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 (NYSE: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 settlements1 ($ 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 commodities1
$
18
$
13
Electricity revenue net of electricity generation expenses1
$
6
$
40
Net (loss) gain from commodity sales derivatives
$
(848
)
$
126
Other operating expenses net of other revenue1
$
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 derivatives1
$
967
$
798
Operating costs
$
365
$
325
General and administrative expenses
$
106
$
95
Adjusted general and administrative expenses1
$
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 income1
$
79
$
40
Adjusted net income per share1 - diluted
$
0.88
$
0.47
Net cash provided by operating activities
$
99
$
235
Adjusted EBITDAX1
$
304
$
251
Free cash flow1
$
(32
)
$
115
Capital investments
$
131
$
120
Guidance
The following table provides key second quarter and full year 2026 financial and operating guidance4. 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.
2Q26E
Total Year2026E
Net Production (MBoe/d)
148 - 150
149 - 155
Percentage Oil
81%
81%
Capital Investments ($ millions)
$120 - $140
$520 - $560
Adjusted EBITDAX1 ($ 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 million2 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 shareholders2, 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 million1,3, consisting of $25 million in available cash and cash equivalents3 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 (CO2) for its customers. CTV is engaged in a series of proposed CCS projects to inject CO2 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 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[email protected]
Hailey Bonus (Media)714-874-7732[email protected]
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
