California Resources Corporation (CRC) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

California Resources Corporation (CRC) Energy Operations & Outlook

California Resources Corporation is a prominent independent oil and natural gas company, specializing in the exploration, production, and marketing of hydrocarbons, with a strategic focus on California's energy market and a commitment to sustainable practices.

What Is the Investment Thesis for CRC?

California Resources Corporation presents a unique investment thesis driven by its substantial reserve base of 480 million barrels of oil equivalent and a market capitalization of $4.99B. The company operates in a region with significant energy demand and regulatory support for local production. CRC's gross margin stands at 37.8%, indicating operational efficiency relative to industry standards. The company's ongoing commitment to sustainable practices and electricity generation further enhances its growth potential. With a profit margin of -13.1%, CRC faces challenges, but its strategic initiatives could lead to improved profitability over the next few years. Key growth catalysts include potential increases in oil prices, expansion of production capabilities, and enhanced operational efficiencies, which could significantly impact the company's financial performance.

Based on FMP financials and quantitative analysis

CRC Key Highlights

Market capitalization of $4.99B, reflecting strong positioning in the California energy market.

• Gross margin of 37.8%, indicating competitive operational efficiency in oil and gas production.
• Proved reserves totaling approximately 480 million barrels of oil equivalent, providing a solid foundation for future production.
• Dividend yield of 2.69%, offering a return to shareholders amid industry volatility.
• Employee base of 1,550, showcasing CRC's capacity to manage extensive operations.

Who Are CRC's Competitors?

CRC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CRC's Key Strengths?

Substantial proved reserves of 480 million barrels of oil equivalent.

• Strong market position in California's energy sector.
• Diverse revenue streams from oil, gas, and electricity sales.
• Experienced management team with industry expertise.

What Are CRC's Weaknesses?

Negative profit margin of -13.1%, indicating financial challenges.

• Dependence on California's regulatory environment and market conditions.
• Limited geographic diversification compared to larger competitors.
• Vulnerability to fluctuations in oil and gas prices.

What Could Drive CRC Stock Higher?

Potential increases in oil prices due to geopolitical factors and supply constraints.

• Strategic initiatives aimed at optimizing production efficiency and reducing costs.
• Expansion of electricity generation capacity to meet local demand.
• Continued investment in technology to enhance drilling and operational processes.

What Are the Key Risks for CRC?

Financial-distress signal — its Altman Z-Score of 1.60 sits in the distress zone (elevated bankruptcy risk).

• Negative return on equity (-14.4%) — the business is not currently generating profit on shareholder capital.
• Insider selling — insiders were net sellers of roughly $4.6M recently.
• Regulatory changes that could impact operational costs and market access.
• Exposure to fluctuations in oil and gas prices affecting revenue stability.
• Increased competition from renewable energy sources impacting market share.
• Dependence on California's energy policies and market dynamics.

What Are the Growth Opportunities for CRC?

• Expansion of Production Capabilities: California Resources Corporation aims to enhance its production capacity by optimizing existing assets and exploring new drilling opportunities. The California oil market is projected to grow steadily, with an estimated value of $40 billion by 2028. CRC's focus on increasing production efficiency can lead to a significant rise in output, capitalizing on favorable market conditions.
• Electricity Generation and Sales: CRC's engagement in electricity generation provides a unique avenue for growth. As California pushes for cleaner energy solutions, the demand for local electricity generation is expected to rise. The renewable energy market in California is projected to reach $100 billion by 2030, positioning CRC to capitalize on this trend through its electricity sales to utilities and the grid.
• Technological Advancements: The adoption of advanced drilling technologies and data analytics can enhance CRC's operational efficiency and reduce production costs. The oil and gas technology market is expected to grow at a CAGR of 7% over the next five years. By investing in innovative technologies, CRC can improve its competitive edge and profitability.
• Strategic Partnerships: Collaborating with other energy companies or technology firms can provide CRC with access to new markets and resources. Strategic partnerships can facilitate knowledge sharing and enhance operational capabilities, allowing CRC to adapt to industry changes and capitalize on emerging opportunities.
• Sustainability Initiatives: As the energy sector shifts towards sustainability, CRC's commitment to environmentally responsible practices can attract socially conscious investors. The market for sustainable energy solutions is projected to grow significantly, providing CRC with opportunities to enhance its brand reputation and market share.

What Threats Does CRC Face?

• Intensifying competition from both traditional and renewable energy sources.
• Regulatory changes that may impact operational flexibility.
• Volatility in oil and gas prices affecting profitability.
• Public sentiment shifting towards renewable energy solutions.

What Are CRC's Competitive Advantages?

• Significant reserve base providing a competitive advantage in production capacity.
• Established relationships with local refineries and energy marketers.
• Expertise in navigating California's regulatory environment.
• Commitment to sustainability enhancing brand reputation and investor appeal.

What Does CRC Do?

California Resources Corporation (CRC) was incorporated in 2014 and is headquartered in Long Beach, California. The company was formed to focus on the exploration and production of oil and natural gas in California, capitalizing on the state's rich hydrocarbon resources. CRC operates independently, exploring for, producing, gathering, processing, and marketing crude oil, natural gas, and natural gas liquids. As of December 31, 2021, CRC held interests in approximately 1.9 million net mineral acres, with proved reserves estimated at 480 million barrels of oil equivalent. This substantial reserve base positions CRC favorably within the competitive landscape of the oil and gas industry. In addition to its core exploration and production activities, CRC also engages in the generation and sale of electricity to local utilities and the grid, diversifying its revenue streams and contributing to California's energy needs. The company serves a variety of customers, including marketers, California refineries, and other purchasers with access to transportation and storage facilities. CRC's strategic focus on California allows it to leverage local market dynamics and regulatory frameworks, enhancing its operational efficiency and market positioning.

What Products and Services Does CRC Offer?

• Explore for oil and natural gas reserves in California.
• Produce crude oil, natural gas, and natural gas liquids.
• Gather, process, and market hydrocarbons to various customers.
• Engage in electricity generation and sales to local utilities.
• Manage approximately 1.9 million net mineral acres.
• Maintain a focus on sustainable energy practices.

How Does CRC Make Money?

• Generate revenue through the sale of crude oil, natural gas, and natural gas liquids.
• Engage in electricity generation and sales to diversify income streams.
• Leverage extensive mineral rights to optimize production capabilities.
• Utilize advanced technologies to enhance operational efficiency and reduce costs.

What Industry Does CRC Operate In?

The oil and gas exploration and production industry is experiencing a dynamic phase characterized by fluctuating commodity prices, increasing demand for energy, and a growing emphasis on sustainable practices. California, in particular, presents a unique market environment with stringent regulations and a strong push towards renewable energy sources. However, traditional oil and gas companies like CRC continue to play a crucial role in meeting the state's energy demands. The competitive landscape includes various players, with CRC positioned to leverage its substantial reserves and local market knowledge against competitors such as Matador Resources Company (MTDR) and Murphy Oil Corporation (MUR). The industry's growth rate is projected to stabilize, with increasing investments in technology and efficiency driving future developments.

Who Are CRC's Key Customers?

• Marketers of crude oil and natural gas.
• California refineries requiring local energy sources.
• Utilities and grid operators seeking electricity generation.
• Other purchasers with access to transportation and storage facilities.

Company Profile

California Resources Corporation operates in the Oil & Gas Exploration & Production industry within the Energy sector. It is headquartered in Long Beach, US. The company is led by CEO Francisco J. Leon. CRC has traded publicly since 2020.

California Resources Corporation Financial Trajectory

California Resources Corporation (CRC) reported $1.30B in revenue for Q2 FY2026, reflecting 34.1% growth compared to the prior quarter. The company recorded net income of $514.0M, with diluted EPS of $5.76. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Energy company. Across the four most recent quarters, CRC averaged $-0.34 in diluted EPS.

How California Resources Corporation Is Valued

California Resources Corporation carries a market capitalization of $4.99B, placing it in the mid-cap category. Analyst price targets span from $67.00 to $87.00, with a consensus of $78.25. At the current price of $56.25, that implies approximately 39% upside potential. Relative to its peer group, CRC's quantitative score of 55/100 is below the peer average of 73/100.

Return on equity for California Resources Corporation stands at -14.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -1.4%, showing how much profit it generates from its asset base. CRC trades at a trailing price-to-earnings ratio of 11.48, below the Energy sector average of ~15.80x. A current ratio of 0.55 means current liabilities exceed short-term assets, a liquidity point worth watching.

California Resources Corporation's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.60 places it in the distress zone, a signal of elevated financial risk.

California Resources Corporation has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 12.4% above estimates on average.

Over the past six months, California Resources Corporation insiders filed 18 SEC Form 4 transactions — 9 sales and 9 purchases. On net that is roughly 49K shares disposed (about $4.6M), a signal worth weighing alongside the fundamentals.

CRC Financials

CRC Latest News

CRC Analyst Consensus

CRC MoonshotScore

Common Questions About CRC (Energy)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources