Q2 2026 California Resources Corp Earnings Call Transcript
Key Points
- Delivered a solid quarter with strong operational execution, including a 25% improvement in time-to-market and 80% of wells outperforming type curves.
- Achieved over 100% of the 2026 Berry synergy target six months ahead of schedule, with $103 million in annualized savings.
- Announced the accretive Crimson midstream acquisition at 4.4x 2027 EBITDA, enhancing market access and price realizations.
- Commenced CO2 injection and first revenue at California's first CCS project, positioning CRC as a commercial-scale sequestration operator.
- Reduced long-term maintenance capital by 5% and rig requirements to six, improving free cash flow resilience.
- Experienced temporary takeaway constraints due to marketing disputes, leading to a $25 million EBITDA impact and weaker oil differentials.
- Third-quarter oil realizations are guided lower at 93% of Brent, reflecting ongoing logistics challenges.
- The Uinta asset is deemed non-core with higher capital intensity and breakevens, potentially limiting portfolio growth.
- No share repurchases were made in the quarter due to strategic transaction focus, despite attractive stock valuation.
- Full-year production growth remains modest at approximately 1% entry-to-exit, with capital guidance unchanged.
Good day, and welcome to the California Resources Corporation second-quarter 2026 conference call. (Operator Instructions).
Please note, this event is being recorded.
I would now like to turn the conference over to Daniel Juck, Vice President of Investor Relations. Please go ahead.
Good morning, and welcome to California Resources Corporation's second-quarter 2026 conference call. We hope you've had a chance to review our earnings materials, which include our non-GAAP reconciliations. Today's call includes forward-looking statements, and actual results may differ due to factors described in our earnings release and SEC filings. Following prepared remarks, our leadership team will take questions.
(Event Instructions).
I will now turn over the call to Francisco.
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