Equity Issuance ConcernsEquity issuance to PE investors has been a thematic overhang, with concerns about share sales as 6.5m shares held by IKAV and CPPIB are no longer restricted.
Market ReactionCRC shares sold off by 11% due to fears around Brookfield payment deferrals, concerns on PE sales, and impatience around power PPA catalysts.
Regulatory RisksThere is concern about further appeal against Kern EIR, which is awaiting district court review and approval, potentially affecting CRC’s ability to secure well permits.