Receipt of New Drilling Permits Supports Planned 2026 Drilling Program
LONG BEACH, Calif., March 02, 2026 (GLOBE NEWSWIRE) -- California Resources Corporation (NYSE:CRC) (CRC) today reported its financial and operating results for the fourth quarter and full-year 2025. The Company plans to host a conference call and webcast at 1 p.m. ET (10 a.m. PT) on Monday, March 2, 2026. Conference call details can be found within this release.
Fourth Quarter Highlights
Reported net income of $12 million, adjusted net income1 of $40 million and $251 million of adjusted EBITDAX1
Generated net cash provided by operating activities of $235 million and $115 million of free cash flow1
Delivered an average of 137 thousand barrels of oil equivalent per day5 (MBoe/d) (80% oil); invested total capital of $120 million including drilling, completions and workover capital1 of $56 million
Increased annual dividend by 5%; marking four consecutive years of dividend growth2
Returned $59 million to shareholders including $34 million in dividends and $25 million in share repurchases2
Closed all-stock combination with Berry Corporation on December 18, 2025
Announced a new memorandum of understanding (MOU)4 with a leading California power producer to provide CO2 transportation and storage and explore decarbonized power solutions near Silicon Valley. See California Resources Corporation and Middle River Power to Advance Decarbonized Power Solutions in California for additional information
2025 Highlights
Increased average net production by 25% year-over-year to 138 MBoe/d5 (79% oil), and realized $235 million in Aera merger-related synergies
Reported net income of $363 million, adjusted net income¹ of $359 million and highest annual adjusted EBITDAX¹ of $1,241 million since 2021
Generated $865 million of net cash provided by operating activities and free cash flow¹ of $543 million, highest annual free cash flow since 2021
Returned $513 million to shareholders including $377 million in share repurchases and $136 million in dividends2
Lowered base decline to 8%–13% from 10%–15% through improved reservoir management
Increased proved undeveloped reserves by 190% and total proved reserves by 20% through operational improvements and mergers, despite 14% year-over-year decline in SEC pricing for oil
Exited 2025 with $117 million in available cash3, $1,284 million in available borrowing capacity and liquidity of $1,401 million
Increased aggregate elected commitment under the Revolving Credit Facility to $1,460 million in 2025 from $1,150 million
Received "Grade A" certifications under MiQ's Methane Emissions Performance Standard for production assets across the Los Angeles, Ventura, and San Joaquin basins (excluding assets added in the Berry Merger)
Substantially completed construction of CRC's first carbon capture and storage (CCS) project at the Elk Hills cryogenic gas plant
Executed new MOUs4 with leading California industrial and power partners to evaluate decarbonized solutions. See Carbon TerraVault's 2025 Press Release for additional information
2026 Outlook
CRC is receiving new drilling permits and currently holds the majority of permits necessary to undertake its 2026 capital program
Targeting approximately 12% year-over-year production growth, averaging 152–157 MBoe/d (~81% oil), supported by four operated drilling rigs
Capital investments expected to range between $430–$470 million, including $280–$300 million for drilling, completions, and workovers1, and $12–$20 million for carbon management initiatives
Expect to realize $80–$90 million of Berry merger-related synergies within 12 months of closing, including $35 to $40 million in general and administrative expenses, $25 to $30 million in operating costs and $20 million in financing costs
Targeting first CO₂ injection at its CCS project at the Elk Hills cryogenic gas plant in spring 2026, subject to commissioning and final regulatory approval. See Carbon TerraVault's 2025 Press Release for additional information
"CRC delivered a landmark year in 2025, driven by strong financial performance, robust cash flow generation, and disciplined execution, while returning substantial cash to shareholders," said Francisco Leon, CRC's President and Chief Executive Officer. "Our teams made meaningful progress improving reservoir management across our high-quality, low-decline conventional asset base and advancing several strategic initiatives that strengthen the company's long-term foundation.
"Our 2026 priorities are clear: safely and efficiently operate our core businesses, deliver on the synergies from the Berry merger, and continue to advance high-return opportunities across our portfolio while maintaining financial discipline. With a resilient asset base and a strong hedge position, CRC is well positioned to manage near-term volatility and generate strong cash flows from which to enhance shareholder returns."
Fourth Quarter and Total Year 2025 Results
Select Production, Price and Financial Results and Non-GAAP Measures
4th Quarter
3rd Quarter
Total Year
Total Year
($ in millions except production and prices)
2025
2025
2025
2024
Net oil production per day (MBbl/d)6
109
107
109
80
Realized oil price without derivative settlements ($ per Bbl)
$
61.14
$
66.32
$
66.52
$
76.92
Realized oil price with derivative settlements1($ per Bbl)1
$
64.27
$
67.04
$
67.51
$
75.66
Net NGL production per day (MBbl/d)6
9
10
10
10
Realized NGL price ($ per Bbl)
$
42.86
$
41.04
$
45.30
$
48.93
Net natural gas production per day (Mmcf/d)6
113
118
114
117
Realized natural gas price ($ per Mcf)
$
3.91
$
3.47
$
3.57
$
2.99
Net total production per day (MBoe/d)6
137
137
138
110
Margin from purchased commodities1
$
13
$
14
$
56
$
42
Electricity margin1
$
40
$
90
$
195
$
119
Net gain (loss) from commodity derivatives
$
126
$
(23
)
$
266
$
241
Other operating expenses net of other revenue1
$
75
$
25
$
187
$
213
Select Financial Statement Data and Non-GAAP Measures:
4th Quarter
3rd Quarter
Total Year
Total Year
($ and shares in millions, except per share amounts)
2025
2025
2025
2024
Total operating revenues
$
924
$
855
$
3,669
$
3,198
Operating costs
$
325
$
316
$
1,252
$
966
General and administrative expenses
$
95
$
87
$
333
$
321
Adjusted general and administrative expenses1
$
89
$
82
$
309
$
279
Taxes other than on income
$
55
$
70
$
242
$
242
Transportation costs
$
20
$
19
$
79
$
81
Operating income
$
47
$
98
$
598
$
620
Interest and debt expense, net
$
29
$
25
$
106
$
87
Income tax provision
$
11
$
11
$
139
$
140
Deferred income tax provision
$
22
$
35
$
98
$
71
Net income
$
12
$
64
$
363
$
376
Weighted-average common shares outstanding - diluted
85.1
84.4
87.4
81.4
Net income per share - diluted
$
0.14
$
0.76
$
4.15
$
4.62
Adjusted net income1
$
40
$
123
$
359
$
317
Adjusted net income per share1- diluted
$
0.47
$
1.46
$
4.11
$
3.89
Net cash provided by operating activities
$
235
$
279
$
865
$
610
Adjusted EBITDAX1
$
251
$
338
$
1,241
$
1,006
Free cash flow1
$
115
$
188
$
543
$
355
Capital investments
$
120
$
91
$
322
$
255
Cash and cash equivalents (as of December 31, 2025 and 2024, respectively)
$
132
$
372
Available cash and cash equivalents
$
117
$
354
Restricted cash
$
15
$
18
2025 Proved Reserves
As of December 31, 2025, CRC's total proved reserves were 654 million Boe (MMBoe), of which approximately 83% was oil and 541 MMBoe was proved developed. CRC added 93 MMBoe of proved reserves related to the Berry merger in 2025. Standardized measure of discounted future net cash flows were $6,666 million with a PV-101 value of $8,717 million, based on SEC pricing, at December 31, 2025. In 2025, CRC's reserve replacement ratio1 was 368%. See Attachment 3 for the non-GAAP reconciliation.
2026 Guidance
The following table provides key first quarter and full year 2026 financial and operating guidance6. In 2026, CRC expects to operate a four-rig program subject to commodity prices and market conditions. CRC currently holds the permits necessary to execute a majority of its planned capital program. See Attachment 2 for further information on CRC's first quarter and full year 2026 guidance.
1Q26E
Total Year2026E
Net Production (MBoe/d)
155 - 157
152 - 157
Percentage Oil
81%
1
Capital Investments ($ millions)
$110 - $130
$430 - $470
Adjusted EBITDAX1($ millions)
$240 - $280
$970 - $1,070
Shareholder Returns
CRC is committed to increasing shareholder returns over time. In November 2025, CRC increased its annual dividend by approximately 5% to a total annual dividend of $1.62. CRC has increased its dividend every year since 2021.
On March 1, 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 March 13, 2026. The dividend is expected to be paid on March 20, 2026.
In 2025, CRC repurchased 8.3 million shares of its common stock for $377 million2 at an average price of $45.29 per share and returned $136 million in dividends to shareholders. Since mid-2021, the Company has returned approximately $1,573 million to shareholders2, including $1,170 million in share repurchases and $403 million in dividends.
In February 2026, CRC's Board of Directors approved an increase of the Share Repurchase Program to $1.78 billion, an increase of $430 million and extended the program through December 31, 2027. After this increase and repurchases in January 2026, CRC has $600 million of capacity remaining under the repurchase program as of February 28, 2026.
Balance Sheet and Liquidity
In October 2025, CRC's lenders reaffirmed its $1,500 million borrowing base under its Revolving Credit Facility as part of its semi-annual redetermination. In December 2025, elected commitments under the Revolving Credit Facility increased by $10 million to $1,460 million.
At year-end 2025, CRC had liquidity of $1,401 million, consisting of $117 million in available cash and cash equivalents3 and $1,284 million of available borrowing capacity under its Revolving Credit Facility (which reflects $1,460 million of borrowing capacity less $176 million of outstanding letters of credit). There were no outstanding borrowings under the Revolving Credit Facility as of December 31, 2025.
Participation in Upcoming Investor Conferences
CRC is scheduled to participate in the following events in March 2026:
2026 Jefferies Power, Energy, Clean Energy, and Utilities Conference, March 4, New York, NY
2026 NYSE Investor Access Day, March 20, Virtual
38th Annual ROTH Conference, March 23, Dana Point, CA
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 on www.crc.com.
Conference Call Details
A conference call and webcast is planned for 1 p.m. ET (10 a.m. PT) on Monday, March 2, 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/10204776/10070090c28. 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 changes in operating assets and liabilities, net, adjusted EBITDAX, free cash flow, adjusted general and administrative expenses and PV-10 including reconciliations to the most directly comparable GAAP measure without unreasonable effort. See Attachment 2 for the 1Q26 and 2026 estimates of the non-GAAP measures of adjusted EBITDAX, oil and natural gas segment adjusted EBITDAX, carbon management segment adjusted EBITDAX and adjusted general and administrative 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 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. The total value of share repurchases excludes excise taxes of approximately $2 million in the year ended December 31, 2024. Excise taxes were insignificant in the year ended December 31, 2025. The total value of shares repurchased excludes approximately $3 million related to excise taxes and commissions paid on share repurchases since the inception of the Share Repurchase Program.3 Excludes restricted cash of $15 million.4 MOUs and CDMAs are non-binding agreements. The projects and transactions described in an MOU or CDMA are subject to certain conditions precedent, typically including the negotiation of definitive documents, a final investment decision by the parties and receipt of EPA Class VI permits and other regulatory approvals.5 Net production per day for the periods presented reflects the impact of transaction timing. Aera Energy volumes contributed for the full year in 2025 and for approximately six months in 2024, while 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.6 1Q26 guidance assumes Brent price of $66.42 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $5.22 per mcf. Total year 2026 guidance assumes Brent price of $65.57 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $4.13 per mcf.
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 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
($ and shares in millions, except per share amounts)
4th Quarter
3rd Quarter
4th Quarter
Total Year
Total Year
2025
2025
2024
2025
2024
Statements of Operations:
Revenues
Oil, natural gas and natural gas liquids sales
$
679
$
715
$
826
$
2,910
$
2,537
Net gain (loss) from commodity derivatives
126
(23
)
(49
)
266
241
Revenue from marketing of purchased commodities
60
58
59
238
235
Electricity sales
52
101
39
233
159
Other revenue
7
4
2
22
26
Total operating revenues
924
855
877
3,669
3,198
Operating Expenses
Operating costs
325
316
323
1,252
966
General and administrative expenses
95
87
95
333
321
Depreciation, depletion and amortization
129
123
142
511
388
Asset impairment
57
2
1
59
14
Taxes other than on income
55
70
80
242
242
Costs related to marketing of purchased commodities
47
44
53
182
193
Electricity generation expenses
12
11
9
38
40
Transportation costs
20
19
21
79
81
Accretion expense
29
28
31
114
87
Net loss on natural gas purchase derivatives
26
27
19
50
30
Measurement period adjustments, net
—
—
(12
)
1
(12
)
Other operating expenses, net
82
29
51
209
239
Total operating expenses
877
756
813
3,070
2,589
(Loss) gain on asset divestitures
—
(1
)
4
(1
)
11
Operating Income
47
98
68
598
620
Non-Operating (Expenses) Income
Interest and debt expense, net
(29
)
(25
)
(28
)
(106
)
(87
)
Equity loss from unconsolidated subsidiaries
(1
)
(2
)
(1
)
(4
)
(10
)
Loss on early extinguishment of debt
—
—
—
(1
)
(5
)
Other non-operating income (expense), net
6
4
2
15
(2
)
Income Before Income Taxes
23
75
41
502
516
Income tax provision
(11
)
(11
)
(8
)
(139
)
(140
)
Net Income
$
12
$
64
$
33
$
363
$
376
Net income per share - basic
$
0.14
$
0.76
$
0.36
$
4.17
$
4.74
Net income per share - diluted
$
0.14
$
0.76
$
0.36
$
4.15
$
4.62
Adjusted net income
$
40
$
123
$
84
$
359
$
317
Adjusted net income per share - basic
$
0.47
$
1.47
$
0.93
$
4.13
$
4.00
Adjusted net income per share - diluted
$
0.47
$
1.46
$
0.91
$
4.11
$
3.89
Weighted-average common shares outstanding - basic
84.6
83.7
90.8
87.0
79.3
Weighted-average common shares outstanding - diluted
85.1
84.4
92.2
87.4
81.4
Effective tax rate
48
%
15
%
20
%
28
%
27
%
4th Quarter
3rd Quarter
4th Quarter
Total Year
Total Year
($ in millions)
2025
2025
2024
2025
2024
Cash Flow Data:
Net cash provided by operating activities
$
235
$
279
$
206
$
865
$
610
Net cash used in investing activities
$
(508
)
$
(87
)
$
(67
)
$
(725
)
$
(1,077
)
Net cash provided by (used in) financing activities
$
209
$
(68
)
$
(8
)
$
(380
)
$
343
December 31,
December 31,
($ in millions)
2025
2024
Select Balance Sheet Information:
Total current assets
$
938
$
1,024
Property, plant and equipment, net
$
5,905
$
5,680
Total current liabilities
$
1,050
$
980
Long-term debt, net
$
1,283
$
1,132
Noncurrent asset retirement obligations
$
913
$
995
Total stockholders' equity
$
3,674
$
3,538
GAINS AND LOSSES FROM COMMODITY DERIVATIVES
4th Quarter
3rd Quarter
4th Quarter
Total Year
Total Year
($ millions)
2025
2025
2024
2025
2024
Non-cash commodity derivative gain (loss)
$
95
$
(32
)
$
(51
)
$
225
$
274
Net received (paid) on settled commodity derivatives
31
9
2
41
(33
)
Net gain (loss) from commodity derivatives
$
126
$
(23
)
$
(49
)
$
266
$
241
Non-cash derivative loss (gain)
$
22
$
24
$
5
$
24
$
(2
)
Net paid on settled commodity derivatives
4
3
14
26
32
Net loss on natural gas purchase derivatives
$
26
$
27
$
19
$
50
$
30
CAPITAL INVESTMENTS
4th Quarter
3rd Quarter
4th Quarter
Total Year
Total Year
($ millions)
2025
