California Resources Corp (CRC) AI Stock Analysis

• Market Cap: $3.98B
• Dividend Yield: 3.26%
• Average Volume (3M): 966.57K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.92
• Revenue Growth: 58.35%
• EPS Growth: 210.80%
• Country: US
• Employees: 1,550
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.10
• Shares Outstanding: 83,679,985
• 10 Day Avg. Volume: 944,832
• 30 Day Avg. Volume: 966,567
• PEG Ratio: -0.26
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 6.75
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 1.38
• Enterprise Value/Gross Profit: 1.77
• Enterprise Value/Ebitda: 3.75
• 1Y Price Target: $57.78
• Price Target Upside: 21.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 77 Outperform
• Price Target: $55.00 ▲(15.67% Upside)

CRC's overall stock score is driven by strong earnings call performance and attractive valuation. The company's strategic initiatives and financial health are significant strengths, while technical indicators and financial performance provide additional support. Regulatory challenges and revenue volatility are risks to monitor.

Positive Factors

Operational Performance

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

Shareholder Returns

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

Valuation

The stock is considered undervalued based on a sum-of-the-parts analysis, suggesting potential for price appreciation.

Negative Factors

Equity Issuance Concerns

Equity 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 Reaction

CRC shares sold off by 11% due to fears around Brookfield payment deferrals, concerns on PE sales, and impatience around power PPA catalysts.

Regulatory Risks

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

CRC shows strong profitability and improved debt management, but faces challenges with revenue growth volatility and cash flow generation. The company's ability to maintain robust EBITDA margins and improve leverage ratios is commendable, yet vigilance is needed for potential risks.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.69B	2.93B	2.81B	3.26B	2.56B	1.61B
Gross Profit	2.88B	2.25B	1.41B	1.78B	1.27B	308.00M
EBITDA	1.36B	1.08B	1.07B	1.31B	871.00M	2.45B
Net Income	501.00M	376.00M	564.00M	524.00M	612.00M	3.33B
Balance Sheet
Total Assets	6.83B	7.13B	4.00B	3.97B	3.85B	3.07B
Cash, Cash Equivalents and Short-Term Investments	214.00M	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	3.52B	3.54B	2.22B	1.86B	1.69B	1.18B
Cash Flow
Free Cash Flow	678.00M	610.00M	468.00M	678.00M	466.00M	59.00M
Operating Cash Flow	712.00M	610.00M	653.00M	690.00M	660.00M	106.00M
Investing Cash Flow	-1.11B	-1.08B	-175.00M	-317.00M	-161.00M	-37.00M
Financing Cash Flow	206.00M	343.00M	-289.00M	-371.00M	-222.00M	-58.00M

California Resources Corp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 47.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 47.55 is below the 20-day moving average (MA) of 48.50, above the 50-day MA of 46.97, and above the 200-day MA of 46.74, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 48.91 is Neutral, neither overbought nor oversold. The STOCH value of 29.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CRC.

California Resources Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRC	77 Outperform	$3.98B	6.49	24.36%	3.26%	58.35%	210.80%
MUR	77 Outperform	$3.37B	12.26	5.42%	5.37%	-14.90%	-27.53%
VIST	72 Outperform	$4.07B	7.24	32.89%	―	51.55%	29.12%
SM	72 Outperform	$3.02B	3.71	19.27%	3.05%	26.04%	11.96%
BSM	70 Outperform	$2.58B	10.56	24.31%	11.67%	-12.71%	-39.85%
GPOR	54 Neutral	$2.93B	16.69	-6.25%	―	10.44%	-139.05%
Sector *	45 Neutral	AU$1.33B	-8.62	-15.56%	7.64%	2.10%	-32.50%

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.

The most recent analyst rating on (CRC) stock is a Buy with a $64.00 price target. To see the full list of analyst forecasts on California Resources Corp stock, see the CRC Stock Forecast page.