California Resources CorpCRC

California Resources Corp Segments Disclosure

10-KFiled Mar 2, 20266 min read
SEGMENT INFORMATION
We conduct our business primarily through two reportable segments: (1) oil and natural gas exploration and production and (2) carbon management. We identified these segments based on the nature of their activities, the types of products sold and services to be provided. Our oil and natural gas segment explores for, develops, and produces oil and condensate, natural gas liquids and natural gas. Our carbon management segment, that we refer to as Carbon TerraVault, is expected to build, install, operate and maintain CO2 capture equipment, transportation assets and storage facilities. Our oil and natural gas segment operates assets located in California and Utah. Our carbon management segment operates exclusively in California.

Our chief operating decision maker (CODM), the Chief Executive Officer, uses segment profit or loss to assess the performance of each business, as well as our overall performance, and to make decisions about resources to be allocated to each segment, including capital investments.

The following tables provide segment profit or loss and reconciliations to consolidated income before income taxes for the years ended December 31, 2025, 2024, and 2023. The consolidation and elimination entries necessary to arrive at our consolidated financial information is presented separately.

Year ended December 31, 2025
Oil and Natural GasCarbon Management
Total Reportable Segments
Elimination
Total
(in millions)
Oil, natural gas and natural gas liquids sales
$2,957 $— $2,957 $(47)$2,910 
Other revenue
10 — 10 — 10 
Segment operating revenues
2,967 — 2,967 
Other revenues and income(a)
749 749 
Total operating revenues
$3,669 
(a)Other revenues and income includes net gain from commodity derivatives, revenue from marketing of purchased commodities, electricity sales and unallocated interest and other revenue.
Year ended December 31, 2025
Oil and Natural GasCarbon Management
Total Reportable Segments
Reconciliation (Income)/Expense
Total
(in millions)
Segment operating revenues
$2,967 $— $2,967 $2,967 
Less:
Operating costs:
Energy operating costs405 — 405 (31)374 
Gas processing costs19 — 19 — 19 
Non-energy operating costs856 — 856 3 859 
General and administrative expenses43 13 56 277 333 
Depreciation, depletion and amortization
492 — 492 19 511 
Taxes other than on income
203 — 203 39 242 
Interest and debt expense, net
— 11 11 95 106 
Equity loss (income) from unconsolidated subsidiaries
— 6 6 (2)4 
Other segment expenses(a)
261 56 317 — 317 
Segment profit or (loss)
$688 $(86)$602 
Other profit or loss(b)
(204)(204)
Unallocated amounts(c)
(96)(96)
Income before income taxes
$502 
(a)Other segment expenses for our oil and natural gas segment include transportation costs, accretion expense, asset impairment and other operating expenses, net. Other segment expenses for our carbon management segment primarily includes operating lease costs and asset impairment.
(b)Other profit or loss includes the margin we earn from marketing activities and the margin we earn on sales of electricity from our Elk Hills power plant to customers.
(c)Unallocated amounts include net gain from commodity derivatives, net loss on natural gas purchase derivatives, transportation costs, other operating expenses, net, interest income, unallocated other revenue, and other non-operating income.

Year ended December 31, 2024
Oil and Natural GasCarbon Management
Total Reportable Segments
Elimination
Total
(in millions)
Oil, natural gas and natural gas liquids sales
$2,565 $— $2,565 $(28)$2,537 
Other revenue
7 — 7 — 7 
Segment operating revenues
2,572 — 2,572 
Other revenues and income(a)
654 654 
Total operating revenue
$3,198 
(a)Other revenues and income includes net gain from commodity derivatives, revenue from marketing of purchased commodities, electricity sales and unallocated interest and other revenue.
Year ended December 31, 2024
Oil and Natural GasCarbon Management
Total Reportable Segments
Reconciliation (Income)/Expense
Total
(in millions)
Segment operating revenues
$2,572 $— $2,572 $2,572 
Less:
Operating costs:
Energy operating costs296 — 296 (17)279 
Gas processing costs16 — 16 — 16 
Non-energy operating costs671 — 671 — 671 
General and administrative expenses43 15 58 263 321 
Depreciation, depletion and amortization
354 — 354 34 388 
Taxes other than on income
207 — 207 35 242 
Interest and debt expense, net
— 9 9 78 87 
Equity loss (income) from unconsolidated subsidiaries
— 12 12 (2)10 
Other segment expenses(a)
170 58 228 — 228 
Segment profit or (loss)
$815 $(94)$721 
Other profit or loss(b)
(133)(133)
Unallocated amounts(c)
(53)(53)
Income before income taxes
$516 
(a)Amounts for our oil and natural gas segment include transportation costs, accretion expense, asset impairment, and other operating expenses, net and gain on asset divestitures. Amounts for our carbon management segment primarily include operating lease costs.
(b)Other profit or loss includes margin from purchased commodities and the margin we earn on sales of electricity from our Elk Hills power plant to customers.
(c)Unallocated amounts include net gain from commodity derivatives, net loss on natural gas purchase derivatives, transportation costs, other operating expenses, net, other non-operating loss, interest income, unallocated other revenue and loss on early extinguishment of debt, and gain on asset divestiture.

Year ended December 31, 2023
Oil and Natural GasCarbon Management
Total Reportable Segments
Elimination
Total
(in millions)
Oil, natural gas and natural gas liquids sales
$2,041 $— $2,041 $— $2,041 
Other revenue
17 — 17 — 17 
Intersegment revenue
114 — 114 — 114 
Segment operating revenues
2,172 — 2,172 2,172 
Other revenues and income(a)
629 629 
Total operating revenues
$2,801 
(a)Other revenues and income includes net loss from commodity derivatives, revenue from marketing of purchased commodities, electricity sales and unallocated interest and other revenue.
Year ended December 31, 2023
Oil and Natural GasCarbon Management
Total Reportable Segments
Reconciliation (Income)/Expense
Total
(in millions)
Segment operating revenues
$2,172 $— $2,172 $2,172 
Less:
Operating costs:
Energy operating costs323 — 323 — 323 
Gas processing costs18 — 18 — 18 
Non-energy operating costs481 — 481 — 481 
General and administrative expenses42 12 54 213 267 
Depreciation, depletion and amortization
205 — 205 20 225 
Taxes other than on income
114 — 114 51 165 
Interest and debt expense, net
— 5 5 51 56 
Equity loss from unconsolidated subsidiary
— 9 9 — 9 
Other segment expenses(a)
67 40 107 — 107 
Segment profit or (loss)
$922 $(66)$856 
Other profit or loss(b)
(291)(291)
Unallocated amounts(c)
64 64 
Income before income taxes
$748 
(a)Amounts for our oil and natural gas segment include transportation costs, accretion expense, other operating expenses and gain on asset divestitures. Amounts for our carbon management segment primarily include operating lease costs.
(b)Other profit or loss includes margin from purchased commodities and the margin we earn on sale of electricity from our Elk Hills power plant to customers.
(c)Unallocated amounts include net loss from commodity derivatives, net loss on natural gas purchase derivatives, transportation costs, other operating expenses, net, other non-operating income, interest income, unallocated other revenue and loss on early extinguishment of debt.

Total assets by segment is not provided to our CODM for decision-making; however, we regularly provide capital investment by segment to our CODM. The table below presents capital by segment with a reconciliation to our consolidated capital investment for the years ended December 31, 2025, 2024 and 2023. See Note 4 Investments and Related Party Transactions for information on our investment in the Carbon TerraVault JV, which is part of our carbon management segment. See Note 13 Leases for information leases we have entered into for our carbon management business. Included in our oil and gas segment is $659 million of oil and gas property, inclusive of C&J Well Services, we acquired in the Berry Merger and $3 billion of oil and gas property acquired in the Aera Merger. Refer to Note 2 Business Combinations for additional information on these transactions.

Oil and Natural Gas
Carbon Management
Corporate and Other
Consolidated
(in millions)
Year ended December 31, 2025
$276 $33 $13 $322 
Year ended December 31, 2024
$234 $12 $9 $255 
Year ended December 31, 2023
$153 $5 $27 $185 

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Mar 3, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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