CRC 10-K & 10-Q changes, risk factors and insider trading

•The military conflicts in Ukraine, Israel and other countries in the Middle East have caused price volatility and geopolitical instability which impact our business.

•Some of our competitors have greater resources than us and we may not be able to successfully compete in acquiring and developing new properties.

•Our hedging activities limit our ability to realize the full benefits of increases in commodity prices.

•Estimates of proved reserves and related future net cash flows are not precise. The actual quantities of our proved reserves and future net cash flows may prove to be higher or lower than estimated.

•From time to time we may engage in step-out drilling, or drilling in new or emerging plays. Our drilling results are uncertain, and the value of our undeveloped acreage may decline if drilling is unsuccessful.

•We may incur substantial losses and be subject to substantial liability claims as a result of pollution, environmental conditions or catastrophic events. We may not be insured for, or our insurance may be inadequate to protect us against, these risks.

•Cybersecurity attacks, systems failures and other disruptions could adversely affect us.

•New and developing regulations related to CO2 unitization, permitting and pipeline safety could negatively impact our business, financial condition and results of operations.

•Our operations and financial performance may be negatively affected directly or indirectly by changes in trade policies and tariffs.

•Concerns about climate change and other environmental issues may prompt governmental action that could have a material adverse effect on our operations or results.

•The Inflation Reduction Act could accelerate the transition to a low-carbon economy and could impose new costs on our operations.

•Tax law changes could have an adverse effect on our financial condition, results of operations and cash flows.

•Financial assurance requirements related to plugging and abandonment costs, decommissioning, and site restoration on those who acquire the right to operate wells and production facilities could impact our ability to sell or acquire assets in California or increase our costs in connection with the same.

•We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy the obligations under our indebtedness, which may not be successful.

•The lenders under our Revolving Credit Facility could limit our ability to borrow and restrict our ability to use or access capital.

•Restrictive covenants in our Revolving Credit Facility and the indentures governing our Senior Notes may limit our financial and operating flexibility.

•Variable rate indebtedness under our Revolving Credit Facility subjects us to interest rate risk, which could cause our debt service obligations to increase significantly.

•Future issuances of our common stock could reduce our stock price, and any additional capital raised by us through the sale of equity or convertible securities may dilute your ownership in us.

•The ownership position of certain of our stockholders limits other stockholders’ ability to influence corporate matters and could affect the price of our common stock.

•Sales of shares of our common stock by our executive officers could negatively impact the market price for our common stock.

Our financial condition, results of operations, cash flow and ability to invest in our assets are highly dependent on oil, natural gas and NGL prices. A substantial decline in prices for these products would reduce our cash flows from operations and could reduce our borrowing capacity or cause a default under our financing agreements.

Prices for oil, natural gas and NGL may fluctuate widely in response to relatively minor changes in domestic and global supply and demand, market uncertainty and a variety of additional factors that are beyond our control, such as:

•domestic and global inventory levels;

•political and economic conditions, including international disputes such as the conflicts in Ukraine, Israel and other countries in the Middle East;

•pandemics, epidemics, outbreaks or other public health events, such as the COVID-19 pandemic;

•the actions of OPEC and other significant producers and governments;

•changes or disruptions in actual or anticipated production, refining and processing;

•worldwide drilling and exploration activities;

•government energy policies and regulation, including with respect to climate change;

•the effects of conservation;

•natural disasters, weather conditions and other seasonal impacts;

•speculative trading in derivative contracts;

•currency exchange rates;

•technological advances;

•transportation and storage capacity, bottlenecks and costs in producing areas;

•the price, availability and acceptance of alternative energy sources;

•regional market conditions; and

•other matters affecting the supply and demand dynamics for these products.

Lower prices could have adverse effects on our business, financial condition and results of operations, including:

•reducing our proved oil and natural gas reserves over time;

•limiting our capital expenditures and our ability to grow or maintain future production;

•causing a reduction in our borrowing base under our Revolving Credit Facility, which could affect our liquidity;

•reducing our cash flow and ability to make interest payments or maintain compliance with financial covenants in the agreements governing our indebtedness, which could trigger mandatory loan repayments and default and foreclosure by our lenders and bondholders against our assets; and

•limiting our access to funds through the capital markets and the price we could obtain for asset sales or other monetization transactions.