• Chevron or ExxonMobil for California's oil and gas production.
• A California-focused version of an independent oil and gas exploration and production (E&P) company, like ConocoPhillips.

• Crude Oil: California Resources extracts and sells various grades of crude oil from its California assets.
• Natural Gas: The company produces and sells natural gas primarily from its California operations.
• Natural Gas Liquids (NGLs): CRC also produces and sells natural gas liquids, which are separated from natural gas streams.

California Resources Corporation (symbol: CRC) sells primarily to other companies. Its major customers are refiners and marketers of crude oil and natural gas. For the year ended December 31, 2023, the company reported the following major customers:

• Phillips 66 Company (symbol: PSX)
• Valero Marketing and Supply Company (a subsidiary of Valero Energy Corporation, symbol: VLO)

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Francisco J. Leon, President and Chief Executive Officer

Mr. Leon was appointed President and Chief Executive Officer of California Resources Corporation in April 2023. Prior to this role, he served as the Executive Vice President and Chief Financial Officer of CRC from August 2020 to April 2023. He initially joined CRC in 2014 during its spin-off from Occidental Petroleum, holding the position of Vice President of Portfolio Management and Strategic Planning. In 2018, Mr. Leon became Vice President of Corporate Development, where he oversaw all acquisition and divestiture activities for the company. Before his tenure at CRC, he worked at Occidental Petroleum Corporation in various finance, planning, and business development capacities. His career began as a Financial Analyst at Petrie Parkman & Co., Inc., an energy-focused boutique investment banking firm.

Clio Crespy, Executive Vice President and Chief Financial Officer

Clio Crespy serves as the Executive Vice President and Chief Financial Officer of California Resources Corporation.

Jay A. Bys, Executive Vice President and Chief Commercial Officer

Jay A. Bys is the Executive Vice President and Chief Commercial Officer at California Resources Corporation.

Chris D. Gould, Executive Vice President and Chief Sustainability Officer, and Managing Director, CTV Holdings

Chris D. Gould holds the titles of Executive Vice President and Chief Sustainability Officer, as well as Managing Director of CTV Holdings, at California Resources Corporation.

Michael L. Preston, Executive Vice President, Chief Strategy Officer and General Counsel

Michael L. Preston is the Executive Vice President, Chief Strategy Officer and General Counsel for California Resources Corporation.

Key Risks to California Resources (CRC)

1. Regulatory Environment in California: California Resources operates exclusively in California, a state known for its stringent environmental regulations, complex permitting processes, and ambitious goals for decarbonization and reducing fossil fuel consumption. These factors significantly impact the company's operational costs, lead to potential project delays, and can limit growth opportunities within the state. There is ongoing regulatory uncertainty, including potential new legislation allowing local governments to impose further restrictions, which adds to the challenges of maintaining output and developing new projects.
2. Commodity Price Volatility: As an oil and gas producer, California Resources' financial performance is heavily dependent on global commodity markets. Fluctuations in oil and natural gas prices, which are inherently volatile, can directly and significantly impact the company's revenues, profitability, and cash flow. While CRC has employed hedging strategies to mitigate some of this risk, its core revenue remains tied to these unpredictable market forces.
3. High-Cost Production Base and Mature Assets: California Resources' operations in California are characterized by a higher-cost production base compared to other regions. Many of its fields are mature, meaning that while they still contain oil, production is more expensive than in newer, unconventional plays. This high-cost structure makes the company more susceptible to downturns in commodity prices and can result in narrower profit margins. Furthermore, the company faces substantial, legally required obligations for well closures and remediation, which are costly and could impact future cash flow, particularly for its many idle wells.

• California's mandate to phase out the sale of new gasoline-powered vehicles by 2035 directly threatens long-term demand for refined crude oil, which is a primary product of California Resources' operations.
• Increasing regulatory restrictions, including mandated well setbacks and escalating permitting delays for new and reworked oil and gas wells within California, hinder the company's ability to sustain or grow production and develop new reserves.
• Growing institutional investor and lender pressure related to environmental, social, and governance (ESG) factors, including divestment movements and stricter financing criteria for fossil fuel companies, could increase CRC's cost of capital and limit future funding for operations and development.

California Resources Corporation (CRC) primarily operates in the exploration, production, gathering, processing, and marketing of crude oil, natural gas, and natural gas liquids, exclusively within the state of California.

The addressable market size for their main products can be represented by the overall economic contribution of the natural gas and oil industry in California. In 2017, the oil and natural gas industry activity in California generated $152.3 billion in economic activity. More recently, the natural gas and oil industry supported over $217 billion toward California's economy in 2021.

This market size is specific to the region of California.

California Resources Corporation (CRC) is poised for future revenue growth over the next 2-3 years, driven by several strategic initiatives and operational strengths:

1. Synergies from Aera Merger and Operational Efficiencies: CRC has been actively integrating Aera Energy LLC, targeting $235 million in annualized merger-related synergies. A significant portion of these synergies has already been realized, with the remainder expected by early 2026. These efficiencies, encompassing operational planning, vendor management, and G&A savings, are enhancing the company's cost structure and profitability, thereby bolstering its financial capacity to drive future revenue. The company also successfully reduced its annual base decline assumption to 8%-13% from 10%-15%, which is expected to enhance cash flow generation and reduce capital intensity.
2. Expansion of Carbon Capture and Storage (CCS) Projects (Carbon TerraVault): CRC is advancing its carbon management platform, with the first commercial-scale CO2 injection for its Carbon TerraVault I project at the Elk Hills Cryogenic Gas Plant expected by early 2026. The company has received conditional use permits for this project and is actively developing carbon management solutions, which represent a new and growing revenue stream in the evolving energy transition landscape.
3. Merger with Berry Corporation (BRY): The pending all-stock merger with Berry Corporation, anticipated to close in Q1 2026, is a significant driver. This merger is expected to add assets adjacent to CRC's current positions, creating meaningful synergies of $80-$90 million annually within 12 months post-close and enhancing operational scale in California.
4. Optimized Oil and Gas Production with Strong Price Realization: CRC consistently maintains strong production levels, with average net production hovering around 137-145 thousand barrels of oil equivalent per day, with oil comprising a significant portion (78-80%). The company has demonstrated strong price realizations for its commodities (e.g., oil at 97-98% of Brent), and a robust hedging strategy helps underpin cash flows and mitigate commodity price risk. This sustained and efficiently managed production forms a strong base for revenue generation.
5. Growth in Power Business and Natural Gas Marketing: CRC is enhancing its revenue streams through its natural gas marketing and power businesses. The company's participation in the resource adequacy program is expected to see increased contracted value, moving from $100 million in 2024 to $150 million in 2025. Additionally, CRC is advancing its power business through a new partnership with Capital Power to develop carbon management solutions for the La Paloma power facility.

Share Repurchases

• Since May 2021, California Resources has returned approximately $1.1 billion to shareholders through share repurchases.
• Year-to-date (2025) through September 30, the company returned $352 million via share repurchases.
• As of September 30, 2025, $205 million remained authorized for share repurchases under its program, extending through June 30, 2026.

Share Issuance

• California Resources is set to issue approximately 5.6 million shares of its common stock to Berry Corporation shareholders as part of an all-stock merger agreement.

Outbound Investments

• California Resources completed an all-stock merger with Aera Energy, LLC, effective January 1, 2024, aiming to enhance operational efficiencies and strengthen cash flow generation.
• The company entered into a definitive agreement in September 2025 to combine with Berry Corporation in an all-stock transaction valued at approximately $717 million, with the closing expected in Q1 2026.
• California Resources is actively developing Carbon Capture and Storage (CCS) projects through its Carbon TerraVault business, including a joint venture with Brookfield, with the first commercial-scale CCS project at Elk Hills planning CO2 injection in early 2026.

Capital Expenditures

• Full year capital expenditures for 2025 are projected to be between $280 million and $330 million.
• For 2026, the company plans to allocate $280 million to $300 million to drilling, completion, and workover capital, utilizing four drilling rigs.
• A primary focus of capital expenditures includes maintaining existing production and advancing carbon management initiatives, such as the Carbon TerraVault I project.