CONDENSED CONSOLIDATING FINANCIAL INFORMATION

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

We have designated certain of our subsidiaries as Unrestricted Subsidiaries under the indenture governing our 2026 Senior Notes (2026 Senior Notes Indenture) and 2029 Senior Notes (2029 Senior Notes Indenture). Unrestricted Subsidiaries (as defined in the 2026 Senior Notes Indenture and 2029 Senior Notes Indenture) are subject to fewer restrictions under the indentures. We are required under the 2026 Senior Notes Indenture and 2029 Senior Notes Indenture to present the financial condition and results of operations of CRC and its Restricted Subsidiaries (as defined in the 2026 Senior Notes Indenture and 2029 Senior Notes Indenture) separate from the financial condition and results of operations of its Unrestricted Subsidiaries. The following condensed consolidating balance sheets as of September 30, 2024 and December 31, 2023 and the condensed consolidating statements of operations for the three and nine months ended September 30, 2024 and 2023, as applicable, reflect the condensed consolidating financial information of CRC (Parent), our combined Unrestricted Subsidiaries, our combined Restricted Subsidiaries and the elimination entries necessary to arrive at the information for the Company on a consolidated basis. The financial information may not necessarily be indicative of the financial condition and results of operations had the Unrestricted Subsidiaries operated as independent entities.

Condensed Consolidating Balance Sheets

As of September 30, 2024 and December 31, 2023


	As of September 30, 2024
	Parent		Combined Unrestricted Subsidiaries		Combined Restricted Subsidiaries		Eliminations		Consolidated

	(in millions)
Total current assets	$	251	$	46	$	575	$	—	$	872
Total property, plant and equipment, net	12		24		5,800		—		5,836
Investments in consolidated subsidiaries	5,031		(27)		14,638		(19,642)		—
Deferred tax asset	50		—		—		—		50
Investment in unconsolidated subsidiaries	—		29		55		—		84
Other assets	19		51		216		—		286
TOTAL ASSETS	$	5,363	$	123	$	21,284	$	(19,642)	$	7,128

Total current liabilities	125		15		757		—		897
Long-term debt	1,131		—		—		—		1,131
Asset retirement obligations	—		—		1,083		—		1,083
Other long-term liabilities	72		130		190		—		392
Deferred tax liability	124		—		—		—		124
Amounts due to (from) affiliates	410		19		(429)		—		—
Total equity	3,501		(41)		19,683		(19,642)		3,501
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	5,363	$	123	$	21,284	$	(19,642)	$	7,128


	As of December 31, 2023
	Parent		Combined Unrestricted Subsidiaries		Combined Restricted Subsidiaries		Eliminations		Consolidated

	(in millions)
Total current assets	$	511	$	20	$	398	$	—	$	929
Total property, plant and equipment, net	14		12		2,744		—		2,770
Investments in consolidated subsidiaries	2,311		(11)		1,347		(3,647)		—
Deferred tax asset	132		—		—		—		132
Investment in unconsolidated subsidiary	—		19		—		—		19
Other assets	12		36		100		—		148
TOTAL ASSETS	$	2,980	$	76	$	4,589	$	(3,647)	$	3,998

Total current liabilities	142		13		461		—		616
Long-term debt	540		—		—		—		540
Asset retirement obligations	—		—		422		—		422
Other long-term liabilities	79		73		49		—		201

Total equity	2,219		(10)		3,657		(3,647)		2,219
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,980	$	76	$	4,589	$	(3,647)	$	3,998

Condensed Consolidating Statement of Operations

For the three and nine months ended September 30, 2024 and 2023


	Three months ended September 30, 2024
	Parent		Combined Unrestricted Subsidiaries		Combined Restricted Subsidiaries		Eliminations		Consolidated

	(in millions)
Total operating revenues	$	2	$	—	$	1,437	$	(86)	$	1,353
Total costs and other	86		16		818		(85)		835

Non-operating (loss) income	(32)		(5)		2		—		(35)
(LOSS) INCOME BEFORE INCOME TAXES	(116)		(21)		621		(1)		483
Income tax provision	(138)		—		—		—		(138)
NET (LOSS) INCOME	$	(254)	$	(21)	$	621	$	(1)	$	345


	Three months ended September 30, 2023
	Parent		Combined Unrestricted Subsidiaries		Combined Restricted Subsidiaries		Eliminations		Consolidated

	(in millions)
Total operating revenues	$	6	$	—	$	454	$	—	$	460
Total costs and other	66		12		397		—		475

Non-operating (loss) income	(12)		(4)		1		—		(15)
(LOSS) INCOME BEFORE INCOME TAXES	(72)		(16)		58		—		(30)
Income tax benefit	8		—		—		—		8
NET (LOSS) INCOME	$	(64)	$	(16)	$	58	$	—	$	(22)


	Nine months ended September 30, 2024
	Parent		Combined Unrestricted Subsidiaries		Combined Restricted Subsidiaries		Eliminations		Consolidated

	(in millions)
Total operating revenues	$	15	$	—	$	2,407	$	(101)	$	2,321
Total costs and other	222		44		1,611		(101)		1,776
Gain on asset divestitures	—		—		7		—		7
Non-operating (loss) income	(66)		(16)		5		—		(77)
(LOSS) INCOME BEFORE INCOME TAXES	(273)		(60)		808		—		475
Income tax provision	(132)		—		—		—		(132)
NET (LOSS) INCOME	$	(405)	$	(60)	$	808	$	—	$	343


	Nine months ended September 30, 2023
	Parent		Combined Unrestricted Subsidiaries		Combined Restricted Subsidiaries		Eliminations		Consolidated

	(in millions)
Total operating revenues	$	14	$	—	$	2,061	$	—	$	2,075
Total costs and other	177		31		1,349		—		1,557
Gain on asset divestitures	—		—		7		—		7
Non-operating (loss) income	(39)		(9)		4		—		(44)
(LOSS) INCOME BEFORE INCOME TAXES	(202)		(40)		723		—		481
Income tax provision	(105)		—		—		—		(105)
NET (LOSS) INCOME	$	(307)	$	(40)	$	723	$	—	$	376