California Resources (CRC) Q2 2026 earnings summary

Executive summary

• Achieved net income of $514 million for Q2 2026, driven by higher oil prices, Berry asset integration, and strong operational execution, including $103 million in annualized Berry-related synergies and a 25% improvement in drilling efficiencies.

• Completed the acquisition of Crimson Midstream Holdings for $63 million, adding 2,000 miles of pipeline and storage, enhancing California infrastructure, market access, and operational flexibility.

• Launched California's first commercial-scale CCS project, achieving first CO2 injection and revenue, advancing carbon management leadership.

• Partnered with Beacon Data Centers to develop the Golden Valley Technology Hub, leveraging power infrastructure for data center growth.

• California's regulatory environment is more supportive, with local energy security and infrastructure expansion as growing priorities.

Financial highlights

• Q2 2026 net production averaged 149 MBoe/d (81% oil), with net income of $514 million, adjusted net income of $88 million, and adjusted EBITDAX of $338 million.

• Operating costs were $347 million; G&A declined nearly 9% due to Berry-related efficiencies; adjusted G&A was $89 million.

• Operating cash flow was $300 million; free cash flow before working capital $151 million; liquidity at quarter-end was $1,322 million.

• Oil realizations were ~95% of Brent, within guidance; realized oil price with derivatives was $76.43/Bbl, without derivatives $91.55/Bbl.

• Returned $36 million to shareholders via dividends in Q2; since 2021, $1,655 million returned through buybacks and dividends.

Outlook and guidance

• Full-year 2026 net production targeted at 150–155 MBoe/d (80% oil); capital guidance maintained at $520–$560 million, with D&C and workover capital lowered by $10 million.

• 2026 adjusted EBITDAX guidance is $1,200–$1,300 million; all 2026 drilling permits secured, building 2027 permit inventory.

• Expect ~1% entry-to-exit production growth, with full-year oil realizations at ~94% of Brent.

• California production can be maintained with five to six rigs annually, one fewer than prior projections, and 5% lower maintenance capital.

• Declared a quarterly dividend of $0.405 per share, payable September 18, 2026.