California Resources Corporation and Middle River Power to Advance Decarbonized Power Solutions in California

Rhea-AI Summary

California Resources Corporation (NYSE: CRC) and Carbon TerraVault announced a Memorandum of Understanding with Middle River Power on Dec. 16, 2025 to evaluate carbon capture, transport and sequestration for two brownfield California power plants: the 850 MW High Desert (Victorville) and the 330 MW San Joaquin Energy Center (Tracy).

The facilities emit up to 2.1 MMTPA and 0.65 MMTPA CO2 respectively. CTV would be the exclusive CO2 transport and sequestration provider; projects remain non-binding and contingent on definitive agreements, financing and EPA Class VI permits.

Positive

• Exclusive CO2 transport and sequestration provider designation
• Targets two plants totalling 1,180 MW capacity
• Addresses up to 2.75 MMTPA combined CO2 emissions
• First Northern California brownfield power MOU for CRC

Negative

• MOU is non-binding and requires definitive agreements
• Projects contingent on EPA Class VI permits and approvals
• Advancement depends on financing and final investment decisions

Key Figures

High Desert capacity 850 MW High Desert power plant in Victorville, CA

San Joaquin capacity 330 MW San Joaquin Energy Center in Tracy, CA

High Desert emissions 2.1 MMTPA CO₂ Annual CO₂ emissions from High Desert facility

San Joaquin emissions 0.65 MMTPA CO₂ Annual CO₂ emissions from San Joaquin Energy Center

Market Reality Check

$44.64 Last Close

Volume Volume 1,002,253 vs 20-day average 800,564 (about 1.25x typical trading activity). normal

Technical Trading slightly above 200-day MA, with price $46.79 vs MA $45.94 before this news.

Peers on Argus 1 Down

CRC fell 3.17% while key peers were mixed: CRK +1.5%, MGY -2.66%, VIST +0.14%, CNX +1.29%, CHRD -2.14%. Momentum scanner only flagged CRK earlier as moving down, reinforcing a stock-specific move for CRC.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 20	Community donation	Positive	-3.0%	Announced $200,000 donation to support food security across California.
Nov 18	ESG certification	Positive	+0.4%	Achieved MiQ ‘Grade A’ methane certification for Ventura Basin assets.
Nov 04	Q3 2025 earnings	Positive	-1.1%	Reported Q3 profit, free cash flow, dividend raise and Berry merger plan.
Nov 04	CCS power MOU	Positive	-1.1%	Non‑binding MOU with Capital Power on CCS for La Paloma gas plant.
Oct 16	CCS project start	Positive	+0.8%	Broke ground on CTV I, California’s first commercial CCS project.

Pattern Detected

Recent CRC news, including ESG and CCS milestones, often saw muted or negative next-day moves even on seemingly positive developments.

Recent Company History

Over the last few months, CRC has highlighted a combination of community engagement, certification, financial results, and carbon management milestones. On Oct 16, it broke ground on the CTV I CCS project, followed on Nov 4 by Q3 2025 results and an MOU to decarbonize Capital Power’s La Paloma facility. Subsequent MiQ certification and a $200,000 food security donation further underscored its transition and ESG focus. Today’s MRP MOU extends that CCS strategy to additional California power assets.

Market Pulse Summary

This announcement details a non‑binding MOU for CRC’s Carbon TerraVault to provide CO₂ transport and sequestration for two Middle River Power plants totaling 1,180 MW and up to 2.75 MMTPA of emissions. It extends CRC’s California CCS strategy alongside prior power‑sector MOUs and the CTV I project. Investors should track progress toward definitive agreements, EPA Class VI approvals, and how these projects integrate with CRC’s broader energy and carbon management business.

Key Terms

memorandum of understanding financial

"today announced a Memorandum of Understanding1 (MOU) with Middle River Power"

A memorandum of understanding (MOU) is a formal agreement between two or more parties that outlines their shared intentions and plans to work together. It acts like a handshake in writing, clarifying each side’s roles and expectations before any official contract is signed. For investors, an MOU signals that parties are serious about collaboration, which can influence future business opportunities and potential growth.

carbon capture and sequestration technical

"plan to jointly evaluate and develop carbon capture and sequestration (“CCS”) solutions"

Carbon capture and sequestration is a process that captures carbon dioxide emissions from sources like power plants or industrial facilities and stores them underground to prevent them from entering the atmosphere. This technology helps reduce greenhouse gases that contribute to climate change, which can influence the long-term stability of energy and environmental markets. For investors, it represents a way to support cleaner energy solutions and potentially benefit from emerging industries focused on sustainable practices.

ccs technical

"evaluate and develop carbon capture and sequestration (“CCS”) solutions, with an initial focus"

Carbon capture and storage (CCS) is a set of technologies that trap carbon dioxide produced by power plants, factories or industrial processes, then transport and store it deep underground or turn it into usable products. Think of it like catching smoke from a chimney and burying or repurposing it so it doesn't warm the atmosphere. Investors watch CCS because it can lower regulatory and carbon costs, create new revenue from credits or products, and influence the long-term value of energy and industrial companies.

co₂ medical

"produce up to 2.1 million metric tons per annum (MMTPA) and 0.65 MMTPA of carbon dioxide (CO₂)"

CO₂ (carbon dioxide) is a colorless gas produced by burning fuels, industrial processes and biological respiration; it acts like a blanket that traps heat in the atmosphere. Investors care because levels of CO₂ drive climate-related rules, taxes and consumer expectations that can raise costs, change demand and alter the value of assets—similar to how a rising thermostat can force someone to change their heating and insulation choices.

forward-looking statements regulatory

"This document contains statements that CRC believes to be “forward-looking statements”"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. Not financial advice.

New MOU Marks Strategic Alliance Between CRC and a Key California Power Producer with Proximity to Silicon Valley

LONG BEACH, Calif., Dec. 16, 2025 (GLOBE NEWSWIRE) -- California Resources Corporation (NYSE: CRC) and its carbon management business, Carbon TerraVault (CTV), today announced a Memorandum of Understanding¹ (MOU) with Middle River Power, LLC (MRP), an independent power producer and asset management company, to provide carbon transportation and sequestration services for MRP power facilities in California. Importantly, this is CRC’s first MOU¹ to provide carbon management services for a brownfield power facility located in Northern California.

Highlights:

• CTV and MRP plan to jointly evaluate and develop carbon capture and sequestration (“CCS”) solutions, with an initial focus on two MRP power facilities: the 850 megawatt (MW) High Desert plant (Victorville, CA) and the 330 MW San Joaquin Energy Center (Tracy, CA). These facilities produce up to 2.1 million metric tons per annum (MMTPA) and 0.65 MMTPA of carbon dioxide (CO₂) emissions, respectively.
• CTV to serve as the exclusive CO₂ transportation and sequestration services provider for the foregoing MRP power facilities in California.
• MRP to ensure the safe and reliable operation of the power and CO₂ capture facilities, leveraging its track record of delivering innovative, optimized power solutions to support energy transition goals.
• CRC and MRP plan to explore other decarbonized power solutions supporting California’s broader decarbonization goals.

“We continue to demonstrate the scalability and viability of our Power-to CCS solution,” said Francisco Leon, CRC’s President and Chief Executive Officer. “This marks our third MOU with a brownfield power producer and highlights growing momentum across the power sector seeking practical and economically feasible decarbonization solutions in California. With recent legislative support for carbon transport and storage, CTV is well positioned - with the assets, infrastructure, and people - to help our partners meet their sustainability and reliability goals.”

Mark Kubow, Chief Executive Officer, Middle River Power, said, “At Middle River Power, we are committed to unlocking innovative pathways to cleaner, more reliable energy in California. This MOU with California Resources Corporation marks a strategic step forward in decarbonizing our existing generation infrastructure and helping the state achieve its ambitious climate and reliability goals.”

_{¹ An MOU is a non-binding agreement. The projects and transactions described in an MOU are subject to certain conditions precedent, typically including the negotiation of definitive documents, a final investment decision by the parties and receipt of EPA Class VI permits and other regulatory approvals.}

About California Resources Corporation

California Resources Corporation (CRC) is an independent energy and carbon management company committed to 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, 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.

About MRP

Middle River Power (MRP) is an independent power producer and asset management company focused on finding creative solutions that accelerate the energy transition. MRP’s strategy combines new technologies and resources with under-utilized legacy generation assets, delivering cleaner, more reliable, and cost-efficient resources, faster than any standalone development. With a specialty in repositioning existing, safe, critical resources with co-located and hybrid development projects, MRP delivers clean, reliable energy solutions to its customers and communities. In 2025, MRP was acquired by Partners Group, one of the largest firms in the global private markets industry, acting on behalf of its clients. For more information, visit www.middleriverpower.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 the ability of CRC and Middle River Power to negotiate and execute definitive agreements under the MOU; the timing and outcome of required permitting, including EPA Class VI well approvals and other state and local regulatory reviews; the technical and economic feasibility of capturing, transporting, and permanently storing CO₂ from existing power generation facilities; the availability of suitable storage capacity and supporting infrastructure; changes in market demand or policy support for carbon capture and storage (CCS) and low-carbon power solutions in California; evolving legislative or regulatory frameworks governing CCS operations and carbon accounting; availability of financing or incentives to advance CCS projects; and other factors described in CRC’s most recent Annual Report on Form 10-K and subsequent SEC filings. For a discussion of important factors that could cause actual results to differ materially, please see CRC’s Form 10-K for the year ended December 31, 2024, and subsequent filings with the SEC.

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 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.

Contacts:

Joanna Park (Investor Relations) 818-661-3731 Joanna.Park@crc.com

Daniel Juck (Investor Relations) 818-661-6045 Daniel.Juck@crc.com

Hailey Bonus (Media) 714-874-7732 Hailey.Bonus@crc.com

FAQ

What did CRC (NYSE: CRC) announce on December 16, 2025 about Middle River Power?

CRC announced a non-binding MOU with Middle River Power to evaluate CCS for two California power plants.

Which power plants are included in the CRC and MRP MOU and what are their capacities?

The MOU targets the 850 MW High Desert plant (Victorville) and the 330 MW San Joaquin Energy Center (Tracy).

How much CO2 emissions could CRC’s Carbon TerraVault handle for the MRP facilities?

The facilities produce up to about 2.1 MMTPA and 0.65 MMTPA CO2, totaling ~2.75 MMTPA.

Is the CRC–MRP agreement legally binding and ready to start operations?

No; the MOU is non-binding and projects require definitive agreements, financing, and EPA Class VI permits.

What regulatory approval is specifically needed before CRC can store CO2 for MRP facilities?

EPA Class VI well permits and other state and local regulatory approvals are required.

What does being the exclusive CO2 transportation and sequestration provider mean for CRC shareholders?

It signals potential exclusive service opportunities at the two MRP plants, subject to final agreements and permits.