CRC

MKT CAP $4.8BP/E —DIV YIELD —FCF YIELD 7.95%REV TTM $3.2B −22.5%NET INCOME −$121M −118.2%NET DEBT $955M52W 43.55 – 70.13SEC XBRL · TTM TO Invalid Date

How CRC rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

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These commodity price changes also impact volumes under PSCs.
As of December 31, 2025, we had hedges on approximately 65% of our anticipated oil production through 2026 and approximately 40% through 2027.
As of December 31, 2025, we had net assets of $229 million for our derivative commodity positions which are carried at fair value, using industry-standard models with various inputs, including the forward curve for the relevant price index.
We estimate that a $10/bbl increase in Brent oil forward prices could increase our settlement payments by $179 million in 2026, limiting our upside.
We estimate that a $10/bbl decrease in Brent oil forward prices could decrease our settlement payments by $294 million in 2026, negating the downside price movement for hedged volumes.
A summary of our Brent-based crude oil derivative contracts at December 31, 2025 are included in Part II, Item 8 – Financial Statements and Supplementary Data, Note 7 Derivatives .
Approximately 79% of our production during 2025 was oil which was sold predominately to refineries in California.
Interest-Rate Risk Changes in interest rates may affect the amount of interest we pay on our long-term debt.
However, we had no variable-rate debt outstanding as of December 31, 2025.
Our 2029 Senior Notes bear interest at a fixed rate of 8.250% per annum.
Our 2034 Senior Notes bear interest at a fixed rate of 7.000% per annum.
These products compete directly with the electricity we generate from certain power plants we own, including our Elk Hills power plant, and indirectly as substitutes for oil, natural gas and NGLs.
ITEM 8 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors California Resources Corporation: Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting We have audited the accompanying consolidated balance sheets of California Resources Corporation and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), changes in stockholders’ equity (deficit), and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements).
We also have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.
Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025 based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
The Company acquired Berry Corporation during 2025, and management excluded from its assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2025, Berry Corporation’s internal control over financial reporting associated with approximately 12% of total assets and less than 1% of total revenues included in the consolidated financial statements of the Company as of and for the year ended December 31, 2025.
Our audit of internal control over financial reporting of the Company also excluded an evaluation of the internal control over financial reporting of Berry Corporation.
The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
The Company recorded depreciation, depletion, and amortization expense of $511 million for the year ended December 31, 2025.
Estimating proved oil and gas reserves requires the expertise of professional petroleum reservoir engineers, who take into consideration estimates of future production, operating and development costs and commodity prices.
The Company employs personnel who possess technical expertise, such as reservoir engineers and geoscientists, who estimate proved oil and gas reserves.
Subjective auditor judgment was required to evaluate the Company's estimate of proved oil and gas reserves, which is an input to the determination of depreciation, depletion, and amortization expense.
Specifically, auditor judgment was required to evaluate the assumptions used by the Company related to estimated future oil and gas production and future operating and development costs.
We evaluated the process and assessed the methodology used by the Company’s internal reservoir engineers and the independent reservoir engineering specialist to estimate the reserves used in the determination of depreciation, depletion and amortization expense for compliance with industry and regulatory standards.
We read and considered the reports of the independent reservoir engineering specialist in connection with our evaluation of the Company’s proved oil and gas reserves estimates.
Evaluation of the fair value measurement of oil and gas properties acquired in the Berry Corporation business combination As discussed in Note 2 to the consolidated financial statements, on December 18, 2025, the Company completed a merger with Berry Corporation for cash and equity consideration of approximately $709 million.
As a result of the transaction, the Company acquired proved oil and gas properties which were recognized at their acquisition date fair value of $709 million.
We identified the evaluation of the initial fair value measurement of the oil and gas properties acquired in the Berry transaction as a critical audit matter.
We compared the estimated future proved oil and gas production and estimated future operating and capital costs determined by the technical personnel employed by the Company to historical Berry production volumes and historical costs.
In addition, we involved valuation professionals with specialized skills and knowledge, who assisted in: 1) evaluating the Company's discount rate by comparing it to a discount rate range that was independently developed using publicly available market data for comparable entities, 2) evaluating the reserve category risk adjustment factors used by the Company by comparing them to third party publications of risk adjustment factors utilized by market participants, 3) evaluating the forecasted commodity price assumption by comparing it to an independently developed range of forward price estimates using data from analysts and other industry sources. /s/ KPMG LLP We have served as the Company’s auditor since 2014.
Los Angeles, California March 2, 2026 CALIFORNIA RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets As of December 31, 2025 and 2024 (in millions, except share data) 2025 2024 CURRENT ASSETS Cash and cash equivalents $ 132 $ 372 Trade receivables 333 330 Inventory 106 90 Assets held for sale — 10 Receivables from affiliate 14 46 Other current assets, net 353 176 Total current assets 938 1,024 PROPERTY, PLANT AND EQUIPMENT 7,523 6,738 Accumulated depreciation, depletion and amortization ( 1,618 ) ( 1,058 ) Total property, plant and equipment, net 5,905 5,680 INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES 111 86 DEFERRED INCOME TAXES 76 73 OTHER NONCURRENT ASSETS 373 272 TOTAL ASSETS $ 7,403 $ 7,135 CURRENT LIABILITIES Accounts payable 452 369 Accrued liabilities 598 611 Total current liabilities 1,050 980 NONCURRENT LIABILITIES Long-term debt, net 1,283 1,132 Asset retirement obligations 913 995 Deferred tax liabilities 154 113 Other long-term liabilities 329 377 STOCKHOLDERS' EQUITY Preferred stock ( 20,000,000 shares authorized at $ 0.01 par value); no shares outstanding at December 31, 2025 and 2024 — — Common stock ( 200,000,000 shares authorized at $ 0.01 par value); ( 110,645,691 and 109,613,585 shares issued; 88,754,165 and 91,100,322 shares outstanding at December 31, 2025 and 2024, respectively) 1 1 Treasury stock ( 21,891,526 shares held at cost at December 31, 2025 and 18,513,263 shares held at December 31, 2024) ( 944 ) ( 796 ) Additional paid-in capital 2,625 2,578 Retained earnings 1,905 1,680 Accumulated other comprehensive income 87 75 Total stockholders' equity 3,674 3,538 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 7,403 $ 7,135 The accompanying notes are an integral part of these consolidated financial statements.
CALIFORNIA RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations For the years ended December 31, 2025, 2024 and 2023 (in millions, except per share data) Year ended December 31, 2025 2024 2023 REVENUES Oil, natural gas and natural gas liquids sales $ 2,910 $ 2,537 $ 2,155 Net gain (loss) from commodity derivatives 266 241 ( 12 ) Revenue from marketing of purchased commodities 238 235 407 Electricity revenue 233 159 211 Other revenue 22 26 40 Total operating revenues 3,669 3,198 2,801 OPERATING EXPENSES Operating costs 1,252 966 822 General and administrative expenses 333 321 267 Depreciation, depletion and amortization 511 388 225 Asset impairment 59 14 3 Taxes other than on income 242 242 165 Costs related to marketing of purchased commodities 182 193 224 Electricity generation expenses 38 40 103 Transportation costs 79 81 67 Accretion expense 114 87 46 Net loss on natural gas purchase derivatives 50 30 8 Measurement period adjustments, net 1 ( 12 ) — Other operating expenses, net 209 239 95 Total operating expenses 3,070 2,589 2,025 (Loss) gain on asset divestitures ( 1 ) 11 32 OPERATING INCOME 598 620 808 NON-OPERATING (EXPENSES) INCOME Interest and debt expense, net ( 106 ) ( 87 ) ( 56 ) Loss on early extinguishment of debt ( 1 ) ( 5 ) ( 1 ) Equity loss from unconsolidated subsidiaries ( 4 ) ( 10 ) ( 9 ) Other non-operating income (expense), net 15 ( 2 ) 6 INCOME BEFORE INCOME TAXES 502 516 748 Income tax provision ( 139 ) ( 140 ) ( 184 ) NET INCOME $ 363 $ 376 $ 564 Net income per share Basic $ 4.17 $ 4.74 $ 8.10 Diluted $ 4.15 $ 4.62 $ 7.78 Weighted-average common shares outstanding Basic 87.0 79.3 69.6 Diluted 87.4 81.4 72.5 The accompanying notes are an integral part of these consolidated financial statements.
CALIFORNIA RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (Loss) For the years ended December 31, 2025, 2024 and 2023 (in millions) Year ended December 31, 2025 2024 2023 Net income $ 363 $ 376 $ 564 Other comprehensive income (a) : Actuarial gain (loss) associated with pension and postretirement plans 19 3 ( 1 ) Prior service credit — 2 — Recognition of net actuarial gain due to settlement ( 2 ) — — Recognition of prior service credit due to curtailment — — ( 2 ) Recognition of net actuarial loss due to curtailment — ( 3 ) — Recognition of net actuarial gain due to special termination benefits — 3 — Amortization of prior service cost credit included in net periodic benefit cost ( 4 ) ( 4 ) ( 4 ) Amortization of net actuarial gain ( 1 ) — — Total other comprehensive income (loss) 12 1 ( 7 ) Comprehensive income $ 375 $ 377 $ 557 (a) Amounts are net of a tax provision of $ 5 million, tax provision of $ 1 million, and tax benefit of $ 3 million in tax for the years ended December 31, 2025, 2024, and 2023, respectively .
CALIFORNIA RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Statements of Changes in Stockholders' Equity (Deficit) For the years ended December 31, 2025, 2024 and 2023 (in millions) Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income Total Equity Balance, December 31, 2022 $ 1 $ ( 461 ) $ 1,305 $ 938 $ 81 $ 1,864 Net income — — — 564 — 564 Share-based compensation — — 28 — — 28 Repurchases of common stock — ( 143 ) — — — ( 143 ) Cash dividends — — — ( 83 ) — ( 83 ) Shares cancelled for taxes — — ( 3 ) — — ( 3 ) Issuance of common stock — Other comprehensive income, net of tax — — — — ( 7 ) ( 7 ) Other — — ( 1 ) — — ( 1 ) Balance, December 31, 2023 $ 1 $ ( 604 ) $ 1,329 $ 1,419 $ 74 $ 2,219 Net income — — — 376 — 376 Share-based compensation — — 25 — — 25 Repurchases of common stock — ( 192 ) — — — ( 192 ) Shares issued for warrants — — 130 — — 130 Shares issued for Aera Merger — — 1,136 — — 1,136 Cash dividends — — — ( 115 ) — ( 115 ) Shares cancelled for taxes — — ( 42 ) — — ( 42 ) Other comprehensive income, net of tax — — — — 1 1 Balance, December 31, 2024 $ 1 $ ( 796 ) $ 2,578 $ 1,680 $ 75 $ 3,538 Net income — — — 363 — 363 Share-based compensation — — 27 — — 27 Repurchases of common stock — ( 148 ) ( 228 ) — — ( 376 ) Shares issued for Berry Merger — — 253 — — 253 Shares issued for Aera Merger — — 6 — — 6 Cash dividends — — — ( 138 ) — ( 138 ) Shares cancelled for taxes — — ( 12 ) — — ( 12 ) Other comprehensive income, net of tax — — — — 12 12 Other — — 1 — — 1 Balance, December 31, 2025 $ 1 $ ( 944 ) $ 2,625 $ 1,905 $ 87 $ 3,674 The accompanying notes are an integral part of these consolidated financial statements.
CALIFORNIA RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows For the years ended December 31, 2025, 2024 and 2023 (in millions) Year ended December 31, 2025 2024 2023 CASH FLOW FROM OPERATING ACTIVITIES Net income $ 363 $ 376 $ 564 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 511 388 225 Asset impairments 59 14 3 Deferred income tax provision 85 71 35 Net (gain) loss from commodity derivatives ( 216 ) ( 211 ) 20 Net proceeds (payments) on settled commodity derivatives 15 ( 64 ) ( 272 ) Net loss on early extinguishment of debt 1 5 1 Loss (gain) on asset divestitures 1 ( 11 ) ( 32 ) Other non-cash charges to income, net 187 139 103 Changes in operating assets and liabilities, net: Decrease in trade receivables 83 58 110 Increase in inventories ( 6 ) ( 1 ) ( 12 ) Decrease in other current assets, net 2 28 — Decrease in accounts payable and accrued liabilities ( 220 ) ( 182 ) ( 92 ) Net cash provided by operating activities 865 610 653 CASH FLOW FROM INVESTING ACTIVITIES Capital investments ( 322 ) ( 255 ) ( 185 ) Changes in accrued capital investments 35 29 ( 13 ) Proceeds from asset divestitures 8 15 32 Purchase of a business, net of cash acquired ( 440 ) ( 853 ) — Asset acquisitions — ( 6 ) ( 5 ) Other, net ( 6 ) ( 7 ) ( 4 ) Net cash used in investing activities ( 725 ) ( 1,077 ) ( 175 ) CASH FLOW FROM FINANCING ACTIVITIES Proceeds from Revolving Credit Facility 220 30 — Repayments of Revolving Credit Facility ( 220 ) ( 30 ) — Proceeds from 2029 Senior Notes, net — 888 — Proceeds from 2034 Senior Notes, net 393 — — Repurchases of common stock ( 377 ) ( 192 ) ( 143 ) Common stock dividends ( 136 ) ( 113 ) ( 81 ) Dividend equivalents on equity-settled awards ( 3 ) ( 4 ) — Issuance of common stock 3 2 2 Bridge loan commitments — ( 5 ) — Stock warrants exercised — 130 — Debt amendment costs ( 3 ) ( 18 ) ( 8 ) Shares cancelled for taxes ( 12 ) ( 42 ) ( 3 ) Debt redemption ( 245 ) ( 303 ) ( 56 ) Net cash (used in) provided by financing activities ( 380 ) 343 ( 289 ) (Decrease) increase in cash and cash equivalents ( 240 ) ( 124 ) 189 Cash and cash equivalents—beginning of period 372 496 307 Cash and cash equivalents—end of period $ 132 $ 372 $ 496 The accompanying notes are an integral part of these consolidated financial statements.
We focus on environmental stewardship while safely providing local, responsibly sourced energy.
We also seek to maximize the value of our land, mineral ownership, and energy expertise for decarbonization by developing carbon capture and storage (CCS) and other emissions-reducing projects.
Our business is organized into two reporting segments: oil and natural gas and carbon management.
Our carbon management segment, which we refer to as Carbon TerraVault, is focused on building, installing, operating and maintaining CO 2 capture equipment, transportation assets and underground storage facilities.

and 393 more.

Gone since FY2024

These commodity price changes also impact the volume changes under PSCs.
As of December 31, 2024, we had hedges on approximately 70% of our anticipated oil production through 2025 and approximately 45% through 2026.
As of December 31, 2024, we had net assets of $65 million for our derivative commodity positions which are carried at fair value, using industry-standard models with various inputs, including the forward curve for the relevant price index.
We estimate that a $10/bbl increase in Brent oil forward prices could increase our settlement payments by $170 million in 2025, limiting our upside.
We estimate that a $10 decrease in Brent oil forward prices could decrease our settlement payments by $178 million in 2025, negating the downside price movement for hedged volumes.
A summary of our Brent-based crude oil derivative contracts at December 31, 2024 are included in Part II, Item 8 – Financial Statements and Supplementary Data, Note 7 Derivatives .
Approximately 73% of our production during 2024 was oil which was sold predominately to refineries in California.
Interest-Rate Risk We had no variable-rate debt outstanding as of December 31, 2024.
These products compete directly with the electricity we generate from our Elk Hills power plant and indirectly as substitutes for oil, natural gas and NGLs.
ITEM 8 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors California Resources Corporation: Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting We have audited the accompanying consolidated balance sheets of California Resources Corporation and subsidiaries (the Company) as of December 31, 2024 and December 31, 2023, the related consolidated statements of operations, comprehensive income (loss), changes in stockholders’ equity (deficit), and cash flows for each of the years in the three-year period ended December 31, 2024, and the related notes and financial statement schedule II (collectively, the consolidated financial statements).
We also have audited the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and December 31, 2023, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles.
Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024 based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
The Company acquired Aera Energy, LLC during 2024, and management excluded from its assessment of the effectiveness of the Company's internal control over financial reporting as of December 31, 2024, Aera Energy, LLC's internal control over financial reporting associated with 45% of total assets and 38% of total revenues included in the consolidated financial statements of the Company as of and for the year ended December 31, 2024.
Our audit of internal control over financial reporting of the Company also excluded an evaluation of the internal control over financial reporting of Aera Energy, LLC.
The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing a separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
The Company recorded depreciation, depletion, and amortization expense of $388 million for the year ended December 31, 2024.
Estimating proved oil and gas reserves requires the expertise of professional petroleum reservoir engineers, who take into consideration estimates of future production, operating and development costs and commodity prices inclusive of market differentials.
The Company employs technical personnel, such as reservoir engineers and geoscientists, who estimate proved oil and gas reserves.
Complex auditor judgment was required to evaluate the Company's estimate of proved oil and gas reserves, which is an input to the determination of depreciation, depletion, and amortization expense.
Specifically, auditor judgment was required to evaluate the assumptions used by the Company related to estimated future oil and gas production, future commodity prices inclusive of market differentials, and future operating and development costs.
We assessed the methodology used by the technical personnel employed by the Company and the independent reservoir engineering specialist to estimate the reserves used in the determination of depreciation, depletion and amortization expense for compliance with industry and regulatory standards.
We compared the commodity prices used by the Company’s internal technical personnel to publicly available prices and recalculated the relevant market differentials based on actual price realizations.
We read and considered the reports of the independent reservoir engineering specialist in connect with our evaluation of the Company’s proved oil and gas reserves estimates.
Evaluation of the fair value measurement of oil and gas properties acquired in the Aera Energy LLC business combination As discussed in Note 2 to the consolidated financial statements, on July 1, 2024, the Company completed a merger with Aera Energy, LLC (Aera) for cash and equity consideration of approximately $2.1 billion.
As a result of the transaction, the Company acquired proved oil and gas properties which were recognized at their acquisition date fair value of $2.9 billion.
We identified the evaluation of the initial fair value measurement of the oil and gas properties acquired in the Aera transaction as a critical audit matter.
We compared the estimated future proved oil and gas production and estimated future operating and capital costs determined by the technical personnel employed by the Company to historical Aera production volumes and historical costs.
In addition, we involved valuation professionals with specialized skills and knowledge, who assisted in: 1) evaluating the Company's discount rate by comparing it to a discount rate range that was independently developed using publicly available market data for comparable entities, 2) evaluating the reserve category risk adjustment factors used by the Company by comparing them to third party publications of risk adjustment factors utilized by market participants, 3) evaluating the forecasted commodity price assumption by comparing it to an independently developed range of forward price estimates using data from analysts and other industry sources, 4) evaluating the projected inflation rate by comparing it to an inflation rate range that was independently developed using publicly available data. /s/ KPMG LLP We have served as the Company’s auditor since 2014.
Los Angeles, California March 3, 2025 CALIFORNIA RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets As of December 31, 2024 and 2023 (in millions, except share data) 2024 2023 CURRENT ASSETS Cash and cash equivalents $ 372 $ 496 Trade receivables 330 216 Inventories 90 72 Assets held for sale 10 13 Receivables from affiliate 46 19 Other current assets, net 176 113 Total current assets 1,024 929 PROPERTY, PLANT AND EQUIPMENT 6,738 3,437 Accumulated depreciation, depletion and amortization ( 1,058 ) ( 667 ) Total property, plant and equipment, net 5,680 2,770 INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES 86 19 DEFERRED TAX ASSETS 73 132 OTHER NONCURRENT ASSETS 272 148 TOTAL ASSETS $ 7,135 $ 3,998 CURRENT LIABILITIES Accounts payable 369 245 Liabilities associated with assets held for sale — 5 Accrued liabilities 611 366 Total current liabilities 980 616 NONCURRENT LIABILITIES Long-term debt, net 1,132 540 Asset retirement obligations 995 422 Deferred tax liabilities 113 — Other long-term liabilities 377 201 STOCKHOLDERS' EQUITY Preferred stock ( 20,000,000 shares authorized at $ 0.01 par value); no shares outstanding at December 31, 2024 or 2023 — — Common stock ( 200,000,000 shares authorized at $ 0.01 par value); ( 109,613,585 and 83,557,800 shares issued; 91,100,322 and 68,693,885 shares outstanding at December 31, 2024 and 2023, respectively) 1 1 Treasury stock ( 18,513,263 shares held at cost at December 31, 2024 and 14,863,915 shares held at December 31, 2023) ( 796 ) ( 604 ) Additional paid-in capital 2,578 1,329 Retained earnings 1,680 1,419 Accumulated other comprehensive income 75 74 Total stockholders' equity 3,538 2,219 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 7,135 $ 3,998 The accompanying notes are an integral part of these consolidated financial statements.
CALIFORNIA RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations For the years ended December 31, 2024, 2023 and 2022 (in millions, except per share data) Year ended December 31, 2024 2023 2022 REVENUES Oil, natural gas and NGL sales $ 2,537 $ 2,155 $ 2,643 Net gain (loss) from commodity derivatives 241 ( 12 ) ( 551 ) Revenue from marketing of purchased commodities 235 407 331 Electricity sales 159 211 261 Interest and other revenue 26 40 23 Total operating revenues 3,198 2,801 2,707 OPERATING EXPENSES Operating costs 966 822 785 General and administrative expenses 321 267 222 Depreciation, depletion and amortization 388 225 198 Asset impairment 14 3 2 Taxes other than on income 242 165 162 Costs related to marketing of purchased commodities 193 224 285 Electricity generation expenses 40 103 167 Transportation costs 81 67 50 Accretion expense 87 46 43 Net loss on natural gas purchase derivatives 30 8 — Carbon management business expenses 56 37 14 Measurement period adjustments ( 12 ) — — Other operating expenses, net 183 58 26 Total operating expenses 2,589 2,025 1,954 Net gain on asset divestitures 11 32 59 OPERATING INCOME 620 808 812 NON-OPERATING (EXPENSES) INCOME Interest and debt expense ( 87 ) ( 56 ) ( 53 ) Loss on early extinguishment of debt ( 5 ) ( 1 ) — Loss from investment in unconsolidated subsidiaries ( 10 ) ( 9 ) ( 1 ) Other non-operating (loss) income ( 2 ) 6 3 INCOME BEFORE INCOME TAXES 516 748 761 Income tax provision ( 140 ) ( 184 ) ( 237 ) NET INCOME $ 376 $ 564 $ 524 Net income attributable to common stock per share Basic $ 4.74 $ 8.10 $ 6.94 Diluted $ 4.62 $ 7.78 $ 6.75 Weighted-average common shares outstanding Basic 79.3 69.6 75.5 Diluted 81.4 72.5 77.6 The accompanying notes are an integral part of these consolidated financial statements.
CALIFORNIA RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (Loss) For the years ended December 31, 2024, 2023 and 2022 (in millions) Year ended December 31, 2024 2023 2022 Net income $ 376 $ 564 $ 524 Other comprehensive income (loss) (a) : Actuarial gain (loss) associated with pension and postretirement plans 3 ( 1 ) 13 Prior service credit 2 — — Recognition of prior service credit due to curtailment — ( 2 ) — Recognition of net actuarial gain due to curtailment ( 3 ) — — Recognition of net actuarial loss due to special termination benefits 3 — — Amortization of prior service cost credit included in net periodic benefit cost, net of tax ( 4 ) ( 4 ) ( 4 ) Total other comprehensive income (loss) 1 ( 7 ) 9 Comprehensive income $ 377 $ 557 $ 533 (a) Amounts are net of a tax provision of $ 1 million, tax benefit of $ 3 million, and tax provision of $ 4 million in tax for the years ended December 31, 2024, 2023, and 2022, respectively .
CALIFORNIA RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Statements of Changes in Stockholders' Equity (Deficit) For the years ended December 31, 2024, 2023 and 2022 (in millions) Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income Total Equity Balance, December 31, 2021 $ 1 $ ( 148 ) $ 1,288 $ 475 $ 72 $ 1,688 Net income — — — 524 — 524 Share-based compensation — — 19 — — 19 Repurchases of common stock — ( 313 ) — — — ( 313 ) Cash dividends ($ 0.7925 per share) — — — ( 61 ) — ( 61 ) Other comprehensive income, net of tax — — — — 9 9 Other — — ( 2 ) — — ( 2 ) Balance, December 31, 2022 $ 1 $ ( 461 ) $ 1,305 $ 938 $ 81 $ 1,864 Net income — — — 564 — 564 Share-based compensation — — 28 — — 28 Repurchases of common stock — ( 143 ) — — — ( 143 ) Cash dividends ($ 1.1575 per share) — — — ( 83 ) — ( 83 ) Shares cancelled for taxes — — ( 3 ) — — ( 3 ) Other comprehensive income, net of tax — — — — ( 7 ) ( 7 ) Other — — ( 1 ) — — ( 1 ) Balance, December 31, 2023 $ 1 $ ( 604 ) $ 1,329 $ 1,419 $ 74 $ 2,219 Net income — — — 376 — 376 Share-based compensation — — 25 — — 25 Repurchases of common stock — ( 192 ) — — — ( 192 ) Shares issued for warrants — — 130 — — 130 Shares issued for Aera Merger — — 1,136 — — 1,136 Cash dividends ($ 1.3950 per share) — — — ( 115 ) — ( 115 ) Shares cancelled for taxes — — ( 42 ) — — ( 42 ) Other comprehensive income, net of tax — — — — 1 1 Balance, December 31, 2024 $ 1 $ ( 796 ) $ 2,578 $ 1,680 $ 75 $ 3,538 The accompanying notes are an integral part of these consolidated financial statements.
CALIFORNIA RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows For the years ended December 31, 2024, 2023 and 2022 (in millions) Year ended December 31, 2024 2023 2022 CASH FLOW FROM OPERATING ACTIVITIES Net income $ 376 $ 564 $ 524 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 388 225 198 Deferred income tax provision 71 35 226 Asset impairments 14 3 2 Net (gain) loss from commodity derivatives ( 211 ) 20 551 Settlement payments from commodity derivatives ( 64 ) ( 272 ) ( 738 ) Loss on early extinguishment of debt 5 1 — Net gain on asset divestitures ( 11 ) ( 32 ) ( 59 ) Other non-cash charges to income, net 139 103 43 Changes in operating assets and liabilities, net: Decrease (increase) in trade receivables 58 110 ( 81 ) (Increase) in inventories ( 1 ) ( 12 ) — Decrease in other current assets, net 28 — 35 Decrease in accounts payable and accrued liabilities ( 182 ) ( 92 ) ( 11 ) Net cash provided by operating activities 610 653 690 CASH FLOW FROM INVESTING ACTIVITIES Capital investments ( 255 ) ( 185 ) ( 379 ) Changes in accrued capital investments 29 ( 13 ) 1 Proceeds from asset divestitures 15 32 80 Purchase of a business, net of cash acquired ( 853 ) — — Acquisitions ( 6 ) ( 5 ) ( 17 ) Distribution related to the Carbon TerraVault JV — — 12 Capitalized joint venture transaction costs — — ( 12 ) Other ( 7 ) ( 4 ) ( 2 ) Net cash used in investing activities ( 1,077 ) ( 175 ) ( 317 ) CASH FLOW FROM FINANCING ACTIVITIES Proceeds from Revolving Credit Facility 30 — — Repayments of Revolving Credit Facility ( 30 ) — — Proceeds from 2029 Senior Notes, net 888 — — Debt repurchases ( 303 ) ( 56 ) — Debt amendment costs ( 18 ) ( 8 ) — Repurchases of common stock ( 192 ) ( 143 ) ( 313 ) Common stock dividends ( 113 ) ( 81 ) ( 59 ) Payments on equity-settled awards ( 4 ) — — Issuance of common stock 2 2 1 Bridge loan commitments ( 5 ) — — Stock warrants exercised 130 — — Shares cancelled for taxes ( 42 ) ( 3 ) — Net cash provided by (used in) financing activities 343 ( 289 ) ( 371 ) (Decrease) increase in cash ( 124 ) 189 2 Cash and cash equivalents—beginning of period 496 307 305 Cash and cash equivalents—end of period $ 372 $ 496 $ 307 The accompanying notes are an integral part of these consolidated financial statements.
We are committed to environmental stewardship while safely providing local, responsibly sourced energy.
We are also focused on maximizing the value of our land, mineral ownership, and energy expertise for decarbonization by developing carbon capture and storage (CCS) and other emissions-reducing projects.
Our reportable segments include oil and natural gas and carbon management.
The oil and gas segment explores for, develops, and produces oil and condensate, natural gas liquids and natural gas.
The carbon management segment, which we refer to as Carbon TerraVault, is expected to build, install, operate and maintain CO 2 capture equipment, transportation assets and storage facilities.
Our carbon management segment includes our investment in the Carbon TerraVault joint venture.

and 376 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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