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 (up to 80% oil), and the highest annual free cash flow since 2021.

• Completed accretive merger with Berry Corporation in December 2025, adding 93 MMBoe of proved reserves and expanding scale.

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

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

• Regulatory progress enabled resumption of new drilling permits, expanding operational flexibility for 2026.

Financial highlights

• Generated adjusted EBITDAX of $1,241 million and free cash flow of $543 million in 2025, with Q4 adjusted EBITDAX of $251 million.

• Net production averaged 138 MBoe/d in 2025, with oil realizations at 97% of Brent before hedges and Brent realized price with hedge at $67.51/Bbl.

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

• Capital investments totaled $322 million in 2025, with $276 million in oil and gas and $33 million in carbon management.

• Returned approximately 94% of free cash flow to shareholders in 2025 via dividends and share repurchases.

Outlook and guidance

• 2026 guidance projects 12% year-over-year production growth 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 between $430–$470 million, including $280–$300 million for drilling, completions, and workovers.

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

• Anticipates $80–$90 million in Berry merger-related synergies within 12 months of closing.

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