California Resources Corporation's stock surged 5.37% in pre-market trading following the release of its fourth quarter and full-year 2025 financial results, which highlighted the company's strongest annual free cash flow since 2021 and provided a robust production growth outlook for 2026.

The energy company reported full-year 2025 free cash flow of $543 million, marking its highest annual level in four years. CRC also achieved a 25% year-over-year increase in average net production, reaching 138 thousand barrels of oil equivalent per day. For 2026, the company is targeting approximately 12% production growth, averaging 152-157 MBoe/d, supported by four operated drilling rigs and the receipt of new drilling permits necessary for its capital program.

Additional positive catalysts included progress on the company's carbon management initiatives, with its Carbon TerraVault subsidiary targeting first CO2 injection at the Elk Hills storage reservoir in spring 2026. The company also expects to realize $80-$90 million of merger-related synergies from its recent combination with Berry Corporation within 12 months of closing.