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California Resources Corp (CRC)
:CRC
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California Resources Corp
(NYSE:CRC)
74Outperform
Positive Factors
Carbon Capture Development
CRC's FID marks a significant milestone for the company's development of carbon capture, and investor focus through '25 will be on execution.
Cost Efficiency
CRC's EBITDAX was 13% above consensus driven by operating cost beats and Capex 15% below the Street.
Debt Management
CRC repurchased $123mm of its 2026 Senior Notes on the open market and 2.3mm shares for a total of $100mm, demonstrating a commitment to managing debt and returning value to shareholders.
Negative Factors
Legislative Hurdles
The company is experiencing ongoing permitting challenges and legislative hurdles in California, which are affecting its ability to maintain and increase production levels.
Market Conditions
An oversupplied oil market is anticipated, which could negatively impact CRC's performance due to its sensitivity to oil prices.
Regulatory Challenges
CRC faces challenges due to regulatory uncertainty, affecting its oil and gas permit approvals and delaying its carbon capture project's volume ramp-up.
California Resources Corp (CRC) vs. S&P 500 (SPY)
Market Cap
$3.80B
Dividend Yield3.46%
Average Volume (3M)855.22K
Price to Earnings (P/E)7.7
Beta (1Y)0.98
Revenue Growth41.68%
EPS Growth53.13%
CountryUS
Employees1,550
SectorEnergy
Sector Strength45
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)1.07
Shares Outstanding89,175,030
10 Day Avg. Volume925,901
30 Day Avg. Volume855,220
Financial Highlights & Ratios
PEG Ratio-0.28
Price to Book (P/B)1.04
Price to Sales (P/S)0.00
P/FCF Ratio7.01
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue0.41
Enterprise Value/Gross Profit1.68
Enterprise Value/Ebitda1.25
Forecast
1Y Price Target
$53.70Price Target Upside26.06% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
California Resources Corp Business Overview & Revenue Model
Company DescriptionCalifornia 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 MoneyCalifornia Resources Corporation generates revenue primarily through the production and sale of crude oil, natural gas, and natural gas liquids. The company explores and develops oil and gas properties, leveraging its extensive land position in California to maximize hydrocarbon recovery. CRC's key revenue streams include selling its produced oil and gas to refineries and other customers. Additionally, CRC may engage in strategic partnerships and joint ventures to optimize resource development and enhance operational efficiencies, contributing to its earnings. The company's financial performance is influenced by factors such as commodity prices, production volume, regulatory environment, and operational costs.
California Resources Corp Financial Statement Overview
Summary
CRC demonstrates strong profitability metrics and improved debt management, which are positive signs. However, the company faces inconsistencies in revenue growth and cash flow generation, indicating areas for improvement. Overall, CRC is navigating a complex financial landscape with commendable EBITDA margins and leverage ratios.Income Statement
California Resources Corp (CRC) has shown a mixed performance in recent years. The gross profit margin is robust, thanks to the significant reduction in cost of goods sold. However, the net profit margin has been volatile, primarily due to fluctuations in EBIT and net income. Revenue growth has been inconsistent, with significant declines in certain years, indicating potential instability. Despite these fluctuations, EBITDA margins remain strong, reflecting effective cost management.75
Positive
Balance Sheet
CRC's balance sheet shows improvement in debt management, with a decreasing trend in the debt-to-equity ratio, indicating reduced leverage risk. The return on equity (ROE) is strong, showcasing effective use of shareholder funds. However, the equity ratio indicates moderate reliance on equity financing, which may expose the company to some risk if market conditions worsen. Overall, the balance sheet reflects a cautious but improving financial position.68
Positive
Cash Flow
The cash flow analysis reveals solid operating cash flow, consistently covering net income, indicating good cash generation from operations. Free cash flow growth has shown positive trends, although it fluctuates due to capital expenditures. The operating cash flow to net income ratio highlights efficiency in converting income into cash. While cash flows are generally healthy, reliance on financing activities in certain periods suggests potential liquidity management challenges.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.93B | 2.81B | 3.26B | 2.56B | 1.61B | Gross Profit |
| 2.25B | 1.41B | 1.78B | 1.27B | 308.00M | EBIT |
| 620.00M | 808.00M | 1.11B | 658.00M | -1.89B | EBITDA |
| 1.08B | 1.07B | 1.31B | 871.00M | 2.45B | Net Income Common Stockholders |
| 376.00M | 564.00M | 524.00M | 612.00M | 3.33B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 372.00M | 496.00M | 307.00M | 305.00M | 28.00M | Total Assets |
| 7.13B | 4.00B | 3.97B | 3.85B | 3.07B | Total Debt |
| 1.22B | 610.00M | 662.00M | 637.00M | 639.00M | Net Debt |
| 851.00M | 114.00M | 355.00M | 332.00M | 611.00M | Total Liabilities |
| 3.60B | 1.78B | 2.10B | 2.16B | 1.89B | Stockholders Equity |
| 3.54B | 2.22B | 1.86B | 1.69B | 1.18B |
| Cash Flow | Free Cash Flow | |||
| 610.00M | 468.00M | 678.00M | 466.00M | 59.00M | Operating Cash Flow |
| 610.00M | 653.00M | 690.00M | 660.00M | 106.00M | Investing Cash Flow |
| -1.08B | -175.00M | -317.00M | -161.00M | -37.00M | Financing Cash Flow |
| 343.00M | -289.00M | -371.00M | -222.00M | -58.00M |
California Resources Corp Technical Analysis
Neutral
42.60
Price Trends
39.45
Positive
44.15
Negative
48.00
Negative
Market Momentum
1.34
Negative
63.05
Neutral
89.84
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRC, the sentiment is Neutral. The current price of 42.6 is above the 20-day moving average (MA) of 37.90, above the 50-day MA of 39.45, and below the 200-day MA of 48.00, indicating a neutral trend. The MACD of 1.34 indicates Negative momentum. The RSI at 63.05 is Neutral, neither overbought nor oversold. The STOCH value of 89.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CRC.
California Resources Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.15B | 8.47 | 7.54% | 5.55% | -14.90% | -27.53% | |
75 Outperform | $4.80B | 10.01 | 32.69% | ― | 54.19% | 37.69% | |
74 Outperform | $3.80B | 7.72 | 17.86% | 3.46% | 41.68% | 53.13% | |
72 Outperform | $2.80B | 3.43 | 20.28% | 3.19% | 26.04% | 11.96% | |
70 Outperform | $2.89B | 14.91 | 19.93% | 11.00% | -12.71% | -39.85% | |
63 Neutral | $3.49B | 16.69 | -16.01% | ― | 10.44% | -139.05% | |
57 Neutral | $7.18B | 3.26 | -3.67% | 5.68% | 0.47% | -50.25% |
* Energy Sector Average
Performance Comparison
CRC
California Resources Corp
42.60
-4.71
-9.96%
MUR
Murphy Oil
22.08
-18.90
-46.12%
SM
SM Energy
24.45
-23.91
-49.44%
BSM
Black Stone Minerals
13.64
-1.00
-6.83%
VIST
Vista Oil & Gas SAB de CV
50.19
1.61
3.31%
GPOR
Gulfport Energy
196.30
35.98
22.44%
California Resources Corp Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 19.97%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance by CRC, with notable achievements in shareholder returns, synergy realization, and cost management. Despite facing challenges like declining oil prices and regulatory hurdles in California, CRC remains optimistic about its financial resilience and strategic initiatives in carbon management.Q1-2025 Updates
Positive Updates
Record Shareholder Returns
In the first quarter, CRC returned a record $258 million to stakeholders through dividends, share buybacks, and debt redemption.
Significant Synergy Realization
CRC has realized more than 70% of the $235 million in announced annual synergies from the Aera merger, expecting to achieve the full target in early 2026.
Solid Financial Performance
CRC reported adjusted EBITDAX of $328 million and free cash flow of $131 million, both above consensus estimates.
Strong Position in Energy Transition
CRC is advancing its carbon management business with plans to launch California's first CCS project at the Elk Hills cryogenic gas plant.
Cost Reduction Success
Operating and G&A costs were 5% better than guidance, with expectations to reduce operating costs by nearly 10% in the first half of 2025 compared to the second half of 2024.
Negative Updates
Decline in Oil Prices
Despite a nearly 16% decline in oil prices, CRC is reaffirming its full-year adjusted EBITDAX guidance of $1.1 billion to $1.2 billion.
California Regulatory Challenges
CRC is facing challenges with obtaining permits in California, although there is optimism about progress in the regulatory environment.
Company Guidance
During the California Resources Corporation (CRC) First Quarter 2025 Conference Call, the company reaffirmed its strong outlook for the year, emphasizing several key metrics and strategic achievements. CRC reported achieving more than 70% of the $235 million in announced annual synergies from the Aera merger, which is expected to be fully realized by early 2026. The company highlighted its robust hedge portfolio, with approximately 70% of oil production and natural gas consumption hedged at attractive levels, allowing it to generate free cash flow at Brent prices down to $34 per barrel. CRC also reported adjusted EBITDAX of $328 million and a free cash flow of $131 million, surpassing consensus expectations. The company returned a record $258 million to stakeholders through dividends, share buybacks, and debt redemption in the first quarter. Additionally, CRC maintained its full-year adjusted EBITDAX guidance of $1.1 billion to $1.2 billion, supported by low-decline assets, cost reduction efforts, and a strong hedge book. The company also emphasized its ongoing efforts to manage production efficiently and invest in high-return projects, while continuing to build its permit inventory.California Resources Corp Corporate Events
Executive/Board ChangesShareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
California Resources Corp Elects Directors and Ratifies Auditor
Positive
May 6, 2025
At its 2025 Annual Meeting on May 2, California Resources Corporation elected nine directors and ratified KPMG LLP as its independent auditor for the fiscal year ending December 31, 2025. The company also approved executive officer compensation. In the first quarter of 2025, California Resources reported a net income of $115 million and returned $258 million to stakeholders. The company maintained steady production levels and is on track to achieve $185 million in merger synergies by the end of 2025. With a focus on carbon capture and storage, California Resources aims to inject CO₂ at its Elk Hills facility by year-end, reinforcing its strategy to generate sustainable free cash flow and support California’s decarbonization goals.
Spark’s Take on CRC Stock
According to Spark, TipRanks’ AI Analyst, CRC is a Outperform.
California Resources Corp’s overall stock score reflects its solid financial performance and attractive valuation, offset by technical weaknesses indicating bearish market sentiment. The company’s strategic initiatives in carbon management and cost reduction are significant positives, but investor caution is warranted due to potential volatility in revenue and regulatory challenges impacting future growth prospects.
To see Spark’s full report on CRC stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.