California Resources (CRC) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong operational results with 154,000 BOE/d (81% oil), but reported a net loss of $711 million due to an $848 million non-cash derivative loss, while adjusted EBITDA was $304 million and adjusted net income was $79 million.

• Accelerated drilling with up to seven rigs in 2H26, targeting 1% entry-to-exit gross production growth and improved capital efficiency.

• Berry Merger completed in December 2025, adding high-quality reserves, increasing production, and raising annual synergy targets by 12% to $90–$100 million, with over 80% implemented.

• Completed California’s first commercial-scale CCS project at Elk Hills, pending EPA approval for first CO2 injection.

• Optimized capital structure by issuing $350 million in 2034 notes, redeeming 2029 notes, and maintaining net leverage at 1.1x LTM EBITDA.

Financial highlights

• Q1 2026 adjusted EBITDA/EBITDAX: $304 million; adjusted net income: $79 million; net loss: $711 million due to derivative losses.

• Operating cash flow before working capital: $247 million; free cash flow before working capital: $116 million.

• Net production averaged 154,000 BOE/d; oil, gas, and NGL sales were $905 million; total operating revenues before derivatives: $967 million.

• Net debt at quarter-end: $1.3 billion; liquidity: $1.28 billion.

• Returned $46 million to shareholders in Q1 2026 ($36 million dividends, $10 million buybacks); cumulative returns since mid-2021 exceed $1.62 billion.

Outlook and guidance

• 2026 capital program raised to $520–$560 million, with $500–$525 million for oil and gas, $12–$20 million for carbon management, and up to seven rigs in 2H26.

• Full-year 2026 exit gross production guidance raised to 175,000 BOE/d, targeting ~1% entry-to-exit growth.

• Full-year adjusted EBITDAX midpoint raised to $1.45 billion, up 42% year-over-year, assuming Brent at $90.58/bbl and NYMEX gas at $3.61/mcf.

• Berry merger synergy target increased by 12% to $90–$100 million annually.

• G&A expenses expected to normalize by Q2 2026; adjusted G&A guidance at $85–$95 million for 2026.