California Resources Corp. press release

California Resources Corporation Reports Third Quarter 2026 Financial and Operating Results

2026-11-02

NYSE - New York Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · Sulfur · United States · Corporate Finance

Raised Quarterly Dividend by 4% and Delivered 2% Quarter-over-Quarter Net Production Growth

Sharpened Focus on California through Uinta Basin Sale and Closing of Crimson Midstream Acquisition

LONG BEACH, Calif., Nov. 02, 2026 (GLOBE NEWSWIRE) -- California Resources Corporation (NYSE: CRC) today reported its financial and operating results for the third quarter of 2026. The Company plans to host a conference call and webcast at 1 p.m. ET (10 a.m. PT) on Tuesday, November 3, 2026. Conference call details can be found within this release.

Third Quarter Highlights

Delivered average net production of 152 thousand barrels of oil equivalent per day (MBoe/d) (80% oil) Reported a net loss of $315 million which includes the non-cash loss of $540 million from changes in the fair value of outstanding commodity derivatives, adjusted net income1of $104 million and $341 million of adjusted EBITDAX1which exceeded quarterly guidance Generated net cash provided by operating activities of $305 million, deployed $158 million of total capital and delivered $147 million of free cash flow1 Returned $66 million to shareholders, including $36 million in dividends and $30 million in share repurchases2 Increased quarterly dividend by 4%, reinforcing commitment to sustainable shareholder returns; declared quarterly dividend of $0.42/share to be paid in the fourth quarter of 20262 Ended the quarter with $1,280 million in borrowing capacity and $35 million in available cash and cash equivalents3, representing $1,315 million of liquidity1, 3

Other Highlights

Announced a memorandum of understanding4(MOU) with Bloom Energy to jointly evaluate and target the potential development of 1 gigawatt (GW) or more of solid-oxide fuel cell power generation paired with carbon capture and storage. See_California Resources Corporation Announces Strategic Collaboration with Bloom Energy to Advance Decarbonized Power Across California_for additional information Signed agreement to divest its Uinta Basin (Utah) assets for total cash consideration of approximately $90 million, subject to customary purchase price adjustments. The transaction is expected to close by year-end, subject to certain third-party consents and other customary closing conditions. See_California Resources Corporation Announces Divestiture of Uinta Basin Assets _for additional information Closed its all-cash acquisition of Crimson Midstream Holdings, LLC (“Crimson”), strengthening CRC’s Leading Energy Infrastructure Platform and expanding options for potential longer-term development of CO₂ transportation across California. See_California Resources Corporation Completes Acquisition of Crimson _for additional information Published the 2025 Sustainability Update providing an overview of CRC's sustainability efforts and performance

"Our team continues to execute exceptionally well through strong operational performance, synergy realization from our strategic initiatives and impressive free cash flow,” said Francisco Leon, CRC’s President and Chief Executive Officer. “Through continued capital discipline and the ongoing focus on sustainable efficiency gains, we are improving free cash flow and our liquidity profile. In addition, we remain committed to our shareholder capital return program with share repurchases and dividends, the latter demonstrated by the 4% dividend per share increase we announced today. We have also made significant progress on strategic priorities, including the Crimson pipeline acquisition, along with the Uinta Basin asset sale and Bloom Energy partnership. These initiatives broaden and strengthen our commitment to the Golden State while continuing to deliver value to all CRC constituents including our shareholders and California communities.”

Third Quarter 2026 Results

Net NGL and natural gas production exceeded guidance by approximately 1 MBoe/d, supported by the new Belridge-Elk Hills connection and California’s first carbon capture and storage (CCS) project at CRC’s Elk Hills Cryogenic Gas Plant, which led to increased gas processing and NGL recovery Electricity revenue net of electricity generation expenses exceeded guidance primarily due to higher prices for resource adequacy revenue and sales from electricity delivered to the wholesale market as Elk Hills power plant ran at a higher operational capacity Operating expenses were higher than anticipated and increased over the prior period, primarily due to higher prices for natural gas purchased and used in steamflood operations, and higher workover activity

| Select Production, Price and Financial Results and Non-GAAP Measures | | 3rd Quarter | | | 2nd Quarter | | | | | | ($ in millions except production and prices) | | 2026 | | | 2026 | | | | | | Net oil production per day (MBbl/d) | | | 121 | | | | | 120 | | | Realized oil price without derivative settlements ($ per Bbl) | | $ | 83.42 | | | | $ | 91.55 | | | Realized oil price with derivative settlements ($ per Bbl)1 | | $ | 72.46 | | | | $ | 76.43 | | | Net NGL production per day (MBbl/d) | | | 11 | | | | | 10 | | | Realized NGL price ($ per Bbl) | | $ | 48.57 | | | | $ | 49.62 | | | Net natural gas production per day (Mmcf/d) | | | 123 | | | | | 115 | | | Realized natural gas price ($ per Mcf) | | $ | 3.52 | | | | $ | 1.84 | | | Net total production per day (MBoe/d) | | | 152 | | | | | 149 | | | | | | | | | | | | | | Margin from purchased commodities1 | | $ | 15 | | | | $ | 11 | | | Electricity revenue net of electricity generation expenses1 | | $ | 35 | | | | $ | (4 | ) | | Net (loss) gain from commodity sales derivatives1 | | $ | (675 | ) | | | $ | 205 | | | Other operating expenses net of other revenue1 | | $ | 35 | | | | $ | 56 | |

| Select Financial Statement Data and Non-GAAP Measures: | | 3rd Quarter | | | 2nd Quarter | | | | | | ($ and shares in millions, except per share amounts) | | 2026 | | | 2026 | | | | | | Total operating revenues before net (loss) gain from commodity derivatives1 | | $ | 1,096 | | | | $ | 1,092 | | | | | | | | | | | | | | Operating costs | | $ | 386 | | | | $ | 347 | | | General and administrative expenses | | $ | 89 | | | | $ | 97 | | | Adjusted general and administrative expenses1 | | $ | 79 | | | | $ | 89 | | | Taxes other than on income | | $ | 81 | | | | $ | 66 | | | Transportation costs | | $ | 31 | | | | $ | 30 | | | Operating (loss) income | | $ | (407 | ) | | | $ | 511 | | | Interest and debt expense, net | | $ | 26 | | | | $ | 28 | | | Income tax benefit | | $ | (113 | ) | | | $ | (56 | ) | | Deferred income tax benefit | | $ | (113 | ) | | | $ | (55 | ) | | Net (loss) income | | $ | (315 | ) | | | $ | 514 | | | Weighted-average common shares outstanding - diluted | | | 88.7 | | | | | 89.3 | | | Net (loss) income per share - diluted | | $ | (3.55 | ) | | | $ | 5.76 | | | | | | | | | | | | | | Adjusted net income1 | | $ | 104 | | | | $ | 88 | | | Adjusted net income per share1- diluted | | $ | 1.17 | | | | $ | 0.99 | | | Net cash provided by operating activities | | $ | 305 | | | | $ | 263 | | | Net cash provided by operating activities before net changes in operating assets and liabilities1 | | $ | 300 | | | | $ | 300 | | | Capital investments | | $ | 158 | | | | $ | 149 | | | Adjusted EBITDAX1 | | $ | 341 | | | | $ | 338 | | | Free cash flow1 | | $ | 147 | | | | $ | 114 | |

Fourth Quarter 2026 Guidance and Preliminary 2027 Outlook

The following table provides select fourth quarter 2026E guidance5. Guidance includes the financial results of the Uinta Basin through year-end 2026, while the preliminary 2027 outlook excludes the Uinta. CRC ran an average of five rigs during the third quarter of 2026 and similarly, expects to run an average of five rigs during the fourth quarter of 2026. CRC plans to enter 2027 with six rigs in California. See Attachment 2 for CRC's fourth quarter 2026E guidance.

| CRC Guidance | 4Q26E | | | Net Production (MBoe/d) | 150 - 152 | | | Percentage Oil | 79 | % | | Capital Investments ($ millions) | $110 - $130 | | | Adjusted EBITDAX1($ millions) | $340 - $380 | |

Leon added, "As we look to 2027, CRC is moving from acquisition to optimization. Having built, in our view, California’s leading energy infrastructure platform, our focus now turns to running it better by lowering costs, improving capital efficiency and putting our midstream, power and carbon opportunities to work. That strategy positions us to strengthen free cash flow and continue delivering meaningful returns to our shareholders."

2027 drilling, completions and workover capital is expected to be $450 - $475 million. Planned activity levels will be supported by the Company's growing permit inventory and ongoing operational efficiencies. CRC remains focused on disciplined capital allocation, maintaining a strong balance sheet and delivering sustainable shareholder returns. CRC intends to provide full-year 2027 guidance with its fourth quarter and year-end 2026 earnings release. The Company has flexibility to adjust its 2027 capital program to reflect changes in commodity prices and other market factors.

Shareholder Returns

CRC is committed to sustainably returning cash to shareholders through dividends and repurchases of its common stock. In the third quarter of 2026, CRC repurchased 0.6 million shares of its common stock for $30 million at an average price of $53.48 per share and returned $36 million in dividends to shareholders. Since 2021, the Company has returned approximately $1,721 million to shareholders, including $1,210 million in share repurchases and $511 million in dividends. As of September 30, 2026, CRC had $570 million remaining for share repurchases under its authorized Share Repurchase Program through December 31, 20272.

On November 2, 2026, CRC's Board of Directors amended its cash dividend policy to increase the anticipated total annual dividend by approximately 4% to $1.68, payable to shareholders in quarterly increments of $0.42 per share of common stock. The Board of Directors also declared a quarterly cash dividend of $0.42 per share of common stock, payable to shareholders of record on December 4, 2026. The dividend is expected to be paid on December 18, 20262.

Balance Sheet and Liquidity

As of September 30, 2026, CRC had $35 million in available cash and cash equivalents3, $1,280 million in available borrowing capacity under its Revolving Credit Facility (which reflects $1,460 million of borrowing capacity less $180 million of outstanding letters of credit) and liquidity of $1,315 million.

In October 2026, CRC entered into a new amendment to its Revolving Credit Facility to, among other things, extend the maturity date to March 2030, increase the elected commitments of its lenders to $1,470 million, re-affirm its borrowing base at $1,500 million, and implement certain other technical amendments.

Upcoming Investor Conferences

CRC is scheduled to participate in the following events through year-end 2026:

Goldman Sachs 7th Annual Carbonomics Conference, November 10, London, UK Wolfe Global Oil & Gas Conference 2026, November 18, Virtual 2026 Stephens Annual Investment Conference, November 19, Nashville, TN Capital One Securities 21st Annual Energy Conference, December 1, New Orleans, LA UBS 30th Annual Global Technology and AI Conference 2026, December 2, Scottsdale, AZ Mizuho Power, Energy & Infrastructure Conference 2026, December 8, New York City, NY Bernstein 5th Annual Industrials & Energy Forum, December 9, New York City, NY 25th Annual Wells Fargo Energy and Power Symposium, December 9, New York City, NY Stifel 2026 Frontier Tech 2.0 Energy Summit, December 10, New York City, NY

CRC plans to post its presentation materials to its website on the day of the event. 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 Tuesday, November 3, 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/10211602/104c2aa7a86. 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, other operating expenses net of other revenue and liquidity, including reconciliations to the most directly comparable GAAP measure without unreasonable effort. See Attachment 2 for the 4Q26 estimates of the non-GAAP measures of adjusted general and administrative expenses, margin from purchased commodities, electricity revenue net of electricity generation expenses and other operating expenses net of other revenue and reconciliations to its most directly comparable GAAP measure. The 4Q26 estimates of some non-GAAP measures cannot be reconciled 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. 2All 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. 3Excludes restricted cash of $13 million. 4MOUs are non-binding agreements. The projects and transactions described in an MOU 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. 54Q26 guidance assumes Brent price of $102.90 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $3.25 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 www.crc.com.

About Carbon TerraVault

Carbon TerraVault (CTV), CRC’s carbon management business, develops services to capture, transport and permanently store carbon dioxide (CO2) for its customers. CTV is advancing a portfolio of carbon capture and storage (CCS) projects, including CTV I, which is now operational and injecting CO2for permanent sequestration in a depleted reservoir deep underground. For more information, visit www.carbonterravault.com.

Forward-Looking Statements

Information set forth in this communication, including financial estimates and statements as to the effects of the Berry Merger and the Crimson acquisition, 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 and the Crimson acquisition, 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; changes in price realizations; integration efforts and projected synergies and other benefits in connection with the Berry Merger, Crimson acquisition and other acquisitions; divestitures and joint ventures, including the Uinta divestiture; regulatory actions and changes that affect the oil and gas industry generally and CRC 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 its 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 and improve capital efficiencies; 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, transportation and storage projects, power projects and other renewable energy efforts, including those contemplated by the Bloom MOU; changes in transportation costs and CRC's ability to develop midstream opportunities; delays from government approvals and otherwise that could affect the timing of projects; 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) 818-661-3700 CRC_IR@crc.com | Hailey Bonus (Media) 714-874-7732 CRC.Communications@crc.com |