CRC's carbon capture starts up and a pipeline deal closes
Carbon capture project starts making money Carbon TerraVault I began injecting CO2 and earned its first revenue, a first for California. It's a small start (about $1 million in quarterly revenue and still losing money), but it proves CRC's new carbon storage business is real and could grow into a future profit source.
This is a brand-new milestone that changes how investors value CRC's carbon business.
Crimson pipeline purchase completed CRC closed its roughly $63 million all-cash purchase of Crimson Midstream, adding about 2,000 miles of California crude pipelines. Owning these lines lets CRC move its oil to better-paying buyers and supports future CO2 transport, which should lift sales prices and profits over time.
The deal closing is a new event that directly improves CRC's ability to sell oil at higher prices.
Consumer group attacks carbon capture A Consumer Watchdog report called California's carbon capture push a bad deal for the public and named CRC as the industry's poster child. It questions whether the technology works and whether it deserves public support, creating political and regulatory risk for CRC's carbon business.
This is a new counterweight that could slow or complicate CRC's carbon capture plans.
Strong Q2 results and cost savings CRC beat expectations with $338 million in adjusted EBITDAX and $151 million in free cash flow, hit its Berry synergy target six months early (about $103 million in annual savings), and cut planned 2026 drilling spending by $10 million. These results show the business is generating solid cash and running more efficiently.
The earnings beat and cost cuts are new financial results that support the stock's value.