California Resources Corporation Reports 2025 Financial Results and Berry Merger Integration

**California Resources Corporation Reports Financial Results, Integrates Berry Merger Assets**

California Resources Corporation (CRC) has released its 10-K filing, detailing its financial and operational performance. The company reported net income of $363 million for the year ended December 31, 2025, compared to $376 million in the previous year. Total operating revenues increased to $3.67 billion from $3.20 billion in 2024, driven primarily by higher oil, natural gas, and natural gas liquids sales, which reached $2.91 billion, up from $2.54 billion. These figures reflect the inclusion of Berry Corporation's assets following the merger on December 18, 2025, and Aera Energy's assets for the full year of 2025, compared to only six months in 2024.

A significant strategic development for CRC was the completion of the Berry Merger, adding 56 MMBoe of proved developed reserves and C&J Well Services to its portfolio. The company issued 5,572,115 shares of common stock in the all-stock transaction. CRC is focused on integrating these assets to achieve annual run-rate synergies of $80 million to $90 million within twelve months, primarily through lower operating costs, general and administrative expenses, and financing costs. The company also aims to leverage its position as the largest operator in California by focusing on core E&P assets and pursuing new opportunities, including potential acquisitions and the resumption of new well permitting in Kern County.

Key operational developments include average net production of 138 MBoe/d (79% oil) for the year ended December 31, 2025, compared to 110 MBoe/d in 2024. Proved reserves totaled an estimated 654 MMBoe, with 541 MMBbl of crude oil and condensate reserves. The company drilled and completed 43 net development wells in the San Joaquin Basin. CRC's carbon management segment is progressing with its carbon capture and storage (CCS) projects, including the completion of carbon capture equipment at its cryogenic gas processing facility at the Elk Hills field, expected to be operational in early 2026.

Looking ahead, CRC intends to maintain a disciplined and flexible capital program, allocating capital to maximize value in light of regulatory and market conditions. The company plans to pursue the development of new wells with attractive return profiles and payback periods of approximately three years. CRC also aims to preserve balance sheet strength and increase shareholder returns over time, with $1.40 billion of liquidity as of December 31, 2025, and $1.30 billion of long-term indebtedness. The company is committed to advancing its carbon management solutions to lead the energy transition in California, with a goal to achieve at least an 80% reduction of absolute Scope 1 and 2 greenhouse gas emissions and neutralize the remaining Scope 1 and 2 emissions to achieve Net Zero by 2045.