Key Highlights

  • Derivative losses of $540 million, all non-cash, left the third quarter with a $315 million loss on a diluted per-share basis of $3.55.
  • Adjusted net income, which strips out that item and others, reached $104 million, while adjusted EBITDAX hit $341 million.
  • Free Cash Flow totaled $147 million, built from $305 million of Operating Cash Flow less $158 million of Capital spending.
  • Daily output of 152 MBoe/d was 80% oil.
  • The quarterly payout rose 4% to $0.42 a share, due Dec 18, 2026.

Derivative Losses of $540 Million Turn the Quarter Into a $315 Million Net Deficit

Filing details for the period ended Sep 30, 2026 came out on Nov 2, 2026 from California Resources (NYSE:CRC). The bottom line: $315 million lost on a net basis, or a diluted per-share loss of $3.55. A year earlier the company earned $64 million, equal to $0.76 a share, and second-quarter Net Income had been $514 million.

Commodity derivative positions, revalued during the period, produced a non-cash loss of $540 million, which drove the swing. Once that item and other adjustments are removed, adjusted net income lands at $104 million ($1.17 diluted), down from $123 million ($1.46) a year ago.

The Business is a carbon management and energy firm, active in oil and gas output within California, with carbon capture and storage developments underway. Revenue from oil, gas and NGLs rose roughly 40% (calculated), totaling $1.002 billion.

Output Reaches 152 MBoe/d While Realized Oil Price Drops to $83.42 Per Barrel

Production stood at 152 MBoe/d, compared with 149 in the second quarter, of which oil was 121 thousand barrels daily. Natural Gas liquids and gas volumes beat guidance by about 1 MBoe/d.

Before derivative settlements, oil sold at an average of $83.42 per barrel, against $91.55 during the prior quarter. After settlements the figure dropped to $72.46. Gas fetched $3.52 per thousand cubic feet, up from $1.84.

Power sales, after generation costs, totaled $35 million, versus a negative $4 million last quarter. Operating costs climbed to $386 million, up from $347 million, reflecting pricier purchased gas and more workovers.

Free Cash Flow Climbs to $147 Million, Financing a Dividend Increase and Share Repurchases

Adjusted EBITDAX landed at $341 million, beating the quarterly guidance, while operating cash flow reached $305 million. Subtracting $158 million of Capital Investment leaves $147 million of free cash flow, which compares with $114 million in the prior quarter.

Shareholders received $66 million in total: $36 million in dividends plus $30 million spent repurchasing roughly 0.6 million shares at $53.48 on average. The annual dividend was lifted about 4% to $1.68 ($0.42 quarterly), payable Dec 18, 2026 to holders recorded on Dec 4, 2026. Roughly $570 million of buyback authority is still open through Dec 31, 2027.

Available Liquidity came to $1.315 billion: $1.280 billion from the revolver and $35 million in cash. Long-term borrowings stood at $1.281 billion.

What Comes Next: Uinta Sale, Crimson Closing and the Fourth-Quarter Outlook

The Uinta Basin asset sale, priced around $90 million in cash, is expected to close by year-end. It also closed the Crimson Midstream purchase, which was paid entirely in cash.

Fourth-quarter guidance calls for 150 to 152 MBoe/d of production, $110 million to $130 million of capital investment and adjusted EBITDAX between $340 million and $380 million, based on Brent at $102.90 per barrel. The plan calls for six rigs in 2027, with $450 million to $475 million set aside for drilling, completion and workovers, and full-year guidance will accompany the fourth-quarter report.