Best Oil and Energy Stocks to Invest In Now: CRC, NCSM, TDW
Surge in Oil Prices: Oil and energy stocks are rising as crude prices exceed $60 a barrel, driven by supply constraints, geopolitical tensions, and recovering demand post-pandemic, with OPEC+ limiting supply growth.
Strong Performers: California Resources, NCS Multistage, and Tidewater are highlighted as top oil and energy stocks, showing significant earnings growth and positive revisions in earnings estimates, indicating potential for further upside.
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- Bond Offering Plan: California Resources Corporation plans to offer $250 million in 7.000% senior unsecured notes due 2034, contingent on market conditions, aimed at optimizing its capital structure and reducing financing costs.
- Clear Use of Proceeds: The proceeds from this bond issuance will be combined with cash on hand and borrowings under its revolving credit facility to redeem $250 million of its 8.250% senior unsecured notes due 2029, thereby lowering future interest expenses.
- Market Positioning Strategy: The new notes will be issued as additional securities under the same indenture as the $400 million of 7.000% senior notes issued in October 2025, ensuring transparency and consistency in the company's debt structure for investors.
- Private Placement Approach: The notes will be offered in a private placement to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S, aiming to attract more international investors and enhance market liquidity.

California Resources Corp. Announcement: The company has offered an additional $400 million in senior notes.
Details of the Notes: The senior notes have a fixed interest rate of 7.00% and are set to be issued on October 8, 2025.

Financial Offering: California Resources Corporation is offering $250 million in senior unsecured notes.
Interest Rate and Maturity: The notes will have an interest rate of 7.00% and are due in 2034.
- Dividend Yield Expectation: California Resources Corp (CRC) currently has an annualized dividend yield of 2.6%, which is based on historical data of the company's profitability fluctuations, indicating that dividends may continue if earnings remain stable.
- Historical Volatility Analysis: With a historical volatility of 42% calculated from the last 251 trading days' closing prices, this provides investors with a basis for assessing risk and reward, particularly when considering selling covered calls at a strike price of $72.50.
- Options Trading Dynamics: On Tuesday, the put volume among S&P 500 components was 681,846 contracts, while call volume reached 1.31 million contracts, resulting in a put:call ratio of 0.52, indicating a preference for call options among investors.
- Market Sentiment Indicator: The current put:call ratio is below the long-term median of 0.65, suggesting a strong bullish sentiment towards California Resources Corp, potentially reflecting investor optimism regarding future earnings growth.
- Sustained Production Growth: Despite a 14% year-over-year decline in commodity prices, California Resources Corporation (CRC) achieved production growth for the third consecutive year, with CEO Francisco Leon emphasizing further growth expected in 2026, showcasing the company's unique position in California's energy and decarbonization landscape.
- Strong Financial Performance: The company reported adjusted EBITDAX of $251 million and free cash flow of $115 million in Q4, with nearly $1.25 billion of adjusted EBITDAX generated for the full year, reflecting robust capital discipline and returns, as 94% of free cash flow was returned to shareholders.
- CCS Project Progress: CRC's first commercial-scale Carbon Capture and Storage (CCS) project at Elk Hills is complete and in the commissioning phase, having successfully captured CO2 and awaiting final EPA approval, marking significant progress in the company's carbon management strategy.
- Optimistic Future Outlook: The company expects to generate approximately $1 billion of adjusted EBITDAX in 2026 with capital spending projected at around $450 million, and net production anticipated to increase by 12% year-over-year to 155,000 barrels of oil equivalent per day, demonstrating strong growth potential and flexible capital planning capabilities.
- Earnings Performance: California Resources reported a Q4 non-GAAP EPS of $0.47, missing estimates by $0.03, although revenue reached $924 million, up 5.4% year-over-year, exceeding expectations by $134.17 million, indicating resilience in revenue growth.
- Cash Flow and Investment: The company generated $235 million in net cash from operating activities and $115 million in free cash flow, demonstrating strong cash generation capabilities while investing $120 million in drilling, completions, and workover capital, reflecting a commitment to future growth.
- Dividend Growth: California Resources increased its annual dividend by 5%, marking four consecutive years of dividend growth, which underscores the company's focus on shareholder returns and stable financial health.
- 2026 Outlook: The company targets approximately 12% year-over-year production growth for 2026, averaging 152-157 MBoe/d, with capital investments expected to range between $430 million and $470 million, indicating a proactive approach to future development.





