California Resources Corp (CRC) AI Stock Analysis

• Market Cap: $3.89B
• Dividend Yield: 3.6%
• Average Volume (3M): 853.68K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.05
• Revenue Growth: 33.85%
• EPS Growth: -34.08%
• Country: US
• Employees: 1,550
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.46
• Shares Outstanding: 83,711,930
• 10 Day Avg. Volume: 865,848
• 30 Day Avg. Volume: 853,678
• PEG Ratio: -0.26
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 11.59
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 1.53
• Enterprise Value/Gross Profit: 4.03
• Enterprise Value/Ebitda: 4.26
• 1Y Price Target: $64.63
• Price Target Upside: 46.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 4.29
• Revenue Forecast (FY): $3.39B

• Rating: 71 Outperform
• Price Target: $49.00 ▲(11.04% Upside)

California Resources Corp's overall stock score is driven by strong financial performance and attractive valuation metrics. The company's strategic initiatives, such as the merger with Berry Corporation and advancements in carbon capture, enhance its growth prospects. However, technical indicators suggest bearish momentum, and recent revenue declines pose a risk to future growth. The company's ability to navigate regulatory challenges will be crucial for sustaining its positive trajectory.

Positive Factors

Strategic Merger

The merger with Berry Corporation enhances CRC's asset base and operational efficiencies, providing long-term growth potential and cash flow stability.

Carbon Management Initiatives

CRC's focus on carbon management aligns with regulatory trends and positions the company as a leader in sustainable energy solutions, supporting long-term industry relevance.

Strong Balance Sheet

A strong balance sheet with low leverage and high liquidity provides CRC with financial stability and flexibility to pursue growth opportunities.

Negative Factors

Revenue Decline

Declining revenue trends can impact CRC's ability to sustain growth and profitability, necessitating strategic adjustments to reverse this trend.

Regulatory Challenges

Regulatory delays can hinder project timelines and operational efficiency, impacting CRC's ability to capitalize on carbon capture initiatives.

Permitting Constraints

Permitting constraints limit CRC's ability to expand operations and develop new wells, affecting long-term production capabilities and growth.

California Resources Corp Business Overview & Revenue Model

Company Description

California Resources Corporation operates as an independent oil and natural gas company. The company explores for, produces, gathers, processes, and markets crude oil, natural gas, and natural gas liquids for marketers, California refineries, and other purchasers that have access to transportation and storage facilities. As of December 31, 2021, it had interests in approximately 1.9 million net mineral acres with proved reserves totaled an estimated 480 million barrels of oil equivalent. The company also engages in the generation and sale of electricity to the local utility and the grid. The company was incorporated in 2014 and is based in Santa Clarita, California.

How the Company Makes Money

California Resources Corporation generates revenue primarily through the exploration, production, and sale of crude oil and natural gas. The company sells its products to a range of customers, including refiners, marketers, and utilities, at market prices, which can fluctuate based on global supply and demand dynamics. Key revenue streams include the sale of crude oil, natural gas, and natural gas liquids. Additionally, CRC may benefit from joint ventures and partnerships that allow for shared capital and operational expenses, thereby enhancing its profitability. The company also engages in hedging activities to manage price volatility, which can further stabilize its revenue. Other factors contributing to its earnings include cost management initiatives, technological advancements in extraction methods, and regulatory compliance that can impact operational efficiency and production costs.

California Resources Corp Financial Statement Overview

Summary

California Resources Corp demonstrates strong profitability and cash flow management, with stable leverage and effective use of equity. However, recent revenue declines pose a risk to future growth. The company is well-positioned financially but should focus on reversing the negative revenue trend.

Income Statement

California Resources Corp shows strong profitability with a consistent gross profit margin above 50% and a net profit margin around 16.65% in TTM. However, the revenue growth rate has been negative recently, indicating a decline in sales. The EBIT and EBITDA margins are healthy, reflecting efficient operations despite the revenue drop.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.32, suggesting a balanced approach to leverage. Return on equity is solid at 19.05%, indicating effective use of shareholder funds. The equity ratio is not explicitly calculated, but the balance sheet shows a stable financial position.

Cash Flow

Free cash flow growth is positive at 7.59%, and the operating cash flow to net income ratio is strong at 0.84, indicating good cash generation relative to earnings. The free cash flow to net income ratio of 1.0 suggests efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.53B	2.96B	2.81B	3.26B	2.56B	1.61B
Gross Profit	1.34B	1.20B	1.33B	1.74B	1.25B	403.00M
EBITDA	1.26B	1.08B	1.07B	1.05B	546.00M	2.45B
Net Income	384.00M	376.00M	564.00M	524.00M	612.00M	1.88B
Balance Sheet
Total Assets	6.75B	7.13B	4.00B	3.97B	3.85B	3.07B
Cash, Cash Equivalents and Short-Term Investments	196.00M	372.00M	496.00M	307.00M	305.00M	28.00M
Total Debt	1.10B	1.22B	610.00M	662.00M	637.00M	639.00M
Total Liabilities	3.31B	3.60B	1.78B	2.10B	2.16B	1.89B
Stockholders Equity	3.44B	3.54B	2.22B	1.86B	1.69B	1.14B
Cash Flow
Free Cash Flow	545.00M	350.00M	460.00M	311.00M	466.00M	59.00M
Operating Cash Flow	835.00M	605.00M	645.00M	690.00M	660.00M	106.00M
Investing Cash Flow	-284.00M	-1.08B	-175.00M	-317.00M	-161.00M	-39.00M
Financing Cash Flow	-596.00M	348.00M	-281.00M	-371.00M	-222.00M	-56.00M

California Resources Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRC, the sentiment is Negative. The current price of 44.13 is below the 20-day moving average (MA) of 46.61, below the 50-day MA of 46.87, and below the 200-day MA of 45.36, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 33.40 is Neutral, neither overbought nor oversold. The STOCH value of 7.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRC.

California Resources Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIST	76 Outperform	$4.39B	6.52	37.10%	―	50.79%	32.97%
CRC	71 Outperform	$3.89B	10.14	11.06%	3.60%	33.85%	-34.08%
MUR	68 Neutral	$4.51B	32.19	2.76%	4.12%	-13.92%	-68.34%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
MGY	65 Neutral	$4.08B	12.04	17.51%	2.77%	0.68%	-11.13%
CNX	64 Neutral	$5.08B	26.31	6.98%	―	43.30%	-43.07%
CRK	59 Neutral	$6.32B	96.72	2.86%	―	35.41%	―

California Resources Corp Corporate Events

California Resources completes all-stock merger with Berry

On December 18, 2025, California Resources Corporation completed its previously announced all-stock merger with Berry Corporation, making Berry a wholly owned subsidiary and issuing approximately 5.6 million CRC shares, valued at about $253 million based on CRC’s December 17, 2025 closing price, to Berry’s former equity holders at a fixed exchange ratio of 0.0718 CRC share per Berry share. To facilitate the deal, CRC executed an eighth amendment to its credit agreement on December 15, 2025, modestly increasing total elected lender commitments from $1.45 billion to $1.46 billion and adding a new lender, while Berry’s restricted stock units and performance-based awards were either cashed out or converted into CRC equity awards. The transaction expands CRC’s long-lived, low-decline conventional asset base in its core San Joaquin Basin and adds strategic optionality in Utah’s Uinta Basin, with management highlighting expected synergies, enhanced cash flow durability and operating efficiencies, and confirming that the combined company will remain headquartered in Long Beach and led by CRC’s existing executive team, with detailed 2026 guidance to follow alongside year-end 2025 results.

California Resources Awaits Final Approval for Berry Merger

The required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired on November 10, 2025, for the pending merger where Berry Corporation will become a wholly-owned subsidiary of California Resources Corporation. The completion of this merger is still subject to customary conditions, including Berry shareholder approval and authorization by the U.S. Federal Energy Regulatory Commission, which could impact the company’s operations and market positioning.

California Resources Corp Amends Credit Agreement

On October 29, 2025, California Resources Corporation announced an amendment to its existing credit agreement, involving Citibank and other financial institutions. The amendment includes the addition of new lenders and an increase in the aggregate commitment amount from $1.15 billion to $1.45 billion, potentially enhancing the company’s financial flexibility and operational capacity.

California Resources Corp Completes $400M Senior Notes Offering

On October 8, 2025, California Resources Corporation completed a private offering of $400 million in senior notes due 2034, with interest accruing from the same date. The notes, which are unsecured and rank equally with other senior unsecured debt, are part of the company’s strategic financial maneuvers, including a pending merger with Berry Corporation. The notes are subject to mandatory redemption if the merger does not occur by March 14, 2026, or if the merger agreement is terminated.

California Resources Corp Announces $400M Note Offering

On September 24, 2025, California Resources Corporation announced the pricing of a private offering of $400 million in senior unsecured notes due 2034, with an interest rate of 7.000%. The proceeds from this offering, expected to be approximately $394 million, will be used to repay Berry Corporation’s existing debt as part of a pending merger between the two companies. This strategic financial move is anticipated to impact CRC’s operations by supporting the merger, which could enhance its industry positioning and stakeholder value.

California Resources Corp Announces $400M Notes Offering

On September 22, 2025, California Resources Corporation amended its credit agreement to facilitate its pending merger with Berry Corporation. Additionally, on September 24, 2025, CRC announced a proposed private offering of $400 million in senior unsecured notes due 2034, with proceeds intended to repay Berry Corporation’s existing debt related to the merger. This strategic move aims to strengthen CRC’s financial position and support its merger with Berry, potentially impacting stakeholders by enhancing the company’s market presence and operational capabilities.