$CRC earnings report

This filing is a limited preliminary update for the three months ended September 30, 2026 rather than a full quarterly earnings release. It reports estimated index prices, realized prices and commodity-derivative activity, but explicitly states that the information is preliminary and unaudited, does not reflect all adjustments and charges, and is not comprehensive of quarterly results.

Oil realized price without derivative settlements was $83.42 per Bbl, compared with a Brent index price of $91.36 per Bbl. Including derivative settlements, the reported oil realized price was $72.46 per Bbl. Management stated that it does not view the third-quarter 2026 oil price realization relative to Brent as a long-term run rate.

NGLs realized price was $48.57 per Bbl both with and without derivative settlements. Gas realized price was $3.52 per Mcf both with and without derivative settlements, while NYMEX Henry Hub was $2.96 per Mcf. The filing provides no production volumes, revenue, expenses, margins, earnings, cash flow or balance-sheet figures, so the operational and financial significance of these price disclosures cannot be assessed from this document alone.

Commodity derivatives were a meaningful reported headwind. CRC estimated a $134 million loss from net settlement from commodity derivatives, comprising a $122 million loss from net settlements and premiums from commodity sales derivatives and a $12 million loss from settlements of natural gas purchase derivatives. The key item to monitor is whether commercial and logistics actions already underway improve oil realizations, alongside final results that may differ from this preliminary information.

No forward guidance, capital-return activity, cash-flow metrics or balance-sheet information was provided. There is also no prior-period comparison in the filing, preventing an assessment of sequential or year-over-year movement in pricing or derivative effects.

CRC's second-quarter operating performance showed improved underlying financial results despite lower sequential production. Adjusted EBITDAX was $338 million versus $304 million in the first quarter, adjusted net income was $88 million versus $79 million, net cash provided by operating activities was $263 million versus $99 million, and free cash flow was $114 million versus $ (32) million. GAAP net income of $514 million included a non-cash gain from changes in the fair value of outstanding commodity derivatives, while the reported net gain from commodity sales derivatives was $205 million.

Production was 149 MBoe/d, compared with 154 MBoe/d in the first quarter. Net oil production was 120 MBbl/d versus 124 MBbl/d, while NGL production was unchanged at 10 MBbl/d and natural gas production was 115 Mmcf/d versus 117 Mmcf/d. Realized oil prices improved both without and with derivative settlements, but realized natural gas price declined to $1.84 per Mcf from $3.56 per Mcf. The quarter also included approximately 137 thousand barrels of oil inventory built because of temporary takeaway constraints.

Management stated that temporary takeaway constraints, weaker differentials and higher operating and transportation costs reduced second-quarter adjusted EBITDAX and net cash provided by operating activities before net changes in operating assets and liabilities by approximately $25 million. The substantial majority of this inventory was sold in July 2026. Operating costs and general and administrative expenses were lower sequentially, while transportation costs rose. CRC also stated that operating expenses and general and administrative expenses were in line with expectations and that more than 100% of its annual Berry merger synergy target had been implemented.

Capital spending was $149 million, including $101 million of drilling, completions and workover capital, with total capital above initial expectations due to a 25% increase in drilling activity across the California portfolio. CRC reaffirmed full-year total capital outlook, reduced full-year drilling, completions and workover capital by $10 million to $370 million to $390 million, and targets approximately 1% entry-to-exit gross production growth. The company guides to 3Q26E production of 151 - 154 MBoe/d and adjusted EBITDAX of $285 - $325 million, alongside total-year adjusted EBITDAX of $1,200 - $1,300 million.

Capital allocation included $36 million of dividends in the quarter and a newly declared quarterly cash dividend of $0.405 per share. CRC refinanced its 2029 notes through a $550 million offering of 2035 Senior Notes and redemption of the $550 million 2029 Senior Notes, resulting in a $28 million loss on extinguishment of debt. The quarter ended with $1,322 million of liquidity. The proposed $63 million Crimson acquisition adds California pipeline and storage assets, and management expects to issue additional financial and operating guidance following closing of that transaction.