California Resources Earnings Call Transcripts
Fiscal Year 2026
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Strong operational execution and synergy capture drove solid quarterly results, with production and cost efficiencies exceeding expectations. Strategic midstream acquisitions and CCS milestones enhance integration and future growth, while capital allocation remains disciplined and balanced.
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Q1 2026 saw strong financial performance, with adjusted EBITDA 17% above guidance and a raised full-year outlook. Accelerated drilling, improved capital efficiency, and CCS milestones position the business for growth, while merger synergies and disciplined capital allocation enhance returns.
Fiscal Year 2025
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Record 2025 results featured 25% production growth, $1.25B adjusted EBITDAX, and 94% of free cash flow returned to shareholders. 2026 guidance projects 12% production growth, $1B adjusted EBITDA, and continued capital discipline, with CCS and power platforms advancing.
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Q3 2025 saw strong operational and financial results, with stable production, robust cash flow, and a strengthened balance sheet. Regulatory improvements and strategic initiatives, including the Berry merger and CCS projects, position the company for continued growth and value creation.
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An all-stock merger creates a leading California-focused energy company, adding scale, operational synergies, and financial strength. The deal is expected to deliver $80–$90 million in annual synergies, is accretive to cash flow, and benefits from supportive state legislation.
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Record shareholder returns, strong operational execution, and early realization of merger synergies drove improved guidance and robust liquidity. Progress on CCS and power projects, plus regulatory momentum, position the company for growth and resilience.
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Delivered strong Q1 results, exceeding expectations and reaffirming 2025 guidance, driven by cost discipline, synergy realization, and robust hedging. Advanced carbon management and power businesses, returned record capital to shareholders, and maintained a strong balance sheet.
Fiscal Year 2024
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Delivered strong 2024 results with $1B+ Adjusted EBITDA, robust free cash flow, and 85% returned to shareholders. Advanced CCS with new National Cement deal and first EPA Class VI permit; 2025 guidance targets $1.1–$1.2B Adjusted EBITDA and continued capital returns.
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Exceeded Q3 expectations with strong production, cost control, and rapid Aera integration. Advanced carbon management with key regulatory milestones and new partnerships, while maintaining robust shareholder returns and a strong balance sheet.
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Completed the Aera merger, doubling production and expanding scale, while delivering strong Q2 results with $139M in adjusted EBITDAX and $63M in free cash flow. Raised dividend by 25%, advanced carbon management projects, and expect cash flow to more than double in H2 2024.