California Resources Corporation (CRC) reported its financial and operating results for the third quarter of 2026, announcing a quarterly dividend increase and several strategic corporate actions. The company reported an average net production of 152 thousand barrels of oil equivalent per day (MBoe/d), with 80% of that volume being oil.
For the quarter, CRC reported a net loss of $315 million, which included a non-cash loss of $540 million related to changes in the fair value of outstanding commodity derivatives. On an adjusted basis, the company reported adjusted net income of $104 million and adjusted EBITDAX of $341 million. The company generated $305 million in net cash provided by operating activities and $147 million in free cash flow.
In terms of shareholder returns, CRC increased its quarterly dividend by 4% to $0.42 per share. The Board of Directors amended its cash dividend policy to anticipate a total annual dividend of approximately $1.68. The dividend is payable to shareholders of record on December 4, 2026, with a payment date of December 18, 2026. In the third quarter, the company returned $66 million to shareholders, comprising $36 million in dividends and $30 million in share repurchases.
Strategically, CRC closed its all-cash acquisition of Crimson Midstream Holdings, LLC, to strengthen its energy infrastructure platform. Additionally, the company signed an agreement to divest its Uinta Basin (Utah) assets for total cash consideration of approximately $90 million, with the transaction expected to close by year-end. CRC also announced a memorandum of understanding with Bloom Energy to jointly evaluate the development of 1 gigawatt or more of solid-oxide fuel cell power generation paired with carbon capture and storage.
Looking ahead, CRC provided preliminary 2027 guidance. The company plans to enter 2027 with six rigs in California and expects 2027 drilling, completions, and workover capital of $450 million to $475 million. The company also entered into a new amendment to its Revolving Credit Facility in October 2026, extending the maturity date to March 2030 and increasing elected commitments to $1,470 million.
