California Resources Secures 2026 Permits, Targets 2% Decline and $80–90M Synergies
California Resources Corp’s 2P reserves support 23 years of production with 2026 drilling permits, targeting roughly 2% decline while maintaining flat output and free cash flow. The Elk Hills CCS project finished construction and initial CO2 capture, pursuing full injection approvals and $80–90 million in integration savings.
1. Berry Integration and Cost Savings
California Resources is applying its integration playbook to Berry, targeting $80–90 million in annual cost savings by optimizing field efficiencies, reducing overhead redundancies and leveraging supply-chain synergies. The company aims for $0.5 billion in cumulative structural savings by 2028, with 80% of initiatives already executed or in progress.
2. Production Outlook and Reserves
The firm holds permits for its 2026 drilling program and its 2P reserves underpin 23 years of production, supported by conventional assets with low subsurface risk. The 2026 development plan seeks to cap corporate decline at roughly 2% while maintaining flat output and generating free cash flow through enhanced capital efficiency.
3. Elk Hills CCS Project Status
Construction of the Elk Hills carbon capture and storage facility is complete, and initial CO2 capture has been achieved. The project now enters commissioning and final EPA approval stages, aiming to commence full CO2 injection operations in 2026, positioning the company as a leader in California decarbonization.
4. Regulatory and Power-to-CCS Initiatives
Regulatory rulings have resumed new drilling permits and approvals remain steady, bolstering operational flexibility across California assets. Simultaneously, the company is advancing power-to-CCS partnerships at strategically located power plants to serve high-demand centers like data centers, enhancing its decarbonization offerings.