NGL sales to external customers
$2,490 $— $2,490 $— $2,490 
Other revenue
17 — 17 — 17 
Intersegment revenue
153 — 153 — 153 
Operating revenues
2,660 — 2,660 2,660 
Other revenues and income(a)
47 47 
Total operating revenues
$2,707 
(a)Other revenues and income includes net loss from commodity derivatives, revenue from marketing of purchased commodities, electricity sales and unallocated interest and other revenue.
Year ended December 31, 2022
Oil and Natural GasCarbon Management
Total Reportable Segments
Reconciliation (Income)/Expense
Total
(in millions)
Segment operating revenues
$2,660 $— $2,660 $2,660 
Less:
Operating costs:
Energy operating costs323 — 323 — 323 
Gas processing costs17 — 17 — 17 
Non-energy operating costs445 — 445 — 445 
General and administrative expenses36 12 48 174 222 
Depreciation, depletion and amortization
177 — 177 21 198 
Taxes other than on income
111 — 111 51 162 
Loss from investment in unconsolidated subsidiary— 1 1 — 1 
Other segment expenses(b)
14 28 42 — 42 
Segment profit or (loss)
$1,537 $(41)$1,496 
Other profit or loss(b)
(140)(140)
Unallocated amounts(c)
629 629 
Income before income taxes
$761 
(a)Amounts for our oil and natural gas segment primarily include transportation costs and accretion expense, net of a gain on asset divestitures. Amounts for our carbon management segment primarily include operating lease costs. Amounts for our carbon management segment also include $12 million to build replacement water injection facilities which will allow the diversion of produced water away from a depleted oil and natural gas reservoir.
(b)Other profit or loss includes margin from purchased commodities and electricity margin.
(c)Unallocated amounts include net loss from commodity derivatives, transportation costs, interest and debt expense, other operating expenses, net, other non-operating income and interest and other revenue.

Total assets by segment is not disclosed as it is not used by our CODM in decision-making; however, we regularly provide capital investment by segment to our CODM and have provided segment capital with a reconciliation to our consolidated capital investment for the years ended December 31, 2024, 2023 and 2022. See Note 4 Investments and Related Party Transactions for information on our investment in the Carbon TerraVault JV, which is part of our carbon management segment. See Note 13 Leases for information leases we have entered into for our carbon management business.

The following table provides capital investments for our operating segments and a reconciliation to consolidated capital investments for the years ended December 31, 2024, 2023 and 2022.
Oil and Natural Gas
Carbon Management
Corporate and Other
Consolidated
(in millions)
Year ended December 31, 2024
$234 $12 $9 $255 
Year ended December 31, 2023
$153 $5 $27 $185 
Year ended December 31, 2022
$349 $4 $26 $379 
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About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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