CONDENSED CONSOLIDATING FINANCIAL INFORMATION

6 Months Ended

Jun. 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 June 30, 2024 and December 31, 2023 and the condensed consolidating statements of operations for the three and six months ended June 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 June 30, 2024 and December 31, 2023


	As of June 30, 2024
	Parent		Combined Unrestricted Subsidiaries		Combined Restricted Subsidiaries		Eliminations		Consolidated
	(in millions)
Total current assets	$	1,055	$	61	$	323	$	—	$	1,439
Total property, plant and equipment, net	13		21		2,739		—		2,773
Investments in consolidated subsidiaries	2,461		(28)		1,361		(3,794)		—
Deferred tax asset	139		—		—		—		139
Investment in unconsolidated subsidiary	—		17		—		—		17
Other assets	14		49		59		—		122
TOTAL ASSETS	$	3,682	$	120	$	4,482	$	(3,794)	$	4,490

Total current liabilities	117		15		461		—		$	593
Long-term debt	1,161		—		—		—		1,161
Asset retirement obligations	—		—		436		—		436
Other long-term liabilities	72		126		50		—		248
Amounts due to (from) affiliates	280		44		(324)		—		—
Total equity	2,052		(65)		3,859		(3,794)		2,052
TOTAL LIABILITIES AND EQUITY	$	3,682	$	120	$	4,482	$	(3,794)	$	4,490


	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 EQUITY	$	2,980	$	76	$	4,589	$	(3,647)	$	3,998

Condensed Consolidating Statement of Operations

For the three and six months ended June 30, 2024 and 2023


	Three months ended June 30, 2024
	Parent		Combined Unrestricted Subsidiaries		Combined Restricted Subsidiaries		Eliminations		Consolidated
	(in millions)
Total operating revenues	$	7	$	—	$	513	$	(6)	$	514
Total costs and other	77		18		388		(6)		477
Gain on asset divestitures	—		—		1		—		1
Non-operating income (loss)	(21)		(7)		1		—		(27)
INCOME (LOSS) BEFORE INCOME TAXES	(91)		(25)		127		—		11
Income tax benefit	(3)		—		—		—		(3)
NET INCOME (LOSS)	$	(94)	$	(25)	$	127	$	—	$	8


	Three months ended June 30, 2023
	Parent		Combined Unrestricted Subsidiaries		Combined Restricted Subsidiaries		Eliminations		Consolidated
	(in millions)
Total operating revenues	$	5	$	—	$	586	$	—	$	591
Total costs and other	62		11		371		—		444

Non-operating (loss) income	(11)		(2)		1		—		(12)
(LOSS) INCOME BEFORE INCOME TAXES	(68)		(13)		216		—		135
Income tax provision	(38)		—		—		—		(38)
NET (LOSS) INCOME	$	(106)	$	(13)	$	216	$	—	$	97


	Six months ended June 30, 2024
	Parent		Combined Unrestricted Subsidiaries		Combined Restricted Subsidiaries		Eliminations		Consolidated
	(in millions)
Total operating revenues	$	13	$	—	$	971	$	(16)	$	968
Total costs and other	136		28		793		(16)		941
Gain on asset divestitures	—		—		7		—		7
Non-operating (loss) income	(34)		(11)		3		—		(42)
(LOSS) INCOME BEFORE INCOME TAXES	(157)		(39)		188		—		(8)
Income tax provision	6		—		—		—		6
NET (LOSS) INCOME	$	(151)	$	(39)	$	188	$	—	$	(2)


	Six months ended June 30, 2023
	Parent		Combined Unrestricted Subsidiaries		Combined Restricted Subsidiaries		Eliminations		Consolidated
	(in millions)
Total operating revenues	$	9	$	—	$	1,606	$	—	$	1,615
Total costs and other	112		19		951		—		1,082
Gain on asset divestitures	—		—		7		—		7
Non-operating (loss) income	(27)		(5)		3		—		(29)
(LOSS) INCOME BEFORE INCOME TAXES	(130)		(24)		665		—		511
Income tax provision	(113)		—		—		—		(113)
NET (LOSS) INCOME	$	(243)	$	(24)	$	665	$	—	$	398