25% Year-Over-Year Production Growth and Highest Annual Free Cash Flow Since 2021
Receipt of New Drilling Permits Supports Planned 2026 Drilling Program
LONG BEACH, Calif., March 02, 2026 (GLOBE NEWSWIRE) -- California Resources Corporation $(CRC)$ (CRC) today reported its financial and operating results for the fourth quarter and full-year 2025. The Company plans to host a conference call and webcast at 1 p.m. ET (10 a.m. PT) on Monday, March 2, 2026. Conference call details can be found within this release.
Fourth Quarter Highlights
-- Reported net income of $12 million, adjusted net income1 of $40 million
and $251 million of adjusted EBITDAX1
-- Generated net cash provided by operating activities of $235 million and
$115 million of free cash flow1
-- Delivered an average of 137 thousand barrels of oil equivalent per day5
(MBoe/d) (80% oil); invested total capital of $120 million including
drilling, completions and workover capital1 of $56 million
-- Increased annual dividend by 5%; marking four consecutive years of
dividend growth2
-- Returned $59 million to shareholders including $34 million in dividends
and $25 million in share repurchases2
-- Closed all-stock combination with Berry Corporation on December 18, 2025
-- Announced a new memorandum of understanding (MOU)4 with a leading
California power producer to provide CO2 transportation and storage and
explore decarbonized power solutions near Silicon Valley. See California
Resources Corporation and Middle River Power to Advance Decarbonized
Power Solutions in California for additional information
2025 Highlights
-- Increased average net production by 25% year-over-year to 138 MBoe/d5
(79% oil), and realized $235 million in Aera merger-related synergies
-- Reported net income of $363 million, adjusted net income(1) of $359
million and highest annual adjusted EBITDAX(1) of $1,241 million since
2021
-- Generated $865 million of net cash provided by operating activities and
free cash flow(1) of $543 million, highest annual free cash flow since
2021
-- Returned $513 million to shareholders including $377 million in share
repurchases and $136 million in dividends2
-- Lowered base decline to 8%--13% from 10%--15% through improved reservoir
management
-- Increased proved undeveloped reserves by 190% and total proved reserves
by 20% through operational improvements and mergers, despite 14%
year-over-year decline in SEC pricing for oil
-- Exited 2025 with $117 million in available cash3, $1,284 million in
available borrowing capacity and liquidity of $1,401 million
-- Increased aggregate elected commitment under the Revolving Credit
Facility to $1,460 million in 2025 from $1,150 million
-- Received "Grade A" certifications under MiQ's Methane Emissions
Performance Standard for production assets across the Los Angeles,
Ventura, and San Joaquin basins (excluding assets added in the Berry
Merger)
-- Substantially completed construction of CRC's first carbon capture and
storage $(CCS)$ project at the Elk Hills cryogenic gas plant
-- Executed new MOUs4 with leading California industrial and power partners
to evaluate decarbonized solutions. See Carbon TerraVault's 2025 Press
Release for additional information
2026 Outlook
-- CRC is receiving new drilling permits and currently holds the majority of
permits necessary to undertake its 2026 capital program
-- Targeting approximately 12% year-over-year production growth, averaging
152--157 MBoe/d (81% oil), supported by four operated drilling rigs
-- Capital investments expected to range between $430--$470 million,
including $280--$300 million for drilling, completions, and workovers1,
and $12--$20 million for carbon management initiatives
-- Expect to realize $80--$90 million of Berry merger-related synergies
within 12 months of closing, including $35 to $40 million in general and
administrative expenses, $25 to $30 million in operating costs and $20
million in financing costs
-- Targeting first CO injection at its CCS project at the Elk Hills
cryogenic gas plant in spring 2026, subject to commissioning and final
regulatory approval. See Carbon TerraVault's 2025 Press Release for
additional information
"CRC delivered a landmark year in 2025, driven by strong financial performance, robust cash flow generation, and disciplined execution, while returning substantial cash to shareholders," said Francisco Leon, CRC's President and Chief Executive Officer. "Our teams made meaningful progress improving reservoir management across our high-quality, low-decline conventional asset base and advancing several strategic initiatives that strengthen the company's long-term foundation.
"Our 2026 priorities are clear: safely and efficiently operate our core businesses, deliver on the synergies from the Berry merger, and continue to advance high-return opportunities across our portfolio while maintaining financial discipline. With a resilient asset base and a strong hedge position, CRC is well positioned to manage near-term volatility and generate strong cash flows from which to enhance shareholder returns."
Fourth Quarter and Total Year 2025 Results
Select Production,
Price and Financial
Results and 4th 3rd Total Total
Non-GAAP Measures Quarter Quarter Year Year
($ in millions
except production
and prices) 2025 2025 2025 2024
Net oil production
per day
(MBbl/d)(6) 109 107 109 80
Realized oil
price without
derivative
settlements ($
per Bbl) $ 61.14 $66.32 $66.52 $ 76.92
Realized oil
price with
derivative
settlements(1)
($ per Bbl)(1) $ 64.27 $67.04 $67.51 $ 75.66
Net NGL production
per day
(MBbl/d)(6) 9 10 10 10
Realized NGL
price ($ per
Bbl) $ 42.86 $41.04 $45.30 $ 48.93
Net natural gas
production per day
(Mmcf/d)(6) 113 118 114 117
Realized natural
gas price ($
per Mcf) $ 3.91 $ 3.47 $ 3.57 $ 2.99
Net total production
per day
(MBoe/d)(6) 137 137 138 110
Margin from
purchased
commodities(1) $ 13 $ 14 $ 56 $ 42
Electricity
margin(1) $ 40 $ 90 $ 195 $ 119
Net gain (loss) from
commodity
derivatives $ 126 $ (23) $ 266 $ 241
Other operating
expenses net of
other revenue(1) $ 75 $ 25 $ 187 $ 213
Select Financial
Statement Data
and Non-GAAP Total Total
Measures: 4th Quarter 3rd Quarter Year Year
($ and shares in
millions, except
per share
amounts) 2025 2025 2025 2024
Total operating
revenues $ 924 $ 855 $ 3,669 $ 3,198
Operating costs $ 325 $ 316 $ 1,252 $ 966
General and
administrative
expenses $ 95 $ 87 $ 333 $ 321
Adjusted general
and
administrative
expenses(1) $ 89 $ 82 $ 309 $ 279
Taxes other than
on income $ 55 $ 70 $ 242 $ 242
Transportation
costs $ 20 $ 19 $ 79 $ 81
Operating income $ 47 $ 98 $ 598 $ 620
Interest and debt
expense, net $ 29 $ 25 $ 106 $ 87
Income tax
provision $ 11 $ 11 $ 139 $ 140
Deferred income
tax provision $ 22 $ 35 $ 98 $ 71
Net income $ 12 $ 64 $ 363 $ 376
Weighted-average
common shares
outstanding -
diluted 85.1 84.4 87.4 81.4
Net income per
share - diluted $ 0.14 $ 0.76 $ 4.15 $ 4.62
Adjusted net
income(1) $ 40 $ 123 $ 359 $ 317
Adjusted net
income per
share(1) -
diluted $ 0.47 $ 1.46 $ 4.11 $ 3.89
Net cash provided
by operating
activities $ 235 $ 279 $ 865 $ 610
Adjusted
EBITDAX(1) $ 251 $ 338 $ 1,241 $ 1,006
Free cash flow(1) $ 115 $ 188 $ 543 $ 355
Capital
investments $ 120 $ 91 $ 322 $ 255
Cash and cash
equivalents (as
of December 31,
2025 and 2024,
respectively) $ 132 $ 372
Available cash
and cash
equivalents $ 117 $ 354
Restricted cash $ 15 $ 18
2025 Proved Reserves
As of December 31, 2025, CRC's total proved reserves were 654 million Boe (MMBoe), of which approximately 83% was oil and 541 MMBoe was proved developed. CRC added 93 MMBoe of proved reserves related to the Berry merger in 2025. Standardized measure of discounted future net cash flows were $6,666 million with a PV-10(1) value of $8,717 million, based on SEC pricing, at December 31, 2025. In 2025, CRC's reserve replacement ratio(1) was 368%. See Attachment 3 for the non-GAAP reconciliation.
2026 Guidance
The following table provides key first quarter and full year 2026 financial and operating guidance(6) . In 2026, CRC expects to operate a four-rig program subject to commodity prices and market conditions. CRC currently holds the permits necessary to execute a majority of its planned capital program. See Attachment 2 for further information on CRC's first quarter and full year 2026 guidance.
Total Year
1Q26E 2026E
------------------------------------ ----------- -------------
Net Production (MBoe/d) 155 - 157 152 - 157
Percentage Oil 81% 1
Capital Investments ($ millions) $110 - $130 $430 - $470
Adjusted EBITDAX(1) ($ millions) $240 - $280 $970 - $1,070
Shareholder Returns
CRC is committed to increasing shareholder returns over time. In November 2025, CRC increased its annual dividend by approximately 5% to a total annual dividend of $1.62. CRC has increased its dividend every year since 2021.
On March 1, 2026, CRC's Board of Directors declared a quarterly cash dividend of $0.405 per share of common stock, payable to shareholders of record on March 13, 2026. The dividend is expected to be paid on March 20, 2026.
In 2025, CRC repurchased 8.3 million shares of its common stock for $377 million(2) at an average price of $45.29 per share and returned $136 million in dividends to shareholders. Since mid-2021, the Company has returned approximately $1,573 million to shareholders(2) , including $1,170 million in share repurchases and $403 million in dividends.
In February 2026, CRC's Board of Directors approved an increase of the Share Repurchase Program to $1.78 billion, an increase of $430 million and extended the program through December 31, 2027. After this increase and repurchases in January 2026, CRC has $600 million of capacity remaining under the repurchase program as of February 28, 2026.
Balance Sheet and Liquidity
In October 2025, CRC's lenders reaffirmed its $1,500 million borrowing base under its Revolving Credit Facility as part of its semi-annual redetermination. In December 2025, elected commitments under the Revolving Credit Facility increased by $10 million to $1,460 million.
At year-end 2025, CRC had liquidity of $1,401 million, consisting of $117 million in available cash and cash equivalents(3) and $1,284 million of available borrowing capacity under its Revolving Credit Facility (which reflects $1,460 million of borrowing capacity less $176 million of outstanding letters of credit). There were no outstanding borrowings under the Revolving Credit Facility as of December 31, 2025.
Participation in Upcoming Investor Conferences
CRC is scheduled to participate in the following events in March 2026:
-- 2026 Jefferies Power, Energy, Clean Energy, and Utilities Conference,
March 4, New York, NY
-- 2026 NYSE Investor Access Day, March 20, Virtual
-- 38th Annual ROTH Conference, March 23, Dana Point, CA
CRC's presentation materials will be available on the day of the event on its website. See the Events and Presentations page under the Investor Relations section on www.crc.com.
Conference Call Details
A conference call and webcast is planned for 1 p.m. ET (10 a.m. PT) on Monday, March 2, 2026. To participate in the call, dial (877) 328-5505 (International calls dial +1 (412) 317-5421) or access via webcast at www.crc.com. Participants may also pre-register for the conference call at https://dpregister.com/sreg/10204776/10070090c28. A digital replay of the conference call will be available for approximately 90 days.
1 See Attachment 3 for the non-GAAP financial measures of adjusted net income (loss), adjusted net income (loss) per share - basic and diluted, net cash provided by operating activities before changes in operating assets and liabilities, net, adjusted EBITDAX, free cash flow, adjusted general and administrative expenses and PV-10 including reconciliations to the most directly comparable GAAP measure without unreasonable effort. See Attachment 2 for the 1Q26 and 2026 estimates of the non-GAAP measures of adjusted EBITDAX, oil and natural gas segment adjusted EBITDAX, carbon management segment adjusted EBITDAX and adjusted general and administrative expenses, including reconciliations to its most directly comparable GAAP measure, without unreasonable effort. See Attachment 1 for a reconciliation of drilling completion and workover capital to total capital investments reported under GAAP.
(2 All of CRC's future quarterly dividends and share repurchases are subject to commodity prices, debt agreement covenants and Board of Directors' approval. The total value of shares purchased excludes commissions and excise taxes. Commissions paid on share repurchases were not significant in all periods presented. The total value of share repurchases excludes excise taxes of approximately $2 million in the year ended December 31, 2024. Excise taxes were insignificant in the year ended December 31, 2025. The total value of shares repurchased excludes approximately $3 million related to excise taxes and commissions paid on share repurchases since the inception of the Share Repurchase Program.)
(3 Excludes restricted cash of $15 million.)
(4 MOUs and CDMAs are non-binding agreements. The projects and transactions described in an MOU or CDMA are subject to certain conditions precedent, typically including the negotiation of definitive documents, a final investment decision by the parties and receipt of EPA Class VI permits and other regulatory approvals.)
(5 Net production per day for the periods presented reflects the impact of transaction timing. Aera Energy volumes contributed for the full year in 2025 and for approximately six months in 2024, while Berry Corporation volumes contributed for approximately 14 days in 2025 following the transaction close. Production amounts shown are reported results and are not presented on a pro forma basis.) (6 1Q26 guidance assumes Brent price of $66.42 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $5.22 per mcf. Total year 2026 guidance assumes Brent price of $65.57 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $4.13 per mcf.)
About California Resources Corporation
California Resources Corporation (CRC) is an independent energy and carbon management company advancing the energy transition. CRC is committed to environmental stewardship while safely providing local, responsibly sourced energy. CRC is also focused on maximizing the value of its land, mineral ownership, and energy expertise for decarbonization by developing CCS and other emissions reducing projects. For more information about CRC, please visit crc.com.
About Carbon TerraVault
Carbon TerraVault (CTV), CRC's carbon management business, is developing services to capture, transport and permanently store CO(2) for its customers. CTV is engaged in a series of proposed CCS projects to inject CO(2) captured from industrial sources into depleted reservoirs deep underground for permanent sequestration. For more information, visit carbonterravault.com.
Forward-Looking Statements
Information set forth in this communication, including financial estimates and statements as to the effects of the Berry Merger, constitute "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other securities laws. All statements other than historical facts are forward-looking statements, and include statements regarding the benefits of the Berry Merger, CRC's future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and plans and objectives and intentions of management for the future. Words such as "expect," "could," "may," "anticipate," "intend," "plan," "ability," "believe," "seek," "see," "will," "would," "estimate," "forecast," "target," "guidance," "outlook," "opportunity" or "strategy" or similar expressions are generally intended to identify forward-looking statements. These forward-looking statements are based upon the current beliefs and expectations of the management of CRC and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, projected in, or implied by, such statements.
Although CRC believes the expectations and forecasts reflected in its forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond its control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause CRC's actual results to be materially different than those expressed in its forward-looking statements are described in its most recent Annual Report on Form 10-K and its other periodic filings with the SEC. These factors include, but are not limited to: fluctuations in commodity prices; production levels and/or pricing by OPEC, OPEC+ or U.S. producers; government policy, war and political conditions and events; integration efforts and projected synergies and other benefits in connection with the Berry Merger and other acquisitions; divestitures and joint ventures; regulatory actions and changes that affect the oil and gas industry generally and us in particular; the efforts of activists to delay or prevent oil and gas activities or the development of CRC's carbon management segment; changes in business strategy and the ability and financial resources to execute our capital plan in a timely manner; lower-than-expected production; changes to estimates of reserves and related future cash flows; the recoverability of resources
and unexpected geologic conditions; general economic conditions and trends; results from operations and competition in the industries in which it operates; CRC's ability to realize the anticipated benefits from prior or future efforts to reduce costs; environmental risks and liability; the benefits contemplated by its energy transition strategies and initiatives; CRC's ability to successfully identify, develop and finance carbon capture and storage projects, power projects and other renewable energy efforts; delays from government approvals and otherwise that could affect the timing of first injection of CO(2) ; future dividends and share repurchases and de-leveraging efforts; and natural disasters, accidents, mechanical failures, power outages, labor difficulties, cybersecurity breaches or attacks or other catastrophic events.
CRC cautions you not to place undue reliance on forward-looking statements contained in this document, which speak only as of the date hereof, and CRC is under no obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise. This communication may also contain information from third-party sources. This data may involve a number of assumptions and limitations, and CRC has not independently verified them and does not warrant the accuracy or completeness of such third-party information.
Contacts:
Daniel Juck (Investor Relations) Hailey Bonus (Media)
818-661-3700 714-874-7732
IR@crc.com CRC.Communications@crc.com
-------------------------------- ---------------------------
Attachment 1
STATEMENTS OF OPERATIONS, SELECT FINANCIAL INFORMATION
($ and shares in
millions, except
per share 4th 3rd 4th
amounts) Quarter Quarter Quarter Total Year Total Year
2025 2025 2024 2025 2024
Statements of
Operations:
-----------------
Revenues
Oil, natural gas
and natural gas
liquids sales $ 679 $ 715 $ 826 $2,910 $2,537
Net gain (loss)
from commodity
derivatives 126 (23) (49) 266 241
Revenue from
marketing of
purchased
commodities 60 58 59 238 235
Electricity sales 52 101 39 233 159
Other revenue 7 4 2 22 26
Total operating
revenues 924 855 877 3,669 3,198
---- ---- ---- ----- -----
Operating
Expenses
Operating costs 325 316 323 1,252 966
General and
administrative
expenses 95 87 95 333 321
Depreciation,
depletion and
amortization 129 123 142 511 388
Asset impairment 57 2 1 59 14
Taxes other than
on income 55 70 80 242 242
Costs related to
marketing of
purchased
commodities 47 44 53 182 193
Electricity
generation
expenses 12 11 9 38 40
Transportation
costs 20 19 21 79 81
Accretion expense 29 28 31 114 87
Net loss on
natural gas
purchase
derivatives 26 27 19 50 30
Measurement period
adjustments, net -- -- (12) 1 (12)
Other operating
expenses, net 82 29 51 209 239
Total operating
expenses 877 756 813 3,070 2,589
---- ---- ---- ----- -----
(Loss) gain on
asset
divestitures -- (1) 4 (1) 11
---- ---- ---- ----- -----
Operating Income 47 98 68 598 620
Non-Operating
(Expenses)
Income
Interest and debt
expense, net (29) (25) (28) (106) (87)
Equity loss from
unconsolidated
subsidiaries (1) (2) (1) (4) (10)
Loss on early
extinguishment of
debt -- -- -- (1) (5)
Other
non-operating
income (expense),
net 6 4 2 15 (2)
Income Before
Income Taxes 23 75 41 502 516
Income tax
provision (11) (11) (8) (139) (140)
Net Income $ 12 $ 64 $ 33 $ 363 $ 376
Net income per
share - basic $0.14 $0.76 $0.36 $ 4.17 $ 4.74
Net income per
share - diluted $0.14 $0.76 $0.36 $ 4.15 $ 4.62
Adjusted net
income $ 40 $ 123 $ 84 $ 359 $ 317
Adjusted net
income per share
- basic $0.47 $1.47 $0.93 $ 4.13 $ 4.00
Adjusted net
income per share
- diluted $0.47 $1.46 $0.91 $ 4.11 $ 3.89
Weighted-average
common shares
outstanding -
basic 84.6 83.7 90.8 87.0 79.3
Weighted-average
common shares
outstanding -
diluted 85.1 84.4 92.2 87.4 81.4
Effective tax rate 48% 15% 20% 28% 27%
4th 3rd 4th Total
Quarter Quarter Quarter Year Total Year
($ in millions) 2025 2025 2024 2025 2024
Cash Flow Data:
Net cash provided
by operating
activities $ 235 $ 279 $ 206 $ 865 $ 610
Net cash used in
investing
activities $ (508) $ (87) $ (67) $(725) $(1,077)
Net cash provided
by (used in)
financing
activities $ 209 $ (68) $ (8) $(380) $ 343
December December
31, 31,
($ in millions) 2025 2024
----- -----
Select Balance
Sheet
Information:
Total current
assets $ 938 $ 1,024
Property, plant
and equipment,
net $ 5,905 $ 5,680
Total current
liabilities $ 1,050 $ 980
Long-term debt,
net $ 1,283 $ 1,132
Noncurrent asset
retirement
obligations $ 913 $ 995
Total
stockholders'
equity $ 3,674 $ 3,538
GAINS AND LOSSES FROM COMMODITY DERIVATIVES
4th 3rd 4th Total Total
Quarter Quarter Quarter Year Year
($ millions) 2025 2025 2024 2025 2024
----- ---- ---- ---- ----
Non-cash
commodity
derivative
gain (loss) $ 95 $ (32) $ (51) $ 225 $ 274
Net received
(paid) on
settled
commodity
derivatives 31 9 2 41 (33)
----- ---- ---- ---- ----
Net gain
(loss) from
commodity
derivatives $ 126 $ (23) $ (49) $ 266 $ 241
===== ==== ==== ==== ====
Non-cash
derivative
loss (gain) $ 22 $ 24 $ 5 $ 24 $ (2)
Net paid on
settled
commodity
derivatives 4 3 14 26 32
----- ---- ---- ---- ----
Net loss on
natural gas
purchase
derivatives $ 26 $ 27 $ 19 $ 50 $ 30
===== ==== ==== ==== ====
CAPITAL INVESTMENTS
4th 3rd 4th Total Total
Quarter Quarter Quarter Year Year
($ millions) 2025 2025 2024 2025 2024
Facilities(1) $ 46 $ 28 $ 44 $ 99 $ 111
Drilling and
completions 38 26 17 98 69
Workovers 18 17 17 69 54
Other 9 1 -- 10 --
---- ----- ----- ---- ----
Oil and natural
gas segment 111 72 78 276 234
Carbon management
segment 11 15 6 33 12
Corporate and
other(1) (2) 4 4 13 9
---- ----- ----- ---- ----
Total capital
investment $ 120 $ 91 $ 88 $ 322 $ 255
==== ===== ===== ==== ====
(1) Certain amounts previously reported in the Q1
2025 earnings release have been corrected. This correction
relates to reporting of $8 million of capital as Corporate
and other in Q1 2025 and this amount was reclassified
to Facilities in Q4 2025.
LIQUIDITY
($ millions) December 31, 2025 December 31, 2024
--------------------- ---------------------
Available cash and cash
equivalents(1) $ 117 $ 354
Revolving credit facility:
Borrowing capacity 1,460 1,150
Outstanding letters of
credit (176) (167)
--- ------------ --- ------------
Availability $ 1,284 $ 983
--- ------------ --- ------------
Liquidity $ 1,401 $ 1,337
=== ============ === ============
(1) Excludes restricted cash of $15 million and $18
million at December 31, 2025 and December 31, 2024,
respectively.
Attachment 2
Consolidated Oil and Natural Carbon Management
CRC GUIDANCE 1Q26E Gas Segment Segment
------------------- ------------ ----------------- -----------------
Net production
(MBoe/d) 155 - 157
Net oil
production (%) 81%
Operating costs
($ millions) $355 - $375 $355 - $375
General and
administrative
expenses ($
millions) $90 - $100 $12 - $16 $2 - $4
Adjusted general
and
administrative
expenses ($
millions) $85 - $90 $12 - $16 $2 - $4
Depreciation,
depletion and
amortization ($
millions) $145 - $157 $140 - $150
Capital
investments ($
millions) $110 - $130 $95 - $110 $12 - $16
Adjusted EBITDAX
($ millions) $240 - $280 $290 - $325 $(10) - $(5)
Margin from
purchased
commodities ($
millions)(1) $15 - $20
Electricity
revenue ($
millions) $6 - $16
Electricity
generation
expenses ($
millions) $2 - $6
Other operating
expenses net of
other revenue ($
millions)(2) $10 - $20 $2 - $10
Transportation
costs ($
millions) $25 - $30 $15 - $20
Taxes other than
on income ($
millions) $65 - $75 $60 - $65
Interest and debt
expense ($
millions) $30 - $35
Other
Assumptions:
Brent ($/Bbl) $66.42
NYMEX ($/Mcf) $5.22
Price
realization oil
- % of Brent: 94% - 98%
Price
realization
NGLs - % of
Brent: 60% - 66%
Price
realization
natural gas - %
of NYMEX: 58% - 64%
Deferred income
taxes 62% - 74%
Effective tax
rate 32%
Carbon
Consolidated Oil and Natural Management
CRC GUIDANCE 2026E Gas Segment Segment
------------------- --------------- --------------- ----------------
Net production
(MBoe/d) 152 - 157
Net oil
production (%) 81%
Operating costs
($ millions) $1,400 - $1,500 $1,400 - $1,500
General and
administrative
expenses ($
millions) $350 - $370 $50 - $60 $6 - $12
Adjusted general
and
administrative
expenses ($
millions) $315 - $330 $50 - $60 $6 - $12
Depreciation,
depletion and
amortization ($
millions) $595 - $615 $575 - $590
Capital
investments ($
millions) $430 - $470 $410 - $435 $12 - $20
Adjusted EBITDAX
($ millions) $970 - $1,070 $1,215 - $1,305 $(50) - $(10)
Margin from
purchased
commodities ($
millions)(1) $60 - $75
Electricity
revenue ($
millions) $55 - $85
Electricity
generation
expenses ($
millions) $15 - $25
Other operating
expenses net of
other revenue ($
millions)(2) $20 - $30 $25 - $35
Transportation
costs ($
millions) $105 - $115 $65 - $70
Taxes other than
on income ($
millions) $275 - $285 $240 - $250
Interest and debt
expense ($
millions) $125 - $135
Other
Assumptions:
Brent ($/Bbl) $65.57
NYMEX ($/Mcf) $4.13
Price
realization oil
- % of Brent: 94% - 98%
Price
realization
NGLs - % of
Brent: 55% - 60%
Price
realization
natural gas - %
of NYMEX: 65% - 70%
Deferred income
taxes 62% - 74%
Effective tax
rate 32%
(1) Margin from purchased commodities is calculated
as the difference between revenue from marketing of
purchased commodities and costs related to marketing
of purchased commodities, and excludes costs of transportation.
(2) Other operating revenue and expenses, net is calculated
as the difference between other revenue and other
operating expenses, net and includes exploration expense
and CMB expenses. CMB expenses includes lease cost
for sequestration easements, advocacy, and other startup
related costs.
(See Attachment 3 for management's disclosure of its
use of these non-GAAP measures and how these measures
provide useful information to investors about CRC's
results of operations and financial condition.)
FORWARD LOOKING NON-GAAP RECONCILIATIONS
A reconciliation of the non-GAAP measure of segment
adjusted EBITDAX cannot be reconciled to the comparable
measure of operating cash flow prepared in accordance
with GAAP without unreasonable effort. We have included
a reconciliation of the GAAP measure of segment profit
to segment adjusted EBITDAX.
1Q26E
Oil and Carbon
Natural Gas Management
Consolidated Segment Segment
------------------ -------------
($ millions) Low High Low High Low High
----------- ----- ---- ------- ---- ------
General and
administrative
expenses $ 90 $100 $ 12 $ 16 $ 2 $ 4
Equity-settled
stock-based
compensation (5) (10) -- -- -- --
Estimated
adjusted
general and
administrative
expenses $ 85 $ 90 $ 12 $ 16 $ 2 $ 4
=== === === ====== === =====
Consolidated
----------------
1Q26E
($ millions) Low High
--------- -----
Net income $ 5 $ 13
Interest and debt expense 30 35
Depreciation, depletion and amortization 145 157
Income taxes 2 6
Exploration expense 1 1
Loss from investment on unconsolidated subsidiaries -- 2
Unusual, infrequent and other items 23 28
Other non-cash items
Accretion expense 25 29
Stock-settled compensation 9 9
----- ----
Estimated adjusted EBITDAX $ 240 $ 280
===== ====
Net cash provided by operating activities $ 98 $ 110
Cash interest -- 4
Cash income taxes 3 9
Working capital changes 139 157
----- ----
Estimated adjusted EBITDAX $ 240 $ 280
===== ====
Oil and Natural Gas Segment
1Q26E
($ millions) Low High
---------------- ---------------
Segment profit $ 122 $ 142
Depreciation, depletion and
amortization 140 150
Unusual, infrequent and other items 3 4
Other non-cash items
Accretion expense 25 29
---- ---------- --- ----------
Estimated adjusted EBITDAX $ 290 $ 325
==== ========== === ==========
Carbon Management Segment
1Q26E
($ millions) Low High
---------------- -----------------
Segment loss $ (7) $ (18)
Interest and debt expense, net 1 5
Loss from investment on
unconsolidated subsidiary 1 3
Estimated adjusted EBITDAX $ (5) $ (10)
=== ====== === ========
Consolidated
1Q26E
($ millions) Low High
--------- -------
Revenue from marketing of purchased commodities $ 54 $ 70
Costs related to marketing of purchased
commodities (39) (50)
---- ---
Margin from purchased commodities $ 15 $ 20
==== ===
Consolidated
1Q26E
($ millions) Low High
--------- -------
Other operating expenses, net $ 38 $ 54
Other revenue (28) (34)
---- ---
Operating expenses net of other revenue $ 10 $ 20
==== ===
2026E
Oil and Carbon
Natural Gas Management
Consolidated Segment Segment
---------------- -------------
($ millions) Low High Low High Low High
--------- ----- ---- ------- ---- ------
General and
administrative
expenses $ 350 $370 $ 50 $ 60 $ 6 $ 12
Equity-settled
stock-based
compensation (35) (40) -- -- -- --
Estimated
adjusted
general and
administrative
expenses $ 315 $330 $ 50 $ 60 $ 6 $ 12
==== === === ====== === =====
Consolidated
----------------
2026E
($ millions) Low High
----- ---------
Net income $ 50 $ 80
Interest and debt expense 125 135
Interest income (2) --
Depreciation, depletion and amortization 595 615
Income taxes 22 30
Exploration expense 5 5
Loss from investment on unconsolidated
subsidiaries 1 3
Unusual, infrequent and other items 33 51
Other non-cash items
Accretion expense 105 115
Stock-settled compensation 36 36
Estimated adjusted EBITDAX $970 $1,070
=== =====
Net cash provided by operating activities $620 $ 644
Cash interest 100 116
Cash income taxes (34) (22)
Working capital changes 284 332
--- -----
Estimated adjusted EBITDAX $970 $1,070
=== =====
Oil and Natural Gas Segment
---------------------------------
2026E
($ millions) Low High
---------------- ---------------
Segment profit $ 528 $ 588
Depreciation, depletion and
amortization 575 590
Unusual, infrequent and other items 7 12
Other non-cash items
Accretion expense 105 115
--- ----------- -----------
Estimated adjusted EBITDAX $ 1,215 $ 1,305
=== =========== ===========
Carbon Management Segment
-----------------------------------
2026E
($ millions) Low High
------------------ ---------------
Segment loss $ (19) $ (77)
Interest and debt expense, net 6 18
Loss from investment on
unconsolidated subsidiary 3 9
Estimated adjusted EBITDAX $ (10) $ (50)
=== ======== =======
Consolidated
----------------
2026E
($ millions) Low High
------ --------
Revenue from marketing of purchased commodities $ 240 $ 265
Costs related to marketing of purchased
commodities (180) (190)
---- ----
Margin from purchased commodities $ 60 $ 75
==== ====
Consolidated
----------------
2026E
($ millions) Low High
------ --------
Other operating expenses, net $ 166 $ 184
Other revenue (146) (154)
---- ----
Operating expenses net of other revenue $ 20 $ 30
==== ====
Attachment 3
==========================================================
NON-GAAP RECONCILIATIONS
To supplement the presentation of its financial results
prepared in accordance with U.S. generally accepted
accounting principles (GAAP), management uses certain
non-GAAP measures to assess its financial condition,
results of operations and cash flows. These measures
are also widely used by the industry, the investment
community and CRC's lenders. Although these are non-GAAP
measures, the amounts included in the calculations
were computed in accordance with GAAP. Certain items
excluded from these non-GAAP measures are significant
components in understanding and assessing CRC's financial
performance, such as CRC's cost of capital and tax
structure, as well as the effect of acquisition and
development costs of CRC's assets. Management believes
that the non-GAAP measures presented, when viewed
in combination with CRC's financial and operating
results prepared in accordance with GAAP, provide
a more complete understanding of the factors and trends
affecting the Company's performance. The non-GAAP
measures presented herein may not be comparable to
other similarly titled measures of other companies.
Below are additional disclosures regarding each of
these non-GAAP measures, including reconciliations
to their most directly comparable GAAP measure where
applicable.
ADJUSTED NET INCOME (LOSS)
Adjusted net income (loss) and adjusted net income
(loss) per share are non-GAAP measures. CRC defines
adjusted net income as net income excluding the effects
of significant transactions and events that affect
earnings but vary widely and unpredictably in nature,
timing and amount. These events may recur, even across
successive reporting periods. Management believes
these non-GAAP measures provide useful information
to the industry and the investment community interested
in comparing CRC's financial performance between periods.
Reported earnings are considered representative of
management's performance over the long term. Adjusted
net income (loss) is not considered to be an alternative
to net income (loss) reported in accordance with GAAP.
The following table presents a reconciliation of the
GAAP financial measure of net income and net income
attributable to common stock per share to the non-GAAP
financial measures of adjusted net income and adjusted
net income per share.
4th 3rd 4th Total Total
Quarter Quarter Quarter Year Year
($ millions,
except per share
amounts) 2025 2025 2024 2025 2024
Net income $ 12 $ 64 $ 33 $ 363 $ 376
Unusual,
infrequent and
other items:
Non-cash
derivative
(gain) loss on
Brent based
commodity
contracts (95) 32 51 (225) (274)
Non-cash
derivative loss
(gain) on
natural gas
derivative
contracts 22 24 5 24 (2)
Asset impairment 57 2 1 59 14
Severance and
termination
costs 12 -- 2 20 30
Merger-related
costs 20 6 1 30 57
Increased power
and fuel costs
due to power
plant
maintenance -- -- 6 -- 50
Net loss (gain)
on asset
divestitures -- 1 (4) 1 (11)
Loss on early
extinguishment
of debt -- -- -- 1 5
Offshore
platform
expense 12 5 2 19 5
Litigation and
settlements -- 1 5 26 12
Measurement
period
adjustments -- -- -- 1 --
Other, net 11 11 1 38 23
---- ---- ---- ---- ----
Total unusual,
infrequent and
other items 39 82 70 (6) (91)
Income tax
(benefit)
provision of
adjustments at
the combined
tax rate (11) (23) (19) 2 32
Adjusted net income $ 40 $ 123 $ 84 $ 359 $ 317
==== ==== ==== ==== ====
Net income (loss)
per share --
basic $ 0.14 $ 0.76 $ 0.36 $4.17 $4.74
Net income (loss)
per share --
diluted $ 0.14 $ 0.76 $ 0.36 $4.15 $4.62
Adjusted net income
per share --
basic $ 0.47 $ 1.47 $ 0.93 $4.13 $4.00
Adjusted net income
per share --
diluted $ 0.47 $ 1.46 $ 0.91 $4.11 $3.89
ADJUSTED EBITDAX
CRC defines adjusted EBITDAX as earnings before interest
expense; income taxes; depreciation, depletion and
amortization; exploration expense; other unusual,
infrequent and out-of-period items; and other non-cash
items. CRC believes this measure provides useful information
in assessing its financial condition, results of operations
and cash flows and is widely used by the industry,
the investment community and its lenders. Although
this is a non-GAAP measure, the amounts included in
the calculation were computed in accordance with GAAP.
Certain items excluded from this non-GAAP measure
are significant components in understanding and assessing
CRC's financial performance, such as its cost of capital
and tax structure, as well as depreciation, depletion
and amortization of CRC's assets. This measure should
be read in conjunction with the information contained
in CRC's financial statements prepared in accordance
with GAAP. A version of adjusted EBITDAX is a material
component of certain of its financial covenants under
CRC's Revolving Credit Facility and is provided in
addition to, and not as an alternative for, income
and liquidity measures calculated in accordance with
GAAP.
The following table represents a reconciliation of
the GAAP financial measures of net income and net
cash provided by operating activities to the non-GAAP
financial measure of adjusted EBITDAX. CRC has included
non-GAAP measures of adjusted EBITDAX for its oil
and gas segment and its carbon management segment
below. Management believes these segment non-GAAP
measures are useful for investors to understand the
results of our core businesses.
4th 3rd 4th Total Total
Quarter Quarter Quarter Year Year
($ millions, except
per BOE amounts) 2025 2025 2024 2025 2024
Net income $ 12 $ 64 $ 33 $ 363 $ 376
Interest and debt
expense 29 25 28 106 87
Depreciation,
depletion and
amortization 129 123 142 511 388
Income tax
provision 11 11 8 139 140
Exploration
expense 1 -- -- 2 2
Interest income (5) (1) (4) (11) (19)
Equity loss from
unconsolidated
subsidiaries 1 2 -- 4 --
Unusual,
infrequent and
other items(1) 39 82 70 (6) (91)
Non-cash items
Accretion expense 29 28 31 114 87
Stock-based
compensation 6 5 6 24 23
Taxes related to
acquisition
accounting and
other -- -- 2 -- 12
Pension and
post-retirement
benefits (1) (1) -- (5) 1
Adjusted EBITDAX $ 251 $ 338 $ 316 $1,241 $1,006
===== ===== ===== ===== =====
Net cash provided by
operating
activities $ 235 $ 279 $ 206 $ 865 $ 610
Cash interest
payments 42 6 42 98 88
Cash interest
received (5) (1) (4) (11) (19)
Cash income taxes -- 6 50 45 105
Exploration
expense 1 -- -- 2 2
Working capital
changes (22) 48 22 242 220
Adjusted EBITDAX $ 251 $ 338 $ 316 $1,241 $1,006
===== ===== ===== ===== =====
Net income per Boe $ 0.95 $ 5.09 $ 2.54 $ 7.21 $ 9.38
Adjusted EBITDAX per
Boe $19.85 $26.90 $24.35 $24.65 $25.09
(1) See Adjusted Net Income (Loss) reconciliation.
SEGMENT ADJUSTED EBITDAX
This measure should be read in conjunction with Note
16Segment Informationin CRC's 2024 Annual Report.
A reconciliation of the non-GAAP measure of segment
adjusted EBITDAX cannot be reconciled to the comparable
measure of operating cash flow prepared in accordance
with GAAP without unreasonable effort.
Oil and Natural Gas 4th 3rd 4th Total Total
Segment Quarter Quarter Quarter Year Year
($ millions) 2025 2025 2024 2025 2024(1)
---- ---- ---- ----- ---------
Segment profit $ 46 $ 182 $ 268 $ 688 $ 815
Depreciation,
depletion and
amortization 127 118 129 492 354
Exploration expense 1 -- -- 2 2
Accretion expense 29 28 31 114 87
Adjusted income
items 16 4 (3) 23 54
Adjusted EBITDAX - Oil
and Natural Gas $ 219 $ 332 $ 425 $1,319 $1,312
==== ==== ==== ===== =====
Carbon Management
Segment
Segment loss $ (20) $ (21) $ (31) $ (86) $ (94)
Interest on
contingent
liability (related
to Carbon
TerraVault JV) 3 3 3 11 9
Equity loss from
unconsolidated
subsidiary 2 2 2 6 5
Adjusted income
items 57 2 1 59 2
---- ---- ---- ----- -----
Adjusted EBITDAX -
Carbon Management $ 42 $ (14) $ (25) $ (10) $ (78)
==== ==== ==== ===== =====
(1) Certain amounts related to the total year 2024
previously reported in the Q4 2024 earnings release
have been corrected. These corrections related to
classification of expenditures by segment and have
no material impact on the company's overall financial
position.
FREE CASH FLOW
Management uses free cash flow, which is defined by
CRC as net cash provided by operating activities less
capital investments, as a measure of liquidity. The
following table presents a reconciliation of CRC's
net cash provided by operating activities to free
cash flow.
4th 3rd 4th Total Total
Quarter Quarter Quarter Year Year
($ millions) 2025 2025 2024 2025 2024
Net cash
provided by
operating
activities $ 235 $ 279 $ 206 $ 865 $ 610
Capital
investments (120) (91) (88) (322) (255)
---- ---- ---- ---- ----
Free cash flow $ 115 $ 188 $ 118 $ 543 $ 355
ADJUSTED GENERAL & ADMINISTRATIVE EXPENSES
Management uses a measure called adjusted general
and administrative (G&A) expenses and adjusted G&A
per BOE to provide useful information to investors
interested in comparing CRC's costs between periods
and performance to its peers.
4th 3rd 4th Total Total
Quarter Quarter Quarter Year Year
($ millions) 2025 2025 2024 2025 2024
General and
administrative
expenses $ 95 $ 87 $ 95 $ 333 $ 321
Stock-based
compensation (6) (5) (6) (24) (23)
Information
technology
infrastructure -- -- -- -- (3)
Accelerated
vesting -- -- (3) -- (12)
Retention awards -- -- -- -- (2)
Other -- -- (1) -- (2)
---- ---- ---- ---- ----
Adjusted G&A
expenses $ 89 $ 82 $ 85 $ 309 $ 279
==== ==== ==== ==== ====
G&A per BOE $ 7.51 $ 6.92 $ 7.32 $6.61 $8.01
Adjusted G&A per
BOE $ 7.04 $ 6.52 $ 6.55 $6.14 $6.96
MARGIN FROM PURCHASED COMMODITIES
Management uses a measure called margin from purchased
commodities, which is calculated as the difference
between revenue from purchased commodities and costs
related to purchased commodities. This non-GAAP measure
excludes transportation costs.
4th 3rd 4th Total Total
Quarter Quarter Quarter Year Year
($ millions) 2025 2025 2024 2025 2024
Revenue from
purchased
commodities $ 60 $ 58 $ 59 $ 238 $ 235
Costs related
to purchased
commodities (47) (44) (53) (182) (193)
---- ---- ---- ---- ----
Margin from
purchased
commodities $ 13 $ 14 $ 6 $ 56 $ 42
==== ==== ==== ==== ====
ELECTRICITY MARGIN
Management uses a measure called electricity margin,
which is calculated as the difference between electricity
sales and electricity generation expenses.
4th 3rd 4th Total Total
Quarter Quarter Quarter Year Year
($ millions) 2025 2025 2024 2025 2024
Electricity
sales $ 52 $ 101 $ 39 $ 233 $ 159
Electricity
generation
expenses (12) (11) (9) (38) (40)
---- ---- ---- ---- ----
Electricity
margin $ 40 $ 90 $ 30 $ 195 $ 119
==== ==== ==== ==== ====
OTHER OPERATING EXPENSES NET OF OTHER REVENUE
Management uses a measure called other operating expenses
net of other revenue, which is calculated as the difference
between other operating expenses, net and other revenue.
4th 3rd 4th Total Total
Quarter Quarter Quarter Year Year
($ millions) 2025 2025 2024 2025 2024
Other
operating
expenses,
net(1) $ 82 $ 29 $ 51 $ 209 $ 239
Other revenue (7) (4) (2) (22) (26)
---- ---- ---- ---- ----
Other
operating
expenses net
of other
revenue $ 75 $ 25 $ 49 $ 187 $ 213
==== ==== ==== ==== ====
(1) Other operating expenses, net includes carbon
management expenses beginning in 2025. Amounts from
2024 have been represented to conform to the 2025
presentation.
PV-10 AND STANDARDIZED MEASURE
The following table presents a reconciliation of the
standardized measure of discounted future net cash
flows (Standardized Measure) to the non-GAAP financial
measure of PV-10 of cash flows:
($ millions) As of December 31, 2025
--------------------------------------------- -------------------------
Standardized Measure $ 6,666
Present value of future income taxes discounted
at 10% 2,051
---- -------------------
PV-10 of cash flows(*) $ 8,717
==== ===================
(*) PV-10 is a non-GAAP financial measure and represents
the year-end present value of estimated future cash
inflows from proved oil and natural gas reserves,
less future development and operating costs, discounted
at 10% per annum to reflect the timing of future cash
flows and using SEC prescribed pricing assumptions
for the period. PV-10 differs from Standardized Measure
because Standardized Measure includes the effects
of future income taxes on future net cash flows. Neither
PV-10 nor Standardized Measure should be construed
as the fair value of oil and natural gas reserves.
Standardized Measure is prescribed by the SEC as an
industry standard asset value measure to compare reserves
with consistent pricing costs and discount assumptions.
PV-10 facilitates the comparisons to other companies
as it is not dependent on the tax-paying status of
the entity.
RESERVE REPLACEMENT RATIO
The reserve replacement ratio is a measure that management
uses to gauge the growth of its reserves relative
to production over the same period. There is no guarantee
that historical sources of reserve additions will
continue as many factors fully or partially outside
management's control, including commodity prices,
availability of capital and the underlying geology,
affect reserves additions. We calculate the reserve
replacement ratio considering reserve additions resulting
from extensions and discoveries, improved recovery,
revisions in previous estimates related to performance
and acquisitions and divestitures. Other oil and gas
producers may use different methods to calculate the
replacement ratio, which may affect comparability.
2025
---------
(MMBoe)
Net performance-related revisions 61
Extensions and discoveries 3
Improved recovery 27
Acquisitions 93
---- ---
Reserve additions 184
---- ---
Production (MMboe) 50
Reserve Replacement Ratio 368%
====
Attachment 4
====================================================================
PRODUCTION
STATISTICS
4th 3rd 4th Total
Quarter Quarter Quarter Year Total Year
Net
Production
Per Day 2025 2025 2024 2025 2024
Oil (MBbl/d)
San Joaquin
Basin 82 81 86 83 58
Los Angeles
Basin 17 17 17 17 17
Uinta Basin 1 -- -- -- --
Other Basins 9 9 9 9 5
-------- -------- --------- --------- ----------
Total 109 107 112 109 80
NGLs (MBbl/d)
San Joaquin
Basin 9 10 10 10 10
Total 9 10 10 10 10
Natural Gas
(MMcf/d)
San Joaquin
Basin 97 103 98 99 99
Los Angeles
Basin 1 1 1 1 1
Sacramento
Basin 11 11 13 12 13
Uinta Basin 1 -- -- -- --
Other Basins 3 3 3 2 4
-------- -------- --------- --------- ----------
Total 113 118 115 114 117
Total Net
Production
(MBoe/d) 137 137 141 138 110
======== ======== ========= ========= ==========
Gross
Operated and
Net 4th 3rd 4th Total Total
Non-Operated Quarter Quarter Quarter Year Year
Production
Per Day 2025 2025 2024 2025 2024
Oil (MBbl/d)
San Joaquin
Basin 88 86 93 89 63
Los Angeles
Basin 21 21 23 21 23
Uinta Basin 1 -- -- -- --
Other Basins 10 11 11 11 6
-------- --------- --------- --------- ---------
Total 120 118 127 121 92
NGLs (MBbl/d)
San Joaquin
Basin 11 11 10 11 11
Other
Basins -- -- 1 -- --
-------- --------- --------- --------- ---------
Total 11 11 11 11 11
Natural Gas
(MMcf/d)
San Joaquin
Basin 130 133 135 133 131
Los Angeles
Basin 6 6 6 6 7
Sacramento
Basin 14 14 17 14 17
Uinta Basin 1 -- -- -- --
Other Basins 4 4 3 3 2
-------- --------- --------- --------- ---------
Total 155 157 161 156 157
Total Gross
Production
(MBoe/d) 157 155 165 158 129
======== ========= ========= ========= =========
Attachment 5
=========================================================================
PRICE
STATISTICS
4th 3rd 4th
Quarter Quarter Quarter Total Year Total Year
2025 2025 2024 2025 2024
Oil ($ per
Bbl)
Realized
price with
derivative
settlements $64.27 $67.04 $73.00 $67.51 $75.66
Realized
price
without
derivative
settlements $61.14 $66.32 $72.82 $66.52 $76.92
NGLs ($/Bbl) $42.86 $41.04 $52.62 $45.30 $48.93
Natural gas
($/Mcf)
Realized
price with
derivative
settlements $ 3.91 $ 3.47 $ 3.65 $ 3.57 $ 2.99
Realized
price
without
derivative
settlements $ 3.91 $ 3.47 $ 3.65 $ 3.57 $ 2.99
Index Prices
Brent oil
($/Bbl) $63.08 $68.13 $73.97 $68.22 $79.84
WTI oil
(MORE TO FOLLOW) Dow Jones Newswires
March 02, 2026 08:01 ET (13:01 GMT)