California Resources Q3 2026: Adjusted EPS Tops Expectations as Derivative Loss Lands
As seen on the 24/7 Wall St. homepage on November 2, 2026.
The GAAP loss is a $540 million non-cash derivative mark, not an operating problem: adjusted earnings came in above expectations and free cash flow funded a dividend increase. Management is already framing 2027 as a shift from acquisition to optimization after the Crimson pipeline deal and the Uinta Basin sale.
Continue ReadingShow less
The $540 million non-cash derivative loss that produced a GAAP diluted loss of $3.55 per share reflects fair-value changes in commodity contracts tied to Brent prices, while adjusted earnings of $1.17 per share beat expectations.
Free cash flow of $147 million funded share repurchases and a quarterly dividend of $0.42, lifting the annualized payout to $1.68 per share.
Sponsored
California Resources closed the all-cash acquisition of Crimson Midstream Holdings, expanding its pipeline and CO2 transport footprint, while agreeing to divest its Uinta Basin assets for approximately $90 million by year-end. It also signed a non-binding MOU with Bloom Energy to evaluate 1 gigawatt or more of fuel cell power generation paired with carbon capture.
For Q4, management guided adjusted EBITDAX to $340 to $380 million, with net production of 150 to 152 MBoe/d. CEO Francisco Leon said the company is moving from acquisition to optimization, focusing on lowering costs and improving capital efficiency.
Sources
Mentioned: CRC