California Resources Corporation Achieves First CO₂ Injection at Carbon TerraVault I, a Major Milestone for Carbon Management in California
Rhea-AI Summary
California Resources (NYSE: CRC) achieved first CO₂ injection at Carbon TerraVault I (CTV I), located at Elk Hills Field in Kern County, marking California’s first operational carbon capture and storage project.
CTV I–26R can store up to 1.46 million metric tons of CO₂ annually, with 38 million metric tons total capacity. The site holds the state’s first final U.S. EPA Class VI permits and is part of a joint venture with Brookfield. California Resources has submitted eight additional CTV reservoirs for permitting, representing about 352 million metric tons of potential storage. The company also committed over $1 million to community benefits in Kern County and will form a Community Advisory Council in 2026.
AI-generated analysis. Not financial advice.
Positive
- First operational CCS project in California begins CO₂ injection
- CTV I–26R annual capacity of 1.46 million metric tons CO₂
- Total storage potential of 38 million metric tons at CTV I–26R
- Eight additional reservoirs representing 352 million metric tons submitted for permits
- Over $1 million committed to Kern County community benefits
- First reservoir in California with final U.S. EPA Class VI permits
Negative
- None.
News Market Reaction – CRC
On the day this news was published, CRC declined 1.29%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
CRC’s modest -0.35% move occurred as 3 peers in the momentum scanner (e.g., MGY, CHRD, SM) also traded down with a median move of -2.7%, and core peers showed mixed but generally weak performance.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 05 | Q1 2026 earnings | Positive | -12.4% | Raised 2026 adjusted EBITDAX guidance and capex with strong production. |
| Apr 06 | Earnings call notice | Neutral | -0.0% | Scheduled Q1 2026 results release and investor conference call logistics. |
| Mar 11 | Upsized note offering | Positive | -1.1% | Priced $350M 7.000% 2034 notes to redeem higher‑coupon 2029 notes. |
| Mar 11 | Debt offering launch | Positive | +1.9% | Announced additional 7.000% 2034 notes to refinance 8.250% 2029 notes. |
| Mar 02 | FY 2025 earnings | Positive | +4.5% | Reported strong 2025 growth, Berry merger impact, and 2026 guidance with CCS plans. |
Recent major earnings and balance sheet actions often saw meaningful price swings, with some positive fundamental updates followed by negative price reactions.
Over the past six months, CRC has focused on growth, balance sheet reshaping, and guidance upgrades. The company reported strong 2025 results with 25% production growth, $1,241M adjusted EBITDAX, and $543M free cash flow, then raised 2026 production and capital plans and flagged first CO₂ injection at Elk Hills. In 1Q26 it delivered 154 MBoe/d and lifted adjusted EBITDAX guidance midpoint to $1,450M, while also issuing and repricing senior notes. Today’s CCS first-injection news reflects execution on that previously signaled decarbonization project.
Market Pulse Summary
This announcement marks CRC’s first CO₂ injection at Carbon TerraVault I at Elk Hills, establishing California’s first operational CCS project. With up to 1.46 million metric tons of annual storage and 38 million metric tons of total capacity at CTV I – 26R, plus eight additional reservoirs representing about 352 million metric tons, the company is building a sizable carbon management platform. Investors may monitor permitting progress, utilization levels, capital commitments, and how these CCS assets complement the core oil and gas portfolio.
Key Terms
carbon capture and storage (CCS) technical
cryogenic gas plant technical
depleted oil and natural gas reservoir technical
carbon capture, utilization, and storage technical
Class VI permits regulatory
AI-generated analysis. Not financial advice.
Project Paves the Way for a Carbon Capture Industry in the Golden State
KERN COUNTY, Calif., May 26, 2026 (GLOBE NEWSWIRE) -- California Resources Corporation (NYSE: CRC) has achieved the first landmark carbon dioxide (CO2) injection at Carbon TerraVault I (CTV I), a first-of-its-kind carbon capture and storage (CCS) project that will help advance California’s progress toward carbon neutrality.
Located at CRC’s Elk Hills Field in Kern County, CTV I is California’s first operational CCS project, establishing a market for storing CO₂ from industrial sources and placing CRC among a small group of operators globally that have advanced CCS projects from concept to operation. The project sources CO₂ from CRC’s cryogenic gas plant and leverages existing infrastructure at a depleted oil and natural gas reservoir designed to safely and permanently store captured CO₂ more than one mile underground.
“First injection at CTV I demonstrates that California can lead on climate solutions that are practical, scalable and cost-effective,” said CRC President and CEO Francisco Leon. “This project reflects years of technical work, rigorous regulatory review, and collaboration with state and federal agencies to deliver real emissions reductions while strengthening California’s energy resilience.”
CTV I is composed of two depleted oil and natural gas reservoirs – “26R” and “A1-A2”. At its maximum capacity, CTV I – 26R will be capable of storing up to 1.46 million metric tons of CO₂ annually – equivalent to taking nearly 350,000 cars off the road each year – with total storage potential of 38 million metric tons.
“The Golden State is building the full suite of tools needed to meet our climate goals, and Carbon TerraVault I is proof that innovation and ambition are the California way,” said California Governor Gavin Newsom. “This first-of-its-kind project in Kern County will permanently store carbon pollution underground for the first time in California's history. These are the kind of climate solutions that spur the industries and infrastructure needed to power a cleaner future and create good-paying jobs right here in our communities.”
As part of the CTV I Community Benefits Plan, CRC committed over
CTV I – 26R, part of the Carbon TerraVault Joint Venture between CRC and Brookfield, is the first reservoir in California to receive final Class VI permits from the U.S. Environmental Protection Agency (EPA).
“Carbon capture, utilization, and storage is a critical piece of California’s climate solutions puzzle and an important tool we’re counting on to help achieve carbon neutrality,” said California Air Resources Board Chair Lauren Sanchez. "Reaching our climate goals requires both reducing and sequestering emissions, and this milestone demonstrates how we’re moving every viable solution forward to get there.”
Beyond CTV I – 26R, CRC has submitted eight additional CTV storage reservoirs for U.S. EPA Class VI permitting, representing approximately 352 million metric tons of total potential CO₂ storage capacity that will be built around California in the years ahead.
“The first CO₂ injection at CTV I marks an exciting milestone for carbon management in California,” said Craig Frenette, Senior Vice President at Brookfield. “It represents the start of a scalable new chapter for climate solutions, with significant opportunity for growth for CTV. We’re proud to be part of a project helping lay the foundation for long-term impact.”
Chris Gould, Managing Director of CTV, said the project made use of a known reservoir that stored hydrocarbons for millions of years. “First injection at CTV I is the result of years of dedication from our CTV team, capturing and permanently storing CO₂ from our operations. It demonstrates our ability to safely deliver complex, first-of-its-kind projects that reduce CRC’s net operational emissions and lowering the carbon intensity of the power we deliver to Californians.”
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.
About Carbon TerraVault
Carbon TerraVault (CTV), CRC’s carbon management business, develops services to capture, transport and permanently store CO2 for its customers. CTV is advancing a portfolio of CCS projects, including CTV I, which is now operational and injecting CO₂ for permanent sequestration in a depleted reservoir deep underground. 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 CRC and Brookfield to develop both infrastructure and storage assets required for CCS development in California. CRC owns
About Brookfield
Brookfield Asset Management is a leading global alternative asset manager, headquartered in New York, with over
For more information, please visit our website at www.brookfield.com.
Forward-Looking Statements
This document contains statements that CRC believes to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical facts are forward-looking statements, and include statements regarding CRC's future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and plans and objectives 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 subject to risks and uncertainties that could cause actual results to differ materially from those expressed 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 Securities and Exchange Commission. These factors include, but are not limited to: government policy, war and political conditions and events; integration efforts and projected benefits in connection with 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 prevent oil and gas activities or the development of CRC’s carbon management segment; the ability to grow and develop its carbon management business and achieve projected injection and storage rates; changes in business strategy and capital plan; 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; 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 filing date, and CRC undertakes no obligation to update this information. This document 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.
Contact:
Hailey Bonus
CRC Media
714-874-7732
CRC.Communications@crc.com
Daniel Juck
CRC Investor Relations
818-661-3700
CRC_IR@crc.com
