California Resources selloff on court ruling ‘overdone,’ says Stifel

Stifel believes yesterday’s selloff in shares of California Resources after an appellate court issued an opinion that keeps the current oil and gas permitting suspension in place for Kern County, California was “overdone” as the firm noted that the opinion is still being reviewed and said it expects more information regarding impacts and the path forward in the coming days. Assuming California Resources continues the current one-rig program through 2025, the firm estimates the delay could result in a roughly $200M PV10 impact compared to about a $385M selloff in the shares. Stifel keeps a Buy rating on California Resources.