California Resources Corporation

California Resources Corporation (NYSE: CRC) produces oil and natural gas, mainly in California. It also develops carbon capture and storage projects through Carbon TerraVault.

Third-quarter results

The table compares the three months ended September 30. Amounts are USD millions, except per-share figures and production.

GAAP revenue includes gains and losses on commodity sales contracts, including cash settlements. Adjusted net income removes noncash derivative valuations and selected transaction, financing and other costs, with their tax effects. CRC's free cash flow is operating cash flow less reported capital investment; acquisitions are a separate use of cash.

The Berry merger closed on December 18, 2025. The 2026 figures include that business, while the 2025 comparison predates the merger.

Quarterly earnings and cash movement

Q3's $315 million net loss followed a $514 million Q2 profit. Combined noncash derivative valuations moved from a $390 million gain to a $540 million loss. Cash settlements and premiums on the combined contracts used $134 million, versus $190 million in Q2.

Operating cash flow rose from $263 million to $305 million. Before changes in operating assets and liabilities, it remained $300 million in each quarter. After capital investment, cash flow on that same basis fell to $142 million from $151 million. Reported free cash flow rose to $147 million from $114 million.

Operating costs increased to $386 million from $347 million, reflecting higher natural gas input prices and workover activity. Electricity revenue after generation costs improved to $35 million from a $4 million loss.

Earlier expectations and the next quarter

In August, CRC forecast Q3 adjusted EBITDAX of $285 million to $325 million; the result was $341 million. That measure removes interest, taxes, depreciation, depletion, amortization, exploration costs and selected other items. The August forecast assumed Brent oil at $83.14 a barrel; the quarter's average benchmark price was $91.36.

Production of 152,000 barrels of oil equivalent a day was within August's 151,000 to 154,000 range. Capital investment of $158 million was within the $150 million to $170 million forecast.

The November Q4 forecast is 150,000 to 152,000 barrels of oil equivalent a day, capital investment of $110 million to $130 million and adjusted EBITDAX of $340 million to $380 million. It assumes Brent oil at $102.90 a barrel and includes Uinta through year-end.

Preliminary 2027 drilling, completion and workover spending is $450 million to $475 million and excludes Uinta. That is the same range used for California's long-term maintenance plan in August; it is not the company's total capital-investment forecast.

Completed acquisitions and pending developments

CRC completed its approximately $63 million all-cash purchase of Crimson Midstream from CorEnergy on September 1, 2026. The acquisition adds California pipeline infrastructure. It follows the Berry merger, which brought operations in California and Utah.

The approximately $90 million Uinta Basin sale remains pending, with closing expected by year-end. CRC and Bloom Energy have also signed a nonbinding agreement to evaluate fuel-cell power generation paired with carbon capture and storage.

Financing and shareholder returns

At September 30, available cash and cash equivalents were $35 million, excluding $13 million of restricted cash. Available borrowing capacity was $1.280 billion, giving reported liquidity of $1.315 billion. The carrying value of long-term debt was $1.281 billion.

An October amendment extended the revolving credit facility to March 2030, increased lender commitments to $1.470 billion and reaffirmed a $1.5 billion borrowing base.

CRC paid $36 million of dividends and repurchased $30 million of shares in Q3. On November 2, it declared a quarterly dividend of $0.42 a share, up from $0.405, payable December 18.