California Resources Corporation Reports Strong Q2 2025 Financial Performance Following Aera Energy Acquisition

California Resources Corporation (CRC) reported significant financial performance improvements in its latest 10-Q filing for the second quarter of 2025, driven largely by the acquisition of Aera Energy LLC. For the three months ended June 30, 2025, CRC generated total operating revenues of $978 million, a substantial increase from $514 million in the same period last year. The company's net income for the quarter was $172 million, or $1.93 per share, compared to a mere $8 million, or $0.12 per share, in the prior year. For the first half of 2025, revenues reached $1.89 billion, up from $968 million in the first half of 2024, with net income of $287 million compared to a loss of $2 million in the previous year.

The Aera Merger, completed on July 1, 2024, significantly impacted CRC's financial results, adding substantial oil and gas production capacity. The merger contributed to a 63 MBbl/d increase in oil production, bringing total average net production to 139 MBoe/d for the first half of 2025, compared to 76 MBoe/d in the same period of 2024. The merger also resulted in increased operating costs, with total operating expenses for the first half of 2025 amounting to $1.44 billion, up from $941 million in the previous year, primarily due to higher production taxes and greenhouse gas taxes associated with the Aera assets.

Operationally, CRC's oil, natural gas, and natural gas liquids sales reached $702 million in the second quarter of 2025, a 70% increase from $412 million in the same quarter of 2024. The company also reported a net gain from commodity derivatives of $157 million for the quarter, compared to a modest gain of $5 million in the prior year. Electricity revenue also saw a notable increase, rising to $58 million from $36 million year-over-year, driven by higher seasonal pricing.

Looking ahead, CRC has extended its share repurchase program through June 30, 2026, with a remaining authorization of $205 million as of June 30, 2025. The company plans to invest between $280 million and $330 million in capital expenditures for 2025, focusing on oil production and carbon management initiatives. CRC's management remains optimistic about its ability to generate operating cash flow to support shareholder returns while navigating the challenges posed by fluctuating commodity prices and regulatory changes. The company continues to monitor market conditions and adjust its strategies accordingly to maintain financial stability and growth.