Patterson-UTI Energy, Inc. press release

California Resources Corporation Reports Second Quarter 2026 Financial and Operating Results

2026-08-10

NASDAQ - Nasdaq Stock Market · Oil · Natural Gas · Natural Gas Liquids · United States · Corporate Finance

Strengthens California's Leading Energy Platform Through Strategic Acquisition

Sustainable Operational Efficiency Gains Enhance 2026 Outlook and Further Reduces Estimated Long-Term Maintenance Capital

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

Highlights

Delivered average net production of 149 thousand barrels of oil equivalent per day (MBoe/d) (81% oil) Reported net income of $514 million which includes the non-cash gain from changes in the fair value of outstanding commodity derivatives, adjusted net income1of $88 million and $338 million of adjusted EBITDAX1 Generated net cash provided by operating activities of $263 million or $300 million of net cash provided by operating activities before net changes in operating assets and liabilities1 Delivered $114 million of free cash flow1or $151 million of free cash flow before net changes in operating assets and liabilities1 Returned $36 million to shareholders through dividends2 Ended the quarter with $1,279 million in borrowing capacity and $43 million in available cash and cash equivalents3, representing $1,322 million of liquidity1, 3

Other Highlights

Announced the signing of a definitive purchase agreement to acquire Crimson Midstream Holdings, LLC (“Crimson”) from CorEnergy Infrastructure Trust, Inc. for total cash consideration of $63 million, subject to customary adjustments_. _See _California Resources Corporation Expands Integrated California Energy InfrastructurePlatformThrough Strategic Midstream Acquisition_for additional information Lowered California long-term maintenance capital outlook by reducing drilling, completions and workover capital expectations by approximately 5% to a $450 million to $475 million range with six drilling rigs, compared to seven previously Optimized capital structure, reduced annual interest payments and extended maturities through recent $550 million offering of 7.250% senior notes due 2035 (2035 Senior Notes) and subsequent redemption of all remaining 8.250% senior notes due 2029 (2029 Senior Notes) Announced the Golden Valley Technology Hub project, a proposed data center development in partnership with Beacon Data Centers (Beacon), at CRC's Elk Hills field. See _www.goldenvalleytechhub.com_for additional information Implemented more than 100% of the annual Berry merger synergy target, representing $103 million of annualized savings six months ahead of schedule Achieved first carbon dioxide (CO2) injection and revenue at Carbon TerraVault I (CTV I), California's inaugural carbon capture and storage (CCS) project. See _Carbon TerraVault Provides Second Quarter 2026 Update_for additional information

"Our teams are executing exceptionally well, delivering durable operational improvements across our asset base,” said Francisco Leon, CRC’s President and Chief Executive Officer. “Recent efficiency gains and continued Berry synergy capture are strengthening our long-term outlook. Specifically, we are now able to maintain flat California production with fewer rigs and less maintenance capital, creating operational and financial momentum into 2027 and beyond.

"Today, we also announced the planned acquisition of Crimson’s California pipeline systems and storage assets, a strategic infrastructure investment that strengthens our California platform. In parallel, our team continued to advance the Golden Valley Technology Hub with Beacon, leveraging CRC’s assets to meet California’s growing AI demand for reliable power. These developments strengthen CRC’s integrated energy platform, reinforce our commitment to California and create long-term value for our shareholders, Californians and the communities we serve.”

Second Quarter 2026 Results

Operating expenses and general and administrative expenses were in line with expectations reflecting solid execution and the ongoing capture of Berry merger-related synergies Invested total capital of $149 million including drilling, completions and workover capital1of $101 million; total capital was higher than initial expectations driven by a 25% increase in drilling activity across the California portfolio Built approximately 137 thousand barrels of oil (MBo) of inventory due to temporary takeaway constraints, equivalent to approximately 1.5 MBo/d, which, together with weaker differentials and higher operating and transportation costs, reduced second quarter adjusted EBITDAX1and net cash provided by operating activities before net changes in operating assets and liabilities1by approximately $25 million. The substantial majority of this inventory was sold in July 2026

| Select Production, Price and Financial Results and Non-GAAP Measures | | 2nd Quarter | | | 1st Quarter | | | | | | ($ in millions except production and prices) | | | 2026 | | | | | 2026 | | | Net oil production per day (MBbl/d) | | | 120 | | | | | 124 | | | Realized oil price without derivative settlements ($ per Bbl) | | $ | 91.55 | | | | $ | 74.53 | | | Realized oil price with derivative settlements ($ per Bbl)1 | | $ | 76.43 | | | | $ | 69.37 | | | Net NGL production per day (MBbl/d) | | | 10 | | | | | 10 | | | Realized NGL price ($ per Bbl) | | $ | 49.62 | | | | $ | 44.98 | | | Net natural gas production per day (Mmcf/d) | | | 115 | | | | | 117 | | | Realized natural gas price ($ per Mcf) | | $ | 1.84 | | | | $ | 3.56 | | | Net total production per day (MBoe/d) | | | 149 | | | | | 154 | | | | | | | | | | | | | | Margin from purchased commodities1 | | $ | 11 | | | | $ | 18 | | | Electricity revenue net of electricity generation expenses1 | | $ | (4 | ) | | | $ | 6 | | | Net gain (loss) from commodity sales derivatives1 | | $ | 205 | | | | $ | (848 | ) | | Other operating expenses net of other revenue1 | | $ | 56 | | | | $ | 44 | |

| Select Financial Statement Data and Non-GAAP Measures: | | 2nd Quarter | | | 1st Quarter | | | | | | ($ and shares in millions, except per share amounts) | | | 2026 | | | | | 2026 | | | Total operating revenues before net (loss) gain from commodity derivatives1 | | $ | 1,092 | | | | $ | 967 | | | | | | | | | | | | | | Operating costs | | $ | 347 | | | | $ | 365 | | | General and administrative expenses | | $ | 97 | | | | $ | 106 | | | Adjusted general and administrative expenses1 | | $ | 89 | | | | $ | 99 | | | Taxes other than on income | | $ | 66 | | | | $ | 67 | | | Transportation costs | | $ | 30 | | | | $ | 26 | | | Operating income (loss) | | $ | 511 | | | | $ | (711 | ) | | Interest and debt expense, net | | $ | 28 | | | | $ | 29 | | | Income tax benefit | | $ | (56 | ) | | | $ | (49 | ) | | Deferred income tax benefit | | $ | (55 | ) | | | $ | (50 | ) | | Net income (loss) | | $ | 514 | | | | $ | (711 | ) | | Weighted-average common shares outstanding - diluted | | | 89.3 | | | | | 88.7 | | | Net income (loss) per share - diluted | | $ | 5.76 | | | | $ | (8.02 | ) | | | | | | | | | | | | | Adjusted net income1 | | $ | 88 | | | | $ | 79 | | | Adjusted net income per share1- diluted | | $ | 0.99 | | | | $ | 0.88 | | | Net cash provided by operating activities | | $ | 263 | | | | $ | 99 | | | Net cash provided by operating activities before net changes in operating assets and liabilities1 | | $ | 300 | | | | $ | 247 | | | Capital investments | | $ | 149 | | | | $ | 131 | | | Adjusted EBITDAX1 | | $ | 338 | | | | $ | 304 | | | Free cash flow1 | | $ | 114 | | | | $ | (32 | ) |

2026 Guidance Highlights

CRC reaffirmed its full-year 2026 total capital outlook and reduced expected full-year 2026 drilling, completions and workover capital by $10 million to $370 million to $390 million while targeting approximately 1% entry-to-exit gross production growth. Stronger operating efficiencies across the portfolio, together with the impact of lower estimated oil prices on production-sharing contracts, provide increased confidence in achieving these targets and strengthen the Company’s long-term outlook.

CRC expects to operate an average of five rigs in California and one rig in Utah during the second half of 2026 and currently holds sufficient permits to support its 2026 capital program. The Company also continues to build its permit inventory in support of anticipated 2027 operations. Following the closing of the pending transaction, CRC expects to provide additional financial and operating guidance. The following table provides key current third-quarter and full-year 2026 financial and operating guidance4. See Attachment 2 for additional information.

| CRC Guidance | 3Q26E | Total Year 2026E | | Net Production (MBoe/d) | 151 - 154 | 150 - 155 | | Percentage Oil | 80% | 80% | | Capital Investments ($ millions) | $150 - $170 | $520 - $560 | | Adjusted EBITDAX1($ millions) | $285 - $325 | $1,200 - $1,300 |

Shareholder Returns

On August 10, 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 September 4, 2026. The dividend is expected to be paid on September 18, 2026.

In the second quarter 2026, CRC returned $36 million in dividends to shareholders. Since 2021, the Company has returned approximately $1,655 million to shareholders, including $1,180 million in share repurchases and $475 million in dividends2.

Balance Sheet and Liquidity

In June 2026, CRC completed an offering of $550 million of 2035 Senior Notes. The proceeds, together with cash on hand, were used to redeem all $550 million of the Company’s outstanding 2029 Senior Notes for total consideration of $573 million. The redemption resulted in a $28 million loss on extinguishment of debt, including a $23 million premium paid and $5 million write-off of unamortized debt issuance costs, net of unamortized premium. Following this redemption, CRC had outstanding $750 million of 2034 Senior Notes and $550 million of 2035 Senior Notes.

As of June 30, 2026, CRC had liquidity of $1,322 million1,3, consisting of $43 million in available cash and cash equivalents3and $1,279 million of available borrowing capacity under its Revolving Credit Facility (which reflects $1,460 million of borrowing capacity less $181 million of outstanding letters of credit and no balance outstanding on the Revolving Credit Facility).

Participation in Upcoming Investor Conferences

CRC is scheduled to participate in the following events in August and September 2026:

Citi 2026 Natural Resources Conference, August 12 and 13, Las Vegas, NV Seaport 15th Annual Summer Investor Conference, August 18, Virtual Daniel Energy Partners, Executive Series, September 1 to 3, Pebble Beach, CA Barclays 40th Annual Energy-Power Conference, September 9 and 10, New York, NY NYSE Energy & Utilities Investor Access Day, September 24, Virtual PEP Energy Conference 2026, September 29, Austin, TX

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 Monday, August 10, 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/10209577/1041fba52bd. 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 3Q26 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 $13 million. 43Q26 guidance assumes Brent price of $83.14 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $2.95 per mcf. Total year 2026 guidance assumes Brent price of $84.51 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $3.55 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; integration efforts and projected synergies and other benefits in connection with the Berry Merger, Crimson acquisition 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 CO2; 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 |

| Attachment 1 | | | | | | | | | | | | | | | | | | | | | | STATEMENTS OF OPERATIONS, SELECT FINANCIAL INFORMATION | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2nd Quarter | | 1st Quarter | | 2nd Quarter | | Six Months | | Six Months | | | | | | | | | | | | ($ and shares in millions, except per share amounts) | | | 2026 | | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | | | | | | | | | | | | | | | | | | | | | | | | | Statements of Operations: | | | | | | | | | | | | | | | | | | | | | | Revenues | | | | | | | | | | | | | | | | | | | | | | Oil, natural gas and natural gas liquids sales | | $ | 1,056 | | | $ | 905 | | | $ | 702 | | | $ | 1,961 | | | $ | 1,516 | | | Net gain (loss) from commodity derivatives | | | 205 | | | | (848 | ) | | | 157 | | | | (643 | ) | | | 163 | | | Revenue from marketing of purchased commodities | | | 26 | | | | 41 | | | | 56 | | | | 67 | | | | 120 | | | Electricity revenue | | | 6 | | | | 11 | | | | 58 | | | | 17 | | | | 80 | | | Other revenue | | | 4 | | | | 10 | | | | 5 | | | | 14 | | | | 11 | | | Total operating revenues | | | 1,297 | | | | 119 | | | | 978 | | | | 1,416 | | | | 1,890 | | | | | | | | | | | | | | | | | | | | | | | | | Operating Expenses | | | | | | | | | | | | | | | | | | | | | | Operating costs | | | 347 | | | | 365 | | | | 295 | | | | 712 | | | | 611 | | | General and administrative expenses | | | 97 | | | | 106 | | | | 79 | | | | 203 | | | | 151 | | | Depreciation, depletion and amortization | | | 131 | | | | 133 | | | | 128 | | | | 264 | | | | 259 | | | Taxes other than on income | | | 66 | | | | 67 | | | | 47 | | | | 133 | | | | 117 | | | Costs related to marketing of purchased commodities | | | 15 | | | | 23 | | | | 41 | | | | 38 | | | | 91 | | | Electricity generation expenses | | | 10 | | | | 5 | | | | 5 | | | | 15 | | | | 15 | | | Transportation costs | | | 30 | | | | 26 | | | | 20 | | | | 56 | | | | 40 | | | Accretion expense | | | 27 | | | | 27 | | | | 28 | | | | 54 | | | | 57 | | | Net loss on natural gas purchase derivatives | | | 5 | | | | 24 | | | | 3 | | | | 29 | | | | (3 | ) | | Measurement period adjustments, net | | | (2 | ) | | | — | | | | — | | | | (2 | ) | | | 1 | | | Other operating expenses, net | | | 60 | | | | 54 | | | | 65 | | | | 114 | | | | 98 | | | Total operating expenses | | | 786 | | | | 830 | | | | 711 | | | | 1,616 | | | | 1,437 | | | Operating Income (Loss) | | | 511 | | | | (711 | ) | | | 267 | | | | (200 | ) | | | 453 | | | | | | | | | | | | | | | | | | | | | | | | | Non-Operating (Expenses) Income | | | | | | | | | | | | | | | | | | | | | | Interest and debt expense, net | | | (28 | ) | | | (29 | ) | | | (25 | ) | | | (57 | ) | | | (52 | ) | | Equity loss from unconsolidated subsidiaries | | | (2 | ) | | | (2 | ) | | | — | | | | (4 | ) | | | (1 | ) | | Loss on early extinguishment of debt | | | (28 | ) | | | (21 | ) | | | — | | | | (49 | ) | | | (1 | ) | | Other non-operating income, net | | | 5 | | | | 3 | | | | — | | | | 8 | | | | 5 | | | | | | | | | | | | | | | | | | | | | | | | | Income (Loss) Before Income Taxes | | | 458 | | | | (760 | ) | | | 242 | | | | (302 | ) | | | 404 | | | Income tax benefit (provision) | | | 56 | | | | 49 | | | | (70 | ) | | | 105 | | | | (117 | ) | | Net Income (Loss) | | $ | 514 | | | $ | (711 | ) | | $ | 172 | | | $ | (197 | ) | | $ | 287 | | | | | | | | | | | | | | | | | | | | | | | | | Net income per share - basic | | $ | 5.79 | | | $ | (8.02 | ) | | $ | 1.93 | | | $ | (2.22 | ) | | $ | 3.20 | | | Net income per share - diluted | | $ | 5.76 | | | $ | (8.02 | ) | | $ | 1.92 | | | $ | (2.22 | ) | | $ | 3.18 | | | | | | | | | | | | | | | | | | | | | | | | | Adjusted net income | | $ | 88 | | | $ | 79 | | | $ | 98 | | | $ | 167 | | | $ | 196 | | | Adjusted net income per share - basic | | $ | 0.99 | | | $ | 0.89 | | | $ | 1.10 | | | $ | 1.88 | | | $ | 2.18 | | | Adjusted net income per share - diluted(1) | | $ | 0.99 | | | $ | 0.88 | | | $ | 1.10 | | | $ | 1.87 | | | $ | 2.17 | | | | | | | | | | | | | | | | | | | | | | | | | Weighted-average common shares outstanding - basic | | | 88.8 | | | | 88.7 | | | | 89.0 | | | | 88.7 | | | | 89.8 | | | Weighted-average common shares outstanding - diluted(1) | | | 89.3 | | | | 88.7 | | | | 89.4 | | | | 88.7 | | | | 90.3 | | | | | | | | | | | | | | | | | | | | | | | | | Effective tax rate | | (12)% | | | 6 | % | | | 29 | % | | | 35 | % | | | 29 | % | | | | | | | | | | | | | | | | | | | | | | | | |