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California Resources Corp (CRC)
NYSE:CRC
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California Resources Corp
(NYSE:CRC)
66Neutral
Positive Factors
Carbon Capture and Storage
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.
Negative Factors
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, including delays in permit approvals which could impact production and expansion plans.
California Resources Corp (CRC) vs. S&P 500 (SPY)
Market Cap
$3.97B
Dividend Yield3.18%
Average Volume (3M)1.31M
Price to Earnings (P/E)9.5
Beta (1Y)0.91
Revenue Growth5.12%
EPS Growth-47.76%
CountryUS
Employees1,550
SectorEnergy
Sector Strength85
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)4.11
Shares Outstanding90,646,670
10 Day Avg. Volume2,196,192
30 Day Avg. Volume1,307,632
Financial Highlights & Ratios
PEG Ratio3.39
Price to Book (P/B)N/A
Price to Sales (P/S)1.38
Price to Cash Flow (P/CF)4.50
P/FCF Ratio7.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$67.86Price Target Upside54.83% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
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 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.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 | |||
| 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
Negative
43.83
Price Trends
46.04
Negative
50.16
Negative
50.08
Negative
Market Momentum
-0.35
Negative
48.29
Neutral
41.40
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 43.83 is above the 20-day moving average (MA) of 42.87, below the 50-day MA of 46.04, and below the 200-day MA of 50.08, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 48.29 is Neutral, neither overbought nor oversold. The STOCH value of 41.40 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
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $70.12B | 11.25 | 22.29% | 2.93% | 0.88% | -13.66% | |
78 Outperform | $130.12B | 13.11 | 16.16% | 3.05% | -2.57% | -14.01% | |
76 Outperform | $290.61B | 17.09 | 11.28% | 3.97% | -1.90% | -14.56% | |
76 Outperform | $510.85B | 15.02 | 14.38% | 3.29% | 1.86% | -11.52% | |
72 Outperform | $45.89B | 19.98 | 8.88% | 1.80% | -4.35% | -37.69% | |
66 Neutral | $3.97B | 9.49 | 13.06% | 3.18% | 5.12% | -47.76% | |
58 Neutral | $9.10B | 5.27 | -7.86% | 7.51% | 0.51% | -64.31% |
* Energy Sector Average
Performance Comparison
CRC
California Resources Corp
43.97
-8.28
-15.85%
CVX
Chevron
167.29
14.81
9.71%
COP
Conocophillips
105.02
-20.03
-16.02%
EOG
EOG Resources
128.24
2.06
1.63%
XOM
Exxon Mobil
118.93
5.76
5.09%
OXY
Occidental Petroleum
49.36
-15.86
-24.32%
California Resources Corp Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: -0.84% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
CRC demonstrated strong financial performance and growth in its carbon management and power segments, achieving significant cost reductions and synergies. However, stock price challenges and dependence on regulatory approvals pose potential risks. The company's proactive measures in shareholder returns and strategic partnerships indicate a positive outlook.Highlights
Record-Breaking Financial Performance
CRC delivered over $1 billion of adjusted EBITDAX and generated $355 million in free cash flow for 2024. Additionally, CRC returned 85% of 2024 free cash flow to shareholders through dividends and share repurchases.
Significant Cost Reductions and Synergies
CRC achieved 70% of its targeted era-related synergies, improving its 2025 cost structure. Combined operating and transportation costs came in 4% lower than initial guidance, totaling $344 million.
Expansion in Carbon Management
CRC announced a new deal with National Cement and received the nation's first EPA class six permits, with nearly nine million metric tons per annum of carbon management projects under consideration.
Strong Balance Sheet and Shareholder Returns
CRC maintained a strong balance sheet with more than $1 billion of liquidity and rebuilt cash on hand to more than $350 million. The company also increased its dividend by 25%.
Growth in Power and AI Data Centers
CRC is actively pursuing agreements with multiple AI data centers in California and expects to expand the value of its power offering with new power purchase agreements.
Lowlights
Challenges in Stock Performance
CRC's stock price has underperformed compared to peers, partially due to market conditions and investor lock-up agreements.
Dependence on Permit Approvals
CRC's future activities, including the addition of a second rig and the execution of its CCS projects, are dependent on receiving permits by the end of 2025.
Pipeline Regulatory Challenges
The progress of CO2 pipeline projects is hindered by regulatory delays, including a temporary pause on rulemaking for national pipeline regulation.
Company Guidance
During the California Resources Corporation's fourth quarter and year-end 2024 earnings call, the company highlighted several key metrics and strategic initiatives. They reported net production of 141,000 BOE per day and realized oil prices at 99% of Brent. Cost discipline led to $316 million in adjusted EBITDAX and $118 million in free cash flow. The company also achieved a 4% reduction in operating and transportation costs, totaling $344 million. For 2025, CRC plans to invest $285 million to $335 million, with $165 million to $180 million allocated to drilling, completions, and workover capital. They anticipate generating $1.1 to $1.2 billion in adjusted EBITDAX at $73 per barrel Brent. Additionally, CRC is advancing its carbon management business, with nearly nine million metric tons per annum of carbon management projects under consideration and an estimated total storage capacity of 287 million metric tons. The company returned about 85% of 2024 free cash flow to shareholders through dividends and share repurchases.California Resources Corp Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
California Resources Appoints New CFO for Strategic Growth
Positive
Nov 25, 2024
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.
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.