Carbon TerraVault Provides 2025 Update
MWN-AI** Summary
On March 2, 2026, Carbon TerraVault Holdings, LLC (CTV), a subsidiary of California Resources Corporation (NYSE: CRC), announced significant progress and financial updates for 2025. The company is advancing towards the commencement of its first CO2 injection at the Elk Hills site, marking a pioneering carbon capture and storage (CCS) initiative in California. CTV's President and CEO, Francisco Leon, emphasized the company's transition from concept to active execution, highlighting efforts in project de-risking and strengthening partnerships to promote innovative energy solutions in the state.
Key accomplishments in 2025 included the completion of carbon capture equipment at the Elk Hills Cryogenic Gas Plant and the ongoing commissioning of the facility, with plans for initial CO2 injection at the CTV I 26R storage site in spring 2026, pending EPA approval. CTV secured MOUs totaling 6.8 million metric tons per annum (MMTPA) with major industrial and power partners, showcasing its position as a scalable voluntary carbon capture platform.
Looking ahead, CTV submitted a CO2 storage application to the EPA requesting approval for 27 million metric tons, increasing its total proposed storage capacity to 352 million metric tons. This aligns with the company’s outlook for continuous capital investments projected between $12 million and $20 million in 2026 to facilitate further development.
Financially, Carbon Management Business (CMB) reported a total operating expense of $54 million against revenues, indicating a strategic focus on long-term growth despite short-term financial losses. The guidance for Q1 and full-year 2026 anticipates adjusted EBITDAX results reflecting ongoing investments in the carbon management initiative. CTV aims to solidify its status as a key player in helping California achieve its ambitious climate goals through innovative carbon solutions.
MWN-AI** Analysis
Carbon TerraVault Holdings, LLC (CTV), a subsidiary of California Resources Corporation (NYSE: CRC), is poised for a transformative year as it approaches the inaugural CO2 injection at its Elk Hills project. Investors should take note of several crucial developments outlined in the 2025 update, which indicate CTV's concerted efforts to solidify its standing as a leader in the carbon capture and storage (CCS) industry.
Heading into 2026, CTV's ambition is tied closely to regulatory approvals, specifically the anticipated receipt of multiple EPA Class VI permits, which are critical for advancing their carbon management platform. The completion of the Elk Hills Cryogenic Gas Plant and the anticipated injection at the CTV I-26R storage reservoir are significant milestones that signal project readiness and operational momentum. The establishment of memoranda of understanding (MOUs) for 6.8 million metric tons per annum with major industrial partners demonstrates robust market interest and paves the way for stable cash flows in the long term.
While adjusted EBITDAX figures indicate a challenging year with negative returns, the projections for capital investments between $12 million and $20 million suggest a commitment to growth and infrastructure development. This is vital for de-risking future projects and enhancing overall shareholder value.
Given California's aggressive climate goals, CTV's initiatives align well with state and federal objectives for emissions reduction. For investor consideration, the stock presents potential upside as CTV successfully executes its strategic plan, commences CO2 injection, and expands its partnership ecosystem. However, market participants should remain attentive to regulatory risks and operational challenges that could influence timelines or financial outcomes.
Overall, for investors interested in the sustainability sector, CTV's progress marks a critical period for investment consideration, balancing potential rewards against inherent industry risks.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
LONG BEACH, Calif., March 02, 2026 (GLOBE NEWSWIRE) -- Carbon TerraVault Holdings, LLC (CTV), a carbon management subsidiary of California Resources Corporation (NYSE: CRC), today provided a 2025 update on its operating and financial results.
“Over the last year, Carbon TerraVault moved from concept to project execution and will soon commence first CO2 injection at Elk Hills – a first-of-its-kind project in California. CTV continues to build upon its leading carbon management platform, prioritizing project de-risking and partner alignment to advance innovative energy solutions in California,” said Francisco Leon, CRC's President and Chief Executive Officer. “As we enter 2026, we are focused on delivering first injection at CTV I-26R, advancing subsequent EPA Class VI permits in queue and converting our commercial pipeline into projects that will have the potential to drive high-quality, stable cash flows and provide future business diversification. CTV is emerging as the premier carbon management platform essential to helping California achieve its ambitious climate goals.”
2025 Highlights
- Completed construction of carbon capture equipment at the Elk Hills Cryogenic Gas Plant for California’s first carbon capture and storage (CCS) project; Currently commissioning the facility and targeting first CO? injection at the nearby CTV I 26R storage reservoir in spring 2026, subject to EPA approval
- Signed memoranda of understanding1 (MOUs) for a combined total of 6.8 million metric tons per annum (MMTPA) with major industrial and power partners to deliver innovative, reliable, and economically viable energy transition solutions
- Positioned Carbon TerraVault as a scalable voluntary carbon capture and carbon credit platform by delivering measurable year-one emissions reductions through its partnership with the Los Angeles Rams
- Engaged in multiple customer discussions to supply power from the Elk Hills Power Plant, including pathways to integrate CTV’s carbon dioxide (CO?) storage reservoirs and CRC’s power partner ecosystem to deliver a scaled, decarbonized energy solution
2026 Outlook and Highlights
- Submitted a CO2 storage application to the Environmental Protection Agency (EPA) for 27 million metric tons (MMT); total CO? storage capacity submitted to Environmental Protection Agency (EPA) for review is now 352 MMT
- Anticipating the receipt of several draft EPA Class VI permits to CTV for CO2 injection and storage in California, further advancing and de-risking a domestically leading carbon management platform
- Expecting 2026 capital investments of $12 - $20 million
Carbon Management Business (CMB) Fourth Quarter and Total Year 2025 Results
| Selected Financial Statement Data and non-GAAP measures: | 4th Quarter | 3rd Quarter | Total Year | Total Year | ||||||||||||||||
| ($ in millions) | 2025 | 2025 | 2025 | 2024 | ||||||||||||||||
| Selected Expenses | ||||||||||||||||||||
| Other operating expenses, net2 | $ | 12 | $ | 10 | $ | 54 | $ | 56 | ||||||||||||
| General and administrative expenses | $ | 3 | $ | 4 | $ | 13 | $ | 15 | ||||||||||||
| Capital and Non-GAAP Measures | ||||||||||||||||||||
| Capital investments | $ | 11 | $ | 15 | $ | 33 | $ | 12 | ||||||||||||
| Adjusted EBITDAX3 | $ | 42 | $ | (14 | ) | $ | (10 | ) | $ | (78 | ) | |||||||||
Guidance
The following table provides key CMB first quarter and full year 2026 financial and operating guidance.
| CRC Guidance ($ in millions) | 1Q26E | Total Year 2026E | |
| Capital | $12 - $16 | $12 - $20 | |
| Other operating expenses, net2 | $2 - $10 | $25 - $35 | |
| General and administrative expenses | $2 - $4 | $6 - $12 | |
| Adjusted EBITDAX3 | $(10) - $(5) | $(50) - $(10) | |
1 An MOU is a non-binding agreement. The projects and transactions described in an MOU are subject to certain conditions precedent, typically including the negotiation of definitive documents, a final investment decision by the parties and receipt of EPA Class VI permits and other regulatory approvals.
2 Other operating expenses, net includes lease cost for sequestration easements, advocacy, and other startup related costs.
3 See Attachment 3 of CRC's 4Q25 earnings release for the non-GAAP financial measure of adjusted EBITDAX, including a reconciliation to its most directly comparable GAAP measure. See Attachment 2 of CRC's 4Q25 earnings release for the 1Q26 and full year 2026 estimates of the non-GAAP measure of adjusted EBITDAX, including a reconciliation to its most directly comparable GAAP measure.
About Carbon TerraVault
Carbon TerraVault (CTV), CRC’s carbon management business, is developing services to capture, transport and permanently store CO2 for its customers. CTV is engaged in a series of proposed CCS projects to inject CO2 captured from industrial sources into depleted reservoirs deep underground for permanent sequestration. For more information, visit carbonterravault.com.
About Carbon TerraVault Joint Venture
Carbon TerraVault Joint Venture (CTV JV) is a carbon management partnership focused on CCS development formed between Carbon TerraVault I, LLC, a subsidiary of CRC, and Brookfield, to develop both infrastructure and storage assets required for CCS development in California. CRC owns 51% of CTV JV with Brookfield owning the remaining 49% interest.
About California Resources Corporation
California Resources Corporation (CRC) is an independent energy and carbon management company advancing the energy transition. CRC is committed to environmental stewardship while safely providing local, responsibly sourced energy. CRC is also focused on maximizing the value of its land, mineral ownership, and energy expertise for decarbonization by developing CCS and other emissions reducing projects. For more information about CRC, please visit www.crc.com.
Forward-Looking Statements
Information set forth in this communication, including financial estimates and statements as to the effects of the Berry Merger, constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other securities laws. All statements other than historical facts are forward-looking statements, and include statements regarding the benefits of the Berry Merger, CRC's future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and plans and objectives and intentions of management for the future. Words such as “expect,” “could,” “may,” “anticipate,” “intend,” “plan,” “ability,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “guidance,” “outlook,” “opportunity” or “strategy” or similar expressions are generally intended to identify forward-looking statements. These forward-looking statements are based upon the current beliefs and expectations of the management of CRC and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, projected in, or implied by, such statements.
Although CRC believes the expectations and forecasts reflected in its forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond its control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause CRC’s actual results to be materially different than those expressed in its forward-looking statements are described in its most recent Annual Report on Form 10-K and its other periodic filings with the SEC. These factors include, but are not limited to: fluctuations in commodity prices; production levels and/or pricing by OPEC, OPEC+ or U.S. producers; government policy, war and political conditions and events; integration efforts and projected synergies and other benefits in connection with the Berry Merger and other acquisitions; divestitures and joint ventures; regulatory actions and changes that affect the oil and gas industry generally and us in particular; the efforts of activists to delay or prevent oil and gas activities or the development of CRC’s carbon management segment; changes in business strategy and the ability and financial resources to execute our capital plan in a timely manner; lower-than-expected production; changes to estimates of reserves and related future cash flows; the recoverability of resources and unexpected geologic conditions; general economic conditions and trends; results from operations and competition in the industries in which it operates; CRC’s ability to realize the anticipated benefits from prior or future efforts to reduce costs; environmental risks and liability; the benefits contemplated by its energy transition strategies and initiatives; CRC’s ability to successfully identify, develop and finance carbon capture and storage projects, power projects and other renewable energy efforts; delays from government approvals and otherwise that could affect the timing of first injection of CO2; future dividends and share repurchases and de-leveraging efforts; and natural disasters, accidents, mechanical failures, power outages, labor difficulties, cybersecurity breaches or attacks or other catastrophic events.
CRC cautions you not to place undue reliance on forward-looking statements contained in this document, which speak only as of the date hereof, and CRC is under no obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise. This communication may also contain information from third-party sources. This data may involve a number of assumptions and limitations, and CRC has not independently verified them and does not warrant the accuracy or completeness of such third-party information.
Contacts:
| Daniel Juck (Investor Relations) 818-661-3700 CRC_IR@crc.com | Hailey Bonus (Media) 714-874-7732 CRC.Communications@crc.com |
FAQ**
How does California Resources Corporation (CRC) plan to manage risks associated with regulatory approvals while executing its first CO2 injection at the Elk Hills project?
What strategies is California Resources Corporation (CRC) employing to ensure financial stability and cash flow generation during the initial phases of its carbon management initiatives?
How significant are the signed MOUs for 6.8 million metric tons per annum to California Resources Corporation (CRC)'s overall business model and future revenue projections?
What metrics will California Resources Corporation (CRC) use to measure the success of its carbon capture and storage projects in achieving California's climate goals?
**MWN-AI FAQ is based on asking OpenAI questions about California Resources Corporation (NYSE: CRC).
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