Key Highlights

  • Net production averaged 152 MBoe/d, 80% oil, up 2% from the second quarter, with five rigs running.
  • Adjusted Net Income was USD 104 million and adjusted EBITDAX was USD 341 million, above quarterly guidance.
  • Free Cash Flow was USD 147 million, and the company returned USD 66 million to shareholders.
  • The quarterly Dividend rose 4% to USD 0.42 per share, and Liquidity ended the quarter at USD 1,315 million.

Results

California Resources Corporation (NYSE:CRC) reported third-quarter 2026 net production of 152 MBoe/d, 80% oil, compared with 149 MBoe/d in the second quarter. The company posted a net loss of USD 315 million, which included a non-cash loss of USD 540 million from changes in the Fair Value of Commodity derivatives, while adjusted net income was USD 104 million and adjusted EBITDAX was USD 341 million.

Net cash from Operating Activities was USD 305 million, Capital deployed was USD 158 million and free cash flow was USD 147 million.

Production and Prices

Net oil production was 121 MBbl/d versus 120, net NGL production 11 MBbl/d versus 10 and net Natural Gas production 123 MMcf/d versus 115. The realized oil price was USD 83.42 per barrel before derivative settlements, down from USD 91.55, and USD 72.46 including settlements versus USD 76.43. Realized NGL price was USD 48.57 and natural gas was USD 3.52 per Mcf versus USD 1.84.

Natural gas liquids and gas production exceeded guidance by about 1 MBoe/d, supported by the new Belridge-Elk Hills connection and California's first carbon capture and storage project at the Elk Hills Cryogenic Gas Plant. Electricity Revenue net of generation expenses exceeded guidance on higher resource adequacy prices and greater wholesale deliveries, while operating expenses rose on higher natural gas purchase prices for steamflood operations and more workovers.

The net loss was USD 3.55 per diluted share versus income of USD 5.76 in the second quarter, and adjusted net income was USD 1.17 per share versus USD 0.99, on 88.7 million diluted shares. Operating costs rose to USD 386 million from USD 347 million, taxes other than on income to USD 81 million from USD 66 million and transportation costs to USD 31 million, while adjusted general and administrative expense fell to USD 79 million from USD 89 million. The company ran five rigs in the third quarter and plans to enter 2027 with six rigs in California.

Capital Returns, Deals and Liquidity

The company returned USD 66 million, including USD 36 million of dividends and USD 30 million of share repurchases, and declared a quarterly dividend of USD 0.42 per share. Liquidity was USD 1,315 million, made up of USD 1,280 million of borrowing capacity and USD 35 million of cash.

It closed the all-cash Acquisition of Crimson Midstream, signed an agreement to sell its Uinta Basin Assets for about USD 90 million, targeted to close by year end, and announced a memorandum of understanding with Bloom Energy to evaluate one gigawatt or more of solid-oxide fuel cell power generation paired with carbon capture and storage. President and chief executive Francisco Leon cited capital discipline and efficiency gains.

Items to Follow

Items to track include integration of Crimson, closing of the Uinta sale, steamflood operating costs, oil price realizations and the Bloom Energy evaluation.