California Resources Corporation (CRC) SEC Filings & Earnings Calls

Derivative loss of $134M may pressure cash flow and earnings

“loss from net settlement from commodity derivatives of $134 million” · word for word

Oil price realization below Brent index; company expects improvement but uncertainty remains

“Company does not view its third quarter 2026 oil price realization relative to Brent as a long-term run rate” · word for word

Commodity price volatility

“The company's financial results are highly sensitive to oil and gas prices, as evidenced by the large swing in net gain from commodity sales derivatives from a gain of $157 million in Q2 2025 to a loss of $643 million in H1 2026.”

Integration risk from Berry Merger

“The Berry Merger significantly impacts comparability and the purchase price allocation is still preliminary, indicating integration risks.”

Regulatory and legal risks

“The company is involved in disputes with CalGEM and BSEE regarding decommissioning obligations, with potential liabilities of $23 million and $25 million respectively.”

Temporary takeaway constraints and weaker differentials reduced EBITDAX by ~$25M.

“Built approximately 137 MBo of inventory due to temporary takeaway constraints, which together with weaker differentials and higher operating and transportation costs, reduced second quarter adjusted EBITDAX by approximately $25 million.”

Large derivative loss ($190M) significantly reduces realized oil price, indicating hedging costs or unfavorable settlements.

“loss from net settlement from commodity derivatives of $190 million, including a loss of $164 million from net settlements and premiums from commodity sales derivatives and a loss of $26 million from settlements of natural gas purchase derivatives.” · word for word

Refinancing reduces interest expense but increases debt maturity; no change in principal amount.

“redeem all outstanding $550 million ... 8.250% senior unsecured notes due 2029 ... with new 7.250% notes due 2035”

Negative free cash flow and net loss in Q1 2026; high derivative losses ($848M) and capital investments exceeding operating cash flow.

“Net loss $711M, free cash flow -$32M, capital investments $131M vs operating cash flow $99M.”

Increased leverage with $550M new debt at 7.25% coupon; interest expense burden may pressure cash flows.

“Issuance of $550M senior notes at 7.250% due 2035.”

Commodity price volatility

“Net (loss) gain from commodity sales derivatives $(848) million for Q1 2026 vs $6 million for Q1 2025” · word for word

High leverage and debt refinancing risk

“Long-term debt, net $1,310M; loss on early extinguishment of debt $21M in Q1 2026”

Integration risk from Berry Merger

“Berry Merger closed December 18, 2025; purchase price allocation remains preliminary.”

Derivative losses impact reported net income

“Net loss $711M primarily from non-cash loss in fair value of derivatives”

Increased debt leverage but at lower cost.

“Additional $350M debt, but refinancing reduces interest rate from 8.250% to 7.000%.”

Commodity Price Volatility

“The construct of the AIP recognized the material impact that fluctuations in commodity prices have on CRC’s financial measures including adjusted EBITDAX and free cash flow.” · word for word

Integration Risk from Berry Merger

“The Board oversaw the transaction process and remains engaged in monitoring integration progress and planned synergy realization using a proven, repeatable framework.” · word for word

Regulatory and Permitting Risk in California

“As permitting visibility in California improved, the Board supports a balanced capital allocation approach that prioritizes disciplined reinvestment in high-return development.” · word for word

Activist or large holder reduction in stake

“On March 12, 2026, the Reporting Persons sold an aggregate of 3,500,000 shares of Common Stock at a price of $61.10 per share in a block sale transaction.” · word for word

Activist or large holder reduction in stake

“On March 12, 2026, the Reporting Persons sold an aggregate of 3,500,000 shares of Common Stock at a price of $61.10 per share in a block sale transaction.” · word for word

Higher leverage from additional debt issuance; coupon of 7% indicates elevated interest cost.

“upsized private offering of an additional $350 million aggregate principal amount of its 7.000% senior unsecured notes due 2034” · word for word

Pro forma data is illustrative and not indicative of future results; integration risks from Berry merger.

“The pro forma financial data included in this Exhibit is presented to reflect the Transactions for illustrative purposes only.” · word for word

CCS Subsidy Dependency

“Our Carbon TerraVault business and other CCS projects depend on financial and tax incentives to be economical, and these incentives may be insufficient, unavailable, delayed, reduced or terminated.” · word for word

California Regulatory Headwinds

“Recent and future actions by the State of California could reduce both the demand for and supply of oil and natural gas within the state and consequently have a material adverse effect on our business, results of operations and financial condition.” · word for word

Permitting Delays Resumption Uncertain

“we cannot provide assurances that permit issuances will continue at anticipated levels or that future legislative, regulatory, administrative or judicial actions will not again delay or restrict permitting activity.” · word for word

Geopolitical Price Volatility

“The conflicts in Ukraine and Israel and the geopolitical uncertainty in the Middle East and Venezuela have caused price volatility and geopolitical instability which impact our business.” · word for word

CCS Project Litigation

“on November 22, 2024, a group of non-governmental organizations filed a Petition for Writ of Mandate and Complaint for Injunctive Relief against Kern County and its Board of Supervisors (CTV I Complaint) in Kern County for our CTV I project.” · word for word

Integration risk from all-stock merger with Berry Corporation

“Merger involves combining operations; integration may face challenges.”

Transaction still subject to Berry shareholder approval and FERC authorization, creating execution risk.

“Consummation remains subject to other customary conditions, including Berry shareholder approval and prior authorization by FERC.”

Commodity price volatility

“Net (loss) gain from commodity derivatives swung from a gain of $356M in Q3 2024 to a loss of $23M in Q3 2025.”

Regulatory cost exposure

“Other operating expenses, net includes $25 million related to CalGEM dispute over orphaned wells.”

Debt refinancing risk

“Current portion of long-term debt increased to $122M from $0 at year-end 2024, reflecting 2026 Senior Notes nearing maturity.”