California Resources Corporation Expands Integrated California Energy Infrastructure Platform Through Strategic Midstream Acquisition

Planned Transaction Strengthens Statewide Market Access Through Expanded Pipeline and Storage Infrastructure

LONG BEACH, Calif., Aug. 10, 2026 (GLOBE NEWSWIRE) -- California Resources Corporation (NYSE: CRC) today announced an agreement to acquire Crimson Midstream Holdings, LLC (“Crimson”) from CorEnergy Infrastructure Trust, Inc. for total cash consideration of $63 million, subject to certain customary adjustments. Supplemental slides with additional details have been posted to CRC’s website at www.crc.com.

“This transaction further strengthens CRC’s position as California’s leading integrated infrastructure energy platform,” said Francisco Leon, President and Chief Executive Officer of CRC. “This diversified midstream network will enhance our ability to efficiently deliver California-produced barrels directly to the highest-value markets, while increasing operating flexibility and flow assurance across our portfolio. Importantly, these strategic, difficult-to-replicate assets further strengthen our California focused strategy and support durable long-term value creation.”

The planned acquisition includes approximately 2,000 miles of California pipeline infrastructure with combined transportation capacity of up to approximately 400 thousand barrels per day, including the SoCal Pipeline Network, IVEC Line, San Pablo Bay Pipeline, KLM Pipeline and other strategic assets.

Transaction Highlights:

• Attractively priced and accretive to key financial metrics - At approximately 4.4x enterprise value / 2027E adjusted EBITDA¹, the transaction represents an attractive valuation relative to recent midstream infrastructure transactions while adding strategic, difficult-to-replicate California infrastructure corridors
  

• Strengthens CRC’s integrated California energy infrastructure platform - The acquisition enhances CRC’s ability to safely and efficiently transport crude oil across California, improves connectivity to key markets and increases operating flexibility, flow assurance and third-party transportation opportunities. The assets also support the reliable delivery of its locally produced, lower-carbon-intensity barrels across the state
  

• Benefits California producers and the state – Provides Central Valley producers, including independents, with reliable access to the highest-value markets and increased transportation optionality, reducing exposure to constrained outlets and pricing discounts while supporting California jobs, royalty revenues and the reliable delivery of locally produced energy
  
  

The transaction, which is subject to customary regulatory approvals, is expected to close in the third quarter of 2026. Following the closing of the transaction, CRC expects to provide additional financial and operating guidance.

Advisors

Jefferies LLC served as financial advisor to CRC. Evercore served as financial advisor to CorEnergy Infrastructure Trust, Inc.

¹ Represents a non-GAAP measure. For all historical non-GAAP financial measures please see the Earning Releases or Investor Relations pages at www.crc.com and www.crimsonmidstream.com for a reconciliation to the nearest GAAP equivalent and other additional information. Estimated 2027 adjusted EBITDA is based on CRC’s projections for Crimson and (1) assumes the acquired pipeline systems continue to operate at current levels (except for the San Pablo Bay pipeline where an increase in throughput is projected for 2027), (2) assumes transportation rates consistent with existing tariffs (including contemplated increases, a portion of which are interim until rate case settlement), (3) includes payments made by CRC as a shipper on certain of the acquired pipelines, and (4) does not include any material capital expenditures for that period. CRC has not included a reconciliation of this non-GAAP measure to its nearest GAAP equivalent because it cannot do so without unreasonable effort and any attempt to do so would be inherently imprecise.

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 crc.com.

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.

Forward-Looking Statements

Information set forth in this communication, including financial estimates and statements as to the effects of the Crimson acquisition, 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 Crimson acquisition, 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 Crimson acquisition 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; 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: