Strengthens California's Leading Energy Platform Through Strategic Acquisition

Sustainable Operational Efficiency Gains Enhance 2026 Outlook and Further Reduces Estimated Long-Term Maintenance Capital

LONG BEACH, Calif., Aug. 10, 2026 (GLOBE NEWSWIRE) -- California Resources Corporation (NYSE: CRC) today reported its financial and operating results for the second quarter of 2026. The Company plans to host a conference call and webcast at 1 p.m. ET (10 a.m. PT) on Monday, August 10, 2026. Conference call details can be found within this release.

Highlights

• Delivered average net production of 149 thousand barrels of oil equivalent per day (MBoe/d) (81% oil)
• Reported net income of $514 million which includes the non-cash gain from changes in the fair value of outstanding commodity derivatives, adjusted net income¹ of $88 million and $338 million of adjusted EBITDAX¹
• Generated net cash provided by operating activities of $263 million or $300 million of net cash provided by operating activities before net changes in operating assets and liabilities¹  
• Delivered $114 million of free cash flow¹ or $151 million of free cash flow before net changes in operating assets and liabilities¹
• Returned $36 million to shareholders through dividends²
• Ended the quarter with $1,279 million in borrowing capacity and $43 million in available cash and cash equivalents³, representing $1,322 million of liquidity^{1, 3}

Other Highlights

• Announced the signing of a definitive purchase agreement to acquire Crimson Midstream Holdings, LLC (“Crimson”) from CorEnergy Infrastructure Trust, Inc. for total cash consideration of $63 million, subject to customary adjustments. See California Resources Corporation Expands Integrated California Energy Infrastructure Platform Through Strategic Midstream Acquisition for additional information
• Lowered California long-term maintenance capital outlook by reducing drilling, completions and workover capital expectations by approximately 5% to a $450 million to $475 million range with six drilling rigs, compared to seven previously
• Optimized capital structure, reduced annual interest payments and extended maturities through recent $550 million offering of 7.250% senior notes due 2035 (2035 Senior Notes) and subsequent redemption of all remaining 8.250% senior notes due 2029 (2029 Senior Notes)
• Announced the Golden Valley Technology Hub project, a proposed data center development in partnership with Beacon Data Centers (Beacon), at CRC's Elk Hills field. See www.goldenvalleytechhub.com for additional information
• Implemented more than 100% of the annual Berry merger synergy target, representing $103 million of annualized savings six months ahead of schedule
• Achieved first carbon dioxide (CO₂) injection and revenue at Carbon TerraVault I (CTV I), California's inaugural carbon capture and storage (CCS) project. See Carbon TerraVault Provides Second Quarter 2026 Update for additional information

"Our teams are executing exceptionally well, delivering durable operational improvements across our asset base,” said Francisco Leon, CRC’s President and Chief Executive Officer. “Recent efficiency gains and continued Berry synergy capture are strengthening our long-term outlook. Specifically, we are now able to maintain flat California production with fewer rigs and less maintenance capital, creating operational and financial momentum into 2027 and beyond.

"Today, we also announced the planned acquisition of Crimson’s California pipeline systems and storage assets, a strategic infrastructure investment that strengthens our California platform. In parallel, our team continued to advance the Golden Valley Technology Hub with Beacon, leveraging CRC’s assets to meet California’s growing AI demand for reliable power. These developments strengthen CRC’s integrated energy platform, reinforce our commitment to California and create long-term value for our shareholders, Californians and the communities we serve.”

Second Quarter 2026 Results

• Operating expenses and general and administrative expenses were in line with expectations reflecting solid execution and the ongoing capture of Berry merger-related synergies
• Invested total capital of $149 million including drilling, completions and workover capital¹ of $101 million; total capital was higher than initial expectations driven by a 25% increase in drilling activity across the California portfolio
• Built approximately 137 thousand barrels of oil (MBo) of inventory due to temporary takeaway constraints, equivalent to approximately 1.5 MBo/d, which, together with weaker differentials and higher operating and transportation costs, reduced second quarter adjusted EBITDAX¹ and net cash provided by operating activities before net changes in operating assets and liabilities¹ by approximately $25 million. The substantial majority of this inventory was sold in July 2026
  
  

2026 Guidance Highlights

CRC reaffirmed its full-year 2026 total capital outlook and reduced expected full-year 2026 drilling, completions and workover capital by $10 million to $370 million to $390 million while targeting approximately 1% entry-to-exit gross production growth. Stronger operating efficiencies across the portfolio, together with the impact of lower estimated oil prices on production-sharing contracts, provide increased confidence in achieving these targets and strengthen the Company’s long-term outlook.

CRC expects to operate an average of five rigs in California and one rig in Utah during the second half of 2026 and currently holds sufficient permits to support its 2026 capital program. The Company also continues to build its permit inventory in support of anticipated 2027 operations. Following the closing of the pending transaction, CRC expects to provide additional financial and operating guidance. The following table provides key current third-quarter and full-year 2026 financial and operating guidance⁴. See Attachment 2 for additional information.

Shareholder Returns

On August 10, 2026, CRC's Board of Directors declared a quarterly cash dividend of $0.405 per share of common stock, payable to shareholders of record on September 4, 2026. The dividend is expected to be paid on September 18, 2026.

In the second quarter 2026, CRC returned $36 million in dividends to shareholders. Since 2021, the Company has returned approximately $1,655 million to shareholders, including $1,180 million in share repurchases and $475 million in dividends².

Balance Sheet and Liquidity

In June 2026, CRC completed an offering of $550 million of 2035 Senior Notes. The proceeds, together with cash on hand, were used to redeem all $550 million of the Company’s outstanding 2029 Senior Notes for total consideration of $573 million. The redemption resulted in a $28 million loss on extinguishment of debt, including a $23 million premium paid and $5 million write-off of unamortized debt issuance costs, net of unamortized premium. Following this redemption, CRC had outstanding $750 million of 2034 Senior Notes and $550 million of 2035 Senior Notes.

As of June 30, 2026, CRC had liquidity of $1,322 million^1,3, consisting of $43 million in available cash and cash equivalents³ and $1,279 million of available borrowing capacity under its Revolving Credit Facility (which reflects $1,460 million of borrowing capacity less $181 million of outstanding letters of credit and no balance outstanding on the Revolving Credit Facility).

Participation in Upcoming Investor Conferences

CRC is scheduled to participate in the following events in August and September 2026:

• Citi 2026 Natural Resources Conference, August 12 and 13, Las Vegas, NV
• Seaport 15th Annual Summer Investor Conference, August 18, Virtual
• Daniel Energy Partners, Executive Series, September 1 to 3, Pebble Beach, CA
• Barclays 40th Annual Energy-Power Conference, September 9 and 10, New York, NY
• NYSE Energy & Utilities Investor Access Day, September 24, Virtual
• PEP Energy Conference 2026, September 29, Austin, TX

CRC’s presentation materials will be available on the day of the event on its website. See the Events and Presentations page under the Investor Relations section at www.crc.com.

Conference Call Details

A conference call and webcast is planned for 1 p.m. ET (10 a.m. PT) on Monday, August 10, 2026. 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/10209577/1041fba52bd. 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 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, free cash flow before net changes in operating assets and liabilities, adjusted general and administrative expenses, total operating revenues before net (loss) gain from commodity derivatives, margin from purchased commodities, electricity revenue net of electricity generation expenses and other operating expenses net of other revenue, including reconciliations to the most directly comparable GAAP measure without unreasonable effort. See Attachment 2 for the 3Q26 and 2026 estimates of the non-GAAP measures of adjusted EBITDAX, adjusted general and administrative expenses, margin from purchased commodities, other operating expenses net of other revenue and electricity revenue net of electricity generation expenses, including reconciliations to its most directly comparable GAAP measure, without unreasonable effort. See Attachment 1 for a reconciliation of drilling completion and workover capital to total capital investments, and non-cash commodity derivative (loss) gain from combined derivatives to net (loss) gain from combined derivatives, reported under GAAP.
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 commissions and excise taxes. Commissions paid on share repurchases were not significant in all periods presented.
³ Excludes restricted cash of $13 million.
⁴ 3Q26 guidance assumes Brent price of $83.14 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $2.95 per mcf. Total year 2026 guidance assumes Brent price of $84.51 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $3.55 per mcf.

About California Resources Corporation

California Resources Corporation (CRC) is an independent energy and carbon management company advancing the 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, develops services to capture, transport and permanently store carbon dioxide (CO₂) for its customers. CTV is advancing a portfolio of carbon capture and storage (CCS) projects, including CTV I, which is now operational and injecting CO₂ for permanent sequestration in a depleted reservoir deep underground. For more information, visit www.carbonterravault.com.

Forward-Looking Statements

Information set forth in this communication, including financial estimates and statements as to the effects of the Berry Merger and the Crimson acquisition, constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other securities laws. All statements other than historical facts are forward-looking statements, and include statements regarding the benefits of the Berry Merger and the Crimson acquisition, CRC's future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and plans and objectives and intentions 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 based upon the current beliefs and expectations of the management of CRC and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, projected 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 SEC. 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 synergies and other benefits in connection with the Berry Merger, Crimson acquisition 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 or prevent oil and gas activities or the development of CRC’s carbon management segment; changes in business strategy and the ability and financial resources to execute our capital plan in a timely manner; 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; delays from government approvals and otherwise that could affect the timing of first injection of CO₂; 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 date hereof, and CRC is under no obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise. This communication 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:

⁽¹⁾ Margin from purchased commodities is calculated as the difference between revenue from marketing of purchased commodities and costs related to marketing of purchased commodities, and excludes costs of transportation.
⁽²⁾ Other operating revenue and expenses, net is calculated as the difference between other revenue and other operating expenses, net and includes exploration expense and CMB expenses. CMB expenses includes lease cost for sequestration easements, advocacy, and other startup related costs.
See Attachment 3 for management's disclosure of its use of these non-GAAP measures and how these measures provide useful information to investors about CRC's results of operations and financial condition.
⁽³⁾ Current income tax composition is subject to variability and depends on a number of factors, including but not limited to, final taxable income determinations, the availability and utilization of net operating loss carryforwards (NOLs), applicable tax credits, and other differences between book and taxable income. Accordingly, the current provision may vary from period to period and should not be viewed as indicative of future tax obligations.

FORWARD LOOKING NON-GAAP RECONCILIATIONS