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 synergy capture and drilling efficiency gains.

• Completed the Berry merger and announced/acquired Crimson Midstream Holdings for $63 million, adding 2,000 miles of pipeline and enhancing California infrastructure and market access.

• 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 prioritized.

Financial highlights

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

• Operating cash flow before working capital was $300 million; free cash flow before working capital was $151 million.

• Operating costs were $347 million; G&A declined nearly 9% due to Berry-related efficiencies, with Q2 G&A at $89 million.

• Oil realizations were ~95% of Brent; NGLs at 51% of Brent; natural gas at 63% of NYMEX.

• Total operating revenues for Q2 2026 were $1,297 million, up 33% year-over-year.

Outlook and guidance

• 2026 capital program expected at $520–$560 million, with $500–$525 million for oil and natural gas, $12–$20 million for carbon management, and $8–$15 million for corporate/other.

• Net production guidance for 2026 is 150–155 MBoe/d (80% oil), targeting 1% entry-to-exit production growth.

• All 2026 drilling permits secured; building 2027 permit inventory.

• Oil realizations for the year expected at ~94% of Brent.

• Updated 2026 guidance to follow Crimson transaction close.