California Resources Corp

Second-quarter net production averaged 149 thousand barrels of oil equivalent per day, with oil representing 81% of total volumes. Oil realizations were approximately 95% of Brent before hedges. Operating costs were $347 million, adjusted EBITDAX was $338 million, operating cash flow was $300 million, and free cash flow before working capital was $151 million. G&A declined nearly 9% year over year, though the company did not give a year-over-year revenue or EPS figure in the call. For full year 2026, CRC maintained capital guidance of $520 million to $560 million and target net production of 153 thousand barrels of oil equivalent per day, with about 1% entry-to-exit production growth. Full-year realizations are expected to be about 94%, within the original 94% to 98% range, and updated 2026 guidance will be provided after the Crimson transaction closes.

Francisco J. Leon framed the quarter as proof that CRC’s integrated California strategy is working, citing stronger operations, synergy capture, and midstream expansion. He emphasized that the company is building a more resilient platform around California energy security, saying Crimson, Line 100, CCS, and power/data center opportunities all fit a long-term plan to monetize scarce local infrastructure. His tone was confident and strategic, with repeated focus on durability, market access, and assets that are hard to replicate.

Clio Crespy focused on execution, cost discipline, and balance-sheet strength. She cited $338 million of adjusted EBITDAX, $300 million of operating cash flow, $151 million of free cash flow before working capital, and $149 million of total capital in the quarter, while noting operating costs were $347 million and G&A was down nearly 9%. She said the company refinanced its remaining 2029 senior notes with new senior notes due 2035, extending weighted average debt maturity from 5.5 years to 8 years and lowering annual expenses by $5.5 million; she also said leverage is about 1x, the revolver is undrawn, and the company remains flexible on buybacks and strategic investments.

Analysts pressed on Crimson, transport bottlenecks, Uinta’s future, Golden Valley execution, capital allocation, and whether buybacks would be deferred. Management said the Crimson deal had been contemplated for years, fits CRC’s integrated strategy, and was attractive at about 4.4x estimated 2027 EBITDA; they also said CPUC approval is tentatively granted and a final decision is expected later this month. On the transportation issue, management said the problem is temporary, estimated the quarter’s impact at $25 million or less than $2 per BOE, and expects third-quarter realizations of about 93% of Brent before recovery later in the year. On Uinta, the company said it is drilling 4 wells and expects to complete them before year-end, but described the asset as non-core and unlikely to receive significant long-term capital.