California Resources Corp (CRC) AI Stock Analysis

• Market Cap: $3.23B
• Dividend Yield: 4.13%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 7.7
• Beta (1Y): 1.06
• Revenue Growth: 5.12%
• EPS Growth: -47.76%
• Country: US
• Employees: 1,550
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 4.11
• Shares Outstanding: 90,646,670
• 10 Day Avg. Volume: 962,564
• 30 Day Avg. Volume: 1,355,178
• PEG Ratio: 3.39
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.38
• Price to Cash Flow (P/CF): 4.50
• P/FCF Ratio: 7.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $59.00
• Price Target Upside: 65.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

CRC's overall stock score is bolstered by strong earnings performance and attractive valuation metrics, despite technical analysis indicating short-term bearishness. The company's strategic initiatives in cost management and carbon capture, alongside solid dividend returns, provide a positive outlook, although stock performance challenges and regulatory dependencies present risks.

Positive Factors

Carbon Capture and Sequestration

CRC's FID marks a significant milestone for the company's development of carbon capture, and investor focus through '25 will be on execution.

Financial Performance

CRC's 4Q was a beat with oil volumes in line, EBITDAX beat by 6%, and capex 7% below estimates.

Market Position

CRC is the largest oil and gas producer in California, benefiting from more attractive realizations compared to its peers due to its local operations in an under-supplied state.

Negative Factors

Market Conditions

An oversupplied oil market is anticipated, which could negatively impact CRC's performance due to its sensitivity to oil prices.

Permit Delays

Production declines may continue longer than expected due to permit delays at both the state and county levels, despite efforts to mitigate these declines.

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 Business Overview & Revenue Model

Company Description

California Resources Corporation (CRC) is a publicly traded oil and natural gas exploration and production company focused on energy resources within the state of California. The company primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids. CRC operates in some of California's most prolific oil basins, including the San Joaquin, Los Angeles, Ventura, and Sacramento basins.

How the Company Makes Money

California 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 exhibits strong profitability metrics and improved debt management, yet struggles with inconsistent revenue growth and cash flow generation. EBITDA margins are robust, indicating effective cost management. The overall financial landscape reveals strengths but highlights areas needing improvement.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.20B	2.81B	3.26B	2.56B	1.61B
	Gross Profit
3.20B	1.41B	1.78B	1.27B	308.00M
	EBIT
620.00M	808.00M	1.11B	658.00M	-1.89B
	EBITDA
991.00M	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
5.51B	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
1.97B	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

• Technical Analysis Sentiment: Negative
• Last Price: 35.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 35.68 is below the 20-day moving average (MA) of 39.24, below the 50-day MA of 42.35, and below the 200-day MA of 49.25, indicating a bearish trend. The MACD of -2.62 indicates Positive momentum. The RSI at 39.35 is Neutral, neither overbought nor oversold. The STOCH value of 50.25 is Neutral, 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	9.61	33.30%	―	45.43%	16.98%
CRC	74 Outperform	$3.23B	7.72	13.06%	4.13%	5.12%	-47.76%
SM	73 Outperform	$2.48B	3.25	19.62%	3.30%	13.33%	-2.72%
BSM	70 Outperform	$3.09B	12.75	23.12%	10.25%	-12.71%	-39.85%
MUR	69 Neutral	$2.98B	7.74	7.77%	5.73%	-12.48%	-36.47%
GPOR	58 Neutral	$3.09B	16.69	-13.60%	―	-11.68%	-123.15%
Sector *	55 Neutral	$7.05B	3.47	-6.10%	6.00%	-0.44%	-51.04%

California Resources Corp Corporate Events

California Resources Appoints New CFO for Strategic Growth

California Resources Corporation has announced the appointment of Clio Crespy as their new Executive Vice President and Chief Financial Officer, effective January 1, 2025. Crespy, a seasoned investment banker with a background in energy and sustainability, will replace Nelly Molina. Her expertise in mergers and acquisitions, capital markets, and corporate finance is expected to drive CRC’s strategic initiatives, particularly in carbon management and energy transition.