California Resources Corp
NYSE:CRC
California Resources Corp
California Resources Corporation (CRC) emerged from Occidental Petroleum's split in 2014, carving out its niche as a major player in the oil and natural gas industry. Rooted deeply in the landscapes of California, CRC's primary operations revolve around the extraction, production, and development of hydrocarbon assets situated primarily in the prolific San Joaquin, Los Angeles, Ventura, and Sacramento Basins. Leveraging advanced extraction technologies, CRC employs a combination of traditional drilling, enhanced oil recovery (EOR) techniques, such as water and steam flooding, and cutting-edge methods to optimize production. Their strategic focus is not only on maximizing output but also on managing costs effectively, which is crucial given the volatile nature of oil prices and regulatory challenges inherent in California.
Beyond mere extraction, CRC has been intricately woven into California’s energy framework by emphasizing responsible energy production. It navigates through complex environmental regulations while striving to reduce greenhouse gas emissions and implement water recycling programs. This responsible approach aligns with the state’s robust environmental standards, positioning CRC as a company that aims to balance profitability with sustainability. Revenue streams are fundamentally tied to the fluctuating global prices of oil and gas, but strategic hedging practices and contracts often buffer against market shocks. By efficiently extracting resources from its well-established acreage, CRC has created a model that allows it to maintain economic viability amidst the ever-evolving energy landscape.
California Resources Corporation (CRC) emerged from Occidental Petroleum's split in 2014, carving out its niche as a major player in the oil and natural gas industry. Rooted deeply in the landscapes of California, CRC's primary operations revolve around the extraction, production, and development of hydrocarbon assets situated primarily in the prolific San Joaquin, Los Angeles, Ventura, and Sacramento Basins. Leveraging advanced extraction technologies, CRC employs a combination of traditional drilling, enhanced oil recovery (EOR) techniques, such as water and steam flooding, and cutting-edge methods to optimize production. Their strategic focus is not only on maximizing output but also on managing costs effectively, which is crucial given the volatile nature of oil prices and regulatory challenges inherent in California.
Beyond mere extraction, CRC has been intricately woven into California’s energy framework by emphasizing responsible energy production. It navigates through complex environmental regulations while striving to reduce greenhouse gas emissions and implement water recycling programs. This responsible approach aligns with the state’s robust environmental standards, positioning CRC as a company that aims to balance profitability with sustainability. Revenue streams are fundamentally tied to the fluctuating global prices of oil and gas, but strategic hedging practices and contracts often buffer against market shocks. By efficiently extracting resources from its well-established acreage, CRC has created a model that allows it to maintain economic viability amidst the ever-evolving energy landscape.
Regulatory Tailwinds: California passed major legislation improving permitting, authorizing CO2 pipelines, and extending Cap-and-Invest, creating the most favorable environment in over a decade for CRC.
Production Stability: Net production for Q3 was 137,000 BOE per day, staying flat quarter-over-quarter, with an improved annual base decline rate now at 8%–13%, down from 10%–15%.
Strong Financials: Adjusted EBITDAX reached $338 million and free cash flow before working capital was $231 million for the quarter. Capital investment and costs were within plan.
Berry Merger Progress: The pending Berry Corporation merger is on track, with $400 million raised to refinance Berry's debt, and management expects meaningful synergies post-close.
CCS Momentum: CRC's Carbon TerraVault business is progressing, with the first commercial-scale carbon capture and sequestration (CCS) project at Elk Hills expected to begin CO2 injection in early 2026.
Capital Discipline: Full-year 2025 capital expenditures remain within the $280–$330 million guidance range, and 2026 spending is forecast at $280–$300 million with a 4-rig program.
Shareholder Returns: The dividend was increased by 5%, and over $450 million has been returned through dividends and buybacks year-to-date, with more than $200 million in repurchase capacity remaining.
Power & CCS Partnerships: New partnerships, including with Capital Power, are expanding CRC's clean power and CCS footprint in California to address rising energy demand, especially from data centers.
