California Resources Corporation (CRC) Earnings

Management highlights

### Macro Environment and CRC's Position - Events in Middle East highlight importance of oil and energy security, California faces high foreign oil consumption with state inventories reduced, CRC as largest California producer is positioned to provide local barrels. - CRC has deep oil development opportunities, recent mergers were well-timed, and legislative efforts to improve permitting are proceeding. - Accelerating development: increasing drilling cadence in summer by 3 rigs (2 in CA, 1 in UT), with Uinta acreage showing potential with production up 100% since 2020, planning appraisal work. - Carbon management business: completed construction of CA's first commercial-scale carbon capture and store project at Elk Hills cryogenic gas plant, expecting EPA approval for first CO2 injection. - Data center conversations: top-tier national data center developer investing to accelerate site readiness at Elk Hills. - RCPPP: next major update in second half of 2026, with support building for natural gas with CCS eligibility.

Guidance

### Full Year 2026 - Expect exit gross production of 175,000 BOE per day, roughly 1% entry-to-exit growth. - Raising full year midpoint of total capital guidance to $540 million, with D&C and workover capital $100 million above prior plan. - Expect full year adjusted EBITDAX midpoint at $1.45 billion assuming average Brent price of $91 per barrel. - Berry merger synergies: raising target by $10 million, cumulative target through 2028 upwards of $460 million. ### Second Quarter 2026 - Expect net production of 149,000 BOE per day. - Expect capital deployment of approximately $130 million. - Expect G&A of $95 million. - Expect adjusted EBITDAX of $390 million assuming average Brent price of $105 per barrel.

Segment performance

In the first quarter, adjusted EBITDAX was $304 million, operating cash flow before changes in working capital was $247 million, net production averaged 154,000 BOE per day with oil at 81% of the mix. For the full year, expecting exit gross production of 175,000 BOE per day, raising full year midpoint of total capital guidance to $540 million, with adjusted EBITDAX midpoint at $1.45 billion assuming average Brent price of $91 per barrel. Berry merger-related synergies: already implemented over 80% of original target, raising target by $10 million, cumulative synergy and structural cost reduction target through 2028 upwards of $460 million.

Risks & headwinds

### Market Volatility - Unprecedented energy market volatility creates uncertainty. - California market dynamics add to volatility, with over 60% of oil consumed in CA from foreign sources and inventory fluctuations. ### Inflation - Modest inflation impact on costs, primarily in oil-linked inputs and fuel, estimated at roughly $6 million to $8 million impact this year or $10 million annualized, but manageable with proactive supply chain work. ### Regulatory - Uncertainty around regulatory changes and permitting processes, although CRC has been working constructively with regulators, elections and policy rule-making can introduce variability.

Analyst Q&A

• Q: Walk us through the 2026 program as it is now, including rigs coming on and production showing up, and context on permits.

  A: Drilling a total of about 357 new wells and side tracks for 2026, have all permits for 7 rigs, time to market from spud to production is roughly 30 days, lining incremental rigs to start producing in second half of year, permits flowing and process improving.

• Q: Talk about why invest in Uinta Basin and long-term strategy.

  A: Still in evaluation stage, have 4 wells to drill by end of year, attributed low value to Utah in acquisition leaving upside, considering full development or monetization.

• Q: How much 2026 investment shows up in 2027 growth and CapEx.

  A: Capital efficiencies improving, lower maintenance capital, 7 rigs as table stakes for forward long-term baseline at mid-cycle pricing, investment in 2026 for benefit of 2027.

• Q: Scope of data center partnership with top-tier developer.

  A: Partner investing several million dollars to accelerate early-stage site readiness at Elk Hills, integrated view on data centers with natural gas supply, land, power, and decarbonization.

• Q: How Berry synergies are trickling in through the year.

  A: Captured about 80% of targeted synergies, increased target by $10 million, through field consolidation, automation, and reductions in G&A.

• Q: Evolution of power business in California.

  A: California needs more clean, reliable, around-the-clock power, CRC uniquely positioned with subsurface expertise, seeing regulatory improvements and structural demand for natural gas with CCS.

• Q: Thinking about buyback going forward.

  A: Prioritizing getting production back to maintenance level for sustainable capital returns, continuing to look at buybacks as part of portfolio to distribute cash to shareholders, disciplined and opportunistic approach.

• Q: Impact of inflation on cost side.

  A: Modest inflation impact, roughly $6 million to $8 million impact this year or $10 million annualized, manageable with proactive supply chain work.

• Q: Risk management and hedging strategy.

  A: Hedging strategy to deliver attractive economics and deploy capital with confidence, protecting downside while maintaining upside participation, hedging program structured to have visibility for capital allocation.

• Q: RCPPP potential and next steps.

  A: RCPPP as game changer if passed, 1.5 gigawatts of firm and clean power needed, CRC positioned to participate in transport and storage of CO2, EPA approval awaited for Elk Hills project.

• Q: Regulatory and permitting process and governor's race.

  A: CRC has navigated permitting process well with team effort, working constructively with regulators, watching governor's race and looking for leadership with rational energy policy