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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]

Core Viewpoint - Questerre Energy Corporation is advancing its goal of commercially developing oil shale through the acquisition of PX Energy, enhancing its portfolio and establishing itself as a vertically integrated oil shale company [2][7]. Financial Performance - For Q3 2025, Questerre reported an average production of 2,926 barrels of oil equivalent per day (boe/d), a significant increase from 1,913 boe/d in Q3 2024 [4]. - Petroleum and natural gas sales for the quarter reached $11.8 million, up from $9.5 million in the same quarter last year, while year-to-date sales totaled $34.6 million compared to $27.3 million in 2024 [5]. - The company experienced a net loss of $5.3 million for the quarter, compared to a loss of $0.3 million in Q3 2024, and a year-to-date net loss of $6.0 million versus a net income of $0.8 million in 2024 [6]. Operational Developments - The acquisition of PX Energy is expected to enhance production capabilities and profitability through a joint venture with Nimofast, a major fuel distributor in Brazil [2]. - Questerre is working on a structure to distribute new tracking shares to existing shareholders, representing ownership in its Quebec assets [2]. Production Metrics - Liquids production for Q3 2025 included 1,512 barrels per day (bbls/d) of light crude and natural gas liquids, up from 1,106 bbls/d in Q3 2024 [12]. - Natural gas production averaged 8,485 thousand cubic feet per day (Mcf/d) for the quarter, compared to 4,842 Mcf/d in the same period last year [12]. Strategic Initiatives - The company is pursuing a business and political solution in Quebec while working on approvals for a pilot carbon storage project [2]. - Questerre is committed to leveraging clean technologies and innovation to transition its energy portfolio responsibly [8].

Core Insights - Equinor ASA has successfully drilled two appraisal wells in the North Sea, indicating potential for carbon dioxide storage [1][2][4] - The drilling operations utilized the DeepSea Stavanger rig, suitable for harsh environments, and the wells may support the Smeaheia carbon storage project [2][3] - Preliminary results from injection tests at both wells are positive, providing valuable data for future investment decisions [3] Company Developments - The wells 32/7-1 and 32/4-4 are the first drilled under exploration licence EXL 002, awarded in June 2022, and are part of efforts to evaluate commercial CO2 storage feasibility [4] - Equinor Low Carbon Solutions has highlighted the suitability of the reservoir for CO2 injection and storage [1][3] Industry Context - The drilling of these wells represents a significant step in the Norwegian Continental Shelf's exploration for commercial CO2 storage solutions [4] - The results from these wells will contribute to the broader energy transition and carbon management strategies within the industry [1][3]