California Resources Corporation Reports Second Quarter 2025 Financial and Operating Results

Company Raises 2025E Production and Adjusted EBITDAX Guidance, Reduces Drilling, Completions and Workover Capital Program Returned Quarterly Record of $287 Million to Shareholders LONG BEACH, Calif., Aug. 05, 2025 (GLOBE NEWSWIRE) -- California Resources Corporation (NYSE: CRC) reported financial and operating results for the second quarter of 2025. The Company is hosting a conference call and webcast at 1 p.m. ET (10 a.m. PT) on Wednesday, August 6, 2025. Conference call details can be found within this release. Second Quarter Highlights Delivered average net production of 137 thousand barrels of oil equivalent per day (MBoe/d) (80% oil), at the high end of guidance, with drilling, completions and workover capital of $34 million, and added a second rig in Kern CountyReported net income of $172 million and net income per diluted share of $1.92; reported adjusted net income1 of $98 million and adjusted net income per diluted share of $1.10Generated net cash provided by operating activities of $165 million, $109 million in free cash flow1 and $324 million in adjusted EBITDAX1, exceeding quarterly guidanceEnded the second quarter of 2025 with $56 million in available cash3 (excluding restricted cash), $983 million in available borrowing capacity and $1,039 million of liquidity1Returned a record $287 million to shareholders2, including $252 million in share repurchases and $35 million in dividends Other Highlights Implemented the targeted $235 million in annualized Aera merger-related synergies since July 2024; expecting to realize $185 million in 2025 and the remaining $50 million in 2026Lowered 2025 drilling, completions and workover capital program by $5 million, and raised the midpoint of 2025 net production and adjusted EBITDAX1 guidance to 136 MBoe/d (79% oil) and $1,235 million, respectivelyReceived authorization to construct from the U.S. Environmental Protection Agency (EPA) for carbon dioxide (CO2) injection wells for the 26R storage reservoir. See Carbon TerraVault's Second Quarter 2025 Update for additional information "We delivered a very solid second quarter that reflects the strength of our assets, the discipline of our execution, and our focus on long-term value creation," said CRC President and CEO Francisco Leon. “Our team's ability to scale efficiently has nearly doubled our revenue and strengthened profitability – while fully implementing merger synergies ahead of schedule. That performance gives us the flexibility to sharpen our focus on what matters most: driving returns, building resilience, and setting up CRC for continued success. I want to thank all CRC employees for their dedication and efforts that continue to make CRC a different kind of energy company.” Second Quarter 2025 Comparative Financial Results Selected Production, Price and Financial Results and non-GAAP measures 2nd Quarter 1st Quarter($ in millions except production and prices) 2025 2025Net oil production per day (MBbl/d) 109 111Realized oil price with derivative settlements ($ per Bbl) $ 66.73 $72.01Net NGL production per day (MBbl/d) 10 10Realized NGL price ($ per Bbl) $ 42.41 $54.64Net natural gas production per day (Mmcf/d) 111 117Realized natural gas price with derivative settlements ($ per Mcf) $ 2.79 $4.12Net total production per day (MBoe/d) 137 141 Margin from purchased commodities1 $ 15 $14Electricity margin1 $ 53 $12Net gain from commodity derivatives $ 157 $6Other operating expenses net of other revenue1 $ 60 $27 Selected Financial Statement Data and non-GAAP measures: 2nd Quarter 1st Quarter($ and shares in millions, except per share amounts) 2025 2025Statements of Operations: Total operating revenues $ 978 $912 Operating costs $ 295 $316General and administrative expenses $ 79 $72Adjusted general and administrative expenses1 $ 72 $ 66 Taxes other than on income $ 47 $70Transportation costs $ 20 $20Operating income $ 267 $186Interest and debt expense, net $ 25 $27Income tax provision $ 70 $47Deferred income tax provision $ 6 $35Net income $ 172 $115Weighted-average common shares outstanding - diluted 89.4 91.2Net income per share - diluted $ 1.92 $1.26 Non-GAAP Measures, Cash Flow and Select Balance Sheet Data Adjusted net income1 $ 98 $98Adjusted net income per share1 - diluted $ 1.10 $1.07Adjusted EBITDAX1 $ 324 $328Net cash provided by operating activities $ 165 $186Capital investments $ 56 $55Free cash flow1 $ 109 $131Cash and cash equivalents $ 72 $214 Guidance The following table provides select third quarter 2025E and full year 2025E guidance4. CRC expects to run a two-rig program in the second half of 2025. CRC currently holds permits in excess of its planned 2025 capital program requirements. See Attachment 2 for CRC's third quarter 2025E and full year 2025E guidance. 3Q25ETotal Year2025ENet Production (MBoe/d)135-139134 - 138Percentage Oil~79%~79%Capital Investments ($ millions)$84 - $108$280 - $330Adjusted EBITDAX1 ($ millions)$310 - $340$1,195 - $1,275 Shareholder Returns CRC is committed to returning cash to shareholders through dividends and repurchases of its common stock. In line with this strategy, CRC’s Board of Directors has extended its Share Repurchase Program through June 30, 2026. As of June 30, 2025, CRC had $205 million remaining for share repurchases under its authorized Share Repurchase Program. During the second quarter of 2025, CRC paid dividends of $35 million and repurchased 5.52 million common shares for $252 million (an average price of $45.73 per share)2. Share repurchases include 4.95 million shares from IKAV Impact S.a.r.l (IKAV), representing 23% of the total shares issued in the Aera Merger, at $46.00 per share, for $228 million. CRC funded shareholder returns with cash on hand. On August 5, 2025, CRC's Board of Directors declared a quarterly cash dividend2 of $0.3875 per share of common stock, payable to shareholders of record on August 27, 2025. The dividend is expected to be paid on September 12, 2025. Since May 2021, the Company has returned nearly $1.5 billion to shareholders2, including approximately $1.1 billion in share repurchases and $337 million in dividends. Balance Sheet and Liquidity CRC plans to redeem or refinance the $122 million outstanding balance of its 2026 Senior Notes in the second half of 2025. CRC's borrowing base under its Revolving Credit Facility is $1,500 million. As of June 30, 2025, CRC had $56 million in available cash and cash equivalents4, $983 million of available borrowing capacity under its Revolving Credit Facility (which reflects $1,150 million of borrowing capacity less $167 million of outstanding letters of credit) and liquidity1 of $1,039 million. Participation in Upcoming Investor Conference CRC plans to participate in the following events in August and September 2025: Citi’s 2025 Global Energy & Power Conference, August 13 - 14, Las Vegas, NVBarclays 39th Annual CEO Energy-Power Conference, September 2 - 4, New York, NYGoldman Sachs Global Sustainability Forum, September 25, New York, NYPEP Energy Conference September 29 - 30, Austin, TX CRC’s presentation materials will be available on the day of the event on its website. See "Events and Presentations" under the Investor Relations section on www.crc.com. Conference Call Details A conference call and webcast is scheduled for 1 p.m. ET (10 a.m. PT) on Wednesday, August 6, 2025. To participate in the call, dial (877) 328-5505 (International calls dial +1 (412) 317-5421) or access via webcast at www.crc.com. Participants may also pre-register for the conference call at https://dpregister.com/sreg/10200260/ff49e72f54. A digital replay of the conference call will be available for approximately 90 days. 1 See Attachment 3 for the non-GAAP financial measures of operating costs per BOE, adjusted net income (loss), adjusted net income (loss) per share - basic and diluted, net cash provided by operating activities before net changes in operating assets and liabilities, adjusted EBITDAX, free cash flow, liquidity and adjusted general and administrative expenses including reconciliations to their most directly comparable GAAP measure, where applicable. See Attachment 2 for the 3Q25E and 2025E estimates of the non-GAAP measures of adjusted EBITDAX and adjusted general and administrative expenses, including reconciliations to its most directly comparable GAAP measure.2 All of CRC’s future quarterly dividends and share repurchases are subject to commodity prices, debt agreement covenants and Board of Directors' approval. The total value of shares purchased excludes excise taxes. Commissions paid on share repurchases were not significant in all periods presented.3 Excludes restricted cash of $16 million at June 30, 2025.4 3Q25E guidance assumes Brent price of $66.00 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $3.40 per mcf. Total year 2025E guidance assumes Brent price of $68.00 per barrel of oil, NGL realizations as a percentage of Brent consistent with prior years and a NYMEX gas price of $3.65 per mcf. CRC's share of production under PSC contracts decreases when commodity prices rise and increases when prices fall. About California Resources Corporation California Resources Corporation (CRC) is an independent energy and carbon management company committed to energy transition. CRC is committed to environmental stewardship while safely providing local, responsibly sourced energy. CRC is also focused on maximizing the value of its land, mineral ownership, and energy expertise for decarbonization by developing CCS and other emissions reducing projects. For more information about CRC, please visit www.crc.com. About Carbon TerraVault Carbon TerraVault (CTV), CRC’s carbon management business, is developing projects to capture, transport and permanently store CO2 for its CRC affiliates and its customers. CTV is engaged in a series of proposed CCS projects that if developed will inject CO2 captured from industrial sources into depleted oil and gas reservoirs deep underground for permanent sequestration. For more information, visit carbonterravault.com. Forward-Looking Statements This document contains statements that CRC believes to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical facts are forward-looking statements, and include statements regarding CRC's future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and plans and objectives of management for the future. Words such as “expect,” “could,” “may,” “anticipate,” “intend,” “plan,” “ability,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “guidance,” “outlook,” “opportunity” or “strategy” or similar expressions are generally intended to identify forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Although CRC believes the expectations and forecasts reflected in its forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond its control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause CRC’s actual results to be materially different than those expressed in its forward-looking statements are described in its most recent Annual Report on Form 10-K and its other periodic filings with the Securities and Exchange Commission. These factors include, but are not limited to: fluctuations in commodity prices; production levels and/or pricing by OPEC, OPEC+ or U.S. producers; government policy, war and political conditions and events; integration efforts and projected benefits in connection with the Aera Merger and other acquisitions, divestitures and joint ventures; regulatory actions and changes that affect the oil and gas industry generally and us in particular; the efforts of activists to delay prevent oil and gas activities or the development of CRC’s carbon management segment; changes in business strategy and capital plan; lower-than-expected production; changes to estimates of reserves and related future cash flows; the recoverability of resources and unexpected geologic conditions; general economic conditions and trends; results from operations and competition in the industries in which it operates; CRC’s ability to realize the anticipated benefits from prior or future efforts to reduce costs; environmental risks and liability; the benefits contemplated by its energy transition strategies and initiatives; CRC’s ability to successfully identify, develop and finance carbon capture and storage projects, power projects and other renewable energy efforts; future dividends and share repurchases and de-leveraging efforts; and natural disasters, accidents, mechanical failures, power outages, labor difficulties, cybersecurity breaches or attacks or other catastrophic events. CRC cautions you not to place undue reliance on forward-looking statements contained in this document, which speak only as of the filing date, and CRC undertakes no obligation to update this information. This document may also contain information from third party sources. This data may involve a number of assumptions and limitations, and CRC has not independently verified them and does not warrant the accuracy or completeness of such third-party information. Contacts: Attachment 1STATEMENTS OF OPERATIONS, SELECT FINANCIAL INFORMATION 2nd Quarter 1st Quarter 2nd Quarter Six Months Six Months($ and shares in millions, except per share amounts) 2025 2025 2024 2025 2024 Statements of Operations: Revenues Oil, natural gas and natural gas liquids sales $702 $814 $412 $1,516 $841 Net gain (loss) from commodity derivatives 157 6 5 163 (66)Revenue from marketing of purchased commodities 56 64 51 120 125 Electricity sales 58 22 36 80 51 Other revenue 5 6 10 11 17 Total operating revenues 978 912 514 1,890 968 Operating Expenses Operating costs 295 316 156 611 332 General and administrative expenses 79 72 63 151 120 Depreciation, depletion and amortization 128 131 53 259 106 Asset impairment — — 13 — 13 Taxes other than on income 47 70 39 117 77 Costs related to marketing of purchased commodities 41 50 43 91 97 Electricity generation expenses 5 10 14 15 22 Transportation costs 20 20 17 40 37 Accretion expense 28 29 13 57 25 Net loss (gain) on natural gas purchase derivatives 3 (6) 1 (3) 2 Measurement period adjustments, net — 1 — 1 — Other operating expenses, net 65 33 65 98 110 Total operating expenses 711 726 477 1,437 941 Net gain on asset divestitures — — 1 — 7 Operating Income 267 186 38 453 34 Non-Operating (Expenses) Income Interest and debt expense, net (25) (27) (17) (52) (30)Loss from investment in unconsolidated subsidiaries — (1) (4) (1) (7)Loss on early extinguishment of debt — (1) — (1) — Other non-operating income (loss), net — 5 (6) 5 (5) Income Before Income Taxes 242 162 11 404 (8)Income tax (provision) benefit (70) (47) (3) (117) 6 Net Income $172 $115 $8 $287 $(2) Net income per share - basic $1.93 $1.27 $0.12 $3.20 $(0.03)Net income per share - diluted $1.92 $1.26 $0.11 $3.18 $(0.03) Adjusted net income $98 $98 $42 $196 $96 Adjusted net income per share - basic $1.10 $1.08 $0.62 $2.18 $1.40 Adjusted net income per share - diluted $1.10 $1.07 $0.60 $2.17 $1.35 Weighted-average common shares outstanding - basic 89.0 90.6 68.1 89.8 68.6 Weighted-average common shares outstanding - diluted 89.4 91.2 70.0 90.3 68.6 Effective tax rate 29% 29% 27% 29% 75% 2nd Quarter 1st Quarter 2nd Quarter Six Months Six Months($ in millions) 2025 2025 2024 2025 2024 Cash Flow Data: Net cash provided by operating activities $165 $186 $97 $351 $184 Net cash used in investing activities $(51) $(79) $(33) $(130) $(82)Net cash (used in) provided by financing activities $(256) $(265) $564 $(521) $433 June 30, December 31, ($ in millions) 2025 2024 Select Balance Sheet Information: Total current assets $728 $1,024 Property, plant and equipment, net $5,560 $5,680 Deferred tax asset $33 $73 Total current liabilities $928 $980 Long-term debt, net $888 $1,132 Noncurrent asset retirement obligations $969 $995 Deferred tax liability $185 $113 Total stockholders' equity $3,407 $3,538 GAINS AND LOSSES FROM COMMODITY DERIVATIVES 2nd Quarter 1st Quarter 2nd Quarter Six Months Six Months($ millions) 2025 2025 2024 2025 2024 Non-cash commodity derivative gain (loss) $ 140 $ 22 $ 11 $ 162 $ (48)Net received (paid) on settled commodity derivatives 17 (16) (6) 1 (18)Net gain (loss) from commodity derivatives $ 157 $ 6 $ 5 $ 163 $ (66) Non-cash derivative (gain) loss $ (4) $ (18) $ (3) $ (22) $ (4)Net paid on settled commodity derivatives 7 12 4 19 6 Net loss (gain) on natural gas purchase derivatives $ 3 $ (6) $ 1 $ (3) $ 2 CAPITAL INVESTMENTS 2nd Quarter 1st Quarter 2nd Quarter Six Months Six Months($ millions) 2025 2025 2024 2025 2024 Facilities $ 17 $ 8 $ 17 $ 25 $ 31 Drilling and completions 19 15 18 34 33 Workovers 15 19 11 34 18 Oil and natural gas segment 51 42 46 93 82 Carbon management segment 5 2 (2) 7 2 Corporate and other — 11 (10) 11 4 Total capital investment $ 56 $ 55 $ 34 $ 111 $ 88 Attachment 2THIRD QUARTER 2025E GUIDANCE Consolidated3Q25E Oil and Natural Gas Segment Carbon ManagementSegmentNet production (MBoe/d) 135-139 Net oil production (%) ~79% Operating costs ($ millions) $300 - $330 $300 - $330 General and administrative expenses ($ millions) $74 - $88 $10 - $14 $2 - $4Adjusted general and administrative expenses ($ millions) $70 - $80 $10 - $14 $2 - $4Depreciation, depletion and amortization ($ millions) $131 - $135 $112 - $118 Capital investments ($ millions) $84 - $108 $71 - $89 $8 - $10Drilling, completion and workover ($ millions) $46 - $54 $46 - $54 Adjusted EBITDAX ($ millions) $310 - $340 $280 - $305 $(15) - $(11) Margin from purchased commodities ($ millions) (1) $17 - $25 Electricity margin ($ millions) (2) $75 - $100 Other operating expenses net of other revenue ($ millions) (3) $0 - $20 $7 - $13Transportation costs ($ millions) $20 - $26 $9 - $13 Taxes other than on income ($ millions) $64 - $74 $52 - $57 Interest and debt expense ($ millions) $25 - $29 Other Assumptions: Brent ($/Bbl) $66.00 NYMEX ($/Mcf) $3.40 Price realization oil - % of Brent: 94% to 100% Price realization NGLs - % of Brent: 54% to 60% Price realization natural gas - % of NYMEX: 94% to 104% Deferred income taxes 95% - 105% Effective tax rate 29% THIRD QUARTER 2025E GUIDANCE Consolidated2025E Oil and Natural Gas 2025E Carbon Management2025ENet production (MBoe/d) 134 - 138 Net oil production (%) ~79% Operating costs ($ millions) $1,220 - $1,280 $1,220 - $1,280 General and administrative expenses ($ millions) $310 - $335 $40 - $55 $10 - $15Adjusted general and administrative expenses ($ millions) $290 - $310 $40 - $55 $10 - $15Depreciation, depletion and amortization ($ millions) $515 - $530 $447 - $462 Capital investments ($ millions) $280 - $330 $245 - $275 $20 - $30Drilling, completion and workover ($ millions) $160 - $175 $160 - $175 Adjusted EBITDAX ($ millions) $1,195 - $1,275 $1,210 - $1,340 ($68) - ($64) Margin from purchased commodities ($ millions) (1) $65 - $80 Electricity margin ($ millions) (2) $175 - $190 Other operating expenses net of other revenue ($ millions) (3) $80 - $135 $45 - $60Transportation costs ($ millions) $82 - $94 $39 - $43 Taxes other than on income ($ millions) $235 - $260 $190 - $220 Interest and debt expense ($ millions) $100 - $110 Commodity Assumptions: Brent ($/Bbl) $68.00 NYMEX ($/Mcf) $3.65 Price realization oil - % of Brent: 95% to 99% Price realization NGLs - % of Brent: 60% to 68% Price realization natural gas - % of NYMEX: 90% to 110% Deferred income taxes 43% - 49% Effective tax rate 29% (1) Margin from purchased commodities is calculated as the difference between revenue from marketing of purchased commodities and costs related to marketing of purchased commodities, and excludes costs of transportation.(2) Electricity margin is calculated as the difference between electricity sales and electricity generation expenses.(3) Other operating revenue and expenses, net is calculated as the difference between other revenue and other operating expenses, net and includes exploration expense and CMB expenses. CMB expenses includes lease cost for sequestration easements, advocacy, and other startup related costs.See Attachment 3 for management's disclosure of its use of these non-GAAP measures and how these measures provide useful information to investors about CRC's results of operations and financial condition. FORWARD LOOKING NON-GAAP RECONCILIATIONSA reconciliation of the non-GAAP measure of segment adjusted EBITDAX cannot be reconciled to the comparable measure of operating cash flow prepared in accordance with GAAP without unreasonable effort. We have included a reconciliation of the GAAP measure of segment profit to segment adjusted EBITDAX. 3Q25E Consolidated Oil and Natural GasSegment Carbon ManagementSegment($ millions) Low High Low High Low HighGeneral and administrative expenses $74 $88 $10 $14 $2 $4 Equity-settled stock-based compensation (4) (8) — — — — Estimated adjusted general and administrative expenses $70 $80 $10 $14 $2 $4 Total Year 2025E Consolidated Oil and Natural Gas Segment Carbon Management Segment($ millions) Low High Low High Low HighGeneral and administrative expenses $310 $335 $40 $55 $10 $15 Equity-settled stock-based compensation (20) (25) — — — — Estimated adjusted general and administrative expenses $290 $310 $40 $55 $10 $15 Consolidated 3Q25E 2025E($ millions) Low High Low HighNet income $75 $79 $375 $405 Interest and debt expense 25 28 100 110 Interest income (1) (3) (5) (13)Depreciation, depletion and amortization 131 135 515 530 Income taxes 29 32 150 170 Exploration expense — — — 6 Loss from investment on unconsolidated subsidiaries — — (5) 5 Unusual, infrequent and other items 21 31 (60) $(80)Other non-cash items Accretion expense 26 30 105 117 Stock-settled compensation 4 8 20 25 Estimated adjusted EBITDAX $310 $340 $1,195 $1,275 Net cash provided by operating activities $303 $323 $820 $860 Cash interest 6 8 88 108 Cash income taxes 4 6 45 53 Working capital changes (3) 3 242 254 Estimated adjusted EBITDAX $310 $340 $1,195 $1,275 Oil and Natural Gas Segment 3Q25E 2025E($ millions) Low High Low HighSegment profit $140 $150 $650 $750 Depreciation, depletion and amortization 112 118 447 462 Unusual, infrequent and other items 3 7 3 8 Other non-cash items Accretion expense 25 30 110 120 Estimated adjusted EBITDAX $280 $305 $1,210 $1,340 Carbon Management Segment 3Q25E 2025E($ millions) Low High Low HighSegment loss $(23) $(13) $(92) $(72)Interest and debt expense, net 5 1 14 5 Loss from investment on unconsolidated subsidiary 3 1 10 3 Other non-cash items Stock-settled compensation — — — — Estimated adjusted EBITDAX $(15) $(11) $(68) $(64) Consolidated 3Q25E 2025E($ millions) Low High Low HighRevenue from marketing of purchased commodities $50 $65 $218 $256 Costs related to marketing of purchased commodities (33) (40) (153) (176)Margin from purchased commodities $17 $25 $65 $80 Consolidated 3Q25E 2025E($ millions) Low High Low HighElectricity sales $83 $115 $213 $235 Electricity generation expenses (8) (15) (38) (45)Electricity margin $75 $100 $175 $190 Consolidated 3Q25E 2025E($ millions) Low High Low HighOther operating expenses, net $— $25 $90 $160 Other revenue — (5) (10) (25)Operating expenses net of other revenue $— $20 $80 $135 NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS To supplement the presentation of its financial results prepared in accordance with U.S generally accepted accounting principles (GAAP), management uses certain non-GAAP measures to assess its financial condition, results of operations and cash flows. The non-GAAP measures include adjusted net income (loss), adjusted net income (loss) per share, adjusted EBITDAX, adjusted EBITDAX per Boe, adjusted EBITDAX for the oil and natural gas segment, adjusted EBITDAX for the carbon management business, net cash provided by operating activities before net changes in operating assets and liabilities, free cash flow, liquidity, adjusted general and administrative expenses and adjusted G&A per Boe. These measures are also widely used by the industry, the investment community and CRC's lenders. Although these are non-GAAP measures, the amounts included in the calculations were computed in accordance with GAAP. Certain items excluded from these non-GAAP measures are significant components in understanding and assessing CRC's financial performance, such as CRC's cost of capital and tax structure, as well as the effect of acquisition and development costs of CRC's assets. Management believes that the non-GAAP measures presented, when viewed in combination with CRC's financial and operating results prepared in accordance with GAAP, provide a more complete understanding of the factors and trends affecting the Company's performance. The non-GAAP measures presented herein may not be comparable to other similarly titled measures of other companies. Below are additional disclosures regarding each of these non-GAAP measures, including reconciliations to their most directly comparable GAAP measure where applicable. ADJUSTED NET INCOME (LOSS) Adjusted net income (loss) and adjusted net income (loss) per share are non-GAAP measures. CRC defines adjusted net income as net income excluding the effects of significant transactions and events that affect earnings but vary widely and unpredictably in nature, timing and amount. These events may recur, even across successive reporting periods. Management believes these non-GAAP measures provide useful information to the industry and the investment community interested in comparing CRC's financial performance between periods. Reported earnings are considered representative of management's performance over the long term. Adjusted net income (loss) is not considered to be an alternative to net income (loss) reported in accordance with GAAP. The following table presents a reconciliation of the GAAP financial measure of net income and net income attributable to common stock per share to the non-GAAP financial measures of adjusted net income and adjusted net income per share. 2nd Quarter 1st Quarter 2nd Quarter Six Months Six Months($ millions, except per share amounts) 2025 2025 2024 2025 2024 Net income $ 172 $ 115 $ 8 $ 287 $ (2)Unusual, infrequent and other items: Non-cash derivative (gain) loss (140) (22) (11) (162) 48 Asset impairment — — 13 — 13 Severance and termination costs 6 2 1 8 1 Aera merger-related costs — 3 13 3 26 Increased power and fuel costs due to power plant maintenance — — 15 — 36 Net gain on asset divestitures — — (1) — (7)Loss on early extinguishment of debt — 1 — 1 — Litigation and settlement related expenses 25 — 7 25 7 Measurement period adjustments — 1 — 1 — Other, net 6 (9) 10 (3) 12 Total unusual, infrequent and other items (103) (24) 47 (127) 136 Income tax provision (benefit) of adjustments at the blended tax rate 29 7 (13) 36 (38) Adjusted net income $ 98 $ 98 $ 42 $ 196 $ 96 Net income (loss) per share – basic $ 1.93 $ 1.27 $ 0.12 $ 3.20 $ (0.03)Net income (loss) per share – diluted $ 1.92 $ 1.26 $ 0.11 $ 3.18 $ (0.03)Adjusted net income per share – basic $ 1.10 $ 1.08 $ 0.62 $ 2.18 $ 1.40 Adjusted net income per share – diluted $ 1.10 $ 1.07 $ 0.60 $ 2.17 $ 1.35 CRC defines adjusted EBITDAX as earnings before interest expense; income taxes; depreciation, depletion and amortization; exploration expense; other unusual, infrequent and out-of-period items; and other non-cash items. CRC believes this measure provides useful information in assessing its financial condition, results of operations and cash flows and is widely used by the industry, the investment community and its lenders. Although this is a non-GAAP measure, the amounts included in the calculation were computed in accordance with GAAP. Certain items excluded from this non-GAAP measure are significant components in understanding and assessing CRC’s financial performance, such as its cost of capital and tax structure, as well as depreciation, depletion and amortization of CRC's assets. This measure should be read in conjunction with the information contained in CRC’s financial statements prepared in accordance with GAAP. A version of adjusted EBITDAX is a material component of certain of its financial covenants under CRC's Revolving Credit Facility and is provided in addition to, and not as an alternative for, income and liquidity measures calculated in accordance with GAAP. The following table represents a reconciliation of the GAAP financial measures of net income and net cash provided by operating activities to the non-GAAP financial measure of adjusted EBITDAX. CRC has included non-GAAP measures of adjusted EBITDAX for its oil and gas segment and its carbon management segment. Management believes these segment non-GAAP measures are useful for investors to understand the results of the oil and gas business and its developing carbon management business. 2nd Quarter 1st Quarter 2nd Quarter Six Months Six Months($ millions, except per BOE amounts) 2025 2025 2024 2025 2024 Net income $ 172 $ 115 $ 8 $ 287 $ (2)Interest and debt expense 25 27 17 52 30 Depreciation, depletion and amortization 128 131 53 259 106 Income tax provision 70 47 3 117 (6)Exploration expense 1 — — 1 1 Interest income (2) (3) (8) (5) (14)Loss from investment in unconsolidated subsidiaries — 1 — 1 Unusual, infrequent and other items (1) (103) (24) 47 (127) 136 Non-cash items Accretion expense 28 29 13 57 25 Stock-based compensation 7 6 6 13 11 Pension and post-retirement benefits (2) (1) — (3) 1 Adjusted EBITDAX $ 324 $ 328 $ 139 $ 652 $ 288 Net cash provided by operating activities $ 165 $ 186 $ 97 $ 351 $ 184 Cash interest payments 39 11 1 50 22 Cash interest received (2) (3) (8) (5) (14)Cash income taxes 39 — 4 39 26 Exploration expenditures 1 — — 1 1 Adjustments to working capital changes 82 134 45 216 69 Adjusted EBITDAX $ 324 $ 328 $ 139 $ 652 $ 288 Adjusted EBITDAX per Boe $ 25.95 $ 25.92 $ 20.23 $ 25.93 $ 20.86 (1) See Adjusted Net Income (Loss) reconciliation. CRC defines segments adjusted EBITDAX as segment profit adjusted for depreciation, depletion and amortization; exploration expense, other unusual, infrequent and out-of-period items and other non-cash items. CRC believes this segment measure provides useful information in assessing the financial results of each segment. Although this is a non-GAAP measure, the amounts included in the calculation were computed in accordance with GAAP. This measure should be read in conjunction with Note 16 Segment Information in CRC’s 2024 Annual Report. A reconciliation of the non-GAAP measure of segment adjusted EBITDAX cannot be reconciled to the comparable measure of operating cash flow prepared in accordance with GAAP without unreasonable effort. Oil & Natural Gas Segment 2nd Quarter 1st Quarter 2nd Quarter Six Months Six Months($ millions, except per BOE amounts) 2025 2025 2024 2025 2024 Segment profit $ 194 $ 266 $ 117 $ 460 $ 249 Depreciation, depletion and amortization 121 126 47 247 96 Exploration expense 1 — — 1 1 Accretion expense 28 29 13 57 25 Adjusted income items 2 1 28 3 42 Adjusted EBITDAX - Oil and Natural Gas $ 346 $ 422 $ 205 $ 768 $ 413 Carbon Management Segment Segment loss $ (20) $ (25) $ (24) $ (45) $ (38)Interest on contingent liability (related to Carbon TerraVault JV) 2 3 2 5 3 Loss from investment in unconsolidated subsidiaries 1 1 — 2 — Adjusted income items — — 1 — 1 Adjusted EBITDAX - Carbon Management $ (17) $ (21) $ (21) $ (38) $ (34) Management uses free cash flow, which is defined by CRC as net cash provided by operating activities less capital investments, as a measure of liquidity. The following table presents a reconciliation of CRC's net cash provided by operating activities to free cash flow. CRC defines free cash flow after special items as free cash flow before transaction and integration costs from the Aera Merger. 2nd Quarter 1st Quarter 2nd Quarter Six Months Six Months($ millions) 2025 2025 2024 2025 2024 Net cash provided by operating activities $ 165 $ 186 $ 97 $ 351 $ 184 Capital investments (56) (55) (34) (111) (88)Free cash flow $ 109 $ 131 $ 63 $ 240 $ 96 Add: Aera merger-related costs — 3 13 3 26 Free cash flow after special items $ 109 $ 134 $ 76 $ 243 $ 122 ADJUSTED GENERAL & ADMINISTRATIVE EXPENSES Management uses a measure called adjusted general and administrative (G&A) expenses and adjusted G&A per BOE to provide useful information to investors interested in comparing CRC's costs between periods and performance to its peers. 2nd Quarter 1st Quarter 2nd Quarter Six Months Six Months($ millions) 2025 2025 2024 2025 2024 General and administrative expenses $ 79 $ 72 $ 63 $ 151 $ 120 Stock-based compensation (7) (6) (6) (13) (11)Information technology infrastructure — — (1) (3)Other — — — — (1)Adjusted G&A expenses $ 72 $ 66 $ 56 $ 138 $ 105 Adjusted G&A per BOE $ 5.77 $ 5.22 $ 8.15 $ 5.49 $ 7.60 MARGIN FROM PURCHASED COMMODITIES Management uses a measure called margin from purchased commodities, which is calculated as the difference between revenue from purchased commodities and costs related to purchased commodities and exudes transportation costs. 2nd Quarter 1st Quarter 2nd Quarter Six Months Six Months($ millions) 2025 2025 2024 2025 2024 Revenue from purchased commodities $ 56 $ 64 $ 51 $ 120 $ 125 Costs related to purchased commodities (41) (50) (43) (91) (97)Margin from purchased commodities $ 15 $ 14 $ 8 $ 29 $ 28 Management uses a measure called electricity margin, which is calculated as the difference between electricity sales and electricity generation expenses. 2nd Quarter 1st Quarter 2nd Quarter Six Months Six Months($ millions) 2025 2025 2024 2025 2024 Electricity sales $ 58 $ 22 $ 36 $ 80 $ 51 Electricity generation expenses (5) (10) (14) (15) (22)Electricity margin $ 53 $ 12 $ 22 $ 65 $ 29 OTHER OPERATING EXPENSES NET OF OTHER REVENUE Management uses a measure called other operating expenses net of other revenue, which is calculated as the difference between other operating expenses, net and other revenue. 2nd Quarter 1st Quarter 2nd Quarter Six Months Six Months($ millions) 2025 2025 2024 2025 2024 Other operating expenses, net $ 65 $ 33 $ 65 $ 98 $ 110 Other revenue (5) (6) (10) (11) (17)Other operating expenses net of other revenue $ 60 $ 27 $ 55 $ 87 $ 93 Management uses a measure called liquidity, which is defined as available cash and available borrowing capacity under our Revolving Credit Facility. CRC believes this measure provides a more comprehensive assessment of the Company’s immediate access to capital than cash alone and reflects management’s emphasis on maintaining financial flexibility and prudent liquidity risk management. ($ millions) June 30, 2025 December 31, 2024Available cash and cash equivalents(1) $56 $354 Revolving credit facility: Borrowing capacity 1,150 1,150 Outstanding letters of credit (167) (167)Availability $983 $983 Liquidity $1,039 $1,337 (1) Excludes restricted cash of $16 million and $18 million at June 30, 2025 and December 31, 2024, respectively. Attachment 4PRODUCTION STATISTICS 2nd Quarter 1st Quarter 2nd Quarter Six Months Six MonthsNet Production Per Day 2025 2025 2024 2025 2024Oil (MBbl/d) San Joaquin Basin 83 84 30 84 30 Los Angeles Basin 17 18 17 17 17 Other Basins 9 9 — 9 — Total 109 111 47 110 47 NGLs (MBbl/d) San Joaquin Basin 10 10 10 10 11 Total 10 10 10 10 11 Natural Gas (MMcf/d) San Joaquin Basin 96 101 99 99 94 Los Angeles Basin 1 1 1 1 1 Sacramento Basin 12 12 14 12 14 Other Basins 2 3 — 2 — Total 111 117 114 114 109 Total Net Production (MBoe/d) 137 141 76 139 76 Gross Operated and Net Non-Operated 2nd Quarter 1st Quarter 2nd Quarter Six Months Six MonthsProduction Per Day 2025 2025 2024 2025 2024Oil (MBbl/d) San Joaquin Basin 89 90 33 90 33 Los Angeles Basin 21 22 24 21 24 Other Basins 11 11 — 11 — Total 121 123 57 122 57 NGLs (MBbl/d) San Joaquin Basin 11 10 11 11 11 Other Basins — — — — — Total 11 10 11 11 11 Natural Gas (MMcf/d) San Joaquin Basin 134 134 125 134 127 Los Angeles Basin 6 7 7 6 7 Sacramento Basin 14 15 17 15 17 Other Basins 4 3 — 3 — Total 158 159 149 158 151 Total Gross Production (MBoe/d) 158 160 93 159 93 Attachment 5PRICE STATISTICS 2nd Quarter 1st Quarter 2nd Quarter Six Months Six Months 2025 2025 2024 2025 2024 Oil ($ per Bbl) Realized price with derivative settlements $66.73 $72.01 $81.29 $69.39 $79.20 Realized price without derivative settlements $65.07 $73.57 $83.14 $69.34 $81.63 NGLs ($/Bbl) $42.41 $54.64 $46.96 $48.60 $48.76 Natural gas ($/Mcf) Realized price with derivative settlements $2.79 $4.12 $1.78 $3.46 $2.81 Realized price without derivative settlements $2.79 $4.12 $1.78 $3.46 $2.81 Index Prices Brent oil ($/Bbl) $66.76 $74.92 $85.00 $70.84 $83.42 WTI oil ($/Bbl) $63.74 $71.42 $80.57 $67.58 $78.77 NYMEX average monthly settled price ($/MMBtu) $3.44 $3.65 $1.89 $3.55 $2.07 Realized Prices as Percentage of Index Prices Oil with derivative settlements as a percentage of Brent 100 % 96 % 96 % 98 % 95 %Oil without derivative settlements as a percentage of Brent 97 % 98 % 98 % 98 % 98 % Oil with derivative settlements as a percentage of WTI 105 % 101 % 101 % 103 % 101 %Oil without derivative settlements as a percentage of WTI 102 % 103 % 103 % 103 % 104 % NGLs as a percentage of Brent 64 % 73 % 55 % 69 % 58 %NGLs as a percentage of WTI 67 % 77 % 58 % 72 % 62 % Natural gas with derivative settlements as a percentage of NYMEX contract month average 81 % 113 % 94 % 97 % 136 % Natural gas without derivative settlements as a percentage of NYMEX contract month average 81 % 113 % 94 % 97 % 136 % Attachment 6SECOND QUARTER 2025 DRILLING ACTIVITY San Joaquin Los Angeles Ventura Sacramento Wells Drilled Basin Basin Basin Basin Total Development Wells Primary 1 — — — 1Waterflood 23 — — — 23Steamflood — — — — —Total (1) 24 — — — 24 SIX MONTHS 2025 DRILLING ACTIVITY San Joaquin Los Angeles Ventura Sacramento Wells Drilled Basin Basin Basin Basin Total Development Wells Primary 4 — — — 4Waterflood 23 — — — 23Steamflood — — — — —Total (1) 27 — — — 27 (1) Includes steam injectors and drilled but uncompleted wells, which are not included in the SEC definition of wells drilled. This press release was published by a CLEAR® Verified individual.

California Resources Corporation Reports Second Quarter 2025 Financial and Operating Results

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