CRC · California Resources Corporation

California Resources Corporation reported a significant GAAP net loss of $711 million for the first quarter of 2026, a sharp reversal from the prior quarter's income of $12 million. This loss was primarily attributable to a substantial non-cash loss of $848 million in the fair value of outstanding commodity derivatives, reflecting the impact of higher oil prices on derivative positions. Excluding this non-cash impact, the company demonstrated strong operational performance with adjusted net income of $79 million, or $0.88 per diluted share, compared to $40 million in the prior quarter.

Operationally, the company delivered average net production of 154 MBoe/d (81% oil), with oil volumes slightly reduced by 1.5 MBbl/d due to the impact of higher oil prices on production sharing contracts. Total operating revenues before derivative impacts rose to $967 million from $798 million in the prior quarter. Management noted that operating expenses were in line with expectations, reflecting solid execution and ongoing capture of Berry merger-related synergies, while G&A expenses were slightly higher due to timing of legal fees and stock-based compensation.

A key highlight for investors was the material increase in full-year 2026 guidance. The company raised its Adjusted EBITDAX guidance midpoint by 42% to $1,450 million, driven by higher oil prices, increased drilling activity, and improved operating efficiencies. Management plans to increase second half 2026 drilling activity, moving to a seven-rig program, which resulted in an increase to the capital investments budget to a range of $520-$560 million. The company also increased its Berry merger annual synergy target range to $90-$100 million. The balance sheet remains robust with $1,276 million in liquidity as of March 31, 2026. The Board declared a quarterly dividend of $0.405 per share, consistent with the company's commitment to shareholder returns.