California Resources Q2 adjusted EPS misses estimates, announces Crimson acquisition

California Resources

10/08/2026 13:09

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

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

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

Company press release: ID:nGNX9twW6N

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted EPS
Miss
$0.99
$1.43 (10 Analysts)
Q2 EPS
 
$5.76
 
Q2 Adjusted Net Income
Miss
$88 mln
$127.02 mln (7 Analysts)
Q2 Net Income
 
$514 mln
 
Q2 Adjusted EBITDAX
Miss
$338 mln
$342.37 mln (10 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas exploration and production peer group is "buy"
Wall Street's median 12-month price target for California Resources Corporation is $80.00, about 53.6% above its August 7 closing price of $52.08
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 15 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)