CRC earnings analysis
What we found in CRC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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%.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $5.76
What they said about what is next.
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.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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