Track market-moving stories before they get noisy

Nearly 40% of patients alive at three years with Ziihera plus tislelizumab and chemotherapy, irrespective of PD-L1 status, achieving a median OS of 27 months

Mature HERIZON-GEA-01 results show Ziihera plus chemotherapy delivered statistically significant and clinically meaningful OS benefit, reducing the risk of death by 24% versus trastuzumab plus chemotherapy

For U.S. media and investors only

, /PRNewswire/ -- Jazz Pharmaceuticals plc (Nasdaq: JAZZ) today announced updated overall survival (OS) results from the Phase 3 HERIZON-GEA-01 trial evaluating Ziihera® (zanidatamab-hrii) in combination with chemotherapy, with or without Tevimbra® (tislelizumab-jsgr), as first-line treatment for adults with HER2-positive (HER2+) locally advanced or metastatic gastroesophageal adenocarcinoma (GEA). The results from the second interim, and final formal, analysis were presented as a late-breaking rapid oral presentation (LBA79) at the European Society for Medical Oncology (ESMO) Congress 2026 in Madrid, Spain.

"For patients with HER2+ advanced GEA, long-term survival remains difficult to achieve. With longer follow-up, Ziihera-containing regimens demonstrated a durable overall survival benefit, with nearly 40% of patients treated with Ziihera plus tislelizumab and chemotherapy alive at three years," said Dr. Kohei Shitara, director of the Department of Gastrointestinal Oncology, and principal trial investigator at the National Cancer Center Hospital East, Kashiwa, Japan. "Ziihera plus chemotherapy has also now demonstrated a statistically significant survival benefit over trastuzumab plus chemotherapy. Together, these findings provide strong evidence for Ziihera-containing regimens as the new HER2-directed first-line standard of care."

At the data cutoff, median follow-up was 35.3 months, 9.4 months longer than at the first interim analysis. Key findings included:

Ziihera plus tislelizumab and chemotherapy sustained its OS benefit versus trastuzumab plus chemotherapy, with an improved HR: Median OS reached 27.0 months (95% confidence interval [CI]: 23.7-32.2), the longest reported in a Phase 3 trial in this setting, compared with 19.6 months with trastuzumab plus chemotherapy. The Ziihera plus tislelizumab and chemotherapy regimen reduced the risk of death by 35% (hazard ratio [HR] 0.65; 95% CI: 0.52-0.80), improving from an HR of 0.72 at the first interim analysis.Nearly 40% of patients receiving Ziihera plus tislelizumab and chemotherapy were alive at three years: Estimated 36-month OS was 39.8% with Ziihera plus tislelizumab and chemotherapy, 31.5% with Ziihera plus chemotherapy and 22.9% with trastuzumab plus chemotherapy.Ziihera plus chemotherapy demonstrated a statistically significant and clinically meaningful OS improvement versus trastuzumab plus chemotherapy: Median OS was 22.9 months (95% CI: 19.9-27.6) with Ziihera plus chemotherapy compared with 19.6 months (95% CI: 16.9-22.2) with trastuzumab plus chemotherapy. Ziihera plus chemotherapy reduced the risk of death by 24% (HR 0.76; 95% CI: 0.62-0.93; P=0.0088).Ziihera plus tislelizumab and chemotherapy showed a meaningful trend toward improved OS versus Ziihera plus chemotherapy: Median OS was approximately four months longer with Ziihera plus tislelizumab and chemotherapy than with Ziihera plus chemotherapy (27.0 versus 22.9 months; HR 0.81; 95% CI: 0.65-1.00; P=0.0502). The difference did not reach statistical significance. Mean duration of treatment was longest for Ziihera plus tislelizumab and chemotherapy (64.1 weeks): 11.5 weeks longer than Ziihera plus chemotherapy (52.6 weeks), and 21.8 weeks longer than trastuzumab plus chemotherapy (42.3 weeks).Safety profiles remained unchanged with longer follow-up: The safety profiles of both Ziihera-containing regimens were consistent with the first interim analysis, supporting the tolerability of prolonged treatment."These HERIZON-GEA-01 three-year landmark results demonstrate meaningful survival outcomes for patients with HER2+ advanced GEA," said Rob Iannone, M.D., M.S.C.E., executive vice president, global head of R&D, and chief medical officer of Jazz Pharmaceuticals. "The statistically significant survival benefit observed with Ziihera plus chemotherapy and the durable outcomes seen with Ziihera plus tislelizumab and chemotherapy cement Ziihera as the new HER2-targeted backbone therapy in first-line HER2+ advanced GEA."

The Ziihera-containing regimens were recently included as preferred therapies in the National Comprehensive Cancer Network® (NCCN®) Clinical Practice Guidelines in Oncology® for Gastric Cancer, and Esophageal and Esophagogastric Junction Cancers, and Ziihera plus tislelizumab and chemotherapy is the only preferred HER2+ regimen irrespective of PD-L1 status.

These results follow the August 25, 2026, U.S. Food and Drug Administration (FDA) approval of two Ziihera-containing regimens for the first-line treatment of adults with HER2+ unresectable locally advanced or metastatic GEA: Ziihera plus tislelizumab and fluoropyrimidine- and platinum-containing chemotherapy for adults with HER2+ IHC 3+ or IHC 2+/ISH+ disease; and Ziihera plus fluoropyrimidine- and platinum-containing chemotherapy for adults with HER2+ IHC 3+ disease. The approval was based on results from the Phase 3 HERIZON-GEA-01 trial, which were first presented at ASCO GI 2026, subsequently published in The New England Journal of Medicine and further evaluated through PD-L1 subgroup analyses presented at ASCO 2026.

The U.S. Prescribing Information for Ziihera contains Boxed Warnings for diarrhea and embryo-fetal toxicity.

Additional Important Safety Information related to Ziihera use in GEA is provided below. Please see full Prescription, including Boxed Warnings at https://pp.jazzpharma.com/pi/ziihera.en.USPI.pdf.

About the Phase 3 HERIZON-GEA-01 Trial
HERIZON-GEA-01 (NCT05152147) is a global, randomized, open-label Phase 3 trial, conducted jointly with BeOne Medicines, to evaluate and compare the efficacy and safety of zanidatamab plus chemotherapy, with and without tislelizumab, to trastuzumab plus chemotherapy as first-line treatment for adult patients with advanced/metastatic HER2+ GEA. The trial randomized 914 patients from approximately 225 trial sites in more than 30 countries. Appropriate patients for this trial had unresectable locally advanced, recurrent or metastatic HER2+ GEA (adenocarcinomas of the stomach or esophagus, including the gastroesophageal junction), defined as 3+ HER2 expression by IHC or 2+ HER2 expression by IHC with ISH positivity per central assessment. Patients were randomized to the three trial arms: zanidatamab in combination with chemotherapy and tislelizumab; zanidatamab in combination with chemotherapy; and trastuzumab plus chemotherapy. The trial evaluated dual primary endpoints, PFS per blinded independent central review (BICR) and OS.

About Gastroesophageal Adenocarcinoma
GEA, including cancers of the stomach, gastroesophageal junction, and esophagus, is the fifth most common cancer worldwide, and approximately 20% of patients have HER2+ disease.1,2,3,4 HER2+ GEA has high morbidity and mortality, and patients are urgently in need of new treatment options. The overall prognosis for patients with GEA remains poor, with a global five-year survival rate of less than 10% for metastatic disease.5

About Ziihera® (zanidatamab-hrii)
Ziihera (zanidatamab-hrii) is a bispecific HER2-directed antibody that binds to two extracellular sites on HER2. Binding of zanidatamab with HER2 results in internalization leading to a reduction in HER2 expression of the receptor on the tumor cell surface. Zanidatamab induces CDC, ADCC, and ADCP. These mechanisms result in tumor growth inhibition and cell death in vitro and in vivo.6

Gastroesophageal adenocarcinoma (GEA): In the United States, Ziihera is indicated for the first-line treatment of adults with HER2+ locally advanced or metastatic gastroesophageal adenocarcinoma (GEA), including cancers of the stomach, gastroesophageal junction and esophagus, in combination with tislelizumab-jsgr and fluoropyrimidine- and platinum-containing chemotherapy (HER2+ IHC 3+ and IHC 2+/ISH+ as detected by an FDA-authorized test); and in combination with fluoropyrimidine- and platinum-containing chemotherapy (HER2+ IHC 3+ as detected by an FDA-authorized test).

Biliary tract cancer (BTC): In the United States, Ziihera is also indicated for the treatment of adults with previously treated, unresectable or metastatic HER2+ (IHC 3+) biliary tract cancer (BTC), as detected by an FDA-approved test.6 Continued approval for this indication may be contingent upon verification and description of clinical benefit in a confirmatory trial(s).6 Ziihera is also approved in the European Union and other countries.

Zanidatamab is being developed in multiple clinical trials as a targeted treatment option for patients with solid tumors that express HER2. Zanidatamab is being developed by Jazz and BeOne Medicines under license agreements from Zymeworks, which first developed the molecule.

The FDA granted three Breakthrough Therapy designations for zanidatamab's development: one as a single agent for previously treated HER2 gene-amplified BTC, one in combination with fluoropyrimidine- and platinum-containing chemotherapy, with or without tislelizumab for first-line HER2+ unresectable locally advanced or metastatic gastric, gastroesophageal junction (GEJ), or esophageal GEA, and one for the treatment of adults with previously treated, locally advanced, unresectable, or metastatic HER2+ colorectal cancer (CRC). The FDA also granted two Fast Track designations for zanidatamab: one as a single agent for refractory BTC and one in combination with standard-of-care chemotherapy for first-line GEA. Additionally, zanidatamab has received Orphan Drug designations from the FDA for the treatment of BTC, gastric (including GEJ) cancer, and esophageal cancer, as well as Orphan Drug designations from the European Medicines Agency for the treatment of BTC, gastric/gastroesophageal junction cancer, and esophageal cancer. Jazz continues to pursue additional regulatory approvals for zanidatamab in markets worldwide.

Important Safety Information for ZIIHERA

WARNING: DIARRHEA and EMBRYO-FETAL TOXICITY

ZIIHERA, in combination with fluoropyrimidine- and platinum-containing chemotherapy, with or without
tislelizumab-jsgr, can cause severe diarrhea, including life threatening and fatal cases. Use antidiarrheal
prophylaxis during the first cycle when ZIIHERA is given in combination with these drugs. Manage with
antidiarrheals and supportive measures as clinically indicated. Interrupt, reduce the dose or discontinue
ZIIHERA based on severity.

Embryo-Fetal Toxicity: Exposure to ZIIHERA during pregnancy can cause embryo-fetal harm. Advise patients
of the risk and need for effective contraception.

Diarrhea: ZIIHERA can cause severe diarrhea.

When ZIIHERA is used in combination with fluoropyrimidine- and platinum-containing chemotherapy with or without tislelizumab-jsgr, severe, life threatening, and fatal cases of diarrhea can occur despite loperamide prophylaxis. The risk of severe and life threatening diarrhea is higher when ZIIHERA is administered with chemotherapy and tislelizumab-jsgr, with a higher risk in patients aged ≥ 65 years compared to younger patients. Advise patients to increase oral fluids, begin antidiarrheals, and notify their healthcare provider immediately if diarrhea occurs.

Administer antidiarrheal prophylaxis with loperamide in cycle 1 for all patients receiving ZIIHERA in combination with fluoropyrimidine- and platinum-containing chemotherapy with or without tislelizumab-jsgr. Begin loperamide at the first loose stool when ZIIHERA is administered in combination with chemotherapy. Administer fluids, electrolytes, and additional antidiarrheal agents as necessary. Before modifying the dose of ZIIHERA, evaluate, modify or discontinue drug(s) contributing to diarrhea in accordance with their respective prescribing information. Withhold, reduce the dose, or permanently discontinue ZIIHERA based on severity.

If treating patients with ZIIHERA in combination with FOLFOX, do not administer the fluorouracil bolus.

ZIIHERA in combination with chemotherapy and tislelizumab-jsgr

Diarrhea was reported in 85% of 330 patients in clinical studies, including Grade 4 (2.1%), Grade 3 (24%), and Grade 2 (31%) events. Fatal outcomes resulting from diarrhea occurred in 1.5% of patients. Diarrhea leading to dose reduction of ZIIHERA occurred in 10% of patients, and permanent discontinuation of ZIIHERA occurred in 3.9% of patients.

In cycle 1, diarrhea at Grade 4 severity occurred in 1.5% and Grade 3 severity occurred in 15% of patients despite use of loperamide prophylaxis. The median time to onset for cycle 1 diarrhea was 6 days and median time to resolution was 18 days.

ZIIHERA in combination with chemotherapy

Diarrhea was reported in 81% of 395 patients in clinical studies, including Grade 4 (1.3%), Grade 3 (20%) and Grade 2 (33%). Diarrhea leading to dose reduction of ZIIHERA occurred in 10% of patients, and permanent discontinuation of ZIIHERA occurred in 1.8% of patients.

In cycle 1, diarrhea at Grade 4 severity occurred in 0.8% and Grade 3 severity occurred in 14% of patients despite use of loperamide prophylaxis. The median time to onset for cycle 1 diarrhea was 6 days and median time to resolution was 18 days.

Embryo-Fetal Toxicity: Based on the mechanism of action, ZIIHERA can cause fetal harm when administered to a pregnant woman. There are no human or animal data on the use of ZIIHERA in pregnancy. In literature reports, use of a HER2-directed antibody during pregnancy resulted in cases of oligohydramnios and oligohydramnios sequence manifesting as pulmonary hypoplasia, skeletal abnormalities, and neonatal death.

Verify the pregnancy status of females of reproductive potential prior to the initiation of ZIIHERA. Advise pregnant women and females of reproductive potential that exposure to ZIIHERA during pregnancy or within 4 months prior to conception can result in fetal harm. Advise females of reproductive potential to use effective contraception while receiving ZIIHERA and for 4 months following the last dose of ZIIHERA.

Left Ventricular Dysfunction (LVD): ZIIHERA can cause decreases in left ventricular ejection fraction (LVEF).

Assess LVEF prior to initiation of ZIIHERA and at regular intervals during treatment. Withhold dose or permanently discontinue ZIIHERA based on severity of adverse reactions.

The safety of ZIIHERA has not been established in patients with a baseline ejection fraction that is

ZIIHERA in combination with chemotherapy and tislelizumab-jsgr

LVEF decrease (an absolute decline in LVEF of > 10%, resulting in a final value of

ZIIHERA in combination with chemotherapy

LVEF decrease was observed in 5% of 395 patients. LVD leading to permanent discontinuation of ZIIHERA was reported in 1.0% of patients. The median time to first occurrence of LVD was 6.0 months (range: 1.4 to 15.0 months). LVD dysfunction resolved in 70% of patients. Infusion-Related Reactions: ZIIHERA can cause infusion-related reactions (IRRs).

Prior to each dose of ZIIHERA, administer premedication to prevent potential IRRs. Monitor patients for signs and symptoms of IRR during ZIIHERA administration and as clinically indicated after completion of infusion. Have medications and emergency equipment to treat IRRs available for immediate use.

If an IRR occurs, slow or stop the infusion, and administer appropriate medical management. Monitor patients until complete resolution of signs and symptoms before resuming. Permanently discontinue ZIIHERA in patients with recurrent severe or life-threatening IRRs.

ZIIHERA in combination with chemotherapy and tislelizumab-jsgr

An IRR was reported in 22% of 330 patients in clinical studies, including Grade 4 (0.3%), Grade 3 (1.2%), and Grade 2 (16%) despite use of prophylaxis. IRRs leading to permanent discontinuation of ZIIHERA were reported in 0.3% of patients. IRRs occurred on the first day of dosing in 17% of patients. Of all patients who experienced IRRs, 60% of reactions resolved within the first day.

ZIIHERA in combination with chemotherapy

An IRR was reported in 24% of 395 patients in clinical studies, including Grade 4 (0.3%), Grade 3 (1.5%), and Grade 2 (18%) despite use of prophylaxis. IRRs leading to permanent discontinuation of ZIIHERA were reported in 1.3% of patients. IRRs occurred on the first day of dosing in 22% of patients. Of all patients who experienced IRRs, 83% of reactions resolved within the first day.

Adverse Reactions

ZIIHERA in combination with chemotherapy and tislelizumab-jsgr

Serious adverse reactions occurred in 59% of 294 patients in HERIZON-GEA-01. Serious adverse reactions in > 2% of patients included diarrhea (17%), IRR (5%), vomiting (4.8%), hypokalemia (4.4%), acute kidney injury (3.7%), pneumonia (3.7%), nausea (2.4%), decreased appetite (2.4%), and anemia (2.4%). Fatal adverse reactions occurred in 2.4% of patients and included acute kidney injury (N=2), cardiac failure, diarrhea, dehydration, hypovolemic shock and intestinal obstruction (all N=1).

Permanent discontinuation of ZIIHERA occurred in 13% of patients. Adverse reactions that resulted in permanent discontinuation of ZIIHERA in ≥ 1% of patients included diarrhea (4.4%) and ejection fraction decreased (2.7%).

The most common adverse reactions (≥ 20%) were diarrhea (83%), nausea (56%), decreased appetite (46%), vomiting (44%), hypokalemia (39%), fatigue (37%), rash (36%), peripheral neuropathy (27%), and IRR (25%).

ZIIHERA in combination with chemotherapy

Serious adverse reactions occurred in 49% of 305 patients in HERIZON-GEA-01. Serious adverse reactions in > 2% of patients included diarrhea (11%), vomiting (3.3%), decreased appetite (2.6%), pneumonia (2.6%), sepsis (2.6%), hypokalemia (2.3%), and nausea (2.3%).

Permanent discontinuation of ZIIHERA occurred in 10% of patients. Adverse reactions that resulted in permanent discontinuation of ZIIHERA in ≥ 1% of patients included ejection fraction decreased (2.0%), IRR (1.6%), and diarrhea (1.6%).

The most common adverse reactions (≥ 20%) were diarrhea (79%), nausea (54%), vomiting (44%), decreased appetite (40%), fatigue (36%), hypokalemia (33%), peripheral neuropathy (32%), IRR (25%), and rash (22%).

Pediatric Use: Safety and efficacy of ZIIHERA have not been established in pediatric patients.

Geriatric Use

ZIIHERA in combination with chemotherapy and tislelizumab-jsgr

Of 302 patients randomized to ZIIHERA in combination with chemotherapy and tislelizumab-jsgr in HERIZON-GEA-01, there were 139 (46%) patients aged ≥ 65 years. One hundred and six (35%) were aged 65-74 years and 33 (11%) were aged ≥ 75 years.

There was a higher incidence of Grade ≥ 3 adverse reactions observed in patients aged ≥ 65 years (87%) as compared to younger patients (80%). The incidence of Grade 3 or 4 diarrhea was higher in patients aged ≥ 65 years (32%) compared to younger patients (20%).

There was an increased incidence of fatal adverse reactions in patients aged ≥ 65 years (4.4%); including acute kidney injury (N=2), cardiac failure, dehydration, hypovolemic shock and intestinal obstruction (all N=1), compared to younger patients (0.6%), including diarrhea (N=1).

ZIIHERA in combination with chemotherapy

Of 304 patients randomized to ZIIHERA in combination with chemotherapy in HERIZON-GEA-01, there were 130 (43%) patients aged ≥ 65 years. One hundred (33%) were aged 65-74 years and 30 (10%) were aged ≥ 75 years.

No overall differences in safety were observed between patients aged ≥ 65 years and younger adult patients.

® TEVIMBRA (tislelizumab) is a registered trademark of BeOne Medicines.

About Jazz Pharmaceuticals
Jazz Pharmaceuticals plc (Nasdaq: JAZZ) is a global biopharma company whose purpose is to innovate to transform the lives of patients and their families. We are dedicated to developing life-changing medicines for people with rare disease — often with limited or no therapeutic options. We have a diverse portfolio of medicines, including leading therapies addressing epilepsies, cancers and sleep disorders. Our patient-focused and science-driven approach powers pioneering research and development advancements across our robust pipeline of innovative therapeutics. Jazz is headquartered in Dublin, Ireland with research and development laboratories, manufacturing facilities and employees in multiple countries committed to serving patients worldwide. Please visit www.jazzpharmaceuticals.com for more information.

Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements related to the potential therapeutic and differentiated clinical benefits of Ziihera and of combination therapies with Ziihera, including Ziihera's potential to extend survival, Ziihera's potential as a new standard of care in HER2+ first-line GEA and other HER2-expressing cancers and other statements that are not historical facts. These forward-looking statements are based on Jazz Pharmaceuticals' current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties associated with the successful completion of regulatory activities and uncertain regulatory approval, risks related to failure or delays in successfully initiating or completing clinical trials and assessing patients and other risks and uncertainties affecting Jazz Pharmaceuticals and its development programs, including those described from time to time under the caption "Risk Factors" and elsewhere in Jazz Pharmaceuticals' Securities and Exchange Commission filings and reports, including Jazz Pharmaceuticals' Annual Report on Form 10-K for the year ended December 31, 2025 and future filings and reports by Jazz Pharmaceuticals. Other risks and uncertainties of which Jazz Pharmaceuticals is not currently aware may also affect Jazz Pharmaceuticals' forward-looking statements and may cause actual results and the timing of events to differ materially from those anticipated. The forward-looking statements herein are made only as of the date hereof or as of the dates indicated in the forward-looking statements, even if they are subsequently made available by Jazz Pharmaceuticals on its website or otherwise. Jazz Pharmaceuticals undertakes no obligation to update or supplement any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made.

Contacts:

Media:
[email protected]
Ireland +353 1 637 2141
U.S. +1 215 867 4948

Investor:
[email protected]
Ireland +353 1 634 7800
U.S. +1 650 496 2717

1 Bray F., et al. Global cancer statistics 2022: GLOBOCAN estimates of incidence and mortality worldwide for 36 cancers in 185 countries. CA: A Cancer Journal for Clinicians. 2024 April; doi.org/10.3322/caac.21834Digital Object Identifier (DOI).
2 Abrahao-Machado I.F., et al. HER2 testing in gastric cancer: An update WorldJGastroenterol. 2016;22(19):4619-4625.
3 Van Custem E., et al. HER2 screening data from ToGA: targeting HER2 in gastric and gastroesophageal junction cancer. Gastric Cancer. 2015;18(3):476-484.
4 Stroes, C.I., et al. A systematic review of HER2 blockade for the curative treatment of gastroesophageal adenocarcinoma: Successes achieved and opportunities ahead. CancerTreatRev. 2021;99:102249.
5 Tabernero J., et al. HERIZON-GEA-01: Zanidatamab + chemo ± tislelizumab for 1L treatment of HER2-positive gastroesophageal adenocarcinoma. Taylor & Francis. 2022 July; doi.org/10.2217/fon-2022-0595.
6 ZIIHERA (zanidatamab-hrii) Prescribing Information. Palo Alto, CA: Jazz Pharmaceuticals, Inc.

View original content to download multimedia:https://www.prnewswire.com/news-releases/ziihera-zanidatamab-hrii-combinations-demonstrate-sustained-survival-at-three-years-in-first-line-her2-advanced-gastroesophageal-adenocarcinoma-at-esmo-2026-302917899.html

SOURCE Jazz Pharmaceuticals plc

AbbVie to Present Data at the 2026 European Society for Medical Oncology (ESMO) Congress Highlighting Progress Across its Expanding Solid Tumor PortfolioPR News

/C O R R E C T I O N - AbbVie/PR NewswireNORTH CHICAGO, Ill., Oct. 18, 2026In the news release, AbbVie to Present Data at the 2026 European Society for Medical

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

California Resources (CRC - Free Report) is a stock many investors are watching right now. CRC is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.

Investors should also note that CRC holds a PEG ratio of 1.11. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CRC's PEG compares to its industry's average PEG of 1.40. CRC's PEG has been as high as 1.32 and as low as 0.73, with a median of 1.05, all within the past year.

Another notable valuation metric for CRC is its P/B ratio of 1.35. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. CRC's current P/B looks attractive when compared to its industry's average P/B of 2.85. Within the past 52 weeks, CRC's P/B has been as high as 1.79 and as low as 0.82, with a median of 1.14.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CRC has a P/S ratio of 1.49. This compares to its industry's average P/S of 1.92.

Finally, investors will want to recognize that CRC has a P/CF ratio of 4.08. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CRC's current P/CF looks attractive when compared to its industry's average P/CF of 11.20. Within the past 12 months, CRC's P/CF has been as high as 9.93 and as low as 3.06, with a median of 5.07.

These figures are just a handful of the metrics value investors tend to look at, but they help show that California Resources is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CRC feels like a great value stock at the moment.

Summit Therapeutics Inc. (Nasdaq: SMMT) today announced a clinical trial collaboration agreement with Daiichi Sankyo (TSE: 4568) and AstraZeneca (LSE/STO/NYSE: AZN) to evaluate ivonescimab, a novel, potential first-in-class investigational PD-1 / VEGF bispecific antibody, in combination with Datroway® (datopotamab deruxtecan), a TROP2-directed antibody drug conjugate (ADC), across multiple solid tumor settings, intending to include breast and lung cancer. The companies intend to begin with a Phase III trial in first-line triple-negative breast cancer (TNBC).

“We believe this collaboration with Daiichi Sankyo and AstraZeneca reflects increasing conviction in ivonescimab’s potential as a foundational next-generation immunotherapy and advances our ambition for ivonescimab to become the global PD-1 / VEGF partner of choice for novel combinations,” said Dr. Maky Zanganeh, President and Co-Chief Executive Officer of Summit Therapeutics. “Beginning with a Phase III study in first-line triple negative breast cancer, this collaboration represents an important expansion of Summit’s global development program into breast cancer and a path for additional solid tumor settings.”

Under the terms of the agreement, each company will contribute their respective therapies for the planned combination trials which will be sponsored by AstraZeneca or Daiichi Sankyo. AstraZeneca, Daiichi Sankyo, and Summit will each contribute to trial costs, and each company will retain development and commercial rights to their respective medicines.

“At Daiichi Sankyo, we are focused on maximizing the potential of our DXd antibody drug conjugate portfolio through innovative combinations and strategic collaborations that support the continued advancement of our pipeline,” said John Tsai, MD, Global Head, R&D, Daiichi Sankyo. “We are encouraged by the opportunity to explore ivonescimab in combination with Datroway to potentially deliver clinically meaningful benefit to patients.”

“Central to our strategy to transform cancer outcomes is harnessing the power of immunotherapy and antibody drug conjugate combinations to drive deeper, more durable responses,” said Susan Galbraith, Executive Vice President, Oncology Hematology R&D, AstraZeneca. “We believe the combination of Datroway and ivonescimab has the potential to make a meaningful difference in multiple tumor types including lung and breast cancers.”

Datroway is a specifically engineered TROP2-directed DXd ADC discovered by Daiichi Sankyo and being jointly developed and commercialized by Daiichi Sankyo and AstraZeneca. Designed using the proprietary DXd ADC Technology of Daiichi Sankyo, Datroway is one of seven DXd ADCs in the oncology pipeline of Daiichi Sankyo.

About Ivonescimab

Ivonescimab, known as SMT112 in Summit’s license territories, North America, South America, Europe, the Middle East, Africa, and Japan, and as AK112 outside of Summit’s license territories, is a novel, potential first-in-class investigational bispecific antibody combining the effects of immunotherapy via a blockade of PD-1 with the anti-angiogenesis effects associated with blocking VEGF into a single molecule. By design, ivonescimab displays unique cooperative binding to each of its intended targets with multifold higher affinity to PD-1 when in the presence of VEGF.

This design is intended to differentiate ivonescimab as there is potentially higher expression (presence) of both PD-1 and VEGF in tumor tissue and the tumor microenvironment (TME) as compared to normal tissue in the body. Summit believes ivonescimab’s specifically engineered tetravalent structure (four binding sites) enables higher avidity (accumulated strength of multiple binding interactions) in the TME (Zhong, et al, iScience, 2025). This tetravalent structure, the intentional novel design of the molecule, and bringing these two targets into a single bispecific antibody with cooperative binding qualities have the potential to direct ivonescimab to the tumor tissue versus healthy tissue. The intent of this design, together with a half-life of 6 to 7 days after the first dose (Zhong, et al, iScience, 2025) increasing to approximately 10 days at steady state dosing, is to improve upon previously established efficacy thresholds, side effects, and safety profiles associated with prior approved drugs to these targets.

Ivonescimab was engineered by Akeso Inc. (HKEX Code: 9926.HK) and is currently utilized in multiple Phase III clinical trials. Over 5,000 patients have been treated with ivonescimab in clinical studies globally, and over 100,000 patients when considering those treated in a commercial setting in China, as noted by Akeso.

There are currently 16 Phase III clinical studies that are either announced, ongoing, or have been completed studying ivonescimab, five of which are Summit-sponsored global studies, one of which is a multiregional study sponsored by a cooperative group, and 10 of which are being or have been conducted in China by Akeso. Summit began its clinical development of ivonescimab in NSCLC, commencing enrollment in 2023 in two multiregional Phase III clinical trials, HARMONi and HARMONi-3. In 2025, Summit began enrolling patients in HARMONi-7. Summit expanded its Phase III clinical development program into colorectal cancer (CRC) in the fourth quarter of 2025 by initiating enrollment in HARMONi-GI3. In 2026, Summit announced initiation of HARMONi-GU1, a Phase II/III study in urothelial carcinoma (bladder cancer) with global clinical trial site activations planned to begin by the fourth quarter of 2026.

HARMONi is a Phase III clinical trial evaluating ivonescimab combined with chemotherapy compared to placebo plus chemotherapy in patients with EGFR-mutated, locally advanced or metastatic non-squamous NSCLC who were previously treated with a third-generation EGFR TKI (e.g., osimertinib). Detailed results of the study were provided in September 2025, and a Biologics License Application (BLA) was submitted to the United States Food and Drug Administration (FDA) for marketing authorization, which the FDA accepted for filing in January 2026; the goal Prescription Drug User Fee Act (PDUFA) date is November 14, 2026.

HARMONi-3 is a Phase III clinical trial evaluating ivonescimab combined with chemotherapy compared to pembrolizumab combined with chemotherapy in patients with first-line metastatic, squamous or non-squamous NSCLC, irrespective of PD-L1 expression. The clinical trial is evaluating the two histologies as individual, separately powered cohorts with independent statistical powering.

HARMONi-7 is a Phase III clinical trial evaluating ivonescimab monotherapy compared to pembrolizumab monotherapy in patients with first-line metastatic NSCLC whose tumors have high PD-L1 expression.

HARMONi-GI3 is a Phase III clinical trial evaluating ivonescimab in combination with chemotherapy compared with bevacizumab plus chemotherapy in patients with first-line unresectable metastatic CRC.

HARMONi-GU1 is a Phase II/III clinical trial evaluating ivonescimab plus the antibody drug conjugate (ADC) enfortumab vedotin (EV) compared to pembrolizumab plus EV as first-line therapy in patients with previously untreated locally advanced or metastatic urothelial carcinoma (la/mUC).

ILLUMINE is a Phase III study being conducted by GORTEC, a cooperative group dedicated to Head and Neck Oncology, in recurrent / metastatic head and neck squamous cell carcinoma (r/m HNSCC). ILLUMINE is a three-arm Phase III clinical trial designed to evaluate ivonescimab monotherapy, as well as ivonescimab in combination with ligufalimab, Akeso’s proprietary anti-CD47 monoclonal antibody, compared to monotherapy pembrolizumab in patients with PD-L1 positive r/m HNSCC.

Five Phase III ivonescimab clinical trials have read out to date, all five with positive data. Four of these five studies are in NSCLC, and one is in biliary tract cancer (BTC). In addition to Summit’s positive HARMONi study, Akeso has had positive read-outs in three single-region (China), randomized Phase III clinical trials, HARMONi-A, HARMONi-2, and HARMONi-6, for ivonescimab in NSCLC, including a statistically significant overall survival benefit in all three studies from China. Akeso has also reported a statistically significant OS benefit in the single-region (China), randomized Phase III HARMONi-GI1 trial in advanced BTC.

HARMONi-A was a Phase III clinical trial which evaluated ivonescimab combined with chemotherapy compared to placebo plus chemotherapy in patients with EGFR-mutated, locally advanced or metastatic non-squamous NSCLC who have progressed after treatment with an EGFR TKI.

HARMONi-2 is a Phase III clinical trial evaluating monotherapy ivonescimab against monotherapy pembrolizumab in patients with locally advanced or metastatic NSCLC whose tumors have positive PD-L1 expression.

HARMONi-6 is a Phase III clinical trial evaluating ivonescimab in combination with platinum-based chemotherapy compared with tislelizumab, an anti-PD-1 antibody, in combination with platinum-based chemotherapy in patients with locally advanced or metastatic squamous NSCLC, irrespective of PD-L1 expression.

HARMONi-GI1 is a Phase III clinical trial evaluating ivonescimab in combination with chemotherapy compared with durvalumab plus chemotherapy as a first-line treatment for patients with advanced BTC.

Akeso is actively conducting additional Phase III clinical studies in settings outside of NSCLC and biliary-tract cancer, including triple-negative breast cancer, head and neck squamous cell carcinoma, small cell lung cancer, colorectal cancer, and pancreatic cancer.

Ivonescimab is an investigational therapy that is not approved by any regulatory authority in Summit’s license territories, including the United States and Europe. Ivonescimab was initially approved for marketing authorization in China in May 2024.

About Summit Therapeutics Inc.

Summit Therapeutics Inc. is a biopharmaceutical oncology company focused on the discovery, development, and commercialization of patient-, physician-, caregiver- and societal-friendly medicinal therapies intended to improve quality of life, increase potential duration of life, and resolve serious unmet medical needs.

Summit was founded in 2003 and the company’s shares are listed on the Nasdaq Global Market (symbol "SMMT"). Summit is headquartered in Miami, Florida, with additional offices in Palo Alto, California, Princeton, New Jersey, Dublin, Ireland, and Oxford, UK.

For more information, please visit https://www.smmttx.com and follow Summit on X @SMMT_TX.

Summit Forward-Looking Statements

Any statements in this press release about the Company’s future expectations, plans and prospects, including but not limited to, statements about the risk that the private placement does not close on the anticipated timeline or at all, including because required regulatory clearances are not obtained or other closing conditions are not satisfied, dilution to existing stockholders, and potential adverse effects on the market price of the Company's common stock, including from future sales by AstraZeneca, the Company's broad discretion over the use of proceeds, and the possibility that the proceeds will not be sufficient to fund operations as long as anticipated, AstraZeneca’s ownership and contractual rights, including Third Party acquisition participation, and registration rights, and potential conflicts of interest, the completion of the Private Placement does not depend on the parties entering into a definitive collaboration agreement, the Company's reliance on AstraZeneca for the supply of AstraZeneca’s products and other contributions to the clinical trials, the clinical and preclinical development of the Company’s product candidates, entry into and actions related to the Company’s partnership with Akeso Inc. and other collaborations, the intended use of the net proceeds from the private placements, the Company's anticipated spending and cash runway, the therapeutic potential of the Company’s product candidates, the potential commercialization of the Company’s product candidates, the timing of initiation, completion and availability of data from clinical trials, the potential submission of applications for marketing approvals, the expected timing of BLA submissions or FDA decisions, potential acquisitions, statements about the previously disclosed At-The-Market equity offering program (“ATM Program”), the expected proceeds and uses thereof, the Company’s estimates regarding stock-based compensation, and other statements containing the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "would," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the Company’s ability to sell shares of our common stock under the ATM Program, the conditions affecting the capital markets, general economic, industry, or political conditions, including the effects of geopolitical developments, domestic and foreign trade policies, and monetary policies, the results of our evaluation of the underlying data in connection with the development and commercialization activities for ivonescimab, the outcome of discussions with regulatory authorities, including the Food and Drug Administration, the uncertainties inherent in the initiation of future clinical trials, availability and timing of data from ongoing and future clinical trials, the results of such trials, and their success, global public health crises, that may affect timing and status of our clinical trials and operations, whether preliminary results from a clinical trial will be predictive of the final results of that trial or whether results of early clinical trials or preclinical studies will be indicative of the results of later clinical trials, whether business development opportunities to expand the Company’s pipeline of drug candidates, including without limitation, through potential acquisitions of, and/or collaborations with, other entities occur, expectations for regulatory approvals, laws and regulations affecting government contracts and funding awards, availability of funding sufficient for the Company’s foreseeable and unforeseeable operating expenses and capital expenditure requirements and other factors discussed in the "Risk Factors" and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of filings that the Company makes with the Securities and Exchange Commission. Summit defines a “positive study” as a clinical study with one or more prespecified primary endpoints in which one of those endpoints achieves a statistically significant benefit according to the protocol or statistical analysis plan. Any change to our ongoing trials could cause delays, affect our future expenses, and add uncertainty to our commercialization efforts, as well as to affect the likelihood of the successful completion of clinical development of ivonescimab. Accordingly, readers should not place undue reliance on forward-looking statements or information. In addition, any forward-looking statements included in this press release represent the Company’s views only as of the date of this release and should not be relied upon as representing the Company’s views as of any subsequent date. The Company specifically disclaims any obligation to update any forward-looking statements included in this press release.

Summit Therapeutics and the Summit Therapeutics logo are registered trademarks of Summit Therapeutics Inc. and/or its affiliates. Copyright © 2026, Summit Therapeutics Inc. All Rights Reserved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261001197318/en/

California Resources (NYSE:CRC – Get Free Report) and Kinetik (NYSE:KNTK – Get Free Report) are both mid-cap energy companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Volatility & Risk California Resources has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Kinetik has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Profitability This table compares California Resources and Kinetik’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets California Resources -3.79% 9.82% 4.65% Kinetik 26.19% -38.96% 7.07% Dividends California Resources pays an annual dividend of $1.62 per share and has a dividend yield of 3.1%. Kinetik pays an annual dividend of $3.24 per share and has a dividend yield of 6.3%. California Resources pays out -119.1% of its earnings in the form of a dividend. Kinetik pays out 117.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. California Resources has raised its dividend for 1 consecutive years and Kinetik has raised its dividend for 1 consecutive years. Analyst Ratings This is a breakdown of recent recommendations for California Resources and Kinetik, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score California Resources 0 3 10 1 2.86 Kinetik 0 6 11 2 2.79 California Resources presently has a consensus target price of $74.10, indicating a potential upside of 41.19%. Kinetik has a consensus target price of $54.00, indicating a potential upside of 5.28%. Given California Resources’ stronger consensus rating and higher possible upside, research analysts clearly believe California Resources is more favorable than Kinetik.

Earnings and Valuation This table compares California Resources and Kinetik”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio California Resources $3.67 billion 1.27 $363.00 million ($1.36) -38.59 Kinetik $1.76 billion 4.72 $525.93 million $2.76 18.58 Kinetik has lower revenue, but higher earnings than California Resources. California Resources is trading at a lower price-to-earnings ratio than Kinetik, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership 97.8% of California Resources shares are held by institutional investors. Comparatively, 21.1% of Kinetik shares are held by institutional investors. 0.5% of California Resources shares are held by insiders. Comparatively, 3.6% of Kinetik shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary Kinetik beats California Resources on 10 of the 17 factors compared between the two stocks.

(Get Free Report)

California Resources Corporation operates as an independent oil and natural gas exploration and production, and carbon management company in the United States. The company explores, produces, and markets crude oil, natural gas, and natural gas liquids for marketers, California refineries, and other purchasers that have access to transportation and storage facilities. It also engages in the generation and sale of electricity to the wholesale power market and utility sector; and developing various carbon capture and storage projects in California. The company was incorporated in 2014 and is based in Long Beach, California.

About Kinetik (Get Free Report)

Kinetik Holdings Inc. operates as a midstream company in the Texas Delaware Basin. It provides gathering, transportation, compression, processing, and treating services for companies that produce natural gas, natural gas liquids, crude oil, and water. The company is headquartered in Midland, Texas.

Receive News & Ratings for California Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for California Resources and related companies with MarketBeat.com's FREE daily email newsletter.

Key Takeaways CRC agreed to sell its Uinta Basin assets for approximately $90 million in cash.The divestiture supports CRC's California focus and streamlines its post-Berry portfolio.Proceeds will support shareholder returns, corporate purposes and offset its recent midstream purchase. California Resources Corporation (CRC - Free Report) announced an agreement to sell its Uinta Basin assets to an undisclosed buyer for approximately $90 million in cash, subject to customary purchase price adjustments. The transaction is expected to close by year-end 2026, pending certain third-party consents and other customary conditions.

The divestiture is part of CRC’s broader effort to streamline its portfolio following the Berry merger. By monetizing assets outside its primary operating footprint, the company intends to concentrate resources on California operations while creating additional flexibility for capital allocation.

Uinta Basin Assets Considered Non-CoreCalifornia acquired the Uinta Basin assets through its merger with Berry Petroleum. While the properties added to the company’s asset base, they do not align as closely with the long-term focus as its California operations.

Selling these assets allows Californiato convert a non-core position into cash rather than continue allocating capital and management resources toward a separate operating area. The transaction therefore represents a portfolio optimization move rather than an expansion of the company’s production footprint.

The sale also demonstrates CRC’s approach to managing assets obtained through acquisitions. Companies often reassess acquired properties after a merger to determine whether each asset fits their strategic priorities and capital-return objectives.

For California, the Uinta Basin properties appear to have limited strategic importance compared with opportunities within the country.

California Portfolio Remains Strategic PriorityCRC’s strategy is centered on its operations in California. The company has an established presence across oil and natural gas production and related energy activities in the country.

Management expects the divestiture to sharpen the company’s focus on the Golden State and provide greater flexibility to invest in opportunities that it considers capable of generating higher returns.

This concentration could simplify CRC’s portfolio and allow capital to be directed toward projects that are more closely aligned with its existing infrastructure, operating expertise and long-term strategy.

Francisco Leon, president and CEO, said the transaction strengthens the company by monetizing the Uinta Basin assets while allowing it to focus on California. Leon also noted that the sale supports CRC’s shareholder-return strategy.

Proceeds to Support Capital AllocationThe approximately $90 million of cash consideration provides CRC with an additional source of liquidity. The company expects to use the net proceeds for shareholder returns and other corporate purposes.

CRC also said the transaction will help offset the purchase price of its recent midstream transaction. This is notable because the company is simultaneously investing in the infrastructure platform while monetizing assets that are less central to its strategy.

The proceeds could therefore help balance competing capital allocation priorities, including investments in the business and returns to its shareholders.

However, the ultimate financial benefit will depend on the final proceeds after customary purchase price adjustments and transaction-related items. Investors will also need to assess how management ultimately deploys the cash following the closing.

Portfolio Optimization Could Improve Capital EfficiencyOne potential benefit of the transaction is a more focused allocation of capital.

Maintaining assets across different geographic regions can increase operational complexity and require spending across multiple portfolios. By exiting the Uinta Basin, CRC can concentrate its capital and management attention on the core California business.

The transaction also illustrates how CRC is continuing to optimize the portfolio following the Berry merger. Rather than retaining every acquired asset, the company is evaluating properties based on their strategic fit and potential contribution to shareholder value.

For investors, the key consideration will be whether CRC can redeploy the proceeds into opportunities that generate attractive returns. The divestiture itself provides liquidity, but the longer-term benefit will depend on how effectively that capital is utilized.

Closing Expected by Year-End 2026This agreement was made effective as of July 1, 2026. CRC expects the transaction to close by the end of the year, subject to required third-party consents and other customary closing conditions.

The company plans to provide additional financial and operating guidance following completion of the transaction. That update should give investors a clearer view of the impact of the divestiture on CRC’s financial outlook and operating portfolio.

Until closing, the final consideration remains subject to customary adjustments. Investors should therefore focus on the completed transaction and subsequent guidance rather than assuming that the announced consideration will translate directly into net proceeds.

What Investors Should WatchThe Uinta Basin divestiture gives CRC another opportunity to streamline its portfolio and strengthen capital allocation flexibility. This transaction converts non-core assets from the Berry merger into cash while allowing the company to place greater emphasis on its California operations.

The next important developments will be the closing of the transaction, the final proceeds received by CRC and management’s plans for deploying the capital. The company’s updated financial and operating guidance should also provide additional insight into the effect of the portfolio change.

More broadly, investors will be watching whether CRC can continue to improve its portfolio mix while balancing investments, midstream opportunities and shareholder returns. The successful execution of these priorities will be important as the company moves forward with its California-focused strategy.

CRC's Zacks Rank & Key PicksCurrently, CRC has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might consider some better-ranked stocks, such as Magnolia Oil & Gas Corp (MGY - Free Report) , Delek US Holdings (DK - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Oceaneering International (OII - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Magnolia Oil & Gas is valued at $6.18 billion. It is an independent oil and natural gas company focused on the acquisition, development, exploration and production of oil, natural gas and NGLs in South Texas. Magnolia Oil & Gas’ operations are concentrated in the Eagle Ford Shale and Austin Chalk formations across the Karnes and Giddings areas.

Delek US Holdings is valued at $4.85 billion. It is a diversified downstream energy company engaged in petroleum refining, renewable fuels, asphalt production and logistics operations. Delek US Holdings operates multiple refineries in the United States and is committed to delivering safe, reliable energy while investing in cleaner energy initiatives.

Oceaneering International is valued at $4.64 billion. It is a global technology and engineering company. Oceaneering International provides subsea robotics, offshore services, engineered products and advanced solutions to the energy, defense, aerospace and other industries.  

A month has gone by since the last earnings report for California Resources Corporation (CRC - Free Report) . Shares have added about 2.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is California Resources due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for California Resources Corporation before we dive into how investors and analysts have reacted as of late.

California Q2 Earnings Miss on Takeaway ConstraintsCalifornia Resources reported second-quarter 2026 adjusted earnings of 99 cents per share, down 10% from $1.10 a year ago and 24.4% below the Zacks Consensus Estimate of $1.31, mainly due to temporary takeaway constraints, weaker oil differentials and higher transportation and operating costs.

The Long Beach, CA-based oil and gas exploration and production company’s oil, natural gas and natural gas liquids revenues of $1.06 billion rose 50.4% from $702 million and beat the Zacks Consensus Estimate of $979 million by 7.8%.

CRC’s board of directors declared a quarterly cash dividend of 40.5 cents per share of common stock, payable on Sept. 18, 2026, to its shareholders of record as of Sept. 4. During this quarter, CRC returned $36 million to its shareholders through dividends.

Production and Realization TrendsCalifornia Resources' average net production was 149 thousand barrels of oil equivalent per day (MBoe/d), up from 137 MBoe/d in the year-ago quarter. Net oil production averaged 120 thousand barrels per day, while NGL production was 10 thousand barrels per day. Natural gas output averaged 115 million cubic feet per day. Oil represented 81% of total production.

The realized oil price before derivative settlements was $91.55 per barrel, while NGL and natural gas realizations were $49.62 per barrel and $1.84 per Mcf, respectively. CRC built about 137 thousand barrels of oil inventory because of temporary takeaway constraints. The inventory build, weaker differentials and higher operating and transportation costs reduced adjusted EBITDAX and operating cash flow before working-capital changes by about $25 million.

California Resources' Efficiency GainsTotal operating expenses were $786 million, up 10.5% from $711 million a year earlier. Operating costs were $347 million, up 17.6% from $295 million a year earlier General and administrative expenses increased 22.8% to $97 million. Adjusted G&A expenses, however, declined to $89 million from $99 million in the first quarter, reflecting Berry-related efficiencies.

The company implemented more than 100% of its 2026 Berry synergy target six months ahead of schedule, representing $103 million of annualized savings. California drilling efficiency improved about 25% and nearly 80% of wells drilled year to date outperformed the type curve, with average initial production more than 10% above expectations. CRC lowered its long-term drilling, completions and workover maintenance-capital estimate by about 5% to $450-$475 million with six rigs.

Cash Flow and Balance SheetNet cash provided by operating activities was $263 million, up 59.4% from $165 million in the prior-year quarter. Free cash flow totaled $114 million, while capital investments were $149 million, including $101 million for drilling, completions and workovers.

CRC ended June with $1.32 billion of liquidity, consisting of $43 million of available cash and $1.28 billion of borrowing capacity, with a debt-to-capitalization of 27.4%. During the quarter, it issued $550 million of 7.25% senior notes due 2035 and redeemed its remaining 8.25% senior notes due 2029.

California Resources' Midstream ExpansionCRC agreed to acquire Crimson Midstream Holdings, LLC for $63 million in cash. The transaction adds roughly 2,000 miles of California crude-oil pipelines and storage assets, expanding the company's access to higher-value markets and third-party throughput.

The company also acquired the Line 100 system earlier in 2026. That network includes a 118-mile crude pipeline with 60 thousand barrels per day of capacity and more than 1 million barrels of storage. Management expects the Crimson deal to strengthen market access and commercial flexibility.

Carbon and Power ProgressCarbon TerraVault I began carbon dioxide (CO2) injection and generated first revenues during the quarter. Management said the project is capturing and injecting about 270 metric tons of CO2 per day and is targeting an annualized rate of roughly 100,000 tons.

CRC also partnered with Beacon Data Centers on the proposed Golden Valley Technology Hub at Elk Hills. The planned campus would have 275 megawatts of capacity and use power from CRC's existing Elk Hills plant. The company has submitted a conditional-use permit and expects the environmental review process to advance later in 2026.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 17.26% due to these changes.

VGM ScoresAt this time, California Resources has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, California Resources has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerCalifornia Resources is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Cheniere Energy (LNG - Free Report) , a stock from the same industry, has gained 4%. The company reported its results for the quarter ended June 2026 more than a month ago.

Cheniere Energy reported revenues of $5.73 billion in the last reported quarter, representing a year-over-year change of +23.5%. EPS of $3.02 for the same period compares with $7.30 a year ago.

For the current quarter, Cheniere Energy is expected to post earnings of $3.86 per share, indicating a change of -18.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +4.8% over the last 30 days.

Cheniere Energy has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.

LONG BEACH, Calif., Sept. 01, 2026 (GLOBE NEWSWIRE) -- California Resources Corporation (NYSE: CRC) today announced the closing of its approximately $63 million all-cash acquisition of Crimson Midstream Holdings, LLC (“Crimson”) from CorEnergy Infrastructure Trust, Inc. The transaction was approved by the California Public Utilities Commission on August 13, 2026. The assets complement CRC’s integrated energy portfolio and will support reliable, more affordable local production in the Golden State.

"As the state’s largest oil producer, the acquisition of this diversified midstream network will enhance our ability to efficiently deliver California-produced barrels directly to the highest-value markets, while increasing operating flexibility and flow assurance across our portfolio,” said Francisco Leon, CRC’s President and Chief Executive Officer. “In addition, Crimson's pipeline corridors add to the broader set of options we'll continue to evaluate as we look at longer-term development of CO2 transportation across California."

Third Quarter 2026 Guidance

The following table provides Crimson G&A expenses and capital investment expectations for the third quarter of 2026, reflecting the September 1, 2026 closing of the Crimson acquisition. CRC plans to update its full-year 2026 guidance in conjunction with its third quarter 2026 earnings release.

 3Q26E CRIMSON OUTLOOK3Q26EG&A expenses ($ millions)$1 –$2Capital ($ millions)$1 –$2
*: This table is not intended to represent actual results and remains subject to the completion of accounting, financial close and reporting processes, including but not limited to conforming Crimson’s accounting policies and processes to CRC.  Advisors

Jefferies LLC served as financial advisor to CRC. Evercore served as financial advisor to CorEnergy Infrastructure Trust, Inc.

About California Resources Corporation

California Resources Corporation (CRC) is an independent energy and carbon management company advancing the energy transition. CRC is committed to environmental stewardship while safely providing local, responsibly sourced energy. CRC is also focused on maximizing the value of its land, mineral ownership, and energy expertise for decarbonization by developing CCS and other emissions reducing projects. For more information about CRC, please visit crc.com.

About Carbon TerraVault

Carbon TerraVault (CTV), CRC’s carbon management business, is developing services to capture, transport and permanently store CO2 for its customers. CTV is engaged in a series of proposed CCS projects to inject CO2 captured from industrial sources into depleted reservoirs deep underground for permanent sequestration. For more information, visit carbonterravault.com.

Forward-Looking Statements

Information set forth in this communication, including financial estimates and statements as to the effects of the Crimson acquisition, constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other securities laws. All statements other than historical facts are forward-looking statements, and include statements regarding the benefits of the Crimson acquisition, CRC's future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and plans and objectives and intentions of management for the future. Words such as “expect,” “could,” “may,” “anticipate,” “intend,” “plan,” “ability,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “guidance,” “outlook,” “opportunity” or “strategy” or similar expressions are generally intended to identify forward-looking statements. These forward-looking statements are based upon the current beliefs and expectations of the management of CRC and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, projected in, or implied by, such statements.

Although CRC believes the expectations and forecasts reflected in its forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond its control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause CRC’s actual results to be materially different than those expressed in its forward-looking statements are described in its most recent Annual Report on Form 10-K and its other periodic filings with the SEC. These factors include, but are not limited to: fluctuations in commodity prices; production levels and/or pricing by OPEC, OPEC+ or U.S. producers; government policy, war and political conditions and events; integration efforts and projected synergies and other benefits in connection with the Crimson acquisition and other acquisitions; divestitures and joint ventures; regulatory actions and changes that affect the oil and gas industry generally and us in particular; the efforts of activists to delay or prevent oil and gas activities or the development of CRC’s carbon management segment; changes in business strategy and the ability and financial resources to execute our capital plan in a timely manner; lower-than-expected production; changes to estimates of reserves and related future cash flows; the recoverability of resources and unexpected geologic conditions; general economic conditions and trends; results from operations and competition in the industries in which it operates; CRC’s ability to realize the anticipated benefits from prior or future efforts to reduce costs; environmental risks and liability; the benefits contemplated by its energy transition strategies and initiatives; CRC’s ability to successfully identify, develop and finance carbon capture and storage projects, power projects and other renewable energy efforts; future dividends and share repurchases and de-leveraging efforts; and natural disasters, accidents, mechanical failures, power outages, labor difficulties, cybersecurity breaches or attacks or other catastrophic events.

CRC cautions you not to place undue reliance on forward-looking statements contained in this document, which speak only as of the date hereof, and CRC is under no obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise. This communication may also contain information from third-party sources. This data may involve a number of assumptions and limitations, and CRC has not independently verified them and does not warrant the accuracy or completeness of such third-party information.

Contacts:

Key Takeaways CRC's $63M Crimson deal would add about 2,000 miles of crude pipelines and up to 400,000 bpd of capacity.Q2 pipeline issues cut CRC's pre-tax income by about $25M and led to a 137,000-barrel oil inventory build.CRC expects Crimson to improve connectivity, flexibility, flow assurance and access to higher-value markets. California Resources Corporation (CRC - Free Report) agreed to acquire Crimson Midstream Holdings for $63 million in cash as transportation bottlenecks in California have already hurt oil realizations, raised transportation costs and forced an inventory build. The timing puts market access at the center of the investment case.

CRC has beaten the Zacks Consensus Estimate in two of the preceding four quarters and missed the estimate in the other two, highlighting a mixed recent earnings track record. The investor question is whether greater control over pipelines and storage can improve access to higher-value markets and reduce dependence on constrained third-party routes. That strategic case is clear, but the transaction still has to close and CRC must convert infrastructure ownership into better commercial outcomes.

Image Source: Zacks Investment Research

CRC Adds 2,000 Miles of California Pipelines

Crimson would add roughly 2,000 miles of California crude-oil pipelines with combined transportation capacity of up to about 400,000 barrels per day. The network includes the SoCal Pipeline Network, IVEC Line, San Pablo Bay Pipeline, KLM Pipeline and other strategic assets.

The deal builds on CRC's first-quarter acquisition of the 118-mile Line 100 system. That asset added 60,000 barrels per day of crude-pipeline capacity and more than 1 million barrels of storage, giving CRC a broader mix of gathering, transportation, storage and truck-loading infrastructure.

Image Source: California Resources Corporation

CRC Targets Better Access to Higher-Value Markets

Management expects Crimson to improve connectivity, operating flexibility, flow assurance and third-party transportation opportunities. Certain acquired lines operate as common carriers, creating the potential for tariff revenue while giving CRC more options to move its own production to higher-value California markets.

Plains All American Pipeline, L.P. (PAA - Free Report) operates an extensive crude-oil logistics network built around pipelines, terminals and storage. Kinder Morgan, Inc. (KMI - Free Report) similarly emphasizes energy transportation and storage and stable fee-based assets. CRC remains an upstream producer, but Crimson would add a more contracted midstream element around its production.

CRC's Q2 Constraints Show Why the Deal Matters

Second-quarter 2026 pipeline proration and offtaker force majeure claims led to lower realizations, higher transportation costs and a temporary inventory build of about 137,000 barrels of oil. The substantial majority of that inventory was sold in July.

The disputes reduced CRC's second-quarter pre-tax income by about $25 million. Management expects third-quarter oil realizations of roughly 93% of Brent, versus about 95% in the second quarter, while stressing that it does not view the lower level as a new long-term run rate.

CRC Still Faces Closing and Execution Risks

The Crimson transaction is expected to close in the third quarter of 2026, subject to customary regulatory approvals. CRC plans to provide updated financial and operating guidance after the deal closes.

Execution risk extends beyond the acquisition. CRC is disputing pipeline proration and force majeure claims, and the timing and outcome remain uncertain. More infrastructure may broaden transportation choices, but investors should separate that strategic potential from improved realizations or margins that have not yet been realized.

CRC's Momentum Score Tempers the Strategic Upside

Crimson could directly address a weakness exposed in the second quarter by adding routes, storage and common-carrier infrastructure. The benefits, however, depend on closing the transaction, integrating the assets and translating additional optionality into better market access and cash flows.

CRC currently carries a Zacks Rank #4 (Sell). Its VGM Score of A, Growth Score of A and Value Score of B indicate favorable characteristics in those styles, while the Momentum Score of D points to weaker timing. Because Style Scores complement rather than override the Zacks Rank, the near-term setup remains cautious despite the strategic logic of the midstream expansion.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways CRC shares fell 14.1% in three months as earnings pressure and California transport constraints weighed.CRC achieved $103M in annualized Berry synergies and targets up to $470M in cumulative savings by 2028.CRC cut long-term California maintenance capital about 5% to $450-$475M as drilling efficiency improved. California Resources Corporation (CRC - Free Report) shares have declined 14.1% in the past three months, compared with a 0.5% drop for its Zacks sub-industry. The Zacks Oils-Energy sector gained 0.4%, while the S&P 500 advanced 3%.

Image Source: Zacks Investment Research

The pullback comes as earnings pressure, falling estimates and California transportation constraints offset progress on costs and drilling efficiency. The key question is whether those operating gains are enough to counter risks that could remain visible in the near term.

CRC's Earnings Miss Adds Pressure to the SetupCRC reported second-quarter 2026 adjusted earnings of 99 cents per share, down 10% year over year and 24.4% below the Zacks Consensus Estimate of $1.31.

The quarter was not uniformly weak. Oil, natural gas and natural gas liquids revenues rose 50.4% to $1.06 billion and topped the $979 million consensus mark by 7.8%, pointing to a mixed earnings picture rather than a miss that explains the stock move by itself.

CRC Faces Persistent Takeaway and Realization RiskPipeline proration and offtaker force majeure claims contributed to weaker differentials, higher transportation costs and a 137,000-barrel oil inventory build. The disputes reduced second-quarter pre-tax income by about $25 million.

Management expects third-quarter oil realizations of roughly 93% of Brent, down from about 95% in the second quarter. Most of the inventory was sold in July, but the timing of dispute resolution remains uncertain.

Sable Offshore Corp. (SOC - Free Report) , another California-exposed producer, began oil sales from the Santa Ynez Unit through its integrated pipeline system in 2026. Amplify Energy Corp. (AMPY - Free Report) also retains the Beta producing properties in federal waters offshore Southern California, keeping infrastructure and market access relevant across the regional producer set.

California Resources Is Cutting Structural CostsCRC implemented more than 100% of its 2026 Berry synergy target six months ahead of schedule, representing about $103 million of annualized savings. Management now targets up to $470 million of cumulative synergies and structural cost reductions through 2028.

California drilling time-to-market improved about 25%, while roughly 80% of year-to-date wells outperformed type curves with initial production more than 10% above expectations. CRC consequently lowered its estimated long-term California drilling, completions and workover maintenance capital by about 5% to $450-$475 million with six rigs.

CRC Still Has Heavy Commodity and Capital ExposureThe Zacks Consensus Estimate for 2026 earnings stands at $3.53 per share, below $4.11 in 2025. The full-year estimate has fallen 12.2% over the past four weeks, reinforcing the pressure from weakening expectations.

Image Source: Zacks Investment Research

CRC still expects $520-$560 million of total 2026 capital investment. Cash generation remains sensitive to Brent and natural gas prices, while derivative gains and losses can create large swings in reported earnings even as hedges provide some cash-flow protection.

CRC's Mixed Style Scores Keep the Signal CautiousThe 13.7% pullback does not remove the near-term risks. Cost savings and better drilling efficiency strengthen the operating base, but lower earnings estimates, market-access uncertainty and commodity sensitivity limit the case for assuming a quick rebound.

CRC currently carries a Zacks Rank #4 (Sell). Its VGM Score of A, Growth Score of A and Value Score of B point to favorable characteristics in those styles, while its Momentum Score of D is consistent with weaker recent price action.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Style Scores are designed to complement the Zacks Rank rather than override it. With the Rank at #4 and Momentum at D, the overall signal remains cautious despite the stronger Value, Growth and VGM readings.

Posted by Defense World Staff on Aug 14th, 2026

Bank of America Corp DE lifted its holdings in shares of California Resources Corporation (NYSE:CRC – Free Report) by 57.1% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 585,709 shares of the oil and gas producer’s stock after acquiring an additional 212,827 shares during the quarter. Bank of America Corp DE owned about 0.66% of California Resources worth $40,543,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also recently added to or reduced their stakes in CRC. Valued Wealth Advisors LLC purchased a new stake in shares of California Resources during the first quarter worth about $29,000. Rockefeller Capital Management L.P. boosted its holdings in California Resources by 363.6% in the fourth quarter. Rockefeller Capital Management L.P. now owns 561 shares of the oil and gas producer’s stock valued at $25,000 after purchasing an additional 440 shares during the last quarter. Steward Partners Investment Advisory LLC acquired a new stake in California Resources during the 4th quarter valued at approximately $26,000. Pinnacle Holdings LLC acquired a new stake in California Resources during the 4th quarter valued at approximately $27,000. Finally, EMC Capital Management purchased a new stake in California Resources during the 4th quarter worth approximately $42,000. 97.79% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth A number of brokerages recently issued reports on CRC. UBS Group dropped their price target on shares of California Resources from $70.00 to $67.00 and set a “buy” rating for the company in a research note on Wednesday. Weiss Ratings raised shares of California Resources from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday. Mizuho increased their price target on shares of California Resources from $86.00 to $87.00 and gave the stock an “outperform” rating in a research report on Wednesday, May 27th. Stephens set a $85.00 price objective on California Resources and gave the company an “overweight” rating in a report on Friday, July 17th. Finally, Barclays restated an “overweight” rating and set a $77.00 price objective (down from $80.00) on shares of California Resources in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $72.55.

Get Our Latest Research Report on California Resources

California Resources Trading Down 1.2% California Resources stock opened at $52.81 on Friday. The company has a quick ratio of 0.47, a current ratio of 0.55 and a debt-to-equity ratio of 0.45. The firm has a 50-day moving average price of $53.54 and a two-hundred day moving average price of $58.76. The firm has a market capitalization of $4.69 billion, a price-to-earnings ratio of -38.83 and a beta of 0.93. California Resources Corporation has a 52-week low of $43.24 and a 52-week high of $71.98.

California Resources (NYSE:CRC – Get Free Report) last released its quarterly earnings results on Monday, August 10th. The oil and gas producer reported $0.99 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.36 by ($0.37). The business had revenue of $1.30 billion during the quarter, compared to the consensus estimate of $960.20 million. California Resources had a positive return on equity of 9.87% and a negative net margin of 3.79%.The company’s revenue for the quarter was up 33.0% compared to the same quarter last year. During the same period in the previous year, the company posted $1.10 EPS. Sell-side analysts expect that California Resources Corporation will post 3.53 earnings per share for the current year.

California Resources Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, September 4th will be issued a $0.405 dividend. This represents a $1.62 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date is Friday, September 4th. California Resources’s payout ratio is presently -119.12%.

Insider Buying and Selling In other California Resources news, EVP Jay A. Bys sold 11,907 shares of the company’s stock in a transaction on Monday, August 10th. The stock was sold at an average price of $54.00, for a total value of $642,978.00. Following the transaction, the executive vice president owned 147,517 shares of the company’s stock, valued at approximately $7,965,918. This represents a 7.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 35,721 shares of company stock worth $2,020,380 over the last ninety days. 0.53% of the stock is owned by corporate insiders.

About California Resources (Free Report)

California Resources Corporation (NYSE: CRC) is an independent exploration and production company focused exclusively on developing oil and natural gas assets in California. Headquartered in Newport Beach, the company engages in hydraulic fracturing, well completions, reservoir management and enhanced recovery operations to produce crude oil, natural gas and natural gas liquids.

CRC’s operations are concentrated in three core regions: the Los Angeles Basin, the Ventura Basin and the San Joaquin Basin.

Further Reading Five stocks we like better than California Resources Asian Market Circuit Breakers Hit Stocks, Not AI Demand Riot Platforms Re-Wires the Ledger for a $9B AI Power Play Nebius Just Exploded 34% on Blowout Earnings—Is It Time to Buy? Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal

Receive News & Ratings for California Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for California Resources and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEBest Solar Stocks To Watch Today – August 12th

NEXT HEADLINE »Benjamin Edwards Inc. Has $6.82 Million Stake in Hershey Company (The) $HSY

California Resources Corporation (CRC) Q2 2026 Earnings Call Transcript

California Resources Corporation (CRC - Free Report) came out with quarterly earnings of $0.99 per share, missing the Zacks Consensus Estimate of $1.31 per share. This compares to earnings of $1.1 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -24.43%. A quarter ago, it was expected that this company would post earnings of $0.83 per share when it actually produced earnings of $0.88, delivering a surprise of +6.02%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

California Resources, which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry, posted revenues of $1.06 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 7.83%. This compares to year-ago revenues of $978 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

California Resources shares have added about 16.5% since the beginning of the year versus the S&P 500's gain of 13.3%.

What's Next for California Resources?While California Resources has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for California Resources was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.89 on $901.95 million in revenues for the coming quarter and $4.02 on $3.68 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Exploration and Production - United States is currently in the bottom 13% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Big Sky Industrial Inc. (BSIN - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11.

This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +73.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Big Sky Industrial Inc.'s revenues are expected to be $2.1 million, up 3.5% from the year-ago quarter.

Wall Street analysts expect California Resources Corporation (CRC - Free Report) to post quarterly earnings of $1.31 per share in its upcoming report, which indicates a year-over-year increase of 19.1%. Revenues are expected to be $979.33 million, up 0.1% from the year-ago quarter.

The current level reflects a downward revision of 34.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

That said, let's delve into the average estimates of some California Resources metrics that Wall Street analysts commonly model and monitor.

Analysts forecast 'Total Production Per Day' to reach 148.97 thousands of barrels of oil equivalent per day. The estimate is in contrast to the year-ago figure of 137.00 thousands of barrels of oil equivalent per day.

It is projected by analysts that the 'Production Per Day - Oil' will reach 120.58 thousands of barrels of oil per day. The estimate compares to the year-ago value of 109.00 thousands of barrels of oil per day.

The combined assessment of analysts suggests that 'Production per day - Natural Gas' will likely reach . The estimate compares to the year-ago value of .

Analysts predict that the 'Production Per Day - NGL' will reach 9.16 thousands of barrels of oil per day. Compared to the present estimate, the company reported 10.00 thousands of barrels of oil per day in the same quarter last year.

View all Key Company Metrics for California Resources here>>>

Over the past month, shares of California Resources have returned -0.1% versus the Zacks S&P 500 composite's +2.3% change. Currently, CRC carries a Zacks Rank #5 (Strong Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Wall Street expects a year-over-year increase in earnings on higher revenues when California Resources Corporation (CRC - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on August 10, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis company is expected to post quarterly earnings of $1.31 per share in its upcoming report, which represents a year-over-year change of +19.1%.

Revenues are expected to be $979.33 million, up 0.1% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 43.34% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for California Resources?For California Resources, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #5.

So, this combination makes it difficult to conclusively predict that California Resources will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that California Resources would post earnings of $0.83 per share when it actually produced earnings of $0.88, delivering a surprise of +6.02%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

California Resources doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAmong the stocks in the Zacks Oil and Gas - Exploration and Production - United States industry, Infinity Natural Resources (INR - Free Report) , is soon expected to post earnings of $0.87 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -26.3%. This quarter's revenue is expected to be $164.12 million, up 120.4% from the year-ago quarter.

The consensus EPS estimate for Infinity Natural Resources has been revised 2.9% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.92%.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Infinity Natural Resources will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Posted by Defense World Staff on Jul 22nd, 2026

Bank of New York Mellon Corp lowered its stake in California Resources Corporation (NYSE:CRC – Free Report) by 1.2% during the first quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 1,200,610 shares of the oil and gas producer’s stock after selling 14,082 shares during the quarter. Bank of New York Mellon Corp owned approximately 1.35% of California Resources worth $83,106,000 as of its most recent filing with the SEC.

Other large investors have also recently bought and sold shares of the company. Rockefeller Capital Management L.P. lifted its position in shares of California Resources by 363.6% in the fourth quarter. Rockefeller Capital Management L.P. now owns 561 shares of the oil and gas producer’s stock valued at $25,000 after acquiring an additional 440 shares in the last quarter. Steward Partners Investment Advisory LLC purchased a new stake in California Resources during the 4th quarter worth about $26,000. Pinnacle Holdings LLC purchased a new stake in California Resources during the 4th quarter worth about $27,000. Valued Wealth Advisors LLC purchased a new stake in California Resources during the 1st quarter worth about $29,000. Finally, Allworth Financial LP raised its stake in California Resources by 328.6% in the 3rd quarter. Allworth Financial LP now owns 780 shares of the oil and gas producer’s stock valued at $41,000 after purchasing an additional 598 shares during the last quarter. Institutional investors and hedge funds own 97.79% of the company’s stock.

Analysts Set New Price Targets A number of research firms have issued reports on CRC. UBS Group restated a “buy” rating and issued a $70.00 target price (down from $78.00) on shares of California Resources in a report on Monday, July 13th. Mizuho lifted their price target on shares of California Resources from $86.00 to $87.00 and gave the stock an “outperform” rating in a report on Wednesday, May 27th. Stephens set a $85.00 price objective on shares of California Resources and gave the company an “overweight” rating in a research report on Friday. Citigroup reduced their price objective on shares of California Resources from $78.00 to $70.00 and set a “buy” rating on the stock in a research note on Tuesday, June 30th. Finally, Wall Street Zen lowered shares of California Resources from a “buy” rating to a “hold” rating in a research report on Tuesday, June 23rd. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, California Resources presently has an average rating of “Moderate Buy” and a consensus price target of $73.09.

Read Our Latest Stock Analysis on California Resources

California Resources Stock Up 2.0% Shares of NYSE:CRC opened at $53.28 on Wednesday. The stock’s 50-day moving average price is $56.55 and its two-hundred day moving average price is $58.10. The company has a current ratio of 0.55, a quick ratio of 0.47 and a debt-to-equity ratio of 0.45. California Resources Corporation has a 12-month low of $43.24 and a 12-month high of $71.98. The firm has a market cap of $4.73 billion, a price-to-earnings ratio of -10.25 and a beta of 0.92.

California Resources (NYSE:CRC – Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The oil and gas producer reported $0.88 EPS for the quarter, meeting analysts’ consensus estimates of $0.88. California Resources had a negative net margin of 16.10% and a positive return on equity of 10.12%. The company had revenue of $119.00 million during the quarter, compared to the consensus estimate of $947.50 million. During the same quarter in the prior year, the company posted $1.07 EPS. The company’s quarterly revenue was down 87.0% compared to the same quarter last year. On average, research analysts forecast that California Resources Corporation will post 4.02 EPS for the current year.

California Resources Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Friday, May 29th were paid a dividend of $0.405 per share. The ex-dividend date of this dividend was Friday, May 29th. This represents a $1.62 dividend on an annualized basis and a yield of 3.0%. California Resources’s dividend payout ratio (DPR) is currently -31.15%.

Insider Buying and Selling at California Resources In other news, EVP Jay A. Bys sold 11,907 shares of the business’s stock in a transaction on Monday, July 13th. The shares were sold at an average price of $54.00, for a total transaction of $642,978.00. Following the completion of the sale, the executive vice president directly owned 159,424 shares of the company’s stock, valued at $8,608,896. The trade was a 6.95% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.53% of the stock is currently owned by company insiders.

About California Resources (Free Report)

California Resources Corporation (NYSE: CRC) is an independent exploration and production company focused exclusively on developing oil and natural gas assets in California. Headquartered in Newport Beach, the company engages in hydraulic fracturing, well completions, reservoir management and enhanced recovery operations to produce crude oil, natural gas and natural gas liquids.

CRC’s operations are concentrated in three core regions: the Los Angeles Basin, the Ventura Basin and the San Joaquin Basin.

Recommended Stories Five stocks we like better than California Resources Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding CRC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for California Resources Corporation (NYSE:CRC – Free Report).

Receive News & Ratings for California Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for California Resources and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEArvest Bank Trust Division Has $956,000 Position in O’Reilly Automotive, Inc. $ORLY

NEXT HEADLINE »Bank of New York Mellon Corp Cuts Stake in Sun Communities, Inc. $SUI

As the global energy landscape shifts toward lower carbon intensity, investors are looking closely at producers with integrated strategies. Deciding between BKV Corp (BKV 0.78%) and California Resources Corp (CRC 1.91%) requires weighing growth against cash flow.

These two companies focus on distinct geographic regions and energy sources. BKV targets natural gas in the Eastern and Southern United States, while California Resources maintains a stronghold in the unique California oil market. Both are pivoting toward carbon management, making them interesting picks for those following the broader energy transition.

The case for BKV CorpBKV operates as a diversified energy company focused on natural gas production, midstream assets, and power generation in Texas and Pennsylvania. The company relies on midstream transporter ONEOK Inc (OKE 0.26%) for nearly 99% of its Barnett production, and such provider concentration adds a layer of risk to the business.

In FY 2025, revenue reached $1 billion, representing a growth of roughly 74% compared to the prior year. The company reported net income of approximately $173.1 million for the period. This performance reflects a significant improvement over the net loss recorded during the previous fiscal year.

As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 0.6x, which measures total debt relative to shareholder equity. . During the fiscal year, BKV generated negative free cash flow of -$55 million, which is the cash remaining after capital expenditures are deducted from operating cash.

California Resources focuses on oil and gas exploration within the Los Angeles, Ventura, and San Joaquin basins. The company primarily sells its crude oil to a limited number of local refiners, making it highly dependent on the remaining refining capacity in Southern California. This regional dominance is paired with a growing focus on carbon management and storage projects.

For FY 2025, revenue was nearly $3.7 billion, which was an increase of roughly 15% from the previous year. The company reported net income of $359 million. While revenue grew, the net margin contracted about 3% from the prior fiscal period.

Regarding its December 2025 balance sheet, the debt-to-equity ratio was roughly 0.4x, measuring total debt against shareholder equity. The company generated strong positive free cash flow of $543 million, representing cash from operations after capital expenditures are paid.

Risk profile comparisonBKV faces risks from natural gas price volatility, which directly impacts its cash flow and ability to fund new projects. Its heavy reliance on ONEOK and a single third-party marketer creates significant counterparty and operational risks. Additionally, the high capital costs and regulatory hurdles of carbon capture technology could threaten its long-term commercial goals.

California Resources must navigate a strict regulatory environment in California that frequently impacts well permitting and development. Infrastructure constraints, such as refinery closures by Phillips 66 (PSX +1.65%) and Valero Energy (VLO +1.53%), limit its market access and could hurt realized prices. Furthermore, its carbon management segment faces operational uncertainties and potential litigation from environmental groups.

Valuation comparisonCalifornia Resources currently offers a significantly lower Forward P/E, a metric comparing stock price to future earnings estimates, and a lower P/S ratio than BKV. A P/S ratio measures a company's market value against its total revenue.

MetricBKVCalifornia ResourcesSector BenchmarkForward P/E20x8.3x29.0xP/S ratio2.4x1.3xSector benchmark uses the SPDR XLE sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?While both California Resources and BRK are U.S. oil and gas producers, they serve distinct end markets in the country, which makes the investment propositions for both markedly different.

The Pacific states operate in a pricing market that is far more reliant on Asian oil flows and on the quirks of the West Coast being practically cut off from the eastern part of the country as far as oil and gas supplies, due to the expense of getting fuels over the Rockies. That means California Resources’ production is priced off the Brent oil market, which is traded in dollars in London and largely serves as the basis for Asia-bound crude oil. That should benefit CRC more, given the Iran War’s effect on Brent prices, but the outlook for the company’s 2026 is weaker due to difficulties obtaining permits to expand production. Management says it is improving, so 2027 should be a return to growth, but for this year, lower sales of $3.4 billion and a swing to a net loss seem likely.

BKV, meanwhile, operates in the main U.S. market, which prices by West Texas Intermediate crude, which has also been rising in price as an indirect result of the Iran war. The company’s natural gas production is benefiting, too, because Europe is seeking more liquefied natural gas from the U.S. to replace oil lost to the Iran conflict and reduce its natural gas dependency on Russia. Its power generation arm is also growing due to overall increases in electricity demand in Texas. For fiscal 2026. BKV revenue should jump 65% from greater production and higher prices to $1.65 billion, with net income rising, too, to $373 million.

BKV may be asking a premium, but it’s a fast-growing oil producer benefiting immediately from global price trends. It’s the stock to buy for 2026.

LONG BEACH, Calif., June 16, 2026 (GLOBE NEWSWIRE) -- California Resources Corporation (NYSE: CRC) (the “Company”) announced today that, subject to market and other conditions, it intends to offer and sell to eligible purchasers $550 million in aggregate principal amount of senior unsecured notes due 2035 (the “Notes”). The Notes will be guaranteed by all of the Company’s existing subsidiaries that guarantee its revolving credit facility, its 8.250% senior notes due 2029 (the “2029 Notes”) and its 7.000% senior notes due 2034, and certain future subsidiaries. The Company intends to use the net proceeds from this offering, together with borrowings under its revolving credit facility and/or cash on hand to fund the redemption of all outstanding $550 million in aggregate principal amount of its 2029 Notes at a redemption price of 104.125% thereof, plus accrued and unpaid interest to, but excluding, the date of redemption. The redemption of the 2029 Notes is expected to be conditioned on the completion of the offering of the Notes. The offering of the Notes is not contingent upon the completion of such redemption.

The Notes have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the rules promulgated thereunder and applicable state securities laws. The Notes will be offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act.

This press release does not and shall not constitute an offer to sell or the solicitation of an offer to buy any Notes, nor shall there be any offer, solicitation or sale of Notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Additionally, this press release shall not constitute a notice of redemption under the indenture governing the 2029 Notes.

Forward-Looking Statement Disclosure

All statements, except for statements of historical fact, made in this release regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future, such as statements regarding the proposed offering and the intended use of proceeds, including the redemption of the 2029 Notes, are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements speak only as of the date of this release. Although the Company believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Except as required by law, the Company expressly disclaims any obligation to and does not intend to publicly update or revise any forward-looking statements.

The Company cautions you that these forward-looking statements are subject to all of the risks and uncertainties incident to the Company’s business, most of which are difficult to predict and many of which are beyond the Company’s control. These risks include, but are not limited to, the risks described under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and its subsequently filed Quarterly Reports on Form 10-Q.

About California Resources Corporation

California Resources Corporation (CRC) is an independent energy and carbon management company advancing the energy transition. CRC is committed to environmental stewardship while safely providing local, responsibly sourced energy. CRC is also focused on maximizing the value of its land, mineral ownership, and energy expertise for decarbonization by developing carbon capture and storage and other emissions-reducing projects.

CRC Contacts:

HomeStock IdeasLong IdeasEnergy Analysis

SummaryCalifornia Resources stands to benefit from regulatory compromise enabling thousands of new wells in Kern County while tightening offshore restrictions.CRC’s merger with Berry Corporation enhances operational efficiency.Emerging discussion around using carbon capture to unlock unconventional oil in-state signals potential for future production expansion.I view CRC as a buy, given its robust finances, regulatory navigation, and growth opportunities from evolving California energy policy.This company is at the forefront of carbon capture.This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More »Sitewide Sale 2026: Get 20% Off IURII KRASILNIKOV/iStock via Getty Images

California Resources (CRC) is expected to benefit from an unexpected compromise that will allow for thousands of wells in oil-rich Kern County while tightening the regulations on the offshore business. California has long

25.77K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: I am not an investment advisor, and this article is not meant to be a recommendation for the purchase or sale of stock. Investors are advised to review all company documents and press releases to see if the company fits its own investment qualifications.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Increasing Second Half 2026 Activity to Accelerate Development of Long Duration Oil Inventory

Raising 2026E Adjusted EBITDAX Guidance by 42% Driven by Strong Oil Prices, Increased Target Synergies and Expected Operating Efficiencies

LONG BEACH, Calif., May 05, 2026 (GLOBE NEWSWIRE) -- California Resources Corporation (NYSE: CRC) (CRC) today reported its financial and operating results for the first quarter of 2026. In addition, CRC announced plans to increase second half 2026 drilling activity, materially enhancing full-year expectations and building momentum into 2027. The Company plans to host a conference call and webcast at 1 p.m. ET (10 a.m. PT) on Wednesday, May 6, 2026. Conference call details can be found within this release.

Highlights

Delivered average net production of 154 thousand barrels of oil equivalent per day (MBoe/d) (81% oil); oil volumes were reduced by approximately 1.5 thousand barrels of oil per day (MBo/d) due to the impact of higher oil prices on production sharing contractsReported a net loss of $711 million, primarily driven by the non-cash loss in the fair value of its outstanding commodity derivatives1, adjusted net income1 of $79 million and $304 million of adjusted EBITDAX1Generated net cash provided by operating activities of $99 million or $247 million of net cash provided by operating activities before net changes in operating assets and liabilities1  Delivered $32 million of negative free cash flow1 or $116 million of free cash flow before net changes in operating assets and liabilities1Returned $46 million to shareholders, including $36 million in dividends and $10 million in share repurchases2Ended the first quarter of 2026 with $1,251 million in borrowing capacity and including $25 million in available cash and cash equivalents3 representing $1,276 million of liquidity1, 3Optimized capital structure and extended maturities through recent $350 million follow-on offering of 7.000% senior notes due 2034 (2034 Senior Notes) and subsequent redemption of $350 million 8.250% senior notes due 2029 (2029 Senior Notes)Preparing for first carbon dioxide (CO2) injection at California's inaugural carbon capture and storage (CCS) project at CRC's Elk Hills cryogenic gas plant; see Carbon TerraVault's First Quarter 2026 Update for additional information 2026 Guidance Highlights

Increased mid-point of expected Berry merger annual synergy target range by 12% to $90 - $100 millionIncreased expected drilling, completions and workover capital1 investments by approximately $100 million to accelerate high-return drilling projects in California and UtahReduced facilities capital by $10 million, reflecting ongoing field consolidationIncreased capital budget range to $520 - $560 million with a full-year average of five rigsTargeting 2026E gross production exit rate of approximately 175 MBoe/d, representing ~1% entry-to-exit production growthHigher oil prices, increased drilling activity and improved operating efficiencies drive a 42% increase in 2026E adjusted EBITDAX1 to a guidance midpoint of $1,450 million "We continued to demonstrate the strength of our integrated portfolio strategy, delivering solid results while advancing high-return oil developments and capturing incremental merger-related synergies," said Francisco Leon, CRC's President and Chief Executive Officer. "With higher oil prices and an attractive drilling return portfolio, we see a clear opportunity to accelerate development across our multi-decade resource inventory. As a result, we are adding incremental drilling activity this year to drive higher production, EBITDAX and cash flow. Our low-decline, capital-efficient conventional asset base underpins this strategy and we are moving decisively to unlock its value. CRC is a different kind of energy company, and our consistent results reinforce our ability to create durable, long-term value for our shareholders while meeting California's energy needs."

First Quarter 2026 Results

Operating expenses were in line with expectations reflecting solid execution and the ongoing capture of Berry merger-related synergiesGeneral and administrative expenses were slightly higher than expectations primarily driven by the timing of legal fees and cash-settled stock-based compensation related to a higher share priceInvested total capital of $131 million including drilling, completions and workover capital1 of $70 million; total capital was at the high-end of expectations driven by strategic acceleration of investments to support planned second half 2026 drilling activity
Select Production, Price and Financial Results and Non-GAAP Measures 1st Quarter  4th Quarter($ in millions except production and prices)  2026   2025Net oil production per day (MBbl/d)5  124    109Realized oil price without derivative settlements ($ per Bbl) $74.53   $61.14Realized oil price with derivative settlements1 ($ per Bbl)1 $69.37   $64.27Net NGL production per day (MBbl/d)5  10    9Realized NGL price ($ per Bbl) $44.98   $42.86Net natural gas production per day (Mmcf/d)5  117    113Realized natural gas price ($ per Mcf) $3.56   $3.91Net total production per day (MBoe/d)5  154    137      Margin from purchased commodities1 $18   $13Electricity revenue net of electricity generation expenses1 $6   $40Net (loss) gain from commodity sales derivatives $(848)  $126Other operating expenses net of other revenue1 $44   $75 Select Financial Statement Data and Non-GAAP Measures: 1st Quarter  4th Quarter($ and shares in millions, except per share amounts)  2026   2025Total operating revenues before net (loss) gain from commodity derivatives1 $967   $798      Operating costs $365   $325General and administrative expenses $106   $95Adjusted general and administrative expenses1 $99   $89Taxes other than on income $67   $55Transportation costs $26   $20Operating (loss) income $(711)  $47Interest and debt expense, net $29   $29Income tax (benefit) provision $(49)  $11Deferred income tax (benefit) provision $(50)  $22Net (loss) income  $(711)  $12Weighted-average common shares outstanding - diluted  88.7    85.1Net (loss) income per share - diluted $(8.02)  $0.14      Adjusted net income1 $79   $40Adjusted net income per share1 - diluted $0.88   $0.47Net cash provided by operating activities $99   $235Adjusted EBITDAX1 $304   $251Free cash flow1 $(32)  $115Capital investments $131   $120          Guidance

The following table provides key second quarter and full year 2026 financial and operating guidance4. CRC is positioned to accelerate activity in the summer of 2026, increasing to a seven rig program in the second half of 2026, which includes 6 rigs in California and 1 rig in Utah. CRC currently holds the permits necessary to execute a majority of its planned capital program, subject to commodity prices and market conditions. See Attachment 2 for further information on CRC's second quarter and full year 2026 guidance.

 2Q26ETotal Year
2026ENet Production (MBoe/d)148 - 150149 - 155Percentage Oil81%
81%
Capital Investments ($ millions)$120 - $140$520 - $560Adjusted EBITDAX1 ($ millions)$370 - $410$1,400 - $1,500    Shareholder Returns

On May 5, 2026, CRC's Board of Directors declared a quarterly cash dividend of $0.405 per share of common stock, payable to shareholders of record on May 29, 2026. The dividend is expected to be paid on June 18, 2026.

In the first quarter 2026, CRC repurchased 0.2 million shares of its common stock for $10 million2 at an average price of $45.70 per share and returned $36 million in dividends to shareholders. Since mid-2021, the Company has returned approximately $1,619 million to shareholders2, including $1,180 million in share repurchases and $439 million in dividends.

Balance Sheet and Liquidity

In April 2026, CRC's lenders reaffirmed its $1,500 million borrowing base under its Revolving Credit Facility as part of its semi-annual redetermination.

On March 23, 2026, CRC completed a $350 million follow-on offering of Senior Notes due 2034, generating net proceeds of $347 million, reflecting approximately $2 million of issuance premium and $5 million of issuance costs. The net proceeds, combined with cash on hand, were used to redeem $350 million of CRC's outstanding Senior Notes due 2029.

As of March 31, 2026, CRC had liquidity of $1,276 million1,3, consisting of $25 million in available cash and cash equivalents3 and $1,251 million of available borrowing capacity under its Revolving Credit Facility (which reflects $1,460 million of borrowing capacity less $184 million of outstanding letters of credit and $25 million outstanding on the Revolving Credit Facility).

Participation in Upcoming Investor Conferences

CRC is scheduled to participate in the following events in May, June and July 2026:

Goldman Sachs Eleventh Annual Leverage Finance and Credit Conference, May 28, Dana Point, CA2026 RBC Capital Markets Global Energy, Power & Infrastructure Conference, June 2, New York, NYBofA Securities Energy and Power Credit Conference, June 3, New York, NYJP Morgan Natural Resources Conference, June 23, New York, NYRBC Capital Markets Energy Transition Conference 2026, June 25, London, UKTD Cowen 24th Annual Calgary Energy, Power & Utilities Conference, July 7 and 8, Calgary, AB CRC’s presentation materials will be available on the day of the event on its website. See the Events and Presentations page under the Investor Relations section at www.crc.com. 

Conference Call Details

A conference call and webcast is planned for 1 p.m. ET (10 a.m. PT) on Wednesday, May 6, 2026. To participate in the call, dial (877) 328-5505 (International calls dial +1 (412) 317-5421) or access via webcast at www.crc.com. Participants may also pre-register for the conference call at https://dpregister.com/sreg/10207969/103b95d691e. A digital replay of the conference call will be available for approximately 90 days.

1 See Attachment 3 for the non-GAAP financial measures of adjusted net income (loss), adjusted net income (loss) per share - basic and diluted, net cash provided by operating activities before net changes in operating assets and liabilities, adjusted EBITDAX, free cash flow, free cash flow before net changes in operating assets and liabilities, adjusted general and administrative expenses, total operating revenues before net (loss) gain from commodity derivatives, margin from purchased commodities, electricity revenue net of electricity generation expenses and other operating expenses net of other revenue, including reconciliations to the most directly comparable GAAP measure without unreasonable effort. See Attachment 2 for the 2Q26 and 2026 estimates of the non-GAAP measures of adjusted EBITDAX, adjusted general and administrative expenses, margin from purchased commodities, other operating expenses net of other revenue and electricity revenue net of electricity generation expenses, including reconciliations to its most directly comparable GAAP measure, without unreasonable effort. See Attachment 1 for a reconciliation of drilling completion and workover capital to total capital investments, and non-cash commodity derivative (loss) gain from combined derivatives to net (loss) gain from combined derivatives, reported under GAAP.
2 All of CRC’s future quarterly dividends and share repurchases are subject to commodity prices, debt agreement covenants and Board of Directors' approval. The total value of shares purchased excludes commissions and excise taxes. Commissions paid on share repurchases were not significant in all periods presented.
3 Excludes restricted cash of $15 million.
4 2Q26 guidance assumes Brent price of $105.36 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $2.77 per mcf. Total year 2026 guidance assumes Brent price of $90.58 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $3.61 per mcf.
5 Net production per day for the periods presented reflects the impact of transaction timing. Berry Corporation volumes contributed for approximately 14 days in 2025 following the transaction close. Production amounts shown are reported results and are not presented on a pro forma basis.

About California Resources Corporation

California Resources Corporation (CRC) is an independent energy and carbon management company advancing the energy transition. CRC is committed to environmental stewardship while safely providing local, responsibly sourced energy. CRC is also focused on maximizing the value of its land, mineral ownership, and energy expertise for decarbonization by developing CCS and other emissions reducing projects. For more information about CRC, please visit crc.com.

About Carbon TerraVault

Carbon TerraVault (CTV), CRC’s carbon management business, is developing services to capture, transport and permanently store carbon dioxide (CO2) for its customers. CTV is engaged in a series of proposed CCS projects to inject CO2 captured from industrial sources into depleted reservoirs deep underground for permanent sequestration. For more information, visit carbonterravault.com.

Forward-Looking Statements

Information set forth in this communication, including financial estimates and statements as to the effects of the Berry Merger, constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other securities laws. All statements other than historical facts are forward-looking statements, and include statements regarding the benefits of the Berry Merger, CRC's future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and plans and objectives and intentions of management for the future. Words such as “expect,” “could,” “may,” “anticipate,” “intend,” “plan,” “ability,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “guidance,” “outlook,” “opportunity” or “strategy” or similar expressions are generally intended to identify forward-looking statements. These forward-looking statements are based upon the current beliefs and expectations of the management of CRC and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, projected in, or implied by, such statements.

Although CRC believes the expectations and forecasts reflected in its forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond its control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause CRC’s actual results to be materially different than those expressed in its forward-looking statements are described in its most recent Annual Report on Form 10-K and its other periodic filings with the SEC. These factors include, but are not limited to: fluctuations in commodity prices; production levels and/or pricing by OPEC, OPEC+ or U.S. producers; government policy, war and political conditions and events; integration efforts and projected synergies and other benefits in connection with the Berry Merger and other acquisitions; divestitures and joint ventures; regulatory actions and changes that affect the oil and gas industry generally and us in particular; the efforts of activists to delay or prevent oil and gas activities or the development of CRC’s carbon management segment; changes in business strategy and the ability and financial resources to execute our capital plan in a timely manner; lower-than-expected production; changes to estimates of reserves and related future cash flows; the recoverability of resources and unexpected geologic conditions; general economic conditions and trends; results from operations and competition in the industries in which it operates; CRC’s ability to realize the anticipated benefits from prior or future efforts to reduce costs; environmental risks and liability; the benefits contemplated by its energy transition strategies and initiatives; CRC’s ability to successfully identify, develop and finance carbon capture and storage projects, power projects and other renewable energy efforts; delays from government approvals and otherwise that could affect the timing of first injection of CO2; future dividends and share repurchases and de-leveraging efforts; and natural disasters, accidents, mechanical failures, power outages, labor difficulties, cybersecurity breaches or attacks or other catastrophic events.

CRC cautions you not to place undue reliance on forward-looking statements contained in this document, which speak only as of the date hereof, and CRC is under no obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise. This communication may also contain information from third-party sources. This data may involve a number of assumptions and limitations, and CRC has not independently verified them and does not warrant the accuracy or completeness of such third-party information.

Contacts:

Attachment 1STATEMENTS OF OPERATIONS, SELECT FINANCIAL INFORMATION         1st Quarter 4th Quarter 1st Quarter($ and shares in millions, except per share amounts)  2026   2025   2025        Statements of Operations:      Revenues      Oil, natural gas and natural gas liquids sales $905  $679  $814 Net (loss) gain from commodity derivatives  (848)  126   6 Revenue from marketing of purchased commodities  41   60   64 Electricity revenue  11   52   22 Other revenue  10   7   6 Total operating revenues  119   924   912        Operating Expenses      Operating costs  365   325   316 General and administrative expenses  106   95   72 Depreciation, depletion and amortization  133   129   131 Asset impairment  —   57   — Taxes other than on income  67   55   70 Costs related to marketing of purchased commodities  23   47   50 Electricity generation expenses  5   12   10 Transportation costs  26   20   20 Accretion expense  27   29   29 Net loss on natural gas purchase derivatives  24   26   (6)Measurement period adjustments, net  —   —   1 Other operating expenses, net  54   82   33 Total operating expenses  830   877   726 Operating (Loss) Income   (711)  47   186        Non-Operating (Expenses) Income      Interest and debt expense, net  (29)  (29)  (27)Equity loss from unconsolidated subsidiaries  (2)  (1)  (1)Loss on early extinguishment of debt  (21)  —   (1)Other non-operating income, net  3   6   5        (Loss) Income Before Income Taxes  (760)  23   162 Income tax benefit (provision)  49   (11)  (47)Net (Loss) Income  $(711) $12  $115        Net income per share - basic $(8.02) $0.14  $1.27 Net income per share - diluted $(8.02) $0.14  $1.26        Adjusted net income $79  $40  $98 Adjusted net income per share - basic $0.89  $0.47  $1.08 Adjusted net income per share - diluted(1) $0.88  $0.47  $1.07        Weighted-average common shares outstanding - basic  88.7   84.6   90.6 Weighted-average common shares outstanding - diluted(1)  88.7   85.1   91.2        Effective tax rate  6%  48%  29%          1st Quarter 4th Quarter 1st Quarter($ in millions)  2026   2025   2025 Cash Flow Data:      Net cash provided by operating activities $99  $235  $186 Net cash used in investing activities $(136) $(508) $(79)Net cash (used in) provided by financing activities $(55) $209  $(265)         March 31 December 31,  ($ in millions)  2026   2025   Select Balance Sheet Information:      Total current assets $788  $938   Property, plant and equipment, net $5,904  $5,905   Total current liabilities $1,441  $1,050   Long-term debt, net $1,310  $1,283   Noncurrent asset retirement obligations $906  $913   Total stockholders' equity $2,918  $3,674                 (1) Adjusted net income per share - diluted for the three months ended March 31, 2026 is calculated using weighted average shares outstanding of 89.5 million shares.  GAINS AND LOSSES FROM COMMODITY DERIVATIVES   1st Quarter 4th Quarter 1st Quarter($ millions)  2026   2025  2025        Non-cash (loss) gain from commodity sales derivatives $(792) $95 $22 Net settlements and premiums  (56)  31  (16)Net (loss) gain from commodity sales derivatives $(848) $126 $6         Non-cash loss (gain) from natural gas purchase derivatives $12  $22 $(18)Settlements  12   4  12 Net loss (gain) from natural gas purchase derivatives $24  $26 $(6)              Non-cash (loss) gain from combined commodity derivatives $(804) $73 $40 Net settlements and premiums from combined derivatives  (68)  27  (28)Net (loss) gain from combined commodity derivatives $(872) $100 $12         CAPITAL INVESTMENTS         1st Quarter 4th Quarter 1st Quarter($ millions) 2026  2025  2025       Facilities(1) $37 $46  $16Drilling and completions  53  38   15Workovers  17  18   19Other  9  9   —Oil and natural gas segment  116  111   50Carbon management segment  12  11   2Corporate and other(1)  3  (2)  3Total capital investment $131 $120  $55 (1) Certain amounts previously reported in the Q1 2025 earnings release have been corrected. This correction relates to reporting of $8 million of capital as Corporate and other in Q1 2025 and this amount was reclassified to Facilities in Q4 2025.  LIQUIDITY     ($ millions) March 31, 2026 December 31, 2025Available cash and cash equivalents(1) $25  $117      Revolving credit facility:    Borrowing capacity  1,460   1,460 Revolver balance drawn  (25)  — Outstanding letters of credit  (184)  (176)Availability $1,251  $1,284      Liquidity $1,276  $1,401      (1) Excludes restricted cash of $15 million at both March 31, 2026 and December 31, 2025.        Attachment 2CRC GUIDANCE Consolidated
2Q26E Oil and Natural Gas
Segment Carbon Management
SegmentNet production (MBoe/d) 148 - 150    Net oil production (%) 81%
    Operating costs ($ millions) $335 - $355 $335 - $355  General and administrative expenses ($ millions) $90 - $100 $13 - $17 $2 - $4Adjusted general and administrative expenses ($ millions) $85 - $95 $13 - $17 $2 - $4Depreciation, depletion and amortization ($ millions) $145 - $157 $140 - $150  Capital investments ($ millions) $120 - $140 $115 - $130 $2 - $5Adjusted EBITDAX ($ millions) $370 - $410           Margin from purchased commodities ($ millions) (1) $10 - $15           Electricity revenue net of electricity generation expenses ($ millions) $(6) - $(2)    Other operating expenses net of other revenue ($ millions) (2) $10 - $20   $2 - $10Transportation costs ($ millions) $25 - $30 $19 - $24  Taxes other than on income ($ millions) $60 - $70 $55 - $60  Interest and debt expense ($ millions) $30 - $35           Other Assumptions:      Brent ($/Bbl) $105.36
    NYMEX ($/Mcf) $2.77
    Price realization oil - % of Brent: 94% - 97%    Price realization NGLs - % of Brent: 44% - 50%    Price realization natural gas - % of NYMEX: 38% - 44%           Current income tax provision ($ millions) (3) $2 -$4    Effective tax rate 6% - 9%            CRC GUIDANCE Consolidated
2026E Oil and Natural Gas
Segment Carbon Management
SegmentNet production (MBoe/d) 149 - 155    Net oil production (%) 81%
    Operating costs ($ millions) $1,415 - $1,485 $1,415 - $1,485  General and administrative expenses ($ millions) $360 - $380 $50 - $60 $6 - $12Adjusted general and administrative expenses ($ millions) $325 - $340 $50 - $60 $6 - $12Depreciation, depletion and amortization ($ millions) $595 - $615 $575 - $590  Capital investments ($ millions) $520 - $560 $500 - $525 $12 - $20Adjusted EBITDAX ($ millions) $1,400 - $1,500           Margin from purchased commodities ($ millions) (1) $50 - $65           Electricity revenue net of electricity generation expenses ($ millions) $25 - $45    Other operating expenses net of other revenue ($ millions) (2) $75 - $85   $20 - $30Transportation costs ($ millions) $105 - $115 $65 - $70  Taxes other than on income ($ millions) $270 - $280 $238 - $243  Interest and debt expense ($ millions) $120 - $130           Other Assumptions:      Brent ($/Bbl) $90.58
    NYMEX ($/Mcf) $3.61
    Price realization oil - % of Brent: 94% - 98%    Price realization NGLs - % of Brent: 50% - 55%    Price realization natural gas - % of NYMEX: 67% - 72%           Current income tax provision ($ millions) (3) $5 - $8    Effective tax rate 12% - 16%     (1) Margin from purchased commodities is calculated as the difference between revenue from marketing of purchased commodities and costs related to marketing of purchased commodities, and excludes costs of transportation.
(2) Other operating revenue and expenses, net is calculated as the difference between other revenue and other operating expenses, net and includes exploration expense and CMB expenses. CMB expenses includes lease cost for sequestration easements, advocacy, and other startup related costs.
See Attachment 3 for management's disclosure of its use of these non-GAAP measures and how these measures provide useful information to investors about CRC's results of operations and financial condition.
(3) Current income tax composition is subject to variability and depends on a number of factors, including but not limited to, final taxable income determinations, the availability and utilization of net operating loss carryforwards (NOLs), applicable tax credits, and other differences between book and taxable income. Accordingly, the current provision may vary from period to period and should not be viewed as indicative of future tax obligations.

FORWARD LOOKING NON-GAAP RECONCILIATIONS

  2Q26E  Consolidated Oil and Natural Gas
Segment Carbon Management
Segment($ millions) Low High Low High Low HighGeneral and administrative expenses $90  $100  $13 $17 $2 $4Equity-settled stock-based compensation  (5)  (5)  —  —  —  —Estimated adjusted general and administrative expenses $85  $95  $13 $17 $2 $4                Consolidated   2Q26E($ millions) Low HighRevenue from marketing of purchased commodities $15  $32 Costs related to marketing of purchased commodities  (5)  (17)Margin from purchased commodities $10  $15         Consolidated   2Q26E($ millions) Low HighOther operating expenses, net $14  $30 Other revenue  (4)  (10)Other operating expenses net of other revenue $10  $20         2026E  Consolidated Oil and Natural Gas
Segment Carbon Management
Segment($ millions) Low High Low High Low HighGeneral and administrative expenses $360  $380  $50 $60 $6 $12Equity-settled stock-based compensation  (35)  (40)  —  —  —  —Estimated adjusted general and administrative expenses $325  $340  $50 $60 $6 $12                Consolidated   2026E($ millions) Low HighRevenue from marketing of purchased commodities $143  $168 Costs related to marketing of purchased commodities  (93)  (103)Margin from purchased commodities $50  $65         Consolidated   2026E($ millions) Low HighOther operating expenses, net $101  $119 Other revenue  (26)  (34)Other operating expenses net of other revenue $75  $85       Attachment 3NON-GAAP RECONCILIATIONS To supplement the presentation of its financial results prepared in accordance with U.S. generally accepted accounting principles (GAAP), management uses certain non-GAAP measures to assess its financial condition, results of operations and cash flows. These measures are also widely used by the industry, the investment community and CRC's lenders. Although these are non-GAAP measures, the amounts included in the calculations were computed in accordance with GAAP. Certain items excluded from these non-GAAP measures are significant components in understanding and assessing CRC's financial performance, such as CRC's cost of capital and tax structure, as well as the effect of acquisition and development costs of CRC's assets. Management believes that the non-GAAP measures presented, when viewed in combination with CRC's financial and operating results prepared in accordance with GAAP, provide a more complete understanding of the factors and trends affecting the Company's performance. The non-GAAP measures presented herein may not be comparable to other similarly titled measures of other companies. Below are additional disclosures regarding each of these non-GAAP measures, including reconciliations to their most directly comparable GAAP measure where applicable. ADJUSTED NET INCOME (LOSS) Adjusted net income (loss) and adjusted net income (loss) per share are non-GAAP measures. CRC defines adjusted net income as net income excluding the effects of significant transactions and events that affect earnings but vary widely and unpredictably in nature, timing and amount. These events may recur, even across successive reporting periods. Management believes these non-GAAP measures provide useful information to the industry and the investment community interested in comparing CRC's financial performance between periods. Reported earnings are considered representative of management's performance over the long term. Adjusted net income (loss) is not considered to be an alternative to net income (loss) reported in accordance with GAAP. The following table presents a reconciliation of the GAAP financial measure of net income and net income attributable to common stock per share to the non-GAAP financial measures of adjusted net income and adjusted net income per share.       1st Quarter 4th Quarter 1st Quarter($ millions, except per share amounts)  2026   2025   2025 Net (loss) income $(711) $12  $115 Unusual, infrequent and other items:      Non-cash derivative loss (gain) on Brent based commodity contracts  792   (95)  (22)Non-cash derivative loss on natural gas derivative contracts  12   22   — Asset impairment  —   57   — Severance and termination costs  25   12   2 Merger-related costs  1   20   3 Loss on early extinguishment of debt  21   —   1 Offshore platform expense  10   12   — Measurement period adjustments  —   —   1 Other, net  8   11   (9)Total unusual, infrequent and other items  869   39   (24)Income tax (benefit) provision of adjustments at the combined tax rate  (79)  (11)  7        Adjusted net income $79  $40  $98        Net income (loss) per share – basic $(8.02) $0.14  $1.27 Net income (loss) per share – diluted $(8.02) $0.14  $1.26 Adjusted net income per share – basic $0.89  $0.47  $1.08 Adjusted net income per share – diluted $0.88  $0.47  $1.07               ADJUSTED EBITDAX CRC defines adjusted EBITDAX as earnings before interest expense; income taxes; depreciation, depletion and amortization; exploration expense; other unusual, infrequent and out-of-period items; and other non-cash items. CRC believes this measure provides useful information in assessing its financial condition, results of operations and cash flows and is widely used by the industry, the investment community and its lenders. Although this is a non-GAAP measure, the amounts included in the calculation were computed in accordance with GAAP. Certain items excluded from this non-GAAP measure are significant components in understanding and assessing CRC’s financial performance, such as its cost of capital and tax structure, as well as depreciation, depletion and amortization of CRC's assets. This measure should be read in conjunction with the information contained in CRC’s financial statements prepared in accordance with GAAP. A version of adjusted EBITDAX is a material component of certain of its financial covenants under CRC's Revolving Credit Facility and is provided in addition to, and not as an alternative for, income and liquidity measures calculated in accordance with GAAP.These materials include forward-looking non-GAAP financial measures, including adjusted EBITDAX. CRC is unable to provide a reconciliation of such forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP financial measures because certain information needed to reconcile these measures is dependent on future events, many of which are outside of CRC’s control and cannot be reasonably predicted at this time. These items include, but are not limited to, changes in working capital, the timing and amount of capital accruals, and other non-cash or unusual items. Accordingly, a quantitative reconciliation is not available without unreasonable efforts.

The following table represents a reconciliation of the GAAP financial measures of net income and net cash provided by operating activities to the non-GAAP financial measure of adjusted EBITDAX. CRC has included non-GAAP measures of adjusted EBITDAX for its oil and gas segment and its carbon management segment below. Management believes these segment non-GAAP measures are useful for investors to understand the results of our core businesses.

  1st Quarter 4th Quarter 1st Quarter($ millions, except per BOE amounts)  2026   2025   2025 Net (loss) income $(711) $12  $115 Interest and debt expense  29   29   27 Depreciation, depletion and amortization  133   129   131 Income tax (benefit) provision  (49)  11   47 Exploration expense  —   1   — Interest income  (1)  (5)  (3)Equity loss from unconsolidated subsidiaries  2   1   1 Unusual, infrequent and other items (1)  869   39   (24)Non-cash items      Accretion expense  27   29   29 Stock-based compensation  7   6   6 Pension and post-retirement benefits  (2)  (1)  (1)Adjusted EBITDAX $304  $251  $328        Net cash provided by operating activities $99  $235  $186 Cash interest payments  1   42   11 Cash interest received  (1)  (5)  (3)Exploration expense  —   1   — Working capital changes  205   (22)  134 Adjusted EBITDAX $304  $251  $328        Net (loss) income per Boe $(51.19) $0.96  $9.09 Adjusted EBITDAX per Boe $21.89  $19.85  $25.92        (1) See Adjusted Net Income (Loss) reconciliation.  SEGMENT ADJUSTED EBITDAX   This measure should be read in conjunction with Note 16 Segment Information in CRC’s 2025 Annual Report. A reconciliation of the non-GAAP measure of segment adjusted EBITDAX cannot be reconciled to the comparable measure of operating cash flow prepared in accordance with GAAP without unreasonable effort.     Oil and Natural Gas Segment 1st Quarter 4th Quarter 1st Quarter($ millions)  2026   2025   2025 Segment profit $281  $46  $266 Depreciation, depletion and amortization  128   127   126 Exploration expense  —   1   — Accretion expense  27   29   29 Adjusted income items(1)  3   66   1 Adjusted EBITDAX - Oil and Natural Gas $439  $269  $422        Carbon Management Segment      Segment loss $(12) $(20) $(25)Interest on contingent liability (related to Carbon TerraVault JV)  3   3   3 Equity loss from unconsolidated subsidiary  1   2   1 Adjusted income items(1)  —   —   — Adjusted EBITDAX - Carbon Management $(8) $(15) $(21)              (1) Certain amounts previously reported in the Q4 2025 earnings release have been corrected. This correction relates to reporting of adjusted income items in Carbon Management in Q1 2025 and this amount was reclassified to Oil and Natural Gas in Q1 2026.  FREE CASH FLOW       Management uses free cash flow, which is defined by CRC as net cash provided by operating activities less capital investments, as a measure of liquidity. The following table presents a reconciliation of CRC's net cash provided by operating activities to free cash flow.         1st Quarter 4th Quarter 1st Quarter($ millions)  2026   2025   2025        Net cash provided by operating activities $99  $235  $186 Capital investments  (131)  (120)  (55)Free cash flow $(32) $115  $131         FREE CASH FLOW BEFORE NET CHANGES IN OPERATING ASSETS AND LIABILITIES       Management uses free cash flow before changes in operating assets and liabilities, which is defined by CRC as net cash provided by operating activities less net changes in operating assets and liabilities and capital investments, as a measure of liquidity. The following table presents a reconciliation of CRC's net cash provided by operating activities to free cash flow before net changes in operating assets and liabilities.         1st Quarter 4th Quarter 1st Quarter($ millions)  2026   2025   2025        Net cash provided by operating activities $99  $235  $186 Net changes in operating assets and liabilities  148   (24)  66 Net cash provided by operating activities before net changes in operating assets and liabilities  247   211   252 Capital investments  (131)  (120)  (55)Free cash flow before net changes in operating assets and liabilities $116  $91  $197               ADJUSTED GENERAL & ADMINISTRATIVE EXPENSES       Management uses a measure called adjusted general and administrative (G&A) expenses and adjusted G&A per BOE to provide useful information to investors interested in comparing CRC's costs between periods and performance to its peers.         1st Quarter 4th Quarter 1st Quarter($ millions)  2026   2025   2025 General and administrative expenses $106  $95  $72 Stock-based compensation  (7)  (6)  (6)Adjusted G&A expenses $99  $89  $66        G&A per BOE $7.63  $7.51  $5.69 Adjusted G&A per BOE $7.13  $7.04  $5.22         TOTAL OPERATING REVENUES BEFORE NET (LOSS) GAIN FROM COMMODITY DERIVATIVES       Management uses a measure called total operating revenues before net (loss) gain from commodity derivatives, which is calculated as the difference between total operating revenues less net (loss) gain from commodity derivatives.         1st Quarter 4th Quarter 1st Quarter($ millions)  2026  2025 2025Total operating revenues $119  $924 $912Less: Net (loss) gain from commodity derivatives  (848)  126  6Total operating revenues before net (loss) gain from commodity derivatives $967  $798 $906        MARGIN FROM PURCHASED COMMODITIES       Management uses a measure called margin from purchased commodities, which is calculated as the difference between revenue from purchased commodities and costs related to purchased commodities. This non-GAAP measure excludes transportation costs.         1st Quarter 4th Quarter 1st Quarter($ millions)  2026   2025   2025 Revenue from purchased commodities $41  $60  $64 Costs related to purchased commodities  (23)  (47)  (50)Margin from purchased commodities $18  $13  $14         ELECTRICITY REVENUE NET OF ELECTRICITY GENERATION EXPENSES       Management uses a measure called electricity revenue net of electricity generation expenses, which is calculated as the difference between electricity revenue and electricity generation expenses.         1st Quarter 4th Quarter 1st Quarter($ millions)  2026   2025   2025 Electricity revenue $11  $52  $22 Electricity generation expenses  (5)  (12)  (10)Electricity revenue net of electricity generation expenses $6  $40  $12         OTHER OPERATING EXPENSES NET OF OTHER REVENUE       Management uses a measure called other operating expenses net of other revenue, which is calculated as the difference between other operating expenses, net and other revenue.         1st Quarter 4th Quarter 1st Quarter($ millions)  2026   2025   2025 Other operating expenses, net(1) $54  $82  $33 Other revenue  (10)  (7)  (6)Other operating expenses net of other revenue $44  $75  $27        (1) Other operating expenses, net includes carbon management expenses beginning in 2025.  Attachment 4PRODUCTION STATISTICS               1st Quarter 4th Quarter 1st QuarterNet Production Per Day 2026 2025 2025Oil (MBbl/d)      San Joaquin Basin 96 82 84Los Angeles Basin 17 17 18Uinta Basin 3 1 —Other Basins 8 9 9Total 124 109 111       NGLs (MBbl/d)      San Joaquin Basin 10 9 10Total 10 9 10       Natural Gas (MMcf/d)      San Joaquin Basin 95 97 101Los Angeles Basin 1 1 1Sacramento Basin 10 11 12Uinta Basin 8 1 —Other Basins 3 3 3Total 117 113 117       Total Net Production (MBoe/d) 154 137 141        Gross Operated and Net Non-Operated 1st Quarter 4th Quarter 1st QuarterProduction Per Day 2026 2025 2025Oil (MBbl/d)      San Joaquin Basin 103 88 90Los Angeles Basin 21 21 22Uinta Basin 4 1 —Other Basins 9 10 11Total 137 120 123       NGLs (MBbl/d)      San Joaquin Basin 10 11 10Other Basins 1 — —Total 11 11 10       Natural Gas (MMcf/d)      San Joaquin Basin 127 130 134Los Angeles Basin 6 6 7Sacramento Basin 13 14 15Uinta Basin 11 1 —Other Basins 3 4 3Total 160 155 159       Total Gross Production (MBoe/d) 175 157 160        Attachment 5PRICE STATISTICS        1st Quarter 4th Quarter 1st Quarter   2026   2025   2025 Oil ($ per Bbl)      Realized price with derivative settlements $69.37  $64.27  $72.01 Realized price without derivative settlements $74.53  $61.14  $73.57        NGLs ($/Bbl) $44.98  $42.86  $54.64        Natural gas ($/Mcf)      Realized price with derivative settlements $3.56  $3.91  $4.12 Realized price without derivative settlements $3.56  $3.91  $4.12        Index Prices      Brent oil ($/Bbl) $77.90  $63.08  $74.92 WTI oil ($/Bbl) $71.93  $59.14  $71.42 NYMEX average monthly settled price ($/MMBtu) $5.04  $3.55  $3.65        Realized Prices as Percentage of Index Prices      Oil with derivative settlements as a percentage of Brent  89%  102%  96%Oil without derivative settlements as a percentage of Brent  96%  97%  98%       Oil with derivative settlements as a percentage of WTI  96%  109%  101%Oil without derivative settlements as a percentage of WTI  104%  103%  103%       NGLs as a percentage of Brent  58%  68%  73%NGLs as a percentage of WTI  63%  72%  77%       Natural gas with derivative settlements as a percentage of NYMEX contract month average  71%  110%  113%       Natural gas without derivative settlements as a percentage of NYMEX contract month average  71%  110%  113%                        Attachment 6FIRST QUARTER 2026 DRILLING ACTIVITY            San Joaquin Los Angeles Ventura Sacramento  Wells Drilled Basin Basin Basin Basin Total           Development Wells          Primary 1 — — — 1Waterflood 17 — — — 17Steamflood 44 — — — 44Total (1) 62 — — — 62 (1) Includes steam injectors and drilled but uncompleted wells, which are not included in the SEC definition of wells drilled.

California Resources Corporation (CRC) Q1 2026 Earnings Call Transcript

2 hours ago

CocaCola (NYSE:KO) EVP Jennifer Mann Sells 23,984 SharesMarketBeat

CocaCola Company (The) (NYSE:KO - Get Free Report) EVP Jennifer Mann sold 23,984 shares of the firm's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $83.41, for a total value of $2,000,505.44. Following the completion of the transaction, the executive vice president owned 157,400 shares of the company's stock, valued at approximately $13,128,734. The trade was a 13.22% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

NYSE:KO

Read CocaCola (NYSE:KO) EVP Jennifer Mann Sells 23,984 Shares

2 hours ago

Dutch Bros (NYSE:BROS) Major Shareholder Sells $15,759,829.98 in StockMarketBeat

Dutch Bros Inc. (NYSE:BROS - Get Free Report) major shareholder Dm Individual Aggregator, Llc sold 261,054 shares of the company's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $60.37, for a total transaction of $15,759,829.98. Following the completion of the sale, the insider owned 2,671,855 shares in the company, valued at $161,299,886.35. This represents a 8.90% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Large shareholders that own at least 10% of a company's shares are required to disclose their transactions with the SEC.

NYSE:BROS

Read Dutch Bros (NYSE:BROS) Major Shareholder Sells $15,759,829.98 in Stock

2 hours ago

Insider Selling: Dutch Bros (NYSE:BROS) Major Shareholder Sells 261,055 Shares of StockMarketBeat

Dutch Bros Inc. (NYSE:BROS - Get Free Report) major shareholder Dm Individual Aggregator, Llc sold 261,055 shares of the business's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $63.02, for a total value of $16,451,686.10. Following the completion of the transaction, the insider owned 2,410,800 shares in the company, valued at approximately $151,928,616. This trade represents a 9.77% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Large shareholders that own at least 10% of a company's shares are required to disclose their transactions with the SEC.

NYSE:BROS

Read Insider Selling: Dutch Bros (NYSE:BROS) Major Shareholder Sells 261,055 Shares of Stock

2 hours ago

Travis Boersma Sells 749,999 Shares of Dutch Bros (NYSE:BROS) StockMarketBeat

Dutch Bros Inc. (NYSE:BROS - Get Free Report) Chairman Travis Boersma sold 749,999 shares of Dutch Bros stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $60.39, for a total transaction of $45,292,439.61. Following the completion of the sale, the chairman owned 2,671,855 shares of the company's stock, valued at $161,353,323.45. This represents a 21.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

NYSE:BROS

Read Travis Boersma Sells 749,999 Shares of Dutch Bros (NYSE:BROS) Stock

2 hours ago

Insider Selling: Dutch Bros (NYSE:BROS) Chairman Sells 750,000 Shares of StockMarketBeat

Dutch Bros Inc. (NYSE:BROS - Get Free Report) Chairman Travis Boersma sold 750,000 shares of the company's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $63.02, for a total value of $47,265,000.00. Following the sale, the chairman owned 2,410,800 shares in the company, valued at approximately $151,928,616. This trade represents a 23.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

NYSE:BROS

Read Insider Selling: Dutch Bros (NYSE:BROS) Chairman Sells 750,000 Shares of Stock

Sort By

Time Frame

Alert Type

Keywords

Page 1 of 324

For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. California Resources Corporation (CRC - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question.

California Resources Corporation is a member of the Oils-Energy sector. This group includes 238 individual stocks and currently holds a Zacks Sector Rank of #1. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. California Resources Corporation is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for CRC's full-year earnings has moved 308.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, CRC has moved about 36.8% on a year-to-date basis. Meanwhile, stocks in the Oils-Energy group have gained about 30.6% on average. This shows that California Resources Corporation is outperforming its peers so far this year.

One other Oils-Energy stock that has outperformed the sector so far this year is ConocoPhillips (COP - Free Report) . The stock is up 30.8% year-to-date.

In ConocoPhillips' case, the consensus EPS estimate for the current year increased 120.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, California Resources Corporation belongs to the Oil and Gas - Exploration and Production - United States industry, a group that includes 34 individual stocks and currently sits at #12 in the Zacks Industry Rank. This group has gained an average of 30% so far this year, so CRC is performing better in this area.

In contrast, ConocoPhillips falls under the Oil and Gas - Integrated - United States industry. Currently, this industry has 12 stocks and is ranked #95. Since the beginning of the year, the industry has moved +31.9%.

Investors with an interest in Oils-Energy stocks should continue to track California Resources Corporation and ConocoPhillips. These stocks will be looking to continue their solid performance.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: California Resources Corporation (CRC - Free Report) California Resources Corporation is an independent energy and carbon management company focused primarily on California. The company operates two reportable segments: oil and natural gas, and carbon management, which it brands as Carbon TerraVault. The oil and natural gas segment explores for, develops and produces crude oil, condensate, natural gas liquids and natural gas across California basins, including San Joaquin, Los Angeles and Sacramento, and also holds assets in Utah following recent acquisitions. Carbon TerraVault is focused on developing carbon capture and storage (CCS) projects and includes an investment in a joint venture formed to advance large-scale carbon management solutions in California. Headquartered in Long Beach, CA, the company in its current form was established following the 2014 spin-off from Occidental Petroleum.

CRC is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Oils-Energy stock. CRC has a Momentum Style Score of B, and shares are up 1.2% over the past four weeks.

Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $1.71 to $5.56 per share. CRC also boasts an average earnings surprise of +8.6%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CRC should be on investors' short list.