Transcript covered California Resources’ Q2 2026 earnings call attended by CEO Francisco Leon, CFO Clio Crespy, and VP IR Daniel Juck.
Q2 production averaged 149,000 boepd; adjusted EBITDAX was $338 million; free cash flow before working capital was $151 million.
Temporary takeaway constraints drove about 1,500 bopd inventory build; management estimated about $25 million impact; most inventory was sold in July.
Third-quarter oil realization was guided at about 93% of Brent; full-year realizations are expected at about 94% within the 94%-98% range.
Crimson midstream deal and synergies
The all-cash Crimson midstream deal was highlighted, including a 2,000-mile California crude pipeline network.
CPUC tentative approval was received without conditions, with a final decision expected later this month.
Crimson was valued at about 4.4x estimated 2027 EBITDA; management expects accretion via contracted revenue, improved market access, and stronger price realizations.
Berry synergies exceeded the 2026 target early, reaching about ; management sees up to in cumulative synergies through 2028.
2026 net production target is about 153,000 boepd; capital guidance is $520 million-$560 million; California rig pace was cut to five in H2.
CO2 injection started at the Elk Hills CCS project with first revenue; output is about 270 tons per day, with an annualized target of about 100,000 tons per year.
The Golden Valley Technology Hub advanced with Beacon partnership: a proposed 275-MW behind-the-meter data center campus; a conditional use permit has been submitted.
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