California Resources Corporation Reports Second Quarter 2025 Financial and Operating Results
Company Raises 2025E Production and Adjusted EBITDAX Guidance, Reduces Drilling, Completions and Workover Capital Program
Returned Quarterly Record of $287 Million to Shareholders
LONG BEACH, Calif., Aug. 05, 2025 (GLOBE NEWSWIRE) -- California Resources Corporation (NYSE:CRC) reported financial and operating results for the second quarter of 2025. The Company is hosting a conference call and webcast at 1 p.m. ET (10 a.m. PT) on Wednesday, August 6, 2025. Conference call details can be found within this release.
Second Quarter Highlights
Delivered average net production of 137 thousand barrels of oil equivalent per day (MBoe/d) (80% oil), at the high end of guidance, with drilling, completions and workover capital of $34 million, and added a second rig in Kern County
Reported net income of $172 million and net income per diluted share of $1.92; reported adjusted net income1 of $98 million and adjusted net income per diluted share of $1.10
Generated net cash provided by operating activities of $165 million, $109 million in free cash flow1 and $324 million in adjusted EBITDAX1, exceeding quarterly guidance
Ended the second quarter of 2025 with $56 million in available cash3 (excluding restricted cash), $983 million in available borrowing capacity and $1,039 million of liquidity1
Returned a record $287 million to shareholders2, including $252 million in share repurchases and $35 million in dividends
Other Highlights
Implemented the targeted $235 million in annualized Aera merger-related synergies since July 2024; expecting to realize $185 million in 2025 and the remaining $50 million in 2026
Lowered 2025 drilling, completions and workover capital program by $5 million, and raised the midpoint of 2025 net production and adjusted EBITDAX1 guidance to 136 MBoe/d (79% oil) and $1,235 million, respectively
Received authorization to construct from the U.S. Environmental Protection Agency (EPA) for carbon dioxide (CO2) injection wells for the 26R storage reservoir. See Carbon TerraVault's Second Quarter 2025 Update for additional information
"We delivered a very solid second quarter that reflects the strength of our assets, the discipline of our execution, and our focus on long-term value creation," said CRC President and CEO Francisco Leon. "Our team's ability to scale efficiently has nearly doubled our revenue and strengthened profitability, while fully implementing merger synergies ahead of schedule. That performance gives us the flexibility to sharpen our focus on what matters most: driving returns, building resilience, and setting up CRC for continued success. I want to thank all CRC employees for their dedication and efforts that continue to make CRC a different kind of energy company."
Second Quarter 2025 Comparative Financial Results
Selected Production, Price and Financial Results and non-GAAP measures
2nd Quarter
1st Quarter
($ in millions except production and prices)
2025
2025
Net oil production per day (MBbl/d)
109
111
Realized oil price with derivative settlements ($ per Bbl)
$
66.73
$
72.01
Net NGL production per day (MBbl/d)
10
10
Realized NGL price ($ per Bbl)
$
42.41
$
54.64
Net natural gas production per day (Mmcf/d)
111
117
Realized natural gas price with derivative settlements ($ per Mcf)
$
2.79
$
4.12
Net total production per day (MBoe/d)
137
141
Margin from purchased commodities1
$
15
$
14
Electricity margin1
$
53
$
12
Net gain from commodity derivatives
$
157
$
6
Other operating expenses net of other revenue1
$
60
$
27
Selected Financial Statement Data and non-GAAP measures:
2nd Quarter
1st Quarter
($ and shares in millions, except per share amounts)
2025
2025
Statements of Operations:
Total operating revenues
$
978
$
912
Operating costs
$
295
$
316
General and administrative expenses
$
79
$
72
Adjusted general and administrative expenses1
$
72
$
66
Taxes other than on income
$
47
$
70
Transportation costs
$
20
$
20
Operating income
$
267
$
186
Interest and debt expense, net
$
25
$
27
Income tax provision
$
70
$
47
Deferred income tax provision
$
6
$
35
Net income
$
172
$
115
Weighted-average common shares outstanding - diluted
89.4
91.2
Net income per share - diluted
$
1.92
$
1.26
Non-GAAP Measures, Cash Flow and Select Balance Sheet Data
Adjusted net income1
$
98
$
98
Adjusted net income per share1 - diluted
$
1.10
$
1.07
Adjusted EBITDAX1
$
324
$
328
Net cash provided by operating activities
$
165
$
186
Capital investments
$
56
$
55
Free cash flow1
$
109
$
131
Cash and cash equivalents
$
72
$
214
Guidance
The following table provides select third quarter 2025E and full year 2025E guidance4. CRC expects to run a two-rig program in the second half of 2025. CRC currently holds permits in excess of its planned 2025 capital program requirements. See Attachment 2 for CRC's third quarter 2025E and full year 2025E guidance.
3Q25E
Total Year2025E
Net Production (MBoe/d)
135-139
134 - 138
Percentage Oil
~79%
~79%
Capital Investments ($ millions)
$84 - $108
$280 - $330
Adjusted EBITDAX1 ($ millions)
$310 - $340
$1,195 - $1,275
Shareholder Returns
CRC is committed to returning cash to shareholders through dividends and repurchases of its common stock. In line with this strategy, CRC's Board of Directors has extended its Share Repurchase Program through June 30, 2026. As of June 30, 2025, CRC had $205 million remaining for share repurchases under its authorized Share Repurchase Program.
During the second quarter of 2025, CRC paid dividends of $35 million and repurchased 5.52 million common shares for $252 million (an average price of $45.73 per share)2. Share repurchases include 4.95 million shares from IKAV Impact S.a.r.l (IKAV), representing 23% of the total shares issued in the Aera Merger, at $46.00 per share, for $228 million. CRC funded shareholder returns with cash on hand.
On August 5, 2025, CRC's Board of Directors declared a quarterly cash dividend2 of $0.3875 per share of common stock, payable to shareholders of record on August 27, 2025. The dividend is expected to be paid on September 12, 2025.
Since May 2021, the Company has returned nearly $1.5 billion to shareholders2, including approximately $1.1 billion in share repurchases and $337 million in dividends.
Balance Sheet and Liquidity
CRC plans to redeem or refinance the $122 million outstanding balance of its 2026 Senior Notes in the second half of 2025.
CRC's borrowing base under its Revolving Credit Facility is $1,500 million. As of June 30, 2025, CRC had $56 million in available cash and cash equivalents4, $983 million of available borrowing capacity under its Revolving Credit Facility (which reflects $1,150 million of borrowing capacity less $167 million of outstanding letters of credit) and liquidity1 of $1,039 million.
Participation in Upcoming Investor Conference
CRC plans to participate in the following events in August and September 2025:
Citi's 2025 Global Energy & Power Conference, August 13 - 14, Las Vegas, NV
Barclays 39th Annual CEO Energy-Power Conference, September 2 - 4, New York, NY
Goldman Sachs Global Sustainability Forum, September 25, New York, NY
PEP Energy Conference September 29 - 30, Austin, TX
CRC's presentation materials will be available on the day of the event on its website. See "Events and Presentations" under the Investor Relations section on www.crc.com.
Conference Call Details
A conference call and webcast is scheduled for 1 p.m. ET (10 a.m. PT) on Wednesday, August 6, 2025. 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/10200260/ff49e72f54. 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 operating costs per BOE, adjusted net income (loss), adjusted net income (loss) per share - basic and diluted, net cash provided by operating activities before net changes in operating assets and liabilities, adjusted EBITDAX, free cash flow, liquidity and adjusted general and administrative expenses including reconciliations to their most directly comparable GAAP measure, where applicable. See Attachment 2 for the 3Q25E and 2025E estimates of the non-GAAP measures of adjusted EBITDAX and adjusted general and administrative expenses, including reconciliations to its most directly comparable GAAP measure.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 excise taxes. Commissions paid on share repurchases were not significant in all periods presented.3 Excludes restricted cash of $16 million at June 30, 2025.4 3Q25E guidance assumes Brent price of $66.00 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $3.40 per mcf. Total year 2025E guidance assumes Brent price of $68.00 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $3.65 per mcf. CRC's share of production under PSC contracts decreases when commodity prices rise and increases when prices fall.
About California Resources Corporation
California Resources Corporation (CRC) is an independent energy and carbon management company committed to 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 www.crc.com.
About Carbon TerraVault
Carbon TerraVault (CTV), CRC's carbon management business, is developing projects to capture, transport and permanently store CO2 for its CRC affiliates and its customers. CTV is engaged in a series of proposed CCS projects that if developed will inject CO2 captured from industrial sources into depleted oil and gas reservoirs deep underground for permanent sequestration. For more information, visit carbonterravault.com.
Forward-Looking Statements
This document contains statements that CRC believes to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical facts are forward-looking statements, and include statements regarding CRC's future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and plans and objectives 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 subject to risks and uncertainties that could cause actual results to differ materially from those expressed 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 Securities and Exchange Commission. 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 benefits in connection with the Aera 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 prevent oil and gas activities or the development of CRC's carbon management segment; changes in business strategy and capital plan; 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; 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 filing date, and CRC undertakes no obligation to update this information. This document 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:
Joanna Park (Investor
Daniel Juck (Investor
Hailey Bonus
Attachment 1
STATEMENTS OF OPERATIONS, SELECT FINANCIAL INFORMATION
2nd Quarter
1st Quarter
2nd Quarter
Six Months
Six Months
($ and shares in millions, except per share amounts)
2025
2025
2024
2025
2024
Statements of Operations:
Revenues
Oil, natural gas and natural gas liquids sales
$
702
$
814
$
412
$
1,516
$
841
Net gain (loss) from commodity derivatives
157
6
5
163
(66
)
Revenue from marketing of purchased commodities
56
64
51
120
125
Electricity sales
58
22
36
80
51
Other revenue
5
6
10
11
17
Total operating revenues
978
912
514
1,890
968
Operating Expenses
Operating costs
295
316
156
611
332
General and administrative expenses
79
72
63
151
120
Depreciation, depletion and amortization
128
131
53
259
106
Asset impairment
—
—
13
—
13
Taxes other than on income
47
70
39
117
77
Costs related to marketing of purchased commodities
41
50
43
91
97
Electricity generation expenses
5
10
14
15
22
Transportation costs
20
20
17
40
37
Accretion expense
28
29
13
57
25
Net loss (gain) on natural gas purchase derivatives
3
(6
)
1
(3
)
2
Measurement period adjustments, net
—
1
—
1
—
Other operating expenses, net
65
33
65
98
110
Total operating expenses
711
726
477
1,437
941
Net gain on asset divestitures
—
—
1
—
7
Operating Income
267
186
38
453
34
Non-Operating (Expenses) Income
Interest and debt expense, net
(25
)
(27
)
(17
)
(52
)
(30
)
Loss from investment in unconsolidated subsidiaries
—
(1
)
(4
)
(1
)
(7
)
Loss on early extinguishment of debt
—
(1
)
—
(1
)
—
Other non-operating income (loss), net
—
5
(6
)
5
(5
)
Income Before Income Taxes
242
162
11
404
(8
)
Income tax (provision) benefit
(70
)
(47
)
(3
)
(117
)
6
Net Income
$
172
$
115
$
8
$
287
$
(2
)
Net income per share - basic
$
1.93
$
1.27
$
0.12
$
3.20
$
(0.03
)
Net income per share - diluted
$
1.92
$
1.26
$
0.11
$
3.18
$
(0.03
)
Adjusted net income
$
98
$
98
$
42
$
196
$
96
Adjusted net income per share - basic
$
1.10
$
1.08
$
0.62
$
2.18
$
1.40
Adjusted net income per share - diluted
$
1.10
$
1.07
$
0.60
$
2.17
$
1.35
Weighted-average common shares outstanding - basic
89.0
90.6
68.1
89.8
68.6
Weighted-average common shares outstanding - diluted
89.4
91.2
70.0
90.3
68.6
Effective tax rate
29
%
29
%
27
%
29
%
75
%
2nd Quarter
1st Quarter
2nd Quarter
Six Months
Six Months
($ in millions)
2025
2025
2024
2025
2024
Cash Flow Data:
Net cash provided by operating activities
$
165
$
186
$
97
$
351
$
184
Net cash used in investing activities
$
(51
)
$
(79
)
$
(33
)
$
(130
)
$
(82
)
Net cash (used in) provided by financing activities
$
(256
)
$
(265
)
$
564
$
(521
)
$
433
June 30,
December 31,
($ in millions)
2025
2024
Select Balance Sheet Information:
Total current assets
$
728
$
1,024
Property, plant and equipment, net
$
5,560
$
5,680
Deferred tax asset
$
33
$
73
Total current liabilities
$
928
$
980
Long-term debt, net
$
888
$
1,132
Noncurrent asset retirement obligations
$
969
$
995
Deferred tax liability
$
185
$
113
Total stockholders' equity
$
3,407
$
3,538
GAINS AND LOSSES FROM COMMODITY DERIVATIVES
2nd Quarter
1st Quarter
2nd Quarter
Six Months
Six Months
($ millions)
2025
2025
2024
2025
2024
Non-cash commodity derivative gain (loss)
$
140
$
22
$
11
$
162
$
(48
)
Net received (paid) on settled commodity derivatives
17
(16
)
(6
)
1
(18
)
Net gain (loss) from commodity derivatives
$
157
$
6
$
5
$
163
$
(66
)
Non-cash derivative (gain) loss
$
(4
)
$
(18
)
$
(3
)
$
(22
)
$
(4
)
Net paid on settled commodity derivatives
7
12
4
19
6
Net loss (gain) on natural gas purchase derivatives
$
3
$
(6
)
$
1
$
(3
)
$
2
CAPITAL INVESTMENTS
2nd Quarter
1st Quarter
2nd Quarter
Six Months
Six Months
($ millions)
2025
2025
2024
2025
2024
Facilities
$
17
$
8
$
17
$
25
$
31
Drilling and completions
19
15
18
34
33
Workovers
15
19
11
34
18
Oil and natural gas segment
51
42
46
93
82
Carbon management segment
5
2
(2
)
7
2
Corporate and other
