California Resources Faces Earnings Call Amid Revenue Decline and Slower Growth Outlook

California Resources Corporation (NYSE: CRC) will report its second‑quarter 2026 earnings before the market opens on Monday. The company’s latest quarterly results, released in early May, showed a sharp drop in revenue and a miss of earnings‑per‑share estimates, prompting analysts to reassess the outlook for the next quarter.

In the quarter ending March 31 2026, California Resources reported revenue of $119 million, a decline of 86.9% from the $912 million it earned a year earlier. The company also posted an adjusted earnings per share of $0.91, below the consensus estimate of $0.97. Oil production per day grew 23.4% year‑on‑year, the highest growth rate the company has reported in recent years.

According to the company’s investor‑relations filing, the revenue shortfall is largely attributable to lower oil prices and a reduced output mix. California Resources, which operates the Elk Hills Oil Field in Kern County, has seen a decline in production from the field’s peak output in the early 2000s. The Elk Hills field, the fifth‑largest in California, has been a key asset for the company, but its remaining reserves are projected to decline in the coming years.

Market expectations for the upcoming quarter are modest. Consensus estimates from analysts project a 15.8% year‑on‑year revenue increase, a slowdown from the 61.3% growth the company recorded in the same quarter last year. Analysts have largely maintained their forecasts over the past month, suggesting a steady trajectory for the company’s earnings.

California Resources’ peers in the mixed‑ or offshore‑upstream segment have posted more favorable results. Vitesse Energy reported year‑on‑year revenue growth of 11.3%, beating analysts’ expectations by 8.2%. Solaris Energy Infrastructure posted revenues up 46.9%, topping estimates by 7.1%. The stock price of Vitesse Energy remained flat after its earnings release, while Solaris Energy Infrastructure’s shares rose 2.3%.

Investor sentiment for the sector has been positive, with share prices up 2.1% on average over the last month. California Resources’ stock price, however, has been unchanged during the same period and is trading at $52.11, below the average analyst price target of $77.55.

California’s oil and gas industry remains a significant part of the state’s economy. In 2024, California produced less than 25 % of the crude oil it consumes, with the majority of its imports coming from the Middle East. The Elk Hills field, operated by California Resources, has historically contributed to the state’s domestic production, but the overall industry faces regulatory and environmental challenges, including a permanent moratorium on new offshore drilling.

The company’s earnings call is expected to address the factors behind the revenue decline, the outlook for oil prices, and the company’s strategy for maintaining production growth. Analysts will also examine the company’s debt levels and capital allocation plans, given the heavy financing activity reported in the first quarter.

California Resources’ financial statements for the quarter are available on its investor‑relations website. The company’s revenue for the trailing twelve months ended March 31 2026 was $2.88 billion, down 21.33% year‑on‑year. The company’s net earnings for the quarter were $0.88 per share, a miss of the consensus estimate of $0.88 by $0.00.

The earnings call will provide the next data point for investors and analysts assessing the company’s ability to navigate a volatile oil market and a challenging regulatory environment. The market will likely weigh the company’s production growth against its declining revenue and the broader context of California’s energy mix.

In summary, California Resources is set to report earnings that confirm a significant revenue decline and a modest growth outlook for the next quarter. The company’s performance will be evaluated against its peers, the state’s oil industry dynamics, and the expectations of analysts who have largely maintained their forecasts in the face of recent earnings misses.