California Resources Corporation (CRC) reported its financial results for the third quarter and the first nine months of 2025, revealing a significant decline in revenue and profitability compared to the previous year. For the three months ended September 30, 2025, CRC generated total operating revenues of $855 million, down from $1.353 billion in the same period of 2024. The decrease was primarily driven by a drop in oil, natural gas, and natural gas liquids sales, which fell to $715 million from $870 million year-over-year. Net income for the quarter was $64 million, or $0.76 per share, compared to $345 million, or $3.86 per share, in the prior year.
The company's financial performance for the nine months ended September 30, 2025, also reflected a decline, with total operating revenues increasing to $2.745 billion from $2.321 billion in 2024, largely due to the inclusion of Aera Energy LLC's results following its acquisition in July 2024. However, net income for the nine-month period was $351 million, slightly up from $343 million in 2024. The Aera Merger significantly impacted the comparability of financial results, as CRC's production capacity and reserves expanded with the addition of Aera's assets.
Operationally, CRC's average net production sold increased to 138 MBoe/d for the nine months ended September 30, 2025, compared to 99 MBoe/d in the same period of 2024, primarily due to the Aera acquisition. The company reported a total of 140 workover and 89 sidetrack well permits received during the third quarter, with expectations for increased permitting activity in 2026 following the enactment of Senate Bill 237, which aims to facilitate oil and gas production in Kern County.
Strategically, CRC announced a definitive agreement to merge with Berry Corporation in September 2025, which is expected to enhance its operational capabilities and reserve base. The merger is anticipated to close in the first quarter of 2026, subject to regulatory approvals and other customary conditions. Additionally, CRC's board declared a quarterly cash dividend of $0.405 per share, reflecting its commitment to returning capital to shareholders despite the recent financial challenges.
Looking ahead, CRC's management expressed optimism about its operational and financial outlook, emphasizing the importance of maintaining liquidity and capital resources. The company reported available cash and cash equivalents of $196 million as of September 30, 2025, along with significant borrowing capacity under its Revolving Credit Facility. CRC plans to continue its capital investment program, focusing on oil and natural gas development while advancing its carbon management initiatives. The company remains vigilant in monitoring market conditions and adjusting its strategies accordingly to navigate the evolving energy landscape.
About California Resources Corp
California Resources Corporation is an independent energy and carbon management company focused on exploration, production, and decarbonization. Its core operations include oil and natural gas extraction in California's key basins, with a focus on operational efficiency, environmental stewardship, and strategic acquisitions. The company develops carbon capture and storage projects, leveraging land and mineral assets to support energy transition and sustainable growth.
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