TD Cowen analyst David Deckelbaum has maintained their bullish stance on CRC stock, giving a Buy rating today.
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David Deckelbaum’s rating is based on several strategic advantages that California Resources Corp (CRC) is poised to gain following its acquisition of Berry Corporation (BRY). The acquisition, valued at $717 million including debt, is expected to bring significant synergies and enhance CRC’s financial performance. With the lifting of the drilling moratorium in California, CRC is set to benefit from BRY’s high-quality, oil-weighted reserves and sustainable cash flow, particularly in Kern County where the two companies’ assets are adjacent.
Deckelbaum highlights that the acquisition will be immediately accretive to CRC’s free cash flow by more than 10% before synergies, with expected annual synergies of $80-$90 million within 12 months. The transaction will also increase CRC’s proved reserves substantially, with further growth anticipated as new permits are received. Additionally, CRC’s strategic plan includes the potential monetization of BRY’s Uinta Basin assets, which could generate significant proceeds to offset the acquisition cost. These factors collectively underpin Deckelbaum’s Buy rating for CRC.
Deckelbaum covers the Energy sector, focusing on stocks such as California Resources Corp, Sable Offshore, and Coterra Energy. According to TipRanks, Deckelbaum has an average return of 2.7% and a 38.89% success rate on recommended stocks.
In another report released today, Mizuho Securities also maintained a Buy rating on the stock with a $71.00 price target.