AI-extracted from the 10-Q filed 2026-08-10 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Q2 operating income of $511M driven by higher oil sales at $1,056M, but six-month net loss of $197M due to $643M derivative losses and $49M debt extinguishment charges.
Biggest Revenue Drivers
Oil, natural gas and natural gas liquids sales$1,056M+50% QoQ
Higher realized oil prices of $91.55/Bbl (95% of Brent) and increased production from Berry Merger.
Net gain from commodity sales derivatives$205MSwing from $(848)M loss in Q1
Non-cash fair value gain of $370M on commodity derivatives, partially offset by net settlements of $(165)M.
Biggest Revenue Drivers
Total revenue: $1,297M+33% QoQ (vs. $978M in Q2 2025)
Oil, natural gas and natural gas liquids sales$1,056M+50% QoQ
Higher realized oil prices of $91.55/Bbl (95% of Brent) and increased production from Berry Merger.
Net gain from commodity sales derivatives$205MSwing from $(848)M loss in Q1
Non-cash fair value gain of $370M on commodity derivatives, partially offset by net settlements of $(165)M.
Revenue from marketing of purchased commodities$26M-37% QoQ
Lower crude oil volumes purchased for blending.
Electricity revenue$6M-45% QoQ
Lower pricing from resource adequacy contracts.
Largest Expense Items
Operating costs$347M-5% QoQ
Decrease in energy operating costs from lower natural gas prices, partially offset by production from Berry assets.
General and administrative expenses$97M-8% QoQ
Lower compensation-related costs from workforce reductions and decline in stock-based compensation due to lower stock price.
Depreciation, depletion and amortization$131M-2% QoQ
Largely consistent with prior quarter depreciation on oil and gas assets.
Loss on early extinguishment of debt$28M+33% QoQ
Redemption of $573M of 2029 Senior Notes in June 2026 resulted in $23M premium paid and $5M write-off of debt issuance costs.
Margins: Q2 operating margin of 39% (operating income $511M / total revenue $1,297M) reflects strong underlying commodity pricing and production from Berry Merger, offset by significant derivative losses in six-month results. Operating expenses increased for six months due to Berry integration and higher transportation costs.
Watch Items from the Filing
Pipeline constraints: In Q2 2026, pro-rationing of crude oil nominations and force majeure claims by counterparties reduced realizations by approximately $25M; disputes remain unresolved and could materially affect crude oil marketing ability and timing.
Crude oil inventory surge: Temporary inventory build of ~137,000 barrels in Q2 reduced net production sold; majority sold in July 2026, but supply chain disruptions and marketing constraints persist.
Derivative positions create significant earnings volatility: $198M net liability on derivative contracts as of June 30, 2026; $10/bbl oil price increase could result in $84M additional settlement payments, capping upside.
CalGEM well abandonment dispute: $25M paid under protest in June 2025 for orphaned wells; CRC filed complaint seeking recovery; outcome and timing remain uncertain.
Signal Hill offshore platform liability: ~$23M accrual for maintenance and well abandonment costs; company challenging BSEE order but sharing ongoing costs with other lessees.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Roby William BDirectorGrant or award · Apr 30, 2026
Veltmann AlejandraDirectorGrant or award · Apr 30, 2026
About California Resources Corp (CRC): stock profile, AI score and financials
California Resources Corp (CRC) stock profile, AI quality score, and SEC EDGAR financial data, a Energy sector company. 13F Pro's AI-powered ranking engine scores CRC at 55.8/100 on a composite quality score built from its SEC filings, placing it at rank #1,207 of 2,925 stocks — the top half of the AI-ranked universe. CRC scores in the top quartile across earnings quality (89.2), revenue growth (82.4). Areas of concern include institutional flow (18.8) and profitability (22.8), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q2 2026), California Resources Corp reports quarterly revenue of $1.3B, net income of $514.0M, an operating margin of 39.4%. Top institutional holders of CRC by reported 13-F value include BlackRock, CANADA PENSION PLAN INVESTMENT BOARD, Gimbel Daniel Scott, based on the most recent SEC filings. CRC trades on the NYSE exchange and files with the SEC under CIK 1609253. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate CRC daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for California Resources Corp directly from SEC EDGAR.