California Resources Corporation

and welcome to the California Resources Corporation fourth quarter 2025 conference call. All participants will be in listen-only mode. Should you need assistance please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation there will be an opportunity to ask questions. To ask a question you may press star then one on your telephone keypad. To withdraw your question please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Daniel Juck, Vice President of Investor Relations. Please go ahead.

Good morning, and welcome to California Resources Corporation's fourth quarter and year-end 2025 conference call. Following prepared comments, members of our leadership team will be available to take your questions. By now, I hope you had a chance to review our earnings release and supplemental slides. We have also provided information reconciling non-GAAP financial measures to comparable GAAP measures on our website and in our earnings release. Today, we'll be making forward-looking statements based on current expectations. Actual results may differ due to factors described in our earnings release and SEC filings. As a reminder, please limit your questions to one primary and one follow-up, as this allows us to get to more of your questions. I'll now turn the call over to Francisco.

Thank you, Daniel, and good morning, everyone. I'll begin with our 2025 results, then highlight what difference we see today, including our unique position in California's energy and decarbonization landscape and how that translates into long-term value creation. I'll then turn it over to Cleo for the financials and 2026 guidance. Let me start with the big picture. In 2025, we grew production for the third consecutive year, delivered record financial performance, and returned record capital to shareholders, even as commodity prices declined 14% year over year. Our guidance shows further annual production growth in 2026. Our high-quality, low-decline conventional assets generate stable cash flow, supporting annual capital returns while maintaining balance sheet strength. Since 2021, we have returned nearly $1.6 billion to shareholders, underscoring our commitment to long-term value creation. Our capital priorities remain clear. Invest in high return opportunities, preserve financial strength, and return excess cash to shareholders. We will continue to take a measured and disciplined approach to shareholder returns, maintaining the flexibility to invest through the commodity cycles. As we enter 2026, CRC is stronger and more resilient, with a differentiated asset base and improved access to the full depth of our reserves, positioning us to grow cash flow per share. Three factors define CRC today. First, our conventional reservoir base is at core strength, These assets are characterized by low natural declines, strong recovery factors, and very predictable performance. That allows us to sustain production with less capital and lower risk than shale-focused peers. Our expanded 2P disclosure of nearly 1.2 billion BOE highlights the depth and longevity of our inventory, supporting 20-plus years of development at current production levels. Our assets are large-scale, low-decline, multi-stack sandstone reservoirs, conventional systems where production is sustained through reservoir injection management and long-duration recovery, requiring low capital intensity without the need for the continuous high-intensity reinvestment. Notably, we see a similar recovery potential in our Bell Ridge field compared to Elk Hills, but at an early stage of development, reinforcing the strong industrial logic behind the era merger. While many peers are looking to new basins and international opportunities to extend reserve life, our deep inventory provides confidence in the long-term durability of our production and cash flows right here in California. Second, regulatory progress has been meaningful. The resumption of new drill permitting and the steady flow of approvals through the system represent a step change from where we've been in recent years. We appreciate the efforts of state and local regulators to move this process forward. This progress positions us to stabilize production while supporting the state's objectives for energy affordability. We now have the majority of the permits required to execute our 2026 capital program, which materially expands our flexibility to plan, sequence, and high-grade capital across the portfolio. Importantly, it also allows us to adjust activity levels methodically, as market conditions and returns dictate. We have returned to drilling new wells in 2026 and see ample potential across our long-runway assets. Third, our integrated strategy continues to differentiate CRC. We're investing in high-return oil and gas developments while advancing our carbon management and power platforms in a capital-efficient and return-driven manner. Carbon TerraVault has moved from concept to execution. Construction is complete on California's first commercial-scale CCS project at Elk Hills. And we're now in the commissioning and testing phase. We have successfully captured CO2 from our gas processing plant and are awaiting final EPA approval to commence injection. We believe each step in the process materially de-risked the platform from engineering and construction to capture performance to regulatory clearance and positions us to transition into full operations. Importantly, the proximity of our permitted CO2 storage reservoirs to existing infrastructure across the strait provides a structural advantage as demands grow for reliable, low-carbon power solutions. We continue to advance discussions related to our power platform with multiple high-quality counterparties. The demand signal is evident, but these are large, complex transactions in a market that is still maturing. As it evolves, commercial structures are improving, and our options continue to expand. We have strong conviction in the value of our integrated power to CCS offering. We're not focused on speed. We're focused on getting the fundamentals right and securing the right agreement at the right time. One that appropriately aligns risk and returns and delivers durable long-term cash flow. As the market matures, we believe our differentiated position only strengthens. So, what does this all mean for CRC as we look ahead for the long-term? What defines us is durability of inventory and returns. We're investing in 2026 from a position of strength, with 2027 marking the point where we return to a steady state level of activity to sustain production. On a hedge basis, our corporate maintenance break-even sits in the mid-50s WTI, providing resilience in a range-bound oil macro. This reflects the full enterprise, including upstream operations, carbon terabolt, power, base dividend, interest, corporate needs, and hedges. For context, our upstream-only maintenance break-even is in the low to mid-50s WTI, among the more competitive levels across pure-plate EMP peers. This outlook is grounded in asset quality, inventory depth, and structural cost discipline, not aggressive capital assumptions or optimistic pricing. Together, our reservoir-based improved regulatory visibility and integrated strategy support resilient long-term value across cycles. With that, I'll turn it over to Cleo to walk through our financial results and 2026 guidance. Cleo?