California Resources Corp (CRC) AI Stock Analysis

• Market Cap: $4.31B
• Dividend Yield: 3.01%
• Average Volume (3M): 842.00K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.93
• Revenue Growth: 58.35%
• EPS Growth: 210.80%
• Country: US
• Employees: 1,550
• Sector: Energy
• Sector Strength: 67
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.10
• Shares Outstanding: 83,679,985
• 10 Day Avg. Volume: 728,474
• 30 Day Avg. Volume: 842,002
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 1.70
• Enterprise Value/Ebitda: 3.23
• 1Y Price Target: $58.78
• Price Target Upside: 19.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 82 Outperform
• Price Target: $56.00 ▲(14.22% Upside)

California Resources Corp's strong financial performance, undervaluation, and positive earnings call sentiment contribute significantly to its high score. Technical indicators support a stable outlook, while the company's strategic advancements and shareholder returns further enhance its position.

Positive Factors

Financial Performance

CRC turned in a strong operational quarter with beats in total production, unit costs, and EBITDAX.

Regulatory Environment

The regulatory environment in California may be easing, which could benefit CRC as the largest oil producer in the state.

Shareholder Returns

CRC returned an impressive $287m to shareholders including a $228m private deal to repurchase shares.

Negative Factors

Commodity Prices

FY25 Adjusted EBITDA guidance is revised up by $120 million, even as Brent prices have dropped.

Production Decline

The decline in oil production is better than original expectations, at a rate of 5-7%.

Regulatory Challenges

There 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.

California Resources Corp Business Overview & Revenue Model

Company Description

California Resources Corporation (CRC) is an independent oil and natural gas exploration and production company operating primarily in California. The company focuses on developing and producing oil and natural gas reserves, with an emphasis on managing its assets to maximize value and ensure sustainable operations. CRC is committed to leveraging technology and innovation to efficiently access energy resources while maintaining environmental stewardship.

How the Company Makes Money

California Resources Corporation generates revenue primarily through the exploration, development, and production of oil and natural gas. The company's key revenue streams include the sale of crude oil, natural gas, and natural gas liquids extracted from its various operations across California. CRC's financial performance is significantly influenced by factors such as commodity prices, production volumes, and operational efficiencies. The company may also engage in strategic partnerships and joint ventures to optimize resource development and enhance profitability. Additionally, CRC focuses on cost management and technological advancements to improve its competitive edge in the energy sector.

California Resources Corp Financial Statement Overview

Summary

California Resources Corp exhibits strong financial performance with robust revenue growth and profitability. The balance sheet is stable with moderate leverage, and cash flow generation is strong, supporting operational and strategic initiatives. Monitoring net profit margins and debt levels is advisable.

Income Statement

California Resources Corp has demonstrated strong revenue growth with an 8.33% increase in the TTM period. The company maintains a solid gross profit margin of 75.36% and a net profit margin of 16.65%, indicating efficient cost management and profitability. EBIT and EBITDA margins are also robust at 25.97% and 39.52%, respectively, reflecting operational efficiency. However, the net profit margin has slightly decreased from previous periods, suggesting potential pressure on net earnings.

Balance Sheet

The company's balance sheet shows a healthy debt-to-equity ratio of 0.32, indicating moderate leverage and a strong equity position. Return on equity stands at 19.05%, showcasing effective use of shareholder funds to generate profits. The equity ratio is not explicitly calculated but implied to be strong given the company's solid equity base relative to total assets. Overall, the balance sheet reflects financial stability, though the slight increase in debt levels from previous periods warrants monitoring.

Cash Flow

California Resources Corp has achieved a 14.60% growth in free cash flow, highlighting improved cash generation capabilities. The operating cash flow to net income ratio of 0.84 and a free cash flow to net income ratio of 1.0 indicate strong cash conversion efficiency. The consistent generation of free cash flow relative to net income suggests robust cash flow management, supporting the company's liquidity and operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.99B	2.93B	2.81B	3.26B	2.56B	1.61B
Gross Profit	3.01B	2.25B	1.41B	1.78B	1.27B	308.00M
EBITDA	1.58B	991.00M	1.07B	1.31B	871.00M	2.45B
Net Income	665.00M	376.00M	564.00M	524.00M	612.00M	3.33B
Balance Sheet
Total Assets	6.71B	7.13B	4.00B	3.97B	3.85B	3.07B
Cash, Cash Equivalents and Short-Term Investments	72.00M	372.00M	496.00M	307.00M	305.00M	28.00M
Total Debt	1.09B	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	3.41B	3.54B	2.22B	1.86B	1.69B	1.18B
Cash Flow
Free Cash Flow	777.00M	610.00M	468.00M	678.00M	466.00M	59.00M
Operating Cash Flow	777.00M	610.00M	653.00M	690.00M	660.00M	106.00M
Investing Cash Flow	-1.13B	-1.08B	-175.00M	-317.00M	-161.00M	-37.00M
Financing Cash Flow	-611.00M	343.00M	-289.00M	-371.00M	-222.00M	-58.00M

California Resources Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 49.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRC, the sentiment is Positive. The current price of 49.03 is above the 20-day moving average (MA) of 48.71, above the 50-day MA of 48.01, and above the 200-day MA of 46.01, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 51.41 is Neutral, neither overbought nor oversold. The STOCH value of 57.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRC.

California Resources Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRC	82 Outperform	$4.31B	6.72	24.36%	3.01%	58.35%	210.80%
SM	72 Outperform	$3.24B	3.99	19.27%	2.97%	28.20%	1.63%
MUR	71 Outperform	$3.67B	13.00	5.42%	5.11%	-18.08%	-49.36%
BSM	70 Outperform	$2.58B	10.56	24.31%	11.73%	-8.06%	-22.61%
Sector *	65 Neutral	$15.28B	7.48	3.22%	5.33%	4.10%	-60.58%
VIST	65 Neutral	$3.71B	6.65	32.89%	―	51.55%	29.12%
GPOR	58 Neutral	$3.08B	16.69	-6.25%	―	25.89%	-117.80%

California Resources Corp Corporate Events

California Resources Corp to Repurchase 4.95M Shares

On June 23, 2025, California Resources Corp agreed to repurchase 4,950,000 shares of its Common Stock from IKAV at $46.00 per share, totaling $227,700,000. This transaction is part of the company’s $1.35 billion Share Repurchase Program and will be funded by cash on hand and operational cash flows. The settlement is expected on June 25, 2025, and will result in the cessation of lock-up restrictions on IKAV and its affiliates, enhancing the company’s flexibility in stock transactions.