California Resources Corp (CRC) AI Stock Analysis

• Market Cap: $4.78B
• Dividend Yield: 3.56%
• Average Volume (3M): 858.35K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.99
• 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: 89,284,120
• 10 Day Avg. Volume: 863,072
• 30 Day Avg. Volume: 858,348
• PEG Ratio: -0.26
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 1.39
• P/FCF Ratio: 11.76
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 1.61
• Enterprise Value/Gross Profit: 4.25
• Enterprise Value/Ebitda: 4.49
• 1Y Price Target: $64.70
• Price Target Upside: 20.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $58.00 ▲(8.41% 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

Free Cash Flow Generation

Sustained positive free cash flow and strong operating cash conversion indicate the company can fund maintenance capex, service debt, and pursue strategic investments without relying on equity. This cash durability supports long-term financial flexibility and resilience through cycles.

Improved Decline Profile

A materially lower base decline rate reduces required reinvestment to sustain production, improving capital efficiency and long-term production stability. This structural improvement enhances future cash flow durability and lowers capital intensity per barrel produced.

Balance Sheet Strength & Liquidity

Low net leverage combined with >$1.1bn liquidity provides strategic optionality: funds for M&A integration, capital programs like CCS, and downside protection during price shocks. Strong liquidity supports multi‑year execution of growth and decarbonization plans.

Negative Factors

Recent Revenue Weakness

Declining revenue trends can erode top-line scale and limit absolute cash flow even with solid margins. Over several quarters this can constrain reinvestment, slow debt reduction or integration benefits from acquisitions, and signal structural demand or production issues.

Permitting & Regulatory Constraints

Persistent permitting limits materially cap the company’s ability to drill and grow production in California. This regulatory friction increases execution risk, raises development lead times and costs, and can structurally compress long‑term reserve and production growth profiles.

Commodity Price Exposure

As an upstream producer, durable revenues depend on volatile oil and gas prices. While hedges mitigate swings, long‑run cash flow and reinvestment capacity remain exposed to commodity cycles, which can limit predictable growth and capital allocation over multiple quarters.

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: Positive
• Last Price: 53.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 53.5 is above the 20-day moving average (MA) of 48.11, above the 50-day MA of 46.89, and above the 200-day MA of 46.31, indicating a bullish trend. The MACD of 1.59 indicates Negative momentum. The RSI at 73.52 is Negative, neither overbought nor oversold. The STOCH value of 88.35 is Negative, 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
VIST	76 Outperform	$5.77B	8.50	37.10%	―	50.79%	32.97%
CRC	71 Outperform	$4.78B	12.44	11.06%	3.56%	33.85%	-34.08%
CNX	66 Neutral	$5.23B	10.54	15.01%	―	43.30%	-43.07%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
MGY	65 Neutral	$4.81B	14.19	17.51%	2.74%	0.68%	-11.13%
MUR	62 Neutral	$4.30B	41.58	2.01%	4.15%	-13.92%	-68.34%
CRK	59 Neutral	$7.14B	109.29	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.

The most recent analyst rating on (CRC) stock is a Buy with a $68.00 price target. To see the full list of analyst forecasts on California Resources Corp stock, see the CRC Stock Forecast page.

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.

The most recent analyst rating on (CRC) stock is a Buy with a $68.00 price target. To see the full list of analyst forecasts on California Resources Corp stock, see the CRC Stock Forecast page.

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.

The most recent analyst rating on (CRC) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on California Resources Corp stock, see the CRC Stock Forecast page.