Overview#

California Resources Corporation (CRC) has released its earnings report for the first quarter of 2026, showcasing a mixed performance. The company achieved an earnings per share (EPS) of $0.88, surpassing the expected $0.80 by 10%. However, its revenue fell significantly short, coming in at $119 million compared to the anticipated $930.6 million, resulting in an 87.21% negative surprise. Following this news, CRC's stock price dropped by 10.92% to $67.50 in after-hours trading.

Key Highlights#

  • Earnings Per Share (EPS): CRC's EPS of $0.88 exceeded expectations, marking a 10% surprise.
  • Revenue: The company reported revenue of $119 million, which was significantly below forecasts.
  • Stock Performance: After the earnings announcement, CRC's stock fell by 10.92%.
  • Guidance Update: The company raised its full-year 2026 guidance for adjusted EBITDAX and free cash flow.
  • Carbon Capture Milestone: CRC achieved a significant milestone in carbon capture and storage with its Elk Hills project.

Company Performance#

Despite the revenue miss, CRC demonstrated strong operational performance. The adjusted EBITDA for Q1 2026 was $304 million, which is 17% above the midpoint of guidance. The operating cash flow was reported at $247 million, exceeding expectations, while net production reached 154,000 barrels of oil equivalent (BOE) per day. The company's capital deployment was also at the high end of guidance, indicating robust investment activities.

Market Reaction#

The market reacted negatively to the earnings report, with CRC's stock price declining by 10.92% to $67.50 in after-hours trading. This drop reflects investor concerns regarding the substantial revenue miss, despite the positive EPS performance. Currently, the stock price of $62.47 remains well above its 52-week low of $35.04, and the company has seen a remarkable 104% return over the past year. Even with the recent decline, shares are still up nearly 58% year-to-date, suggesting that the market had anticipated strong performance prior to this earnings report.

Outlook & Guidance#

Looking ahead, CRC has raised its full-year 2026 guidance, projecting adjusted EBITDAX to reach $1.45 billion at the midpoint, assuming a $91 average for Brent crude oil. The company expects its free cash flow to exceed $800 million, indicating positive operational leverage. With a market capitalization of $5.5 billion and a price-to-earnings (P/E) ratio of 15.05, CRC continues to position itself as a noteworthy player in the market.