California Resources Corp Announces Ninth Amendment to Its Amended and Restated Credit Agreement

LONG BEACH, CA – April 17, 2026 – California Resources Corporation (“CRC” or “the Company”) has announced that on April 14, 2026, it entered into a significant amendment (the “Ninth Amendment”) to its Amended and Restated Credit Agreement, originally dated April 26, 2023. This move involves CRC, Citibank, N.A. as administrative and collateral agent, and a syndicate of major banks and financial institutions.

Key Highlights of the Amendment

• Reduction in Borrowing Costs:
  • The Ninth Amendment amends the pricing grid under the credit facility, resulting in a reduction of CRC’s borrowing costs. This change is explicitly designed to improve the Company’s cost of capital and financial flexibility.
  • Specific revised interest rate tiers are set for SOFR Loans, with margins now ranging from 2.25% to 3.25%, depending on the utilization of the borrowing base. Commitment fee rates have also been adjusted, enhancing the cost efficiency of CRC’s credit lines.
• Technical and Administrative Updates:
  • Other technical amendments were made to the agreement, reflecting market practices and ensuring continued compliance with evolving financial regulations and operational needs.
  • The Ninth Amendment includes updates necessary for the administration and ongoing management of the credit facility.

Details of the Credit Facility

• The Amended and Restated Credit Agreement is a syndicated facility with Citibank, N.A. serving as the administrative and collateral agent. Other major financial institutions involved as joint lead arrangers and joint bookrunners include Barclays Bank PLC, Deutsche Bank AG New York Branch, KeyBanc Capital Markets, MUFG Bank, Royal Bank of Canada, Sumitomo Mitsui Banking Corporation, Truist Securities, and Wells Fargo Securities.
• The credit facility is secured by substantial oil and gas properties and other assets of CRC and its subsidiary guarantors. The list of subsidiary guarantors includes Berry Corporation (BRY), Berry Petroleum Company, LLC, and several other CRC operating and real estate entities.

Potential Price Sensitivity and Shareholder Impact

• Impact on Financial Performance: The reduction in borrowing costs is expected to have a direct positive impact on CRC’s interest expense, potentially improving net income and free cash flow. A lower cost of debt enhances the company’s ability to invest in core operations, return capital to shareholders, and withstand commodity price volatility.
• Improved Balance Sheet Flexibility: The amendment signals ongoing lender confidence in CRC’s asset base and creditworthiness, which may bolster investor sentiment and credit ratings.
• Shareholder Value Considerations: Any reduction in the cost of capital is typically viewed positively by equity markets, especially in the energy sector, where financial discipline and liquidity are closely watched. This agreement may be price sensitive and could support CRC’s share price.
• Regulatory Compliance and Technical Strength: The technical amendments ensure that CRC continues to comply with the latest financial regulations and market standards, reducing operational risk.

Exhibits and Additional Information

• The full text of the Ninth Amendment is filed as Exhibit 10.1 to the Form 8-K and is incorporated by reference.
• Certain portions of the exhibit are omitted under Item 601(b)(10) of Regulation S-K as they are not material and would likely cause competitive harm if publicly disclosed.

Conclusion

The execution of the Ninth Amendment to the Amended and Restated Credit Agreement marks a proactive financial management move by California Resources Corporation. By lowering its borrowing costs and streamlining administrative and technical provisions, CRC strengthens its financial position, potentially enhancing shareholder value and supporting future growth.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review the full Form 8-K filing and consult with their financial advisors before making investment decisions related to California Resources Corporation.

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