California Resources 2025 Q3 Earnings EPS Beats Estimates Despite Revenue Decline

California Resources Corporation (CRC) reported Q3 2025 earnings on Nov 5, 2025, with adjusted earnings per share (EPS) of $1.46, surpassing the IBES estimate of $1.26. However, total revenue fell to $855 million, missing the $875.82 million forecast. The company maintained its dividend increase and provided updated guidance for 2026, reflecting strategic focus on carbon capture and merger synergies.

Revenue

Oil, natural gas, and natural gas liquids sales led with $715 million, while the net loss from commodity derivatives amounted to $23 million. Revenue from marketing of purchased commodities contributed $58 million, and electricity revenue totaled $101 million. Other revenue sources added $4 million, resulting in total operating revenues of $855 million.

Earnings/Net Income

CRC’s adjusted net income was $123 million, exceeding the IBES estimate of $106.5 million. Despite the EPS beat, net income declined to $64 million, reflecting a 81.4% drop from $345 million in 2024 Q3. The EPS performance, while strong, underscores mixed operational outcomes.

Post-Earnings Price Action Review

The strategy of buying CRC stock when quarterly revenue beats estimates and holding for 30 days showed limited profitability in historical data. While it occasionally delivered positive returns, it underperformed the NASDAQ Composite. With a 40% win rate and high volatility, energy stocks like CRC are sensitive to commodity swings and regulatory risks, making the strategy less reliable as a standalone approach.

CEO Commentary

Francisco Leon highlighted CRC’s “solid results” in Q3 2025, emphasizing a 5% dividend increase to $0.405/share and the pending Berry merger as key value drivers. He underscored the company’s $1.154 billion liquidity, strategic focus on carbon capture, and optimism about 2026’s regulatory and market environment.

Guidance

CRC expects Q4 2025 production of 131–135 MBoe/d (78% oil), capital investments of $105–$125 million, and adjusted EBITDAX of $220–$260 million. For 2026, the company plans four rigs, $280–$300 million in capital spending, and a 2% production decline, excluding Berry merger impacts.

Additional News

1. M&A Activity: CRC announced a definitive agreement to merge with Berry Corporation in an all-stock transaction, enhancing its asset base and operational scale.

2. Dividend Increase: The company raised its quarterly dividend by 5% to $0.405/share, reinforcing its commitment to shareholder returns.

3. Carbon Capture Partnership: CRC’s Carbon TerraVault signed an MOU with Capital Power to evaluate CO2 transportation and sequestration for a 1.1 GW plant, targeting up to 3 million metric tons annually.