A month has gone by since the last earnings report for California Resources Corporation (CRC Quick QuoteCRC - Free Report) . Shares have added about 2.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is California Resources due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for California Resources Corporation before we dive into how investors and analysts have reacted as of late.

California Q2 Earnings Miss on Takeaway Constraints

California Resources reported second-quarter 2026 adjusted earnings of 99 cents per share, down 10% from $1.10 a year ago and 24.4% below the Zacks Consensus Estimate of $1.31, mainly due to temporary takeaway constraints, weaker oil differentials and higher transportation and operating costs.

The Long Beach, CA-based oil and gas exploration and production company’s oil, natural gas and natural gas liquids revenues of $1.06 billion rose 50.4% from $702 million and beat the Zacks Consensus Estimate of $979 million by 7.8%.

CRC’s board of directors declared a quarterly cash dividend of 40.5 cents per share of common stock, payable on Sept. 18, 2026, to its shareholders of record as of Sept. 4. During this quarter, CRC returned $36 million to its shareholders through dividends.

Production and Realization Trends

California Resources' average net production was 149 thousand barrels of oil equivalent per day (MBoe/d), up from 137 MBoe/d in the year-ago quarter. Net oil production averaged 120 thousand barrels per day, while NGL production was 10 thousand barrels per day. Natural gas output averaged 115 million cubic feet per day. Oil represented 81% of total production.

The realized oil price before derivative settlements was $91.55 per barrel, while NGL and natural gas realizations were $49.62 per barrel and $1.84 per Mcf, respectively. CRC built about 137 thousand barrels of oil inventory because of temporary takeaway constraints. The inventory build, weaker differentials and higher operating and transportation costs reduced adjusted EBITDAX and operating cash flow before working-capital changes by about $25 million.

California Resources' Efficiency Gains

Total operating expenses were $786 million, up 10.5% from $711 million a year earlier. Operating costs were $347 million, up 17.6% from $295 million a year earlier General and administrative expenses increased 22.8% to $97 million. Adjusted G&A expenses, however, declined to $89 million from $99 million in the first quarter, reflecting Berry-related efficiencies.

The company implemented more than 100% of its 2026 Berry synergy target six months ahead of schedule, representing $103 million of annualized savings. California drilling efficiency improved about 25% and nearly 80% of wells drilled year to date outperformed the type curve, with average initial production more than 10% above expectations. CRC lowered its long-term drilling, completions and workover maintenance-capital estimate by about 5% to $450-$475 million with six rigs.

Cash Flow and Balance Sheet

Net cash provided by operating activities was $263 million, up 59.4% from $165 million in the prior-year quarter. Free cash flow totaled $114 million, while capital investments were $149 million, including $101 million for drilling, completions and workovers.

CRC ended June with $1.32 billion of liquidity, consisting of $43 million of available cash and $1.28 billion of borrowing capacity, with a debt-to-capitalization of 27.4%. During the quarter, it issued $550 million of 7.25% senior notes due 2035 and redeemed its remaining 8.25% senior notes due 2029.

California Resources' Midstream Expansion

CRC agreed to acquire Crimson Midstream Holdings, LLC for $63 million in cash. The transaction adds roughly 2,000 miles of California crude-oil pipelines and storage assets, expanding the company's access to higher-value markets and third-party throughput.

The company also acquired the Line 100 system earlier in 2026. That network includes a 118-mile crude pipeline with 60 thousand barrels per day of capacity and more than 1 million barrels of storage. Management expects the Crimson deal to strengthen market access and commercial flexibility.

Carbon and Power Progress

Carbon TerraVault I began carbon dioxide (CO2) injection and generated first revenues during the quarter. Management said the project is capturing and injecting about 270 metric tons of CO2 per day and is targeting an annualized rate of roughly 100,000 tons.

CRC also partnered with Beacon Data Centers on the proposed Golden Valley Technology Hub at Elk Hills. The planned campus would have 275 megawatts of capacity and use power from CRC's existing Elk Hills plant. The company has submitted a conditional-use permit and expects the environmental review process to advance later in 2026.
 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 17.26% due to these changes.

VGM Scores

At this time, California Resources has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, California Resources has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

California Resources is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Cheniere Energy (LNG Quick QuoteLNG - Free Report) , a stock from the same industry, has gained 4%. The company reported its results for the quarter ended June 2026 more than a month ago.

Cheniere Energy reported revenues of $5.73 billion in the last reported quarter, representing a year-over-year change of +23.5%. EPS of $3.02 for the same period compares with $7.30 a year ago.

For the current quarter, Cheniere Energy is expected to post earnings of $3.86 per share, indicating a change of -18.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +4.8% over the last 30 days.

Cheniere Energy has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.