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Core Insights - California Resources Corporation (CRC) enters 2026 with a simplified near-term strategy and clearer long-term goals, supported by strengthened liquidity, a higher dividend, and disciplined capital management [1][10] Short-Term Setup - CRC's shares hold a Zacks Rank 3 (Hold) with a VGM Score of A, indicating expectations for in-line performance in the near term while being attractive on value and momentum factors [2] Regulatory Environment - Recent California policy changes, including SB 237 and SB 614, facilitate the approval of new production permits and CO2 transportation through pipelines, providing CRC with a clearer path for future drilling and carbon storage initiatives [3][10] Financial Performance - In the third quarter, CRC's net production averaged 137 thousand barrels of oil equivalent per day (Mboe/d), with approximately 78% being oil. Adjusted EBITDAX was around $338 million, and free cash flow was approximately $188 million [4][10] - Liquidity exceeded $1.1 billion, including $180 million in cash, and the quarterly dividend was increased by 5%, maintaining a conservative credit profile [5][10] Capital Management - Management targets a corporate base decline of 8–13% for 2026, with capital spending projected at $280–$300 million, reflecting a disciplined, cash-flow-first approach [6][10] - The combination of a moderated decline rate, hedging, and cost control supports free cash flow durability while allowing for shareholder returns [6] Carbon Capture Initiatives - CRC's first carbon capture and storage (CCS) injection at Elk Hills is planned for early 2026, pending final approvals, with construction completion expected by the end of 2025 [7][10] - The approval of CO2 pipelines under SB 614 is crucial for connecting future capture sites to storage locations, and CRC has a memorandum of understanding with Capital Power for potential "power-to-CCS" projects [8] Investment Outlook - The Zacks Rank 3 suggests in-line performance over the next one to three months, with a focus on near-term execution on permits, the timing of the first injection, and stabilizing production against a lower base-decline framework [11] - Peers such as Matador Resources and Murphy Oil are noted for comparison, providing insights into capital returns and relative value within the sector [12] Conclusion - CRC's setup for 2026 is characterized by a stronger liquidity position, measured capital expenditures, and improving policy support, with upcoming CCS milestones and moderated base declines contributing to a balanced near-term outlook and medium-term diversification potential [13]

Key Takeaways CRC expects first CCS injection and commercial revenue from Carbon TerraVault in early 2026.MiQ 'Grade A' methane certifications support CRC's lower-emission oil and gas marketability.California policy shifts and $1.1B liquidity enhance CRC's execution visibility into 2026.California Resources Corporation ((CRC) is pushing its California-first strategy from concept to cash flow. The company’s Carbon TerraVault is tracking toward initial injection and commercial revenue in early 2026, while met ...

Core Insights - California Resources has established a strong position in California's independent exploration and production sector, holding significant mineral rights and a diverse portfolio of oil and gas plays, with 81% of its proved reserves located in the San Joaquin Basin [1][6] - Wells Fargo analysts have initiated an Overweight rating on California Resources and Tamboran Resources, highlighting their unique asset mixes and upcoming catalysts for 2026 [3][14] - The energy sector is experiencing a complex evolution driven by decarbonization efforts and local economic factors, impacting investment strategies [5] California Resources - The company produced 137,000 barrels of oil equivalent per day in the second and third quarters of the year, with crude oil making up approximately 78% of this total [6] - California Resources reported a revenue of $855 million in 3Q25, down over 36% year-over-year, but beat earnings expectations with a non-GAAP EPS of $1.46, up from $1.10 in 2Q25 [8] - The company is involved in carbon capture and storage through its Carbon TerraVault project, partnering with Brookfield Renewable to develop CCS opportunities [7][10] - Analyst Margolin believes CRC shares are trading at their PDP value, with potential for significant upside, setting a price target of $58, indicating a 21.5% increase [10] Tamboran Resources - Tamboran operates in the unconventional natural gas sector in Australia's Northern Territory, with a focus on tapping into the Beetaloo/MacArthur basin [11][12] - The company has not yet begun commercial production and is currently operating at a loss, raising $56.1 million through a public offering and planning additional fundraising [13] - Analyst Margolin highlights the potential for high output and earnings from Tamboran's assets, with a price target of $35 suggesting a 36% upside [14]

Core Insights - California Resources (CRC) is entering 2026 with an improved regulatory environment, a clear integration strategy, and a conservative balance sheet, despite facing challenges such as lower production and higher costs [1][10] Regulatory Environment - California's 2025 policy changes have created a favorable regulatory landscape, including tighter permitting frameworks and extended Cap-and-Invest programs, which are expected to enhance project visibility and accelerate approvals [2] Berry Merger - CRC's all-stock merger with Berry is anticipated to close in Q1 2026, targeting annual synergies of $80–$90 million, with significant production and acreage additions, while maintaining pro forma leverage below 1X [3][10] Financial Position - CRC has over $1.1 billion in liquidity, minimal net leverage, and extended debt maturities to 2029, supporting a 5% increase in quarterly dividends and ongoing stock repurchases [4][10] Near-Term Challenges - The company is experiencing production declines, with Q3 2025 net production averaging 137 Mboe/d, and increased operating costs due to the merger with Aera Energy and elevated taxes [5][10] Q4 and 2026 Guidance - For Q4, CRC projects production of 131–135 Mboe/d, with capital expenditures estimated at $115 million, while the 2026 capex framework is set at $280–$300 million, indicating a focus on stabilizing volumes [6][10] Market Position - CRC holds a short-term Zacks Rank of 3 (Hold) and a VGM Score of A, reflecting strong value and momentum characteristics, with a constructive outlook for 2026 driven by policy shifts and the Berry merger [7][10] Peer Comparison - Matador Resources and Murphy Oil, both ranked 3, offer competitive value characteristics and dividend income, appealing to investors seeking balanced return profiles alongside CRC [9]

It has been about a month since the last earnings report for California Resources Corporation (CRC) . Shares have added about 3.2% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is California Resources due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.Key Highlights•    Tot ...

Core Viewpoint - The former Attorney General of Louisiana, Charles C. Foti, Jr., and Kahn Swick & Foti, LLC are investigating the proposed sale of Berry Corporation to California Resources Corporation to assess the adequacy of the price and process involved in the transaction [1]. Summary by Relevant Sections Proposed Transaction Details - Under the terms of the proposed transaction, shareholders of Berry Corporation will receive 0.0718 shares of California Resources Corporation for each share of Berry they own [1]. Investigation Purpose - Kahn Swick & Foti, LLC aims to determine whether the consideration offered to Berry shareholders is adequate or if it undervalues the company [1]. Contact Information - Interested parties can contact Kahn Swick & Foti, LLC for discussions regarding their legal rights related to the proposed sale [2].

Core Points - California Resources Corporation (CRC) announced a donation of $200,000 to support food security efforts across California [1][2] - The funds will be distributed to local food banks and community organizations, focusing on areas where CRC has operational presence [2][3] - Since 2015, CRC has contributed nearly $20 million to local nonprofits, emphasizing its commitment to community well-being alongside energy development [3] Company Commitment - CRC's President and CEO, Francisco Leon, highlighted the importance of supporting local communities and partnering with organizations that provide essential resources [2] - The company is coordinating with community partners and local officials to ensure effective allocation of resources [2] - CRC's approach reflects its belief that responsible energy development and community well-being are interconnected [3][4] Community Impact - Local leaders expressed gratitude for CRC's contributions, emphasizing the positive impact on families and the community [3] - The donation aims to strengthen the safety net for vulnerable populations, including children, seniors, and working families [3] - CRC's ongoing investment in local communities is part of its broader commitment to environmental stewardship and energy transition [4]

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Core Insights - California Resources Corporation (CRC) has received a 'Grade A' certification from MiQ for its methane emissions performance in Ventura County, reinforcing its leadership in emissions transparency and commitment to California's climate goals [1][2][3] Group 1: Certification and Commitment - CRC is the only oil and natural gas producer in California and the Rocky Mountain Region to achieve MiQ certification, having previously earned a 'Grade A' for its Los Angeles Basin assets in 2024 [1][2] - The certification reflects CRC's high rankings in company practices, monitoring technology deployment, and methane intensity, demonstrating its commitment to lower emissions energy production [3] Group 2: Leadership and Future Plans - CRC's President and CEO, Francisco Leon, emphasized the importance of independent verification in showcasing the company's dedication to meeting high standards for methane emissions while supporting California's energy needs [2] - The company plans to continue collaborating with MiQ to certify its production across California, indicating a proactive approach to emissions management [2] Group 3: MiQ's Role - MiQ is recognized as a global leader in methane emissions certification, aiming to accelerate reductions in methane emissions from the oil and gas sector through credible and transparent certification systems [3][6] - The independent certification process provides trusted data on emissions, ensuring accountability and incentivizing improvements within the industry [4]