CRC

California Resources is the state's largest oil and gas producer, and FY2025 was defined by consolidation and cash generation. Revenue grew 14.7% to $2.91B (oil/NGL/gas sales), driven by higher production from the Aera (July 2024) and Berry (December 2025) mergers — the MD&A shows a $696M volume gain offsetting a $294M hit from lower realized prices. Net income was roughly flat at $363M (EPS $4.15) at a healthy 20.5% operating margin, but the standout is cash: operating cash flow surged 41.8% to $865M, comfortably funding $322M of capex and a heavy capital-return program.

Management is returning cash aggressively while it has the commodity tailwind: share buybacks nearly doubled to $377M (+96.4%), shrinking the count 2.4%, and the dividend rose 20.4% to $136M. The balance sheet is workable — long-term debt of $1.28B (fixed-rate 2029/2034 notes at 8.25%/7.0%, no variable-rate exposure) against $3.67B equity — though cash fell 64.5% to $132M after the Berry deal and buybacks. Crucially, the company hedges to protect cash flow: ~65% of anticipated 2026 oil production and ~40% of 2027 are hedged, dampening downside (a $10/bbl Brent drop reduces settlements by $294M, largely offsetting the price hit) at the cost of capping upside.