California Resources Raises Dividend After Beating Ebitdax Guidance

The Tip Desk · November 3, 2026 · 3 min read

Adjusted EBITDAX was $341 million and free cash flow $147 million as the company lifted the quarterly dividend 4% to $0.42 a share.

California Resources Corporation (CRC) reported a net loss of $315 million, or $3.55 a share, in the third quarter of 2026, reversing a $514 million profit a quarter earlier, as a $675 million net loss on commodity sales derivatives replaced a $205 million gain.

The swing included a $540 million non-cash loss from changes in the fair value of outstanding commodity derivatives. Adjusted net income, which excludes those derivative effects, was $104 million, or $1.17 a share, compared with $88 million, or $0.99 a share, in the second quarter. Adjusted EBITDAX was $341 million, which the company said exceeded quarterly guidance.

Average net production was 152 thousand barrels of oil equivalent per day, 80% oil, up from 149 thousand barrels of oil equivalent per day. Net oil production was 121 thousand barrels a day. Realized oil prices fell: $83.42 a barrel without derivative settlements and $72.46 a barrel with them, versus $91.55 and $76.43 a quarter earlier. Realized natural gas prices more than doubled to $3.52 a thousand cubic feet from $1.84.

The company said net NGL and natural gas production exceeded guidance by about 1 thousand barrels of oil equivalent per day, supported by a new Belridge-Elk Hills connection and California’s first carbon capture and storage project at the Elk Hills Cryogenic Gas Plant, which increased gas processing and NGL recovery. Electricity revenue net of generation expenses was $35 million, versus a $4 million expense in the second quarter; the company said the result exceeded guidance on higher resource-adequacy prices and wholesale sales as the Elk Hills power plant ran at higher capacity. Margin from purchased commodities was $15 million.

Operating costs rose to $386 million from $347 million. The company said operating expenses were higher than anticipated, primarily due to higher prices for natural gas purchased and used in steamflood operations and higher workover activity. Total operating revenues before net commodity-derivative results were $1,096 million.

Net cash provided by operating activities was $305 million. Free cash flow was $147 million. Capital investments were $158 million, including $115 million of drilling and completions. The company returned $66 million to shareholders, including $36 million of dividends and $30 million of share repurchases covering 0.6 million shares at an average $53.48 a share.

The board raised the quarterly dividend 4% to $0.42 a share, or about $1.68 annualized, payable in the fourth quarter. Liquidity was $1,315 million at September 30, comprising $35 million of available cash and $1,280 million of revolving-credit capacity. In October the company amended the revolver to extend maturity to March 2030 and increase elected lender commitments to $1,470 million.

CRC signed an agreement to sell its Uinta Basin assets for about $90 million of cash, expected to close by year-end, and closed the all-cash Crimson Midstream acquisition announced at $63 million in the prior quarter. It also announced a non-binding memorandum of understanding with Bloom Energy to evaluate 1 gigawatt or more of solid-oxide fuel-cell power paired with carbon capture and storage.

Fourth-quarter 2026 guidance is net production of 150 to 152 thousand barrels of oil equivalent per day, 79% oil, capital investments of $110 million to $130 million, and adjusted EBITDAX of $340 million to $380 million, assuming Brent at $102.90 a barrel and NYMEX gas at $3.25 a thousand cubic feet. The company expects to run an average of five rigs, matching the third-quarter average. Preliminary 2027 drilling, completions and workover capital is $450 million to $475 million with six California rigs; the 2027 outlook excludes Uinta. Full-year 2027 guidance is deferred to the year-end release.