Increasing Second Half 2026 Activity to Accelerate Development of Long Duration Oil Inventory
Raising 2026E Adjusted EBITDAX Guidance by 42% Driven by Strong Oil Prices, Increased Target Synergies and Expected Operating Efficiencies
LONG BEACH, Calif., May 05, 2026 (GLOBE NEWSWIRE) -- California Resources Corporation $(CRC)$ (CRC) today reported its financial and operating results for the first quarter of 2026. In addition, CRC announced plans to increase second half 2026 drilling activity, materially enhancing full-year expectations and building momentum into 2027. The Company plans to host a conference call and webcast at 1 p.m. ET (10 a.m. PT) on Wednesday, May 6, 2026. Conference call details can be found within this release.
Highlights
-- Delivered average net production of 154 thousand barrels of oil
equivalent per day (MBoe/d) (81% oil); oil volumes were reduced by
approximately 1.5 thousand barrels of oil per day (MBo/d) due to the
impact of higher oil prices on production sharing contracts
-- Reported a net loss of $711 million, primarily driven by the non-cash
loss in the fair value of its outstanding commodity derivatives1,
adjusted net income1 of $79 million and $304 million of adjusted EBITDAX1
-- Generated net cash provided by operating activities of $99 million or
$247 million of net cash provided by operating activities before net
changes in operating assets and liabilities1
-- Delivered $32 million of negative free cash flow1 or $116 million of free
cash flow before net changes in operating assets and liabilities1
-- Returned $46 million to shareholders, including $36 million in dividends
and $10 million in share repurchases2
-- Ended the first quarter of 2026 with $1,251 million in borrowing capacity
and including $25 million in available cash and cash equivalents3
representing $1,276 million of liquidity1, 3
-- Optimized capital structure and extended maturities through recent $350
million follow-on offering of 7.000% senior notes due 2034 (2034 Senior
Notes) and subsequent redemption of $350 million 8.250% senior notes due
2029 (2029 Senior Notes)
-- Preparing for first carbon dioxide (CO2) injection at California's
inaugural carbon capture and storage $(CCS)$ project at CRC's Elk Hills
cryogenic gas plant; see Carbon TerraVault's First Quarter 2026 Update
for additional information
2026 Guidance Highlights
-- Increased mid-point of expected Berry merger annual synergy target range
by 12% to $90 - $100 million
-- Increased expected drilling, completions and workover capital1
investments by approximately $100 million to accelerate high-return
drilling projects in California and Utah
-- Reduced facilities capital by $10 million, reflecting ongoing field
consolidation
-- Increased capital budget range to $520 - $560 million with a full-year
average of five rigs
-- Targeting 2026E gross production exit rate of approximately 175 MBoe/d,
representing 1% entry-to-exit production growth
-- Higher oil prices, increased drilling activity and improved operating
efficiencies drive a 42% increase in 2026E adjusted EBITDAX1 to a
guidance midpoint of $1,450 million
"We continued to demonstrate the strength of our integrated portfolio strategy, delivering solid results while advancing high-return oil developments and capturing incremental merger-related synergies," said Francisco Leon, CRC's President and Chief Executive Officer. "With higher oil prices and an attractive drilling return portfolio, we see a clear opportunity to accelerate development across our multi-decade resource inventory. As a result, we are adding incremental drilling activity this year to drive higher production, EBITDAX and cash flow. Our low-decline, capital-efficient conventional asset base underpins this strategy and we are moving decisively to unlock its value. CRC is a different kind of energy company, and our consistent results reinforce our ability to create durable, long-term value for our shareholders while meeting California's energy needs."
First Quarter 2026 Results
-- Operating expenses were in line with expectations reflecting solid
execution and the ongoing capture of Berry merger-related synergies
-- General and administrative expenses were slightly higher than
expectations primarily driven by the timing of legal fees and
cash-settled stock-based compensation related to a higher share price
-- Invested total capital of $131 million including drilling, completions
and workover capital1 of $70 million; total capital was at the high-end
of expectations driven by strategic acceleration of investments to
support planned second half 2026 drilling activity
Select Production, Price and Financial
Results and Non-GAAP Measures 1st Quarter 4th Quarter
($ in millions except production and
prices) 2026 2025
--------------------------------------- -------- -------------
Net oil production per day (MBbl/d)(5) 124 109
Realized oil price without
derivative settlements ($ per Bbl) $ 74.53 $ 61.14
Realized oil price with derivative
settlements(1) ($ per Bbl)(1) $ 69.37 $ 64.27
Net NGL production per day (MBbl/d)(5) 10 9
Realized NGL price ($ per Bbl) $ 44.98 $ 42.86
Net natural gas production per day
(Mmcf/d)(5) 117 113
Realized natural gas price ($ per
Mcf) $ 3.56 $ 3.91
Net total production per day (MBoe/d)(5) 154 137
Margin from purchased commodities(1) $ 18 $ 13
Electricity revenue net of electricity
generation expenses(1) $ 6 $ 40
Net (loss) gain from commodity sales
derivatives $ (848) $ 126
Other operating expenses net of other
revenue(1) $ 44 $ 75
Select Financial Statement Data and
Non-GAAP Measures: 1st Quarter 4th Quarter
($ and shares in millions, except per
share amounts) 2026 2025
Total operating revenues before net
(loss) gain from commodity
derivatives(1) $ 967 $ 798
Operating costs $ 365 $ 325
General and administrative expenses $ 106 $ 95
Adjusted general and administrative
expenses(1) $ 99 $ 89
Taxes other than on income $ 67 $ 55
Transportation costs $ 26 $ 20
Operating (loss) income $ (711) $ 47
Interest and debt expense, net $ 29 $ 29
Income tax (benefit) provision $ (49) $ 11
Deferred income tax (benefit)
provision $ (50) $ 22
Net (loss) income $ (711) $ 12
Weighted-average common shares
outstanding - diluted 88.7 85.1
Net (loss) income per share - diluted $ (8.02) $ 0.14
Adjusted net income(1) $ 79 $ 40
Adjusted net income per share(1) -
diluted $ 0.88 $ 0.47
Net cash provided by operating
activities $ 99 $ 235
Adjusted EBITDAX(1) $ 304 $ 251
Free cash flow(1) $ (32) $ 115
Capital investments $ 131 $ 120
Guidance
The following table provides key second quarter and full year 2026 financial and operating guidance(4) . CRC is positioned to accelerate activity in the summer of 2026, increasing to a seven rig program in the second half of 2026, which includes 6 rigs in California and 1 rig in Utah. CRC currently holds the permits necessary to execute a majority of its planned capital program, subject to commodity prices and market conditions. See Attachment 2 for further information on CRC's second quarter and full year 2026 guidance.
Total Year
2Q26E 2026E
----------------------------------- ----------- ---------------
Net Production (MBoe/d) 148 - 150 149 - 155
Percentage Oil 81% 81%
Capital Investments ($ millions) $120 - $140 $520 - $560
Adjusted EBITDAX(1) ($ millions) $370 - $410 $1,400 - $1,500
Shareholder Returns
On May 5, 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 May 29, 2026. The dividend is expected to be paid on June 18, 2026.
In the first quarter 2026, CRC repurchased 0.2 million shares of its common stock for $10 million(2) at an average price of $45.70 per share and returned $36 million in dividends to shareholders. Since mid-2021, the Company has returned approximately $1,619 million to shareholders(2) , including $1,180 million in share repurchases and $439 million in dividends.
Balance Sheet and Liquidity
In April 2026, CRC's lenders reaffirmed its $1,500 million borrowing base under its Revolving Credit Facility as part of its semi-annual redetermination.
On March 23, 2026, CRC completed a $350 million follow-on offering of Senior Notes due 2034, generating net proceeds of $347 million, reflecting approximately $2 million of issuance premium and $5 million of issuance costs. The net proceeds, combined with cash on hand, were used to redeem $350 million of CRC's outstanding Senior Notes due 2029.
As of March 31, 2026, CRC had liquidity of $1,276 million(1,3) , consisting of $25 million in available cash and cash equivalents(3) and $1,251 million of available borrowing capacity under its Revolving Credit Facility (which reflects $1,460 million of borrowing capacity less $184 million of outstanding letters of credit and $25 million outstanding on the Revolving Credit Facility).
Participation in Upcoming Investor Conferences
CRC is scheduled to participate in the following events in May, June and July 2026:
-- Goldman Sachs Eleventh Annual Leverage Finance and Credit Conference, May
28, Dana Point, CA
-- 2026 RBC Capital Markets Global Energy, Power & Infrastructure Conference,
June 2, New York, NY
-- BofA Securities Energy and Power Credit Conference, June 3, New York, NY
-- JP Morgan Natural Resources Conference, June 23, New York, NY
-- RBC Capital Markets Energy Transition Conference 2026, June 25, London,
UK
-- TD Cowen 24th Annual Calgary Energy, Power & Utilities Conference, July 7
and 8, Calgary, AB
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 at www.crc.com.
Conference Call Details
A conference call and webcast is planned for 1 p.m. ET (10 a.m. PT) on Wednesday, May 6, 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/10207969/103b95d691e. 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 net changes in operating assets and liabilities, adjusted EBITDAX, free cash flow, free cash flow before net changes in operating assets and liabilities, adjusted general and administrative expenses, total operating revenues before net (loss) gain from commodity derivatives, margin from purchased commodities, electricity revenue net of electricity generation expenses and other operating expenses net of other revenue, including reconciliations to the most directly comparable GAAP measure without unreasonable effort. See Attachment 2 for the 2Q26 and 2026 estimates of the non-GAAP measures of adjusted EBITDAX, adjusted general and administrative expenses, margin from purchased commodities, other operating expenses net of other revenue and electricity revenue net of electricity generation 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, and non-cash commodity derivative (loss) gain from combined derivatives to net (loss) gain from combined derivatives, 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.)
(3 Excludes restricted cash of $15 million.)
(4 2Q26 guidance assumes Brent price of $105.36 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $2.77 per mcf. Total year 2026 guidance assumes Brent price of $90.58 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $3.61 per mcf.)
(5 Net production per day for the periods presented reflects the impact of transaction timing. 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.)
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 carbon dioxide (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
CRC_IR@crc.com CRC.Communications@crc.com
-------------------------------- ---------------------------
Attachment 1
========================================================================
STATEMENTS OF OPERATIONS, SELECT FINANCIAL INFORMATION
1st Quarter 4th Quarter 1st Quarter
($ and shares in
millions, except per
share amounts) 2026 2025 2025
Statements of
Operations:
--------------------
Revenues
Oil, natural gas and
natural gas liquids
sales $ 905 $ 679 $ 814
Net (loss) gain from
commodity
derivatives (848) 126 6
Revenue from
marketing of
purchased
commodities 41 60 64
Electricity revenue 11 52 22
Other revenue 10 7 6
------- ------ --- ------ ---
Total operating
revenues 119 924 912
------- ------ --- ------ ---
Operating Expenses
Operating costs 365 325 316
General and
administrative
expenses 106 95 72
Depreciation,
depletion and
amortization 133 129 131
Asset impairment -- 57 --
Taxes other than on
income 67 55 70
Costs related to
marketing of
purchased
commodities 23 47 50
Electricity
generation expenses 5 12 10
Transportation costs 26 20 20
Accretion expense 27 29 29
Net loss on natural
gas purchase
derivatives 24 26 (6)
Measurement period
adjustments, net -- -- 1
Other operating
expenses, net 54 82 33
------- ------ --- ------ ---
Total operating
expenses 830 877 726
Operating (Loss)
Income (711) 47 186
Non-Operating
(Expenses) Income
Interest and debt
expense, net (29) (29) (27)
Equity loss from
unconsolidated
subsidiaries (2) (1) (1)
Loss on early
extinguishment of
debt (21) -- (1)
Other non-operating
income, net 3 6 5
------- ------ --- ------ ---
(Loss) Income Before
Income Taxes (760) 23 162
Income tax benefit
(provision) 49 (11) (47)
------- ------ ------
Net (Loss) Income $ (711) $ 12 $ 115
Net income per share
- basic $ (8.02) $ 0.14 $ 1.27
Net income per share
- diluted $ (8.02) $ 0.14 $ 1.26
Adjusted net income $ 79 $ 40 $ 98
Adjusted net income
per share - basic $ 0.89 $ 0.47 $ 1.08
Adjusted net income
per share -
diluted(1) $ 0.88 $ 0.47 $ 1.07
Weighted-average
common shares
outstanding - basic 88.7 84.6 90.6
Weighted-average
common shares
outstanding -
diluted(1) 88.7 85.1 91.2
Effective tax rate 6% 48% 29%
1st Quarter 4th Quarter 1st Quarter
($ in millions) 2026 2025 2025
Cash Flow Data:
Net cash provided by
operating
activities $ 99 $ 235 $ 186
Net cash used in
investing
activities $ (136) $ (508) $ (79)
Net cash (used in)
provided by
financing
activities $ (55) $ 209 $ (265)
March 31 December 31,
($ in millions) 2026 2025
-------- ---------
Select Balance
Sheet Information:
Total current assets $ 788 $ 938
Property, plant and
equipment, net $ 5,904 $ 5,905
Total current
liabilities $ 1,441 $ 1,050
Long-term debt, net $ 1,310 $ 1,283
Noncurrent asset
retirement
obligations $ 906 $ 913
Total stockholders'
equity $ 2,918 $ 3,674
(1) Adjusted net income per share - diluted for the
three months ended March 31, 2026 is calculated using
weighted average shares outstanding of 89.5 million
shares.
GAINS AND LOSSES FROM COMMODITY DERIVATIVES
1st Quarter 4th Quarter 1st Quarter
($ millions) 2026 2025 2025
Non-cash (loss) gain
from commodity sales
derivatives $ (792) $ 95 $ 22
Net settlements and
premiums (56) 31 (16)
-------- --- -------- --------
Net (loss) gain from
commodity sales
derivatives $ (848) $ 126 $ 6
======== === ======== ========
Non-cash loss (gain)
from natural gas
purchase derivatives $ 12 $ 22 $ (18)
Settlements 12 4 12
-------- --- -------- --------
Net loss (gain) from
natural gas
purchase
derivatives $ 24 $ 26 $ (6)
======== === ======== ========
Non-cash (loss) gain
from combined
commodity derivatives $ (804) $ 73 $ 40
Net settlements and
premiums from combined
derivatives (68) 27 (28)
-------- --- -------- --------
Net (loss) gain from
combined commodity
derivatives $ (872) $ 100 $ 12
======== === ======== ========
CAPITAL INVESTMENTS
1st Quarter 4th Quarter 1st Quarter
($ millions) 2026 2025 2025
------------- --- ------- -------------
Facilities(1) $ 37 $ 46 $ 16
Drilling and
completions 53 38 15
Workovers 17 18 19
Other 9 9 --
---- ------- --- ------- ---- -------
Oil and natural gas
segment 116 111 50
Carbon management segment 12 11 2
Corporate and other(1) 3 (2) 3
---- ------- --- ------- ---- -------
Total capital investment $ 131 $ 120 $ 55
==== ======= === ======= ==== =======
(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) March 31, 2026 December 31, 2025
------------------ ---------------------
Available cash and cash
equivalents(1) $ 25 $ 117
Revolving credit facility:
Borrowing capacity 1,460 1,460
Revolver balance drawn (25) --
Outstanding letters of
credit (184) (176)
---------- --- ------------
Availability $ 1,251 $ 1,284
---------- --- ------------
Liquidity $ 1,276 $ 1,401
========== === ============
(1) Excludes restricted cash of $15 million at both
March 31, 2026 and December 31, 2025.
Attachment 2
Carbon
Consolidated Oil and Natural Management
CRC GUIDANCE 2Q26E Gas Segment Segment
------------------- ------------ --------------- ---------------
Net production
(MBoe/d) 148 - 150
Net oil
production (%) 81%
Operating costs
($ millions) $335 - $355 $335 - $355
General and
administrative
expenses ($
millions) $90 - $100 $13 - $17 $2 - $4
Adjusted general
and
administrative
expenses ($
millions) $85 - $95 $13 - $17 $2 - $4
Depreciation,
depletion and
amortization ($
millions) $145 - $157 $140 - $150
Capital
investments ($
millions) $120 - $140 $115 - $130 $2 - $5
Adjusted EBITDAX
($ millions) $370 - $410
Margin from
purchased
commodities ($
millions) (1) $10 - $15
Electricity
revenue net of
electricity
generation
expenses ($
millions) $(6) - $(2)
Other operating
expenses net of
other revenue ($
millions) (2) $10 - $20 $2 - $10
Transportation
costs ($
millions) $25 - $30 $19 - $24
Taxes other than
on income ($
millions) $60 - $70 $55 - $60
Interest and debt
expense ($
millions) $30 - $35
Other
Assumptions:
Brent ($/Bbl) $105.36
NYMEX ($/Mcf) $2.77
Price
realization oil
- % of Brent: 94% - 97%
Price
realization
NGLs - % of
Brent: 44% - 50%
Price
realization
natural gas - %
of NYMEX: 38% - 44%
Current income
tax provision
($ millions)
(3) $2 -$4
Effective tax
rate 6% - 9%
Carbon
Consolidated Oil and Natural Management
CRC GUIDANCE 2026E Gas Segment Segment
------------------- --------------- --------------- ------------
Net production
(MBoe/d) 149 - 155
Net oil
production (%) 81%
Operating costs
($ millions) $1,415 - $1,485 $1,415 - $1,485
General and
administrative
expenses ($
millions) $360 - $380 $50 - $60 $6 - $12
Adjusted general
and
administrative
expenses ($
millions) $325 - $340 $50 - $60 $6 - $12
Depreciation,
depletion and
amortization ($
millions) $595 - $615 $575 - $590
Capital
investments ($
millions) $520 - $560 $500 - $525 $12 - $20
Adjusted EBITDAX
($ millions) $1,400 - $1,500
Margin from
purchased
commodities ($
millions) (1) $50 - $65
Electricity
revenue net of
electricity
generation
expenses ($
millions) $25 - $45
Other operating
expenses net of
other revenue ($
millions) (2) $75 - $85 $20 - $30
Transportation
costs ($
millions) $105 - $115 $65 - $70
Taxes other than
on income ($
millions) $270 - $280 $238 - $243
Interest and debt
expense ($
millions) $120 - $130
Other
Assumptions:
Brent ($/Bbl) $90.58
NYMEX ($/Mcf) $3.61
Price
realization oil
- % of Brent: 94% - 98%
Price
realization
NGLs - % of
Brent: 50% - 55%
Price
realization
natural gas - %
of NYMEX: 67% - 72%
Current income
tax provision
($ millions)
(3) $5 - $8
Effective tax
rate 12% - 16%
(1) Margin from purchased commodities is calculated as the difference between revenue from marketing of purchased commodities and costs related to marketing of purchased commodities, and excludes costs of transportation.
(2) Other operating revenue and expenses, net is calculated as the difference between other revenue and other operating expenses, net and includes exploration expense and CMB expenses. CMB expenses includes lease cost for sequestration easements, advocacy, and other startup related costs.
(See Attachment 3 for management's disclosure of its use of these non-GAAP measures and how these measures provide useful information to investors about CRC's results of operations and financial condition.)
(3) Current income tax composition is subject to variability and depends on a number of factors, including but not limited to, final taxable income determinations, the availability and utilization of net operating loss carryforwards (NOLs), applicable tax credits, and other differences between book and taxable income. Accordingly, the current provision may vary from period to period and should not be viewed as indicative of future tax obligations.
FORWARD LOOKING NON-GAAP RECONCILIATIONS
2Q26E
Oil and Carbon
Natural Gas Management
Consolidated Segment Segment
------------------ -------------
($ millions) Low High Low High Low High
----------- ----- ---- ------- ---- ------
General and
administrative
expenses $ 90 $100 $ 13 $ 17 $ 2 $ 4
Equity-settled
stock-based
compensation (5) (5) -- -- -- --
Estimated
adjusted
general and
administrative
expenses $ 85 $ 95 $ 13 $ 17 $ 2 $ 4
=== === === ====== === =====
Consolidated
------------------
2Q26E
($ millions) Low High
-------- --------
Revenue from marketing of purchased commodities $ 15 $ 32
Costs related to marketing of purchased
commodities (5) (17)
--- ----
Margin from purchased commodities $ 10 $ 15
=== ====
Consolidated
2Q26E
($ millions) Low High
-------- --------
Other operating expenses, net $ 14 $ 30
Other revenue (4) (10)
--- ----
Other 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 $ 360 $380 $ 50 $ 60 $ 6 $ 12
Equity-settled
stock-based
compensation (35) (40) -- -- -- --
Estimated
adjusted
general and
administrative
expenses $ 325 $340 $ 50 $ 60 $ 6 $ 12
==== === === ====== === =====
Consolidated
------------------
2026E
($ millions) Low High
-------- --------
Revenue from marketing of purchased commodities $ 143 $ 168
Costs related to marketing of purchased
commodities (93) (103)
--- ----
Margin from purchased commodities $ 50 $ 65
=== ====
Consolidated
------------------
2026E
($ millions) Low High
--------- -------
Other operating expenses, net $ 101 $119
Other revenue (26) (34)
---- ---
Other operating expenses net of other revenue $ 75 $ 85
==== ===
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.
1st Quarter 4th Quarter 1st Quarter
($ millions, except
per share amounts) 2026 2025 2025
Net (loss) income $ (711) $ 12 $ 115
Unusual, infrequent
and other items:
Non-cash
derivative loss
(gain) on Brent
based commodity
contracts 792 (95) (22)
Non-cash
derivative loss
on natural gas
derivative
contracts 12 22 --
Asset impairment -- 57 --
Severance and
termination
costs 25 12 2
Merger-related
costs 1 20 3
Loss on early
extinguishment of
debt 21 -- 1
Offshore platform
expense 10 12 --
Measurement period
adjustments -- -- 1
Other, net 8 11 (9)
-------- -------- --------
Total unusual,
infrequent and
other items 869 39 (24)
Income tax
(benefit)
provision of
adjustments at
the combined tax
rate (79) (11) 7
Adjusted net income $ 79 $ 40 $ 98
======== ======== ========
Net income (loss) per
share -- basic $ (8.02) $ 0.14 $ 1.27
Net income (loss) per
share -- diluted $ (8.02) $ 0.14 $ 1.26
Adjusted net income
per share -- basic $ 0.89 $ 0.47 $ 1.08
Adjusted net income
per share --
diluted $ 0.88 $ 0.47 $ 1.07
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.
These materials include forward-looking non-GAAP financial
measures, including adjusted EBITDAX. CRC is unable
to provide a reconciliation of such forward-looking
non-GAAP measures to the most directly comparable
forward-looking GAAP financial measures because certain
information needed to reconcile these measures is
dependent on future events, many of which are outside
of CRC's control and cannot be reasonably predicted
at this time. These items include, but are not limited
to, changes in working capital, the timing and amount
of capital accruals, and other non-cash or unusual
items. Accordingly, a quantitative reconciliation
is not available without unreasonable efforts.
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.
1st Quarter 4th Quarter 1st Quarter
($ millions, except
per BOE amounts) 2026 2025 2025
Net (loss) income $ (711) $ 12 $ 115
Interest and debt
expense 29 29 27
Depreciation,
depletion and
amortization 133 129 131
Income tax
(benefit)
provision (49) 11 47
Exploration
expense -- 1 --
Interest income (1) (5) (3)
Equity loss from
unconsolidated
subsidiaries 2 1 1
Unusual, infrequent
and other items
(1) 869 39 (24)
Non-cash items
Accretion expense 27 29 29
Stock-based
compensation 7 6 6
Pension and
post-retirement
benefits (2) (1) (1)
Adjusted EBITDAX $ 304 $ 251 $ 328
======= ======== ========
Net cash provided by
operating activities $ 99 $ 235 $ 186
Cash interest
payments 1 42 11
Cash interest
received (1) (5) (3)
Exploration
expense -- 1 --
Working capital
changes 205 (22) 134
Adjusted EBITDAX $ 304 $ 251 $ 328
======= ======== ========
Net (loss) income per
Boe $ (51.19) $ 0.96 $ 9.09
Adjusted EBITDAX per
Boe $ 21.89 $ 19.85 $ 25.92
(1) See Adjusted Net Income (Loss) reconciliation.
SEGMENT ADJUSTED EBITDAX
This measure should be read in conjunction with Note
16 Segment Information in CRC's 2025 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
Segment 1st Quarter 4th Quarter 1st Quarter
($ millions) 2026 2025 2025
Segment profit $ 281 $ 46 $ 266
Depreciation,
depletion and
amortization 128 127 126
Exploration expense -- 1 --
Accretion expense 27 29 29
Adjusted income
items(1) 3 66 1
Adjusted EBITDAX - Oil
and Natural Gas $ 439 $ 269 $ 422
======= ======= ========
Carbon Management
Segment
Segment loss $ (12) $ (20) $ (25)
Interest on
contingent
liability (related
to Carbon
TerraVault JV) 3 3 3
Equity loss from
unconsolidated
subsidiary 1 2 1
Adjusted income
items(1) -- -- --
------- ------- --------
Adjusted EBITDAX -
Carbon Management $ (8) $ (15) $ (21)
======= ======= ========
(1) Certain amounts previously reported in the Q4
2025 earnings release have been corrected. This correction
relates to reporting of adjusted income items in Carbon
Management in Q1 2025 and this amount was reclassified
to Oil and Natural Gas in Q1 2026.
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.
1st Quarter 4th Quarter 1st Quarter
($ millions) 2026 2025 2025
Net cash provided by
operating
activities $ 99 $ 235 $ 186
Capital investments (131) (120) (55)
-------- -------- --------
Free cash flow $ (32) $ 115 $ 131
FREE CASH FLOW BEFORE NET CHANGES IN OPERATING ASSETS
AND LIABILITIES
Management uses free cash flow before changes in operating
assets and liabilities, which is defined by CRC as
net cash provided by operating activities less net
changes in operating assets and liabilities and 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
before net changes in operating assets and liabilities.
1st Quarter 4th Quarter 1st Quarter
($ millions) 2026 2025 2025
Net cash provided by
operating
activities $ 99 $ 235 $ 186
Net changes in
operating assets and
liabilities 148 (24) 66
-------- -------- --------
Net cash provided by
operating activities
before net changes
in operating assets
and liabilities 247 211 252
Capital investments (131) (120) (55)
-------- -------- --------
Free cash flow before
net changes in
operating assets and
liabilities $ 116 $ 91 $ 197
======== ======== ========
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.
1st Quarter 4th Quarter 1st Quarter
($ millions) 2026 2025 2025
General and
administrative
expenses $ 106 $ 95 $ 72
Stock-based
compensation (7) (6) (6)
Adjusted G&A expenses $ 99 $ 89 $ 66
======== ======== ========
G&A per BOE $ 7.63 $ 7.51 $ 5.69
Adjusted G&A per BOE $ 7.13 $ 7.04 $ 5.22
TOTAL OPERATING REVENUES BEFORE NET (LOSS) GAIN FROM
COMMODITY DERIVATIVES
Management uses a measure called total operating revenues
before net (loss) gain from commodity derivatives,
which is calculated as the difference between total
operating revenues less net (loss) gain from commodity
derivatives.
1st Quarter 4th Quarter 1st Quarter
($ millions) 2026 2025 2025
Total operating revenues $ 119 $ 924 $ 912
Less: Net (loss) gain
from commodity
derivatives (848) 126 6
-------- --- -------- --- --------
Total operating revenues
before net (loss) gain
from commodity
derivatives $ 967 $ 798 $ 906
======== === ======== === ========
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.
1st Quarter 4th Quarter 1st Quarter
($ millions) 2026 2025 2025
Revenue from
purchased
commodities $ 41 $ 60 $ 64
Costs related to
purchased
commodities (23) (47) (50)
-------- -------- --------
Margin from purchased
commodities $ 18 $ 13 $ 14
======== ======== ========
ELECTRICITY REVENUE NET OF ELECTRICITY GENERATION
EXPENSES
Management uses a measure called electricity revenue
net of electricity generation expenses, which is calculated
as the difference between electricity revenue and
electricity generation expenses.
1st Quarter 4th Quarter 1st Quarter
($ millions) 2026 2025 2025
Electricity revenue $ 11 $ 52 $ 22
Electricity
generation expenses (5) (12) (10)
-------- -------- --------
Electricity revenue
net of electricity
generation expenses $ 6 $ 40 $ 12
======== ======== ========
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.
1st Quarter 4th Quarter 1st Quarter
($ millions) 2026 2025 2025
Other operating
expenses, net(1) $ 54 $ 82 $ 33
Other revenue (10) (7) (6)
-------- -------- --------
Other operating
expenses net of
other revenue $ 44 $ 75 $ 27
======== ======== ========
(1) Other operating expenses, net includes carbon
management expenses beginning in 2025.
Attachment 4
======================================================================
PRODUCTION STATISTICS
1st Quarter 4th Quarter 1st Quarter
Net Production Per Day 2026 2025 2025
Oil (MBbl/d)
San Joaquin Basin 96 82 84
Los Angeles Basin 17 17 18
Uinta Basin 3 1 --
Other Basins 8 9 9
----------- ----------- -----------
Total 124 109 111
NGLs (MBbl/d)
San Joaquin Basin 10 9 10
Total 10 9 10
Natural Gas (MMcf/d)
San Joaquin Basin 95 97 101
Los Angeles Basin 1 1 1
Sacramento Basin 10 11 12
Uinta Basin 8 1 --
Other Basins 3 3 3
----------- ----------- -----------
Total 117 113 117
Total Net Production (MBoe/d) 154 137 141
=========== =========== ===========
Gross Operated and Net
Non-Operated 1st Quarter 4th Quarter 1st Quarter
Production Per Day 2026 2025 2025
Oil (MBbl/d)
San Joaquin Basin 103 88 90
Los Angeles Basin 21 21 22
Uinta Basin 4 1 --
Other Basins 9 10 11
----------- ----------- -----------
Total 137 120 123
NGLs (MBbl/d)
San Joaquin Basin 10 11 10
Other Basins 1 -- --
----------- ----------- -----------
Total 11 11 10
Natural Gas (MMcf/d)
San Joaquin Basin 127 130 134
Los Angeles Basin 6 6 7
Sacramento Basin 13 14 15
Uinta Basin 11 1 --
Other Basins 3 4 3
----------- ----------- -----------
Total 160 155 159
Total Gross Production (MBoe/d) 175 157 160
=========== =========== ===========
Attachment 5
========================================================================
PRICE STATISTICS
1st Quarter 4th Quarter 1st Quarter
2026 2025 2025
Oil ($ per Bbl)
Realized price with
derivative
settlements $ 69.37 $ 64.27 $ 72.01
Realized price
without derivative
settlements $ 74.53 $ 61.14 $ 73.57
NGLs ($/Bbl) $ 44.98 $ 42.86 $ 54.64
Natural gas ($/Mcf)
Realized price with
derivative
settlements $ 3.56 $ 3.91 $ 4.12
Realized price
without derivative
settlements $ 3.56 $ 3.91 $ 4.12
Index Prices
Brent oil ($/Bbl) $ 77.90 $ 63.08 $ 74.92
WTI oil ($/Bbl) $ 71.93 $ 59.14 $ 71.42
NYMEX average monthly
settled price
($/MMBtu) $ 5.04 $ 3.55 $ 3.65
Realized Prices as
Percentage of Index
Prices
Oil with derivative
settlements as a
percentage of Brent 89% 102% 96%
Oil without
derivative
settlements as a
percentage of Brent 96% 97% 98%
Oil with derivative
settlements as a
percentage of WTI 96% 109% 101%
Oil without
derivative
settlements as a
percentage of WTI 104% 103% 103%
NGLs as a percentage
of Brent 58% 68% 73%
NGLs as a percentage
of WTI 63% 72% 77%
Natural gas with
derivative
settlements as a
percentage of NYMEX
contract month
average 71% 110% 113%
Natural gas without
derivative
settlements as a
percentage of NYMEX
contract month
average 71% 110% 113%
Attachment
6
FIRST QUARTER
2026 DRILLING
ACTIVITY
San Los
Joaquin Angeles Ventura Sacramento
Wells Drilled Basin Basin Basin Basin Total
-------------- -------- -------- ------- ---------- ----------
Development
Wells
Primary 1 -- -- -- 1
Waterflood 17 -- -- -- 17
Steamflood 44 -- -- -- 44
Total (1) 62 -- -- -- 62
(1) Includes steam injectors and drilled but uncompleted
wells, which are not included in the SEC definition
of wells drilled.
(END) Dow Jones Newswires
May 05, 2026 16:31 ET (20:31 GMT)