Outlook
- CRC sees Q3 net production at 151-154 MBoe/d and full-year 2026 at 150-155 MBoe/d
- Company expects Q3 adjusted EBITDAX of $285-$325 mln and full-year 2026 of $1.2-$1.3 bln
- CRC reduced 2026 drilling, completions and workover capital outlook by $10 mln to $370-$390 mln
Overview
- US oil and gas producer's Q2 adjusted EPS missed analyst expectations
- Q2 adjusted net income and adjusted EBITDAX both missed analyst expectations
- Company announced acquisition of Crimson Midstream Holdings to expand California energy infrastructure
Result drivers
- Efficiency gains - Co said operational improvements and Berry merger synergies allowed it to maintain flat California production with fewer rigs and less maintenance capital
- Inventory build-up - Temporary takeaway constraints led to inventory build-up, reducing adjusted EBITDAX and net cash provided by operating activities by about $25 mln
- Higher drilling activity - Total capital investments were higher than initial expectations due to a 25% increase in drilling activity across the California portfolio
Analyst coverage and valuation
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