California Resources Corporation Reports Second Quarter 2025 Financial and Operating Results

Core Viewpoint - California Resources Corporation (CRC) reported strong financial results for Q2 2025, demonstrating efficient scaling and profitability while returning a record $287 million to shareholders through share repurchases and dividends [5][7][12]. Financial Performance - Net income for Q2 2025 was $172 million, with diluted earnings per share of $1.92, compared to $115 million and $1.26 in Q1 2025 [7][30]. - Total operating revenues reached $978 million in Q2 2025, up from $912 million in Q1 2025 [8][30]. - Adjusted EBITDAX for Q2 2025 was $324 million, slightly down from $328 million in Q1 2025 [7][30]. Production and Pricing - Average net production was 137 thousand barrels of oil equivalent per day (MBoe/d), with 80% being oil, at the high end of guidance [7][10]. - Realized oil price was $66.73 per barrel, down from $72.01 in Q1 2025, while natural gas price realized was $2.79 per Mcf, down from $4.12 [6][7]. Capital Investments and Guidance - The company lowered its 2025 drilling, completions, and workover capital program by $5 million, now totaling $34 million [7][10]. - CRC raised its midpoint guidance for 2025 net production to 136 MBoe/d and adjusted EBITDAX to $1,235 million [7][10]. Shareholder Returns - CRC returned a record $287 million to shareholders in Q2 2025, including $252 million in share repurchases and $35 million in dividends [7][12][13]. - The Board declared a quarterly cash dividend of $0.3875 per share, payable on September 12, 2025 [13]. Balance Sheet and Liquidity - As of June 30, 2025, CRC had $56 million in available cash and $983 million in available borrowing capacity, totaling $1,039 million in liquidity [7][15]. - The company plans to redeem or refinance $122 million of its 2026 Senior Notes in the second half of 2025 [14]. Future Outlook - CRC expects to run a two-rig program in the second half of 2025, with guidance for Q3 2025 net production between 135-139 MBoe/d [9][10]. - The company anticipates realizing $185 million in merger-related synergies in 2025, with the remaining $50 million expected in 2026 [7].