California Resources (CRC) Q4 2025 earnings summary

Executive summary

• Achieved record financial performance in 2025, with 25% year-over-year production growth to 138 MBoe/d (79–80% oil), and record adjusted EBITDAX of $1,241 million, despite a 14% decline in commodity prices.

• Returned $513 million to shareholders in 2025, representing 94% of free cash flow, through $377 million in share repurchases and $136 million in dividends, marking four consecutive years of dividend growth.

• Completed accretive merger with Berry Corporation in December 2025, adding 93 MMBoe of proved reserves and targeting $80–$90 million in synergies.

• Substantially completed California’s first commercial-scale CCS project at Elk Hills, targeting first CO2 injection in Spring 2026, with additional permit applications planned.

• Expanded 2P reserves disclosure to nearly 1.2 billion BOE, supporting over 20 years of development at current production levels.

Financial highlights

• Generated adjusted EBITDAX of $1,241 million and free cash flow of $543 million for 2025, the highest since 2021.

• Net production increased 25% year-over-year to 138,000 BOE/d; oil realizations at 97% of Brent before hedges.

• Total operating revenues for 2025 were $3,669 million, up from $3,198 million in 2024.

• Board approved a $430 million increase to share repurchase authorization, extending the program through 2027 with $600 million remaining capacity.

• Liquidity at year-end 2025 was $1,401–$1,460 million, with net debt of $1,183 million and no outstanding borrowings under the Revolving Credit Facility.

Outlook and guidance

• 2026 guidance projects net production up 12% year-over-year to 152–157 MBoe/d (81% oil), supported by four operated drilling rigs.

• 2026 adjusted EBITDAX guidance is $970–$1,070 million, with capital investments expected at $430–$470 million, including $280–$300 million for drilling, completions, and workovers.

• Two-thirds of expected oil production hedged at ~$65 Brent for 2026.

• Maintenance breakeven sits in the mid-$50s WTI on a hedge basis; upstream-only breakeven in the low to mid-$50s WTI.

• Expects first CO2 injection at Elk Hills CCS project in spring 2026, pending regulatory approval.