10-Q · May 6, 2026
California Resources Corporation (CRC) reported Q1 2026 financial results with revenue of $967 million, surpassing estimates of $936.8 million. However, earnings per share (EPS) were slightly below expectations at $0.88…
Earnings analysis · 10-Q
CRC earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
CRC delivered a strong Q2 2026 result, with $1.297 billion of revenue and $5.76 diluted EPS versus consensus estimates of $919.6 million and $1.36, respectively. Free cash flow improved to $114 million from negative $34…
Read full summary
CRC delivered a strong Q2 2026 result, with $1.297 billion of revenue and $5.76 diluted EPS versus consensus estimates of $919.6 million and $1.36, respectively. Free cash flow improved to $114 million from negative $34 million in Q1, while full-year total capital guidance remained $520 million-$560 million and drilling, completions and workover guidance was reduced by $10 million. The principal concerns are takeaway constraints, ongoing debt and refinancing exposure, and commodity and acquisition-related risks; the company reported no material changes to its formal risk factors.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $5.76
What stood out
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Revenue materially beat estimates
Revenue was $1.297 billion, up 34% from $967 million in Q1 2026 and 58% from $821 million in Q2 2025. It exceeded the $919.6 million consensus estimate by approximately 41%.
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EPS sharply exceeded consensus
Diluted EPS was $5.76 versus a loss of $8.02 in Q1 2026 and $1.92 in Q2 2025, exceeding the $1.36 consensus estimate by $4.40.
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Free cash flow turned positive
Free cash flow was $114 million, improving from negative $34 million in Q1 2026 and increasing from $109 million in Q2 2025.
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Capital guidance maintained with reduction
Management maintained full-year 2026 total capital guidance of $520 million-$560 million while reducing drilling, completions and workover guidance by $10 million to $370 million-$390 million.
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Production and EBITDAX targets reaffirmed
Full-year targets include production of 150-155 MBoe/d and adjusted EBITDAX of $1.2 billion-$1.3 billion.
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Repurchase capacity remains available
The company had $600 million remaining under its $1.78 billion share repurchase authorization as of June 30, 2026, although it repurchased no shares during the quarter.
What to watch
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Takeaway constraints remain a headwind
Management identified takeaway constraints as a headwind to results; the quarter nevertheless generated $1.297 billion of revenue. Exposure to transportation and market-access limitations remains a risk to production monetization.
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Debt refinancing exposure
The filing includes a 2035 Notes Indenture dated June 26, 2026 and a credit agreement amendment effective April 14, 2026, indicating ongoing refinancing and debt-structure exposure.
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No material risk-factor changes
The company stated that there were no material changes to its risk factors during the three months ended June 30, 2026. Existing commodity-price, acquisition-integration and operating risks therefore remain applicable.
Management's outlook
Full-year 2026 total capital guidance was maintained at $520 million-$560 million. Drilling, completions and workover capital guidance was reduced by $10 million to $370 million-$390 million; production guidance is 150-155 MBoe/d and adjusted EBITDAX guidance is $1.2 billion-$1.3 billion. EPS and revenue guidance were not provided.
Earlier filings 4
10-K · March 2, 2026
The 2025 10‑K positions CRC as the largest operator in California following the December 18, 2025 Berry merger (adding 93 MMBoe proved reserves) and emphasizes integration synergies, balance‑sheet strength and…
10-Q · November 5, 2025
The 10-Q shows mixed operational progress: Q3 revenue of $855.0M with gross margin of 54.4% and operating margin of 14.7%, but EPS weakened to $0.76 (quarterly history). Management points to materially stronger…
10-Q · August 6, 2025
California Resources reported a strong quarter: operating revenues of $978 million and operating income of $267 million for Q2 2025, versus $514 million and $38 million in Q2 2024, respectively. Net income was $172…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.