Key Highlights

  • California Resources' quarterly Dividend of $0.4050 per share trades ex-date September 4, 2026, payable September 18, yielding approximately 3.02%.
  • Q2 2026 average net production reached 149 thousand barrels of oil equivalent per day, 81% oil, with adjusted Net Income of $88 million and adjusted EBITDAX of $338 million.
  • The company issued $550 million of 2035 senior notes in June 2026 and used the proceeds to redeem all $550 million of its outstanding 2029 notes, extending its Debt Maturity profile.
  • CRC reaffirmed full-year 2026 guidance of 150-155 MBoE/d production, $520-$560 million capital investment, and $1.2-$1.3 billion adjusted EBITDAX.

California Resources' (NYSE:CRC) quarterly dividend of $0.4050 per share yields approximately 3.02%. The more relevant story this quarter is what lies beneath the headline GAAP profit: a $514 million net income figure was almost entirely a function of derivative fair-value swings, while the more meaningful $88 million of adjusted net income reflects a Business simultaneously funding its dividend, its capital program, and a debt-maturity extension.

Dividend Program and Shareholder Returns

CRC's Board declared a quarterly dividend of $0.4050 per share on August 10, 2026, payable September 18, 2026, to shareholders of record September 4, trading ex-dividend the same date and yielding approximately 3.02%. The company paid approximately $36 million of common dividends during Q2 and $72 million during the first half of 2026. Since 2021, CRC states it has returned approximately $1.655 billion to shareholders through dividends and share repurchases. The dividend remains tied to commodity-driven cash generation and the company's ongoing capital requirements, with future declarations subject to Board approval.

About the Company

California Resources Corporation is an independent energy company focused on oil and natural-gas production and carbon management in California, operating conventional and enhanced-recovery Assets alongside extensive mineral rights and infrastructure. The company is pursuing carbon capture and sequestration opportunities alongside its oil-and-gas operations, seeking to monetize both its energy assets and its land position as it advances the energy transition. Earnings are highly sensitive to crude prices, production volumes, hedging, and California's extensive regulatory environment.

Financial Performance Behind the Payout

CRC reported Q2 2026 average net production of 149 MBoE/d, 81% oil. GAAP net income was $514 million, though this included a substantial non-cash gain from changes in the Fair Value of Commodity derivatives; adjusted net income was $88 million and adjusted EBITDAX was $338 million. The company generated $114 million of free Cash Flow in the quarter. In June 2026, CRC issued $550 million of 7.250% senior notes due 2035 and used the proceeds, together with cash on hand, to redeem all $550 million of its outstanding 2029 notes, extending its nearest major debt maturity. The company ended the quarter with $1,322 million of total liquidity.

A Debt Refinancing Simplifies the Near-Term Capital Structure

The most important non-dividend development this quarter is CRC's decision to replace its 2029 notes with longer-dated 2035 debt, a transaction that removes near-term refinancing risk without altering the company's overall Leverage profile. This matters directly for dividend durability because it reduces the chance that maturing debt competes with capital-return priorities in the next few years. Separately, the gap between $514 million of GAAP net income and $88 million of adjusted net income underscores why derivative-driven headline profit should not be used to assess dividend coverage; adjusted EBITDAX and free cash flow are far more reliable guides. Investors should watch whether continued operational efficiency gains, which have already allowed CRC to reduce its estimated long-term maintenance capital, keep supporting free cash flow even if oil prices soften.

Outlook

CRC's dividend is reasonably supported by current production levels and reaffirmed full-year guidance, though as with any oil-and-gas producer, sustainability ultimately depends on commodity prices and hedging outcomes rather than being a fixed commitment. Investors should watch production volumes, realized oil prices, hedge positions, adjusted EBITDAX, and progress on carbon capture and storage project development.