California Resources Corporation

Good day and welcome to the California Resources Corporation second quarter 2026 conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. 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 questions, please press star then two. 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 second quarter 2026 conference call. We hope you've had a chance to review our earnings materials, which include our non-GAAP reconciliations. Today's call includes forward-looking statements and actual results may differ due to factors described in our earnings release and SEC filings. Following prepared remarks, our leadership team will take questions. As a reminder, please limit your questions to one primary and one follow-up. I will now turn over the call to Francisco.

Good morning, everyone. We delivered a solid quarter in our oil and gas business, driven by strong operational execution, continued synergy capture, and sustainable drilling efficiency gains that strengthened our outlook. We also made good progress on our emerging carbon management and behind-the-meter power platforms and announced two important midstream transactions that build on our long-term strategy to generate shareholder value from our California assets. Let me begin with some comments on our strategic plans. Clio will then walk through our quarterly results and outlook. While focused on near-term execution, our team is also looking to the future. The state's regulatory environment One seen as an impediment to our industry is now supporting local onshore production to the benefit of all Californians. Events in the Middle East have caused ripple effects throughout energy markets. Here at home, California's reliance on imported crude and refined products has created temporary transportation and price challenges across the state, highlighting the need for energy security and reliable, stable sources of local supply. That's precisely the needs CRC has built for us. For the last several years, CRC has been intentionally building a stronger and more integrated California energy platform. Our Aira and Barrie mergers created scale and new avenues to profitably grow our business. As the largest producer in the state, the expansion of our midstream infrastructure and marketing capabilities was a logical step to bolster our long-term strategy. Greater control of critical infrastructure will provide options to enhance the commercial capabilities of our business and stability of our operations. This benefits CRC, as well as other producers, working to move more local product to local markets and ultimately supports California's energy security and affordability. Last quarter, we took the first of two steps to strengthen our midstream position, purchasing the Line 100 pipeline from P-66 for a nominal amount. The deal added about 120 miles of crude pipelines connecting key Central Valley production hubs, along with over 1 million barrels of storage capacity and gathering, transportation, and truck loading infrastructure. That brings us to the Crimson acquisition we announced today. Crimson's midstream platform covers roughly 2,000 mile network of California crude oil pipelines that run through the heart of our producing fields. The transaction advances our long term strategy and connects our production directly to California's highest value markets. As the state's largest producer, our integrated platform will provide greater flexibility to move both CRC and third party volumes, improve price realizations, generate more diversified cash flows and drive new efficiencies. The all-cash deal is financially accretive and is priced significantly below prevailing midstream sector valuation multiples. Because certain crimson assets operate as a common carrier, the transaction requires CPUC approval. We recently received tentative approval with no conditions attached, and we expect a final decision later this month. Recent market conditions have illustrated the strategic value that Crimson adds to our platform. Takeaway capacity over the last quarter was constrained due to what we expect to be temporary marketing disputes with a pipeline operator and certain off-takers, limiting our ability and that of other local producers to transport barrels to previously contracted markets and pressuring oil price differentials on replacement sales. We have taken proactive strategic steps to broaden our transportation and marketing options and improve the reliability of our market access through new agreements and partnerships. We fully expect these actions, together with the resolution of the ongoing disputes, to strengthen differentials and bring realizations in line with historical levels. Now let me focus on the expansion of our growth businesses. On carbon management, we recently commenced CO2 injection and achieved first revenue at California's first CCS project at Elk Hills. This places us on an esteemed list of commercial scale sequestration operators globally. We have demonstrated our ability to permit, construct, and operate an EPA Class 6 project. The startup showcases our operating, technical, and regulatory competencies. all of which can be applied and scaled across the state. We are tracking the CPUC's Reliable and Clean Power Procurement Program, or RCPPP, as a potential market for natural gas with CCS. Updates from the state are expected this fall. This could be meaningful for CRC as we're well positioned to support California's growing demand for reliable, lower carbon power. California has the potential to decarbonize approximately 17 gigawatts of power. For our CTV platform, this includes a near-term opportunity of approximately 2.4 gigawatts in the Central Valley. Using our Elk Hills Power Plant and adjacent infrastructure, we recently partnered with Beacon Data Centers, an energy-focused North American data center co-developer, to advance the Golden Valley Technology Hub. The proposed 275 megawatt campus would span 100 acres adjacent to Elk Hills and combine our proven permitting and operating experience in California with Beacon's data center expertise. With our co-developer partner funding early stage development, the project will leverage industrial acreage, existing infrastructure, and firm power from our Elk Hills plant to help meet rapidly growing demand for power and AI. The proposed behind-the-meter design is expected to minimize power and water usage. We have submitted the conditional use permit and expect the environmental review process to advance later this year. Our ongoing discussions with a handful of global hyperscale data center operators have accelerated and reinforced our confidence in the commercial viability of the Golden Valley Technology Hub. We look forward to reporting on our progress in the coming quarters. With that, I'll turn it over to Clio.