California Resources Corp (CRC) AI Stock Analysis

• Market Cap: $4.58B
• Dividend Yield: 2.76%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.96
• Revenue Growth: 58.35%
• EPS Growth: 210.80%
• Country: US
• Employees: 1,550
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.10
• Shares Outstanding: 83,690,216
• 10 Day Avg. Volume: 1,472,501
• 30 Day Avg. Volume: 1,051,128
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 1.70
• Enterprise Value/Ebitda: 3.23
• 1Y Price Target: $65.56
• Price Target Upside: 16.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 82 Outperform
• Price Target: $56.00 ▼(-0.21% Downside)

California Resources Corp's strong financial performance, undervaluation, and positive earnings call sentiment contribute significantly to its high score. Technical indicators support a stable outlook, while the company's strategic advancements and shareholder returns further enhance its position.

Positive Factors

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market presence and effectively manage its operations, supporting long-term financial stability.

Operational Efficiency

Improved operational efficiency enhances profitability and competitiveness, enabling the company to better withstand market fluctuations and invest in growth opportunities.

Cash Flow Management

Strong cash flow management provides the company with the liquidity needed to fund strategic initiatives, reduce debt, and return value to shareholders.

Negative Factors

Regulatory Challenges

Regulatory challenges can delay project timelines and increase compliance costs, potentially impacting the company's ability to expand and optimize operations.

CCS Project Delays

Delays in the CCS project could hinder the company's strategic goals in carbon capture, affecting its long-term sustainability and regulatory compliance efforts.

Net Profit Margin Pressure

A declining net profit margin may indicate rising costs or pricing pressures, which could affect the company's profitability and ability to invest in future growth.

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 exhibits strong financial performance with robust revenue growth and profitability. The balance sheet is stable with moderate leverage, and cash flow generation is strong, supporting operational and strategic initiatives. Monitoring net profit margins and debt levels is advisable.

Income Statement

California Resources Corp has demonstrated strong revenue growth with an 8.33% increase in the TTM period. The company maintains a solid gross profit margin of 75.36% and a net profit margin of 16.65%, indicating efficient cost management and profitability. EBIT and EBITDA margins are also robust at 25.97% and 39.52%, respectively, reflecting operational efficiency. However, the net profit margin has slightly decreased from previous periods, suggesting potential pressure on net earnings.

Balance Sheet

The company's balance sheet shows a healthy debt-to-equity ratio of 0.32, indicating moderate leverage and a strong equity position. Return on equity stands at 19.05%, showcasing effective use of shareholder funds to generate profits. The equity ratio is not explicitly calculated but implied to be strong given the company's solid equity base relative to total assets. Overall, the balance sheet reflects financial stability, though the slight increase in debt levels from previous periods warrants monitoring.

Cash Flow

California Resources Corp has achieved a 14.60% growth in free cash flow, highlighting improved cash generation capabilities. The operating cash flow to net income ratio of 0.84 and a free cash flow to net income ratio of 1.0 indicate strong cash conversion efficiency. The consistent generation of free cash flow relative to net income suggests robust cash flow management, supporting the company's liquidity and operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.99B	2.93B	2.81B	3.26B	2.56B	1.61B
Gross Profit	3.01B	2.25B	1.41B	1.78B	1.27B	308.00M
EBITDA	1.58B	991.00M	1.07B	1.31B	871.00M	2.45B
Net Income	665.00M	376.00M	564.00M	524.00M	612.00M	3.33B
Balance Sheet
Total Assets	6.71B	7.13B	4.00B	3.97B	3.85B	3.07B
Cash, Cash Equivalents and Short-Term Investments	72.00M	372.00M	496.00M	307.00M	305.00M	28.00M
Total Debt	1.09B	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	3.41B	3.54B	2.22B	1.86B	1.69B	1.18B
Cash Flow
Free Cash Flow	777.00M	610.00M	468.00M	678.00M	466.00M	59.00M
Operating Cash Flow	777.00M	610.00M	653.00M	690.00M	660.00M	106.00M
Investing Cash Flow	-1.13B	-1.08B	-175.00M	-317.00M	-161.00M	-37.00M
Financing Cash Flow	-611.00M	343.00M	-289.00M	-371.00M	-222.00M	-58.00M

California Resources Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 56.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 56.12 is above the 20-day moving average (MA) of 52.83, above the 50-day MA of 50.06, and above the 200-day MA of 45.90, indicating a bullish trend. The MACD of 1.96 indicates Negative momentum. The RSI at 63.91 is Neutral, neither overbought nor oversold. The STOCH value of 54.72 is Neutral, 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
CRC	82 Outperform	$4.58B	7.47	24.36%	2.76%	58.35%	210.80%
MGY	77 Outperform	4.74B	12.75	18.87%	2.33%	2.67%	-5.79%
MUR	71 Outperform	4.14B	14.56	5.48%	4.40%	-18.08%	-49.36%
VIST	69 Neutral	3.62B	6.50	27.17%	―	51.55%	29.12%
CNX	66 Neutral	4.46B	53.38	-2.21%	―	38.21%	-67.24%
CRK	55 Neutral	5.63B	-75.06	-3.23%	―	17.60%	-385.47%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

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.