CRC Earns Top Methane Grade, Setting Bar for Responsible Energy

BAKERSFIELD, CA – February 25, 2026 – California Resources Corporation (NYSE: CRC) has secured a ‘Grade A’ certification for its natural gas production in the San Joaquin Valley, a significant achievement that underscores a growing movement toward environmental accountability in the energy sector. The certification, awarded by the independent global standard MiQ, validates that CRC's operations in Fresno and Kern Counties meet the highest currently available standards for low-methane intensity.

This marks the third such top-tier certification for the California-based energy company, placing the majority of its natural gas production under a rigorous, independently verified framework. The move signals a strategic commitment to differentiating its product in a market increasingly scrutinized by regulators, investors, and consumers demanding transparent proof of environmental performance.

“CRC is committed to operating responsibly by holding ourselves to standards that go beyond regulatory requirements,” said Francisco Leon, CRC President and Chief Executive Officer, in a statement. “Independent validation of emissions performance across most of our production reflects how we do business—providing reliable, responsibly sourced energy for California while protecting the environment and supporting the communities where we operate.”

What a ‘Grade A’ Verification Entails

Achieving MiQ’s highest certification is not a simple matter of paperwork. It is the result of a comprehensive, third-party audit that evaluates a facility’s methane management across three critical pillars: methane intensity, company practices, and monitoring technology deployment. An operator’s final grade is determined by the lowest score achieved in any of these categories, making a ‘Grade A’ a testament to holistic excellence.

The MiQ standard is designed to be quantitative and granular, assessing performance at the facility level. The three pillars are:

• Methane Intensity: This core metric measures the volume of methane emitted relative to the volume of natural gas produced. A low intensity score indicates that a facility’s design and operational protocols are effective at minimizing both planned and fugitive emissions.

• Company Practices: This category scrutinizes the policies and procedures an operator has implemented to prevent, detect, and repair methane leaks. It rewards a corporate culture that prioritizes emissions management and continuous improvement.

• Monitoring Technology Deployment: Perhaps the most crucial element for achieving a top grade, this pillar assesses the use of advanced technologies to monitor for methane leaks. To earn an 'A' or 'B' grade, operators must deploy sophisticated systems, including both source-level surveys for specific equipment and broader, facility-level monitoring to verify overall site emissions. This data-driven approach replaces estimation with measured, verifiable proof.

By meeting these stringent criteria, CRC demonstrates a level of operational control that is becoming a key differentiator in the industry. The certification provides a credible, apples-to-apples comparison for gas buyers, allowing them to select supplies based on verified environmental performance.

Certified Gas in California’s Green Transition

CRC's achievement comes at a pivotal moment for California, a state at the forefront of the global energy transition. With some of the world's most ambitious decarbonization goals, California is aggressively pursuing a shift away from fossil fuels. However, the path to a fully renewable grid is complex, and natural gas is widely seen as a necessary transitional fuel to ensure grid reliability.

This reality creates a difficult balancing act: meeting energy demand while adhering to strict climate targets. The emergence of “responsibly sourced” or “differentiated” natural gas, verified by standards like MiQ, offers a potential pathway. By certifying that its gas is produced with minimal methane emissions—a greenhouse gas over 80 times more potent than carbon dioxide over a 20-year period—CRC can position its product as a cleaner alternative that aligns with the state's environmental objectives.

This certification complements CRC’s broader strategy to pivot toward carbon management. The company is actively developing Carbon Capture and Storage (CCS) projects, aiming to leverage its geological assets and expertise to help decarbonize California’s industrial sectors. This dual focus on reducing emissions from its core operations while building new, low-carbon business lines illustrates a forward-looking approach to navigating the energy transition.

The Growing Currency of Trust and Transparency

For decades, the oil and gas industry has faced public skepticism regarding its environmental claims. Independent, third-party verification is emerging as the new currency of trust. Organizations like MiQ function as impartial auditors, bridging the gap between corporate sustainability reports and public perception by providing data-backed, transparent assessments.

This shift is driven by powerful market forces. ESG (Environmental, Social, and Governance) investors are increasingly directing capital toward companies that can demonstrate superior environmental performance. Likewise, large-scale energy buyers, particularly in Europe and other climate-conscious regions, are beginning to demand proof of low-methane supply chains. MiQ's digital registry, which tracks certified gas from production to end-user, creates the transparent architecture needed for such a market to function.

Georges Tijbosch, CEO of MiQ, praised CRC's accomplishment as a sign of what is possible. “Earning three ‘Grade A’ certifications in just a few months underscores CRC’s sustained commitment to high level methane performance,” he stated. “It also demonstrates the level of operational excellence and accountability that can be embedded at scale – qualities that are becoming increasingly critical as market expectations and regulations continue to evolve.”

This trend is not isolated to CRC. Other major energy producers, including BP, ExxonMobil, and EQT, have also begun certifying their assets through MiQ, indicating a broad industry recognition that methane performance is becoming a non-negotiable aspect of social license and market access. As this differentiated market matures, certifications like MiQ’s ‘Grade A’ are poised to become a significant competitive advantage, separating the leaders from the laggards in the future of energy production.