Core Points - Canter Resources Corp. announced a consolidation of its issued and outstanding common shares at a ratio of one (1) post-consolidated common share for every seven (7) pre-consolidated common shares [1][2][3] - The total number of outstanding shares will be reduced to approximately 8,169,771 common shares following the consolidation [1][3] - The company's name and symbol will remain unchanged despite the consolidation [1][3] Trading Information - All open orders will be canceled at the close of business on August 21, 2025, and dealers are advised to re-enter their orders considering the share consolidation [2][3] - Trading on a consolidated basis will commence on August 22, 2025 [4] - The record date and anticipated payment date for the consolidation is also set for August 22, 2025 [4] - The new symbol for the shares will be CRC, with a new CUSIP of 13810W 20 1 and a new ISIN of CA 13810W 20 1 3 [4]

Core Viewpoint - Canter Resources Corp. is proceeding with a share consolidation, converting seven existing common shares into one new share, effective August 22, 2025, subject to regulatory approval [1][2]. Company Overview - Canter Resources Corp. is a junior mineral exploration company focused on lithium-boron projects in Nevada, USA, specifically the Columbus Lithium-Boron Project and the Railroad Valley Lithium-Boron Project [4]. - The company is employing a phased drilling approach at the Columbus project to explore brine targets for lithium-boron enrichment and aims to develop a portfolio of high-quality projects to support technology and clean energy supply chains in North America [4]. Share Consolidation Details - The share consolidation will result in approximately 8,169,771 shares outstanding post-consolidation, down from 57,188,401 shares [2]. - The new ISIN for the consolidated shares will be CA13810W2013 and the new CUSIP will be 13810W201 [2]. - Registered shareholders with physical share certificates will need to exchange them for new certificates through the company's transfer agent, while those holding shares through brokers will not need to take any action [3].

Industry Overview - The carbon capture and sequestration (CCS) market is projected to grow significantly, with an estimated value of approximately $4.5 billion by 2025 and expected to reach around $14.5 billion by 2032, indicating a compound annual growth rate (CAGR) of over 18% [1][2]. Company Insights - California Resources (CRC) is pursuing the first CCS project in California at Elk Hills, which has received authorization from the Environmental Protection Agency to construct Class VI wells, a significant milestone for CCS in the U.S. [4][5][6]. - Occidental Petroleum (OXY) is developing a direct air capture (DAC) plant through its STRATOS project, which is set to start capturing CO₂ in 2025. The company has a significant stake from Warren Buffett's Berkshire Hathaway, valued at approximately $13 billion [8][9]. - ExxonMobil (XOM) is already operational in the CCS space, capturing and storing carbon for third parties. The company anticipates the CCS market could grow to $4 trillion by 2050, highlighting the potential for significant revenue opportunities [11][12]. Investment Opportunities - Investors have opportunities to gain exposure to the expanding CCS market through investments in CRC, OXY, and XOM, as these companies are making substantial moves to enhance their CCS capabilities [3][13]. - While these companies are not pure plays in CCS, their investments in this area could significantly supplement their overall growth, adding upside potential in the long term [13][14].

Core Viewpoint - Canter Resources Corp. plans to consolidate its common shares on a 7-for-1 basis to enhance its capital structure and improve trading liquidity, positioning the company for strategic partnerships and growth [1][2]. Share Consolidation Details - The consolidation will reduce the number of issued and outstanding shares from 57,198,401 to approximately 8,171,200 [2]. - No fractional shares will be issued; fractional interests will be rounded down or up based on their value [3]. - New CUSIP and ISIN numbers will be obtained for the consolidated shares, with further details to be disclosed in a subsequent release [4]. Shareholder Information - Registered shareholders will receive instructions for exchanging their share certificates, while non-registered shareholders will see automatic adjustments in their brokerage accounts [5]. Company Overview - Canter Resources Corp. is focused on lithium-boron exploration, advancing projects in Nevada, including the Columbus Lithium-Boron Project and the Railroad Valley Lithium-Boron Project [6]. - The company aims to define mineral resources that support technology and clean energy supply chains in North America [6].

[Part I Financial Information](index=7&type=section&id=Part%20I%20Financial%20Information) This section provides a comprehensive overview of the company's financial performance and condition, including detailed statements and management analysis [Financial Statements](index=7&type=section&id=Item%201%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for California Resources Corporation as of June 30, 2025, and for the three and six-month periods then ended Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$6,712** | **$7,135** | | Cash and cash equivalents | $72 | $372 | | Total property, plant and equipment, net | $5,560 | $5,680 | | **Total Liabilities** | **$3,305** | **$3,597** | | Long-term debt, net | $888 | $1,132 | | **Total Stockholders' Equity** | **$3,407** | **$3,538** | Condensed Consolidated Statements of Operations Highlights (in millions, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total operating revenues | $978 | $514 | $1,890 | $968 | | Operating income | $267 | $38 | $453 | $34 | | **Net Income (Loss)** | **$172** | **$8** | **$287** | **($2)** | | **Diluted EPS** | **$1.92** | **$0.11** | **$3.18** | **($0.03)** | Condensed Consolidated Statements of Cash Flows Highlights (in millions) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $351 | $184 | | Net cash used in investing activities | ($130) | ($82) | | Net cash (used in) provided by financing activities | ($521) | $433 | | **Decrease in cash and cash equivalents** | **($300)** | **$535** | [Note 2: Aera Merger](index=14&type=section&id=Note%202%3A%20Aera%20Merger) The Aera Merger on July 1, 2024, significantly impacted financial results, adding substantial assets and debt settlement Aera Merger Consideration (in millions) | Component | Value | | :--- | :--- | | Fair value of share consideration | $1,141 | | Settlement of Aera debt | $990 | | Purchase price settlement | ($10) | | **Total purchase consideration** | **$2,121** | - The Aera Merger added significant assets, with a final purchase price allocation of **$3.679 billion** in assets acquired and **$1.558 billion** in liabilities assumed[35](index=35&type=chunk) - Following the merger, existing CRC stockholders owned **76%** of the company, while former Aera owners held **24%**[32](index=32&type=chunk) [Note 4: Debt](index=18&type=section&id=Note%204%3A%20Debt) Total debt decreased to $1.01 billion by June 30, 2025, primarily due to a $123 million redemption of 2026 Senior Notes Long-Term Debt Summary (in millions) | Debt Instrument | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Revolving Credit Facility | $— | $— | | 2026 Senior Notes | $122 | $245 | | 2029 Senior Notes | $900 | $900 | | **Principal amount** | **$1,022** | **$1,145** | | **Total debt, net** | **$1,010** | **$1,132** | - In February 2025, the company redeemed **$123 million** of its 2026 Senior Notes, resulting in a **$1 million** loss on extinguishment[51](index=51&type=chunk) - As of June 30, 2025, the company had **$983 million** of availability on its **$1.15 billion** Revolving Credit Facility[47](index=47&type=chunk) [Note 6: Derivatives](index=19&type=section&id=Note%206%3A%20Derivatives) The company uses commodity derivative contracts to hedge price volatility, recognizing a net gain of $163 million for the six months ended June 30, 2025 Net Gain (Loss) from Commodity Derivatives (in millions) | Period | Net Gain (Loss) | | :--- | :--- | | Three months ended June 30, 2025 | $157 | | Three months ended June 30, 2024 | $5 | | Six months ended June 30, 2025 | $163 | | Six months ended June 30, 2024 | ($66) | - As of June 30, 2025, the company held Brent-based swaps covering **45,001 barrels per day** for Q3 2025 at a weighted-average price of **$70.63 per barrel**[56](index=56&type=chunk) - The fair value of outstanding commodity derivatives shifted from a net liability of **$65 million** at year-end 2024 to a net asset of **$131 million** as of June 30, 2025[60](index=60&type=chunk)[61](index=61&type=chunk) [Note 9: Segment Information](index=23&type=section&id=Note%209%3A%20Segment%20Information) The company operates two segments, Oil and Natural Gas and Carbon Management, with the former generating significant profit and the latter in early development Segment Profit (Loss) for Six Months Ended June 30, 2025 (in millions) | Segment | Segment Profit (Loss) | | :--- | :--- | | Oil and Natural Gas | $460 | | Carbon Management | ($45) | | **Total Reportable Segments** | **$415** | Capital Investment by Segment (in millions) | Period | Oil and Natural Gas | Carbon Management | Corporate and Other | Total | | :--- | :--- | :--- | :--- | :--- | | Six months ended June 30, 2025 | $93 | $7 | $11 | $111 | | Six months ended June 30, 2024 | $82 | $2 | $4 | $88 | [Note 10: Stockholders' Equity](index=28&type=section&id=Note%2010%3A%20Stockholders%27%20Equity) The company repurchased 7.8 million shares for $354 million and paid $70 million in dividends under its $1.35 billion share repurchase program Share Repurchases Summary | Period | Total Shares Purchased | Total Value (in millions) | Average Price Paid per Share | | :--- | :--- | :--- | :--- | | Six months ended June 30, 2025 | 7,787,969 | $354 | $45.23 | | Six months ended June 30, 2024 | 1,769,603 | $93 | $51.85 | - A significant portion of the Q2 2025 repurchases consisted of **4.95 million shares** bought from IKAV Impact S.a.r.l. in a private transaction for **$228 million**[85](index=85&type=chunk) - The company declared and paid dividends of **$0.3875 per share** in both Q1 and Q2 2025, totaling **$70 million** for the first half of the year[89](index=89&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes financial condition and operations, highlighting the Aera Merger's impact, commodity price volatility, and liquidity position [Business Environment and Industry Outlook](index=38&type=section&id=Business%20Environment%20and%20Industry%20Outlook) Company performance is heavily influenced by commodity price volatility, with Brent crude fluctuating between $60 and $80 per barrel Average Daily Benchmark Prices | Benchmark | Q2 2025 | Q1 2025 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Brent oil ($/Bbl) | $66.76 | $74.92 | $70.84 | $83.42 | | WTI oil ($/Bbl) | $63.74 | $71.42 | $67.58 | $78.77 | | NYMEX Henry Hub ($/MMBtu) | $3.44 | $3.65 | $3.55 | $2.07 | - The company has taken measures to limit the effects of U.S. tariffs by entering into fixed-price contracts and pre-purchasing inventory[116](index=116&type=chunk) [Statements of Operations Analysis](index=40&type=section&id=Statements%20of%20Operations%20Analysis) The Aera Merger significantly increased oil and gas sales and operating expenses year-over-year, while Q2 2025 sales decreased due to lower prices - The Aera Merger on July 1, 2024, is the primary driver of significant changes in year-over-year financial comparisons[123](index=123&type=chunk) Change in Oil, Gas & NGL Sales (H1 2025 vs H1 2024, in millions) | Factor | Impact | | :--- | :--- | | H1 2024 Sales | $841 | | Change in realized prices | ($93) | | Change in production (primarily Aera) | $782 | | **H1 2025 Sales** | **$1,516** | - Compared to Q1 2025, Q2 2025 oil and gas sales decreased by **$112 million**, mainly due to a **$110 million** negative impact from lower realized prices[124](index=124&type=chunk)[125](index=125&type=chunk) - Other operating expenses in Q2 2025 included a **$25 million** expense related to a payment made to CalGEM regarding orphaned wells[133](index=133&type=chunk)[54](index=54&type=chunk) [Results of Our Oil and Natural Gas Operations](index=47&type=section&id=Results%20of%20Our%20Oil%20and%20Natural%20Gas%20Operations) The Oil and Natural Gas segment saw production nearly double to 139 MBoe/d in H1 2025 due to the Aera Merger, despite lower realized oil prices Average Net Production Sold (MBoe/d) | Period | Total Net Production Sold | | :--- | :--- | | H1 2025 | 139 | | H1 2024 | 76 | Average Realized Prices (without derivative settlements) | Commodity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Oil ($ per Bbl) | $69.34 | $81.63 | | NGLs ($ per Bbl) | $48.60 | $48.76 | | Natural gas ($/Mcf) | $3.46 | $2.81 | [Results of Our Carbon Management Segment](index=51&type=section&id=Results%20of%20Our%20Carbon%20Management%20Segment) The Carbon Management segment, Carbon TerraVault, is in early development, reporting an increased loss of $45 million in H1 2025 due to project evaluation costs Carbon Management Segment Results (in millions) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Segment Loss | ($45) | ($38) | | Carbon management expenses | $32 | $23 | - The company's first carbon capture project at its cryogenic gas processing facility is expected to be completed around year-end 2025[166](index=166&type=chunk) [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained $1.039 billion in liquidity as of June 30, 2025, with a 2025 capital program projected between $280 million and $330 million Liquidity Summary as of June 30, 2025 (in millions) | Component | Amount | | :--- | :--- | | Available cash and cash equivalents | $56 | | Revolving Credit Facility Availability | $983 | | **Total Liquidity** | **$1,039** | - The full-year 2025 capital program is expected to range from **$280 million** to **$330 million**[178](index=178&type=chunk) - Recent tax law changes are expected to reduce the company's 2025 U.S. federal cash tax obligation by approximately **$35 million**[173](index=173&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are commodity prices, counterparty credit, and interest rates, with no material changes from the 2024 Annual Report - As of June 30, 2025, the company has hedged approximately **70%** of its expected oil production for the rest of 2025 at a weighted average floor price of **$66.83**[195](index=195&type=chunk) - The company has also hedged approximately **67%** of its expected fuel use for the remainder of 2025 at a fixed price of **$3.56**[195](index=195&type=chunk) - The company had no variable-rate debt outstanding as of June 30, 2025, minimizing its exposure to interest-rate risk[199](index=199&type=chunk) [Controls and Procedures](index=58&type=section&id=Item%204%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal controls - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025[200](index=200&type=chunk) [Part II Other Information](index=59&type=section&id=Part%20II%20Other%20Information) This section covers legal proceedings, risk factors, equity sales, and other disclosures, providing additional context to the financial statements [Legal Proceedings](index=59&type=section&id=Item%201%20Legal%20Proceedings) This section refers to Note 5 for detailed information on legal proceedings, including disputes over orphaned wells and offshore platform decommissioning - For detailed information on legal proceedings, the report refers to Note 5 in the financial statements[203](index=203&type=chunk) [Risk Factors](index=59&type=section&id=Item%201A%20Risk%20Factors) The company reported no material changes to the risk factors disclosed in its 2024 Annual Report during the three months ended June 30, 2025 - There were no material changes to the company's risk factors during the second quarter of 2025[204](index=204&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 5.5 million shares for $45.73 per share in Q2 2025 under its $1.35 billion share repurchase program, extended to June 30, 2026 Share Repurchase Activity for Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | — | $— | | May 2025 | 328,588 | $42.59 | | June 2025 | 5,187,462 | $45.93 | | **Total** | **5,516,050** | **$45.73** | - The Board of Directors extended the Share Repurchase Program through June 30, 2026[205](index=205&type=chunk) [Other Disclosures](index=59&type=section&id=Item%205%20Other%20Disclosures) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements, and executive employment agreements were amended effective August 4, 2025 - The company entered into amended and restated employment agreements with executives Jay A. Bys and Michael L. Preston, effective August 4, 2025[209](index=209&type=chunk) - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during Q2 2025[208](index=208&type=chunk)

Financial Data and Key Metrics Changes - The company reported record quarterly returns to shareholders, returning nearly $290 million this quarter, which is more than 260% of its free cash flow [5] - Adjusted EBITDAX for the quarter was $324 million, exceeding consensus expectations, driven by strong commodity price realization, higher than expected production, and lower operating costs [11] - Free cash flow generated was $109 million, or $165 million before changes in working capital, demonstrating the resilience and cash-generating power of the company's assets [11] - Year-to-date costs were down approximately 11% from 2024, reflecting lower general and administrative expenses, non-energy operating costs, and lower taxes other than on income [10] Business Line Data and Key Metrics Changes - Net total production was recorded at 137,000 BOE per day, with average realizations at 97% of Brent before hedges and 100% after hedging [9] - The company has reduced nearly all of its 2025 operating expense items by about 7% compared to the original outlook, despite anticipating higher energy costs and increased activity levels in the second half [10] Market Data and Key Metrics Changes - The California Energy Commission's response to Governor Newsom's directive to ensure fuel reliability during the energy transition was positively received, indicating a collaborative effort with refiners and the industry [7] - The state is actively working to improve the oil and gas permitting process, with expectations for additional details once the legislature reconvenes in mid-August [8] Company Strategy and Development Direction - The company is focused on advancing its carbon and power platforms while returning meaningful capital to shareholders, indicating a commitment to both operational performance and shareholder value [4] - The company is uniquely positioned to support California's energy transition, providing cleaner and more affordable in-state production while advancing decarbonization solutions [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving regulatory environment in California, indicating constructive conversations regarding oil and gas permitting [21] - The company expects to raise full-year production guidance, lower both cost and drilling capital expectations, and increase its adjusted EBITDAX forecast [13] Other Important Information - The company has implemented ERA-related merger synergies ahead of schedule, fulfilling a $235 million target three months early, with a net present value of these synergies estimated at approximately $1.4 billion over the next ten years [6] - The company has slightly over $200 million remaining under its current share repurchase authorization, which was recently extended through June 2026 [13] Q&A Session Summary Question: What is the company's view on the current regulatory changes in California regarding oil and gas permitting? - Management expressed optimism about the dynamic changes in California, indicating that the state is actively looking to resolve the permitting situation and stabilize local production [21][23] Question: What is driving the underlying capital efficiency improvements? - The combination of strong assets with operational leadership has led to exceptional performance, allowing the company to maintain capital efficiency and lower maintenance capital expectations [28] Question: How does the company plan to allocate free cash flow going forward? - The company plans to remain opportunistic with share repurchases while balancing other strategic priorities, including redeeming the remainder of its 2026 notes [42] Question: Can you provide an update on the Class six permitting process? - The company is on track to complete construction by the end of the year and is ready to inject early in 2026, pending final regulatory approvals [46] Question: What is the current status of the Elk Hills power plant and potential power deals? - The company is focused on providing an update before the end of the year, with ongoing interest and conversations regarding power deals [58]

Financial Data and Key Metrics Changes - The company reported record quarterly returns to shareholders, returning nearly $290 million this quarter, which is more than 260% of its free cash flow [5] - Adjusted EBITDAX for the quarter was $324 million, exceeding consensus expectations, driven by strong commodity price realization, higher than expected production, and lower operating costs [12] - Free cash flow generated was $109 million, demonstrating the resilience and cash-generating power of the company's assets [12] - Year-to-date, the company has returned nearly $422 million to shareholders, with a record $287 million returned in the second quarter [13] Business Line Data and Key Metrics Changes - The company recorded net total production of 137,000 BOE per day, with average realizations at 97% of Brent before hedges and 100% after hedging [10] - First half 2025 costs were down approximately 11% from 2024, reflecting lower general and administrative expenses, lower non-energy operating costs, and lower taxes other than on income [11] - Total capital was $56 million, with 60% allocated to high return workovers and sidetracks [11] Market Data and Key Metrics Changes - The California Energy Commission is actively working to improve the oil and gas permitting process, which could provide greater flexibility for the company to access its extensive inventory [8] - The state is collaborating with refiners and the industry to ensure fuel reliability during the energy transition [7] Company Strategy and Development Direction - The company is focused on advancing its carbon and power platforms while returning meaningful capital to shareholders [4] - The company is strategically positioned to support California's energy transition, providing cleaner and more affordable in-state production while advancing decarbonization solutions [18] - The company plans to get California's first CCS project into operation, with construction authorization received from the EPA [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving regulatory environment in California and the potential for new oil and gas permits [22] - The company expects to raise full-year production guidance, lower both cost and drilling capital expectations, and increase its adjusted EBITDAX forecast [14] - Management highlighted the importance of local production to address California's energy challenges, emphasizing the need for affordable and clean energy [23] Other Important Information - The company has slightly over $200 million remaining under its current share repurchase authorization, which was recently extended through June 2026 [14] - The company is committed to driving long-term shareholder value and providing shareholder returns, having returned about $1.5 billion in dividends and share repurchases since the inception of its program [38] Q&A Session Summary Question: What is the company's view on the regulatory changes in California regarding oil and gas permitting? - Management is optimistic about the changes and believes the state is actively looking to resolve the permitting situation to stabilize local production [22][24] Question: What is driving the underlying capital efficiency improvements? - The combination of strong assets and operational leadership has led to improved performance, with maintenance capital expected to be at the lower end of the previously guided range [28] Question: How does the company plan to allocate free cash flow going forward? - The company plans to remain opportunistic with share repurchases while balancing other strategic priorities, including redeeming the remainder of its 2026 notes [40] Question: What is the status of the Class six permitting process? - The company is encouraged by the progress and expects to receive incremental Class six permits in the near term [72] Question: How does the company view the potential Elk Hills power deal? - The company is focused on making the right deal that adds significant value to shareholders and is optimistic about the interest in clean power solutions [50][54]

Financial Performance - The company generated $324 million of Adjusted EBITDAX in 2Q25, exceeding guidance[8] - Operating cash flow for 2Q25 reached $165 million[4] - Free cash flow for 2Q25 was $109 million[5] - Shareholder returns totaled $287 million in 2Q25, including dividends of $35 million and share repurchases of $252 million[4] - $422 million was returned to shareholders in 1H25, and $1482 million since May 2021[16] Operational Highlights - Net production in 2Q25 was 137 thousand barrels of oil equivalent per day (MBOE/D), with 80% oil, 7% NGLs, and 13% gas[6, 7] - The company reduced 2025 estimated drilling & completion (D&C) and workover capital by approximately 3%[8] - The company raised the midpoints of 2025 estimated net production by approximately 1% and adjusted EBITDAX by approximately 7%[8] - Aera merger synergies of $235 million were implemented 3 months ahead of schedule[8, 26] Carbon Management - The CTV JV received authorization to construct from the U S EPA[8] - The company has 7 EPA Class VI permits in queue for approximately 287 million metric tons of storage[64]

Group 1: Earnings Performance - California Resources Corporation (CRC) reported quarterly earnings of $1.1 per share, exceeding the Zacks Consensus Estimate of $0.91 per share, and up from $0.6 per share a year ago, representing an earnings surprise of +20.88% [1] - The company posted revenues of $978 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 21.84%, compared to year-ago revenues of $514 million [2] - Over the last four quarters, California Resources has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - California Resources shares have declined approximately 9.1% since the beginning of the year, while the S&P 500 has gained 7.6% [3] - The current consensus EPS estimate for the coming quarter is $1.06 on revenues of $845.76 million, and for the current fiscal year, it is $3.71 on revenues of $3.32 billion [7] - The company's earnings outlook and estimate revisions will be crucial for future stock performance, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market [6] Group 3: Industry Context - The Oil and Gas - Exploration and Production - United States industry is currently in the bottom 31% of over 250 Zacks industries, which may impact the stock's performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5]

Q2 2025 Financial and Operating Results [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%20Highlights) CRC reported strong Q2 2025 results with high production, record shareholder returns, and significant Aera merger synergies Q2 2025 Key Financial and Operating Metrics | Metric | Value | | :--- | :--- | | Average Net Production | 137 MBoe/d (80% oil) | | Net Income | $172 million | | Net Income per Diluted Share | $1.92 | | Adjusted Net Income | $98 million | | Adjusted Net Income per Diluted Share | $1.10 | | Net Cash from Operating Activities | $165 million | | Free Cash Flow | $109 million | | Adjusted EBITDAX | $324 million | | Shareholder Returns | $287 million (record) | - The company successfully implemented the targeted **$235 million** in annualized Aera merger-related synergies, expecting to realize **$185 million** in 2025 and the remaining **$50 million** in 2026[5](index=5&type=chunk) - CRC updated its 2025 outlook by lowering the drilling, completions, and workover capital program by **$5 million**, while raising the midpoint of net production guidance to **136 MBoe/d** and adjusted EBITDAX guidance to **$1,235 million**[5](index=5&type=chunk) - Carbon TerraVault received authorization from the U.S. EPA to construct CO2 injection wells for the 26R storage reservoir, a key milestone for its carbon management business[5](index=5&type=chunk) [Second Quarter 2025 Comparative Financial Results](index=2&type=section&id=Second%20Quarter%202025%20Comparative%20Financial%20Results) Total operating revenues increased to **$978 million** and net income rose to **$172 million** quarter-over-quarter Q2 2025 vs Q1 2025 Financial Comparison | Metric ($ in millions, except per share) | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Total Production (MBoe/d) | 137 | 141 | | Total Operating Revenues | $978 | $912 | | Operating Income | $267 | $186 | | Net Income | $172 | $115 | | Net Income per Share - Diluted | $1.92 | $1.26 | | Adjusted Net Income | $98 | $98 | | Adjusted EBITDAX | $324 | $328 | | Free Cash Flow | $109 | $131 | 2025 Guidance [Updated 2025 Guidance](index=3&type=section&id=Updated%202025%20Guidance) CRC updated its 2025 guidance, raising full-year net production and Adjusted EBITDAX midpoints Select 2025 Guidance | Metric | 3Q25E | Full Year 2025E | | :--- | :--- | :--- | | Net Production (MBoe/d) | 135 - 139 | 134 - 138 | | Percentage Oil | ~79% | ~79% | | Capital Investments ($ millions) | $84 - $108 | $280 - $330 | | Adjusted EBITDAX ($ millions) | $310 - $340 | $1,195 - $1,275 | Shareholder Returns [Share Repurchase Program and Dividends](index=3&type=section&id=Share%20Repurchase%20Program%20and%20Dividends) CRC returned a record **$287 million** to shareholders in Q2 2025 and extended its share repurchase program - The Board of Directors extended the Share Repurchase Program through June 30, 2026, with **$205 million** remaining for repurchases as of June 30, 2025[9](index=9&type=chunk) Q2 2025 Shareholder Return Details | Activity | Value | | :--- | :--- | | Total Returned to Shareholders | $287 million | | Share Repurchases | $252 million (5.52M shares) | | Dividends Paid | $35 million | | Declared Quarterly Dividend | $0.3875 per share | - Since May 2021, the company has returned nearly **$1.5 billion** to shareholders, comprising approximately **$1.1 billion** in share repurchases and **$337 million** in dividends[10](index=10&type=chunk) Balance Sheet and Liquidity [Debt and Liquidity Position](index=3&type=section&id=Debt%20and%20Liquidity%20Position) CRC maintained a strong **$1,039 million** liquidity and plans to redeem **$122 million** in 2026 Senior Notes - CRC plans to redeem or refinance the **$122 million** outstanding balance of its 2026 Senior Notes in the second half of 2025[11](index=11&type=chunk) Liquidity as of June 30, 2025 | Component | Amount ($ millions) | | :--- | :--- | | Available Cash and Cash Equivalents | $56 | | Available Borrowing Capacity | $983 | | **Total Liquidity** | **$1,039** | Financial Statements and Key Metrics (Attachments) [Financial Statements](index=6&type=section&id=Attachment%201%3A%20Financial%20Statements) This section provides detailed unaudited financial statements, including operations, cash flow, and balance sheet data Statements of Operations Q2 2025 Statement of Operations Highlights ($ millions) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Total Operating Revenues | $978 | $912 | $514 | | Total Operating Expenses | $711 | $726 | $477 | | Operating Income | $267 | $186 | $38 | | Net Income | $172 | $115 | $8 | Cash Flow and Balance Sheet Data Cash Flow Data ($ millions) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $165 | $186 | $97 | | Net cash used in investing activities | $(51) | $(79) | $(33) | | Net cash (used in) financing activities | $(256) | $(265) | $564 | Select Balance Sheet Information ($ millions) | Line Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | $728 | $1,024 | | Property, plant and equipment, net | $5,560 | $5,680 | | Long-term debt, net | $888 | $1,132 | | Total stockholders' equity | $3,407 | $3,538 | Capital Investments Capital Investments Breakdown ($ millions) | Category | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Oil and natural gas segment | $51 | $42 | $46 | | Carbon management segment | $5 | $2 | $(2) | | **Total capital investment** | **$56** | **$55** | **$34** | [Detailed Guidance](index=9&type=section&id=Attachment%202%3A%20Detailed%20Guidance) Detailed guidance for Q3 and full year 2025 includes production, costs, capital investments, and Adjusted EBITDAX projections Full Year 2025E Guidance by Segment ($ millions) | Metric | Consolidated | Oil and Natural Gas | Carbon Management | | :--- | :--- | :--- | :--- | | Capital Investments | $280 - $330 | $245 - $275 | $20 - $30 | | Adjusted EBITDAX | $1,195 - $1,275 | $1,210 - $1,340 | ($68) - ($64) | Full Year 2025E Commodity Assumptions | Commodity | Assumed Price | | :--- | :--- | | Brent | $68.00 /Bbl | | NYMEX | $3.65 /Mcf | [Non-GAAP Reconciliations](index=13&type=section&id=Attachment%203%3A%20Non-GAAP%20Reconciliations) This section provides detailed reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures Adjusted Net Income (Loss) Reconciliation of Net Income to Adjusted Net Income ($ millions) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net income (GAAP) | $172 | $115 | $8 | | Total unusual, infrequent and other items | $(103) | $(24) | $47 | | Income tax provision of adjustments | $29 | $7 | $(13) | | **Adjusted net income (Non-GAAP)** | **$98** | **$98** | **$42** | Adjusted EBITDAX Reconciliation of Net Income to Adjusted EBITDAX ($ millions) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net income (GAAP) | $172 | $115 | $8 | | Adjustments (Interest, Taxes, DD&A, etc.) | $152 | $213 | $131 | | **Adjusted EBITDAX (Non-GAAP)** | **$324** | **$328** | **$139** | Free Cash Flow Reconciliation of Net Cash from Operations to Free Cash Flow ($ millions) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities (GAAP) | $165 | $186 | $97 | | Capital investments | $(56) | $(55) | $(34) | | **Free cash flow (Non-GAAP)** | **$109** | **$131** | **$63** | [Production and Price Statistics](index=18&type=section&id=Attachment%204%3A%20Production%20and%20Price%20Statistics) This section details the company's production volumes by basin and provides statistics on realized commodity prices Net Production Per Day by Basin (Q2 2025) | Basin | Oil (MBbl/d) | NGLs (MBbl/d) | Natural Gas (MMcf/d) | | :--- | :--- | :--- | :--- | | San Joaquin Basin | 83 | 10 | 96 | | Los Angeles Basin | 17 | - | 1 | | Other Basins | 9 | - | 14 | | **Total** | **109** | **10** | **111** | Realized Prices (Q2 2025) | Commodity | Realized Price (with derivatives) | | :--- | :--- | | Oil | $66.73 /Bbl | | NGLs | $42.41 /Bbl | | Natural Gas | $2.79 /Mcf | [Drilling Activity](index=20&type=section&id=Attachment%206%3A%20Drilling%20Activity) This section summarizes the company's drilling activity for the second quarter and first six months of 2025 Drilling Activity | Period | Wells Drilled (Total) | | :--- | :--- | | Q2 2025 | 24 | | Six Months 2025 | 27 | Company and Investor Information [Company Overview](index=4&type=section&id=Company%20Overview) California Resources Corporation is an independent energy and carbon management company focused on the energy transition - CRC is an independent energy and carbon management company committed to the energy transition, focusing on providing responsibly sourced energy and developing decarbonization projects[16](index=16&type=chunk) - Carbon TerraVault (CTV) is CRC's carbon management business, focused on developing projects to capture, transport, and permanently store CO2 for CRC affiliates and customers[17](index=17&type=chunk) [Investor Conference and Call Details](index=4&type=section&id=Investor%20Conference%20and%20Call%20Details) CRC will participate in several investor conferences in August and September 2025 and hosted a Q2 results conference call - CRC plans to participate in investor conferences hosted by Citi, Barclays, Goldman Sachs, and PEP Energy in August and September 2025[13](index=13&type=chunk)[17](index=17&type=chunk) - A conference call to discuss Q2 2025 results was scheduled for August 6, 2025, with details provided for participation via phone and webcast[14](index=14&type=chunk)