California Resources (NYSE:CRC) Releases Earnings Results, Misses Expectations By $0.37 EPS

California Resources (NYSE:CRC) posted its earnings results on Monday. The oil and gas producer reported $0.99 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.36 by ($0.37), FiscalAI reports. California Resources had a positive return on equity of 9.87% and a negative net margin of 3.79%.The business had revenue of $1.30 billion for the quarter, compared to analyst estimates of $960.20 million. During the same period last year, the company posted $1.10 EPS. The firm’s revenue for the quarter was up 33.0% compared to the same quarter last year.

Here are the key takeaways from California Resources’ conference call:

• Operational execution and cost savings improved. CRC reported $338 million of adjusted EBITDAX and $151 million of free cash flow before working capital, while achieving more than 100% of its 2026 Berry synergy target six months early and raising cumulative synergy and structural cost-reduction expectations through 2028 to up to $470 million.
• CRC agreed to acquire Crimson’s approximately 2,000-mile California crude pipeline network in an all-cash deal management says is financially accretive and priced at about 4.4 times estimated 2027 EBITDA. The acquisition is intended to improve market access, pricing flexibility, third-party contracted cash flow, and integration across CRC’s California operations, pending final CPUC approval.
• Temporary transportation and marketing disputes constrained takeaway capacity, causing a roughly 1,500-barrel-per-day inventory build and about $25 million of quarterly financial impact. CRC expects third-quarter oil realizations of approximately 93% of Brent, although management views the pressure as temporary and expects improvement thereafter.
• Drilling and well productivity gains are lowering the long-term capital intensity of the California business. About 80% of year-to-date wells exceeded type-curve expectations, average initial production was more than 10% above plan, and CRC now expects to maintain California production with six rigs and approximately 5% less normalized D&C and workover capital.
• CRC advanced its newer carbon-management and power initiatives, generating first revenue from CO2 injection at its Elk Hills CCS project and partnering with Beacon Data Centers on a proposed 275-megawatt Golden Valley technology hub. Management also characterized the Uinta asset as non-core because of its higher capital intensity, costs, declines, and lower-quality crude.

California Resources Price Performance

CRC stock opened at $54.11 on Wednesday. The stock’s 50 day moving average is $53.88 and its two-hundred day moving average is $58.70. California Resources has a 52-week low of $43.24 and a 52-week high of $71.98. The company has a market capitalization of $4.80 billion, a PE ratio of -39.79 and a beta of 0.93. The company has a quick ratio of 0.47, a current ratio of 0.55 and a debt-to-equity ratio of 0.45.

California Resources Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Friday, September 4th will be issued a dividend of $0.405 per share. The ex-dividend date is Friday, September 4th. This represents a $1.62 annualized dividend and a yield of 3.0%. California Resources’s payout ratio is currently -119.12%.

Analysts Set New Price Targets

CRC has been the topic of a number of research reports. Stephens set a $85.00 target price on shares of California Resources and gave the company an “overweight” rating in a research note on Friday, July 17th. Zacks Research cut California Resources from a “hold” rating to a “strong sell” rating in a research note on Wednesday, July 15th. Citigroup lowered their target price on California Resources from $78.00 to $70.00 and set a “buy” rating for the company in a research note on Tuesday, June 30th. UBS Group restated a “buy” rating and issued a $70.00 price target (down from $78.00) on shares of California Resources in a report on Monday, July 13th. Finally, Wall Street Zen downgraded shares of California Resources from a “buy” rating to a “hold” rating in a research report on Tuesday, June 23rd. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $72.82.

Insider Activity at California Resources

In other news, EVP Jay A. Bys sold 11,907 shares of the firm’s stock in a transaction that occurred 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 owned 159,424 shares of the company’s stock, valued at approximately $8,608,896. This trade represents a 6.95% decrease in their ownership of the stock. The transaction was disclosed in a 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. Company insiders own 0.53% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Hudson Bay Capital Management LP bought a new stake in shares of California Resources in the 4th quarter worth approximately $200,000. Smartleaf Asset Management LLC increased its position in California Resources by 26.8% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,715 shares of the oil and gas producer’s stock worth $77,000 after buying an additional 362 shares during the period. Quadrant Capital Group LLC lifted its stake in California Resources by 14.6% in the fourth quarter. Quadrant Capital Group LLC now owns 1,677 shares of the oil and gas producer’s stock valued at $75,000 after buying an additional 214 shares during the last quarter. Vestcor Inc acquired a new position in shares of California Resources during the third quarter valued at $176,000. Finally, State of Wyoming grew its position in shares of California Resources by 261.6% during the second quarter. State of Wyoming now owns 3,887 shares of the oil and gas producer’s stock worth $178,000 after acquiring an additional 2,812 shares during the last quarter. 97.79% of the stock is owned by institutional investors and hedge funds.

California Resources News Roundup

Here are the key news stories impacting California Resources this week:

• Positive Sentiment: CRC reported second-quarter revenue of approximately $1.30 billion, up 33% year over year and well above the roughly $960 million consensus estimate. Net income was $514 million, or $5.76 per diluted share, although the result included a non-cash gain from changes in commodity-derivative valuations. California Resources Corporation Reports Second Quarter 2026 Financial and Operating Results
• Positive Sentiment: The company agreed to acquire Crimson Midstream’s California pipeline platform for $63 million. The deal would expand CRC’s integrated production, transportation and storage network, potentially improving operational efficiency, lowering third-party infrastructure costs and supporting future carbon-capture-and-storage (CCS) projects. CRC to acquire Crimson Midstream’s California pipeline platform
• Positive Sentiment: Management highlighted midstream expansion, production efficiency and its CCS strategy as longer-term growth drivers. CRC produced an average 149 thousand barrels of oil equivalent per day, with oil representing 81%, and ended the quarter with $1.322 billion of liquidity.
• Positive Sentiment: CRC maintained its 2026 total capital-spending guidance of $520 million to $560 million while reducing expected drilling, completion and workover spending to $370 million to $390 million. The company also declared a quarterly dividend of $0.405 per share, equivalent to an annualized yield of about 3%. CRC’s Q2 Beat, CCS Push and Pipeline Deal Might Change The Case For Investing In California Resources
• Neutral Sentiment: The acquisition and CCS initiatives could strengthen CRC’s strategic position, but investors will likely focus on execution, commodity prices and whether infrastructure investments generate sufficient returns.
• Negative Sentiment: Adjusted quarterly EPS was $0.99, below consensus estimates ranging from $1.31 to $1.36 and down from $1.10 a year earlier. This earnings shortfall helps explain the pressure on the stock despite the substantial revenue beat. California Resources Corporation Q2 Earnings Lag Estimates
• Negative Sentiment: Reported insider activity has been heavily weighted toward sales, including a 3.5-million-share disposal by the Canada Pension Plan Investment Board and additional sales by company executives. While not necessarily predictive, the activity may weigh on sentiment.

California Resources Company Profile

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.