California Resources Faces Permit Challenges And Oversupply Risks—Analyst Sees Growth, But Stay Cautious
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 14 2025
0mins
Should l Buy CRC?
Source: Benzinga
Analyst Rating and Performance: J.P. Morgan analyst Alejandra Magana maintains a Neutral rating on California Resources Corporation (CRC) with a price target of $63, noting a strong fourth quarter despite missing EPS and revenue estimates, while highlighting challenges from California regulations and potential oversupply concerns in 2025.
Regulatory Challenges and Opportunities: The company is facing stalled permit inventory due to regulatory revisions and may encounter further local restrictions; however, it is exploring clean power initiatives and has unique opportunities in carbon capture and storage (CCS).
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Analyst Views on CRC
Wall Street analysts forecast CRC stock price to fall
9 Analyst Rating
9 Buy
0 Hold
0 Sell
Strong Buy
Current: 69.170
Low
56.00
Averages
64.33
High
72.00
Current: 69.170
Low
56.00
Averages
64.33
High
72.00
About CRC
California Resources Corporation is an independent energy and carbon management company committed to energy transition. The Company’s segments include Oil and Natural Gas and Carbon Management. Its Carbon Management business, Carbon TerraVault, focuses on building, installing, operating, and maintaining carbon dioxide equipment, transportation assets and storage facilities. The Oil and Natural Gas segment explores for, develops and produces crude oil, oil condensate, natural gas liquids and natural gas. It has operations in oil and gas basins, including San Joaquin Basin, Los Angeles Basin, Sacramento Basin, and other. It has interests in oil and gas fields throughout the San Joaquin basin, including in Elk Hills, Buena Vista, Coles Levee, North Belridge and South Belridge, Kern Front, Lost Hills, Cymric, McKittrick, Midway Sunset and Coalinga. The Los Angeles Basin is a northwest-trending plain about 50 miles long and 20 miles wide. The Company is also focused on Uinta basin.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Carbon Management Firm Q1 Performance Update
- First Carbon Capture Project: The upcoming CO2 injection at CRC's Elk Hills plant marks California's inaugural carbon capture and storage project, positioning CTV as one of only two U.S. oil and gas companies with EPA-permitted operations, enhancing its market standing in carbon management.
- EPA Permit Acceleration: The U.S. EPA selected CTV VII as the sole regional project, reflecting its efforts to expedite carbon storage permitting, which is expected to facilitate faster project advancement and market acceptance for the company.
- Federal Support Reinstated: The Department of Energy has reopened negotiations with California State University Bakersfield to support EPA Class VI well characterization work at Elk Hills, further solidifying CTV's technical foundation in carbon storage.
- Financial Guidance Outlook: Projected capital expenditures for Q2 2026 are between $2 million and $5 million, with total annual spending expected to range from $12 million to $20 million, demonstrating the company's confidence and commitment to future investments in carbon management.
See More
Carbon Management Firm Q1 Performance Update
- Carbon Capture Progress: Carbon TerraVault Holdings is preparing for CO₂ injection at California's first carbon capture and storage project at Elk Hills, positioning CRC as one of only two U.S. oil and gas companies with EPA-permitted operations, which is expected to enhance its market position in carbon management.
- Regulatory Support Strengthened: The U.S. EPA has selected CTV VII as the sole regional project under its expedited Class VI permit review program, reflecting efforts to accelerate carbon storage permitting, which will provide crucial support for future project approvals and boost market confidence.
- Financial Performance Improvement: In Q1 2026, the Carbon Management Business reported an adjusted EBITDAX of -$8 million, an improvement from -$15 million in the same period last year, indicating positive progress in cost control and operational efficiency.
- Optimistic Outlook: The company expects to receive at least two additional EPA Class VI draft permits in 2026, further advancing carbon capture project implementation, while engaging in discussions with multiple customers for power supply, aiding CRC's strategic positioning in the renewable energy sector.
See More
Analysis of Companies Trading Near 52-Week Highs
- Ryder's Underperformance: Despite a one-month return of 9.6%, Ryder's annual revenue growth of only 3.7% over the past two years falls short of industrial sector standards, indicating limitations in rapid growth, while flat earnings per share put it at a disadvantage compared to peers.
- Viasat's Growth Struggles: With an 18.2% one-month return, Viasat has seen its earnings per share decline by 2.6% annually due to new share issuances over the past five years, and its cash-burning tendencies raise concerns about sustainable shareholder value generation, reflecting failures in its growth strategies.
- California Resources' Strong Performance: California Resources boasts a one-month return of 7.1% and an impressive annual revenue growth of 16.9% over the past five years, indicating a significant increase in market share during this cycle, complemented by a gross margin of 57.1% and a free cash flow margin of 14.3%, providing various options for capital deployment.
- Market Trend Analysis: While current market attention on these stocks is rising, short-term trends do not always guarantee long-term success, prompting investors to carefully assess fundamentals to avoid losses from chasing short-term fluctuations.
See More
California Resources Corporation to Release Q1 2026 Financial Results
- Earnings Release Schedule: California Resources Corporation plans to release its Q1 2026 financial results on May 5, 2026, after market close, which is expected to impact investor confidence by showcasing the company's latest advancements in energy transition.
- Conference Call Timing: The company will hold a conference call on May 6, 2026, at 1:00 PM ET to discuss the financial results, providing pre-registration options to enhance participation and information dissemination efficiency.
- Participation Methods: Participants can join the call by dialing 877-328-5505 or accessing the company website, ensuring timely communication of information while offering a 90-day digital replay to enhance transparency.
- Company Background: California Resources Corporation is an independent energy and carbon management company committed to environmental stewardship and safely providing local energy, focusing on carbon capture and storage projects to demonstrate its strategic positioning in sustainable development.
See More
NASDAQ 100 Pre-Market Indicator Rises Significantly
- Market Indicator Surge: The NASDAQ 100 Pre-Market Indicator rises by 190.77 points to 23,323.54, indicating a positive shift in market sentiment that may attract more investors to tech stocks.
- Active Stock Performance: NIO Inc. (NIO) increases by 0.1799 to $5.49 with a trading volume of 1,285,942 shares, currently at 83.82% of its target price of $6.55, reflecting market confidence in its future growth.
- Nokia Price Recovery: Nokia Corporation (NOK) rises by 0.11 to $8.09 with 627,214 shares traded, currently exceeding its target price of $7.73 by 104.66%, indicating optimism about its business outlook.
- IonQ Buy Recommendation: IonQ, Inc. (IONQ) climbs by 0.52 to $28.03 with a trading volume of 526,164 shares, as Zacks reports its average recommendation is in the 'buy range', showcasing investor recognition of its technology.
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Investment Opportunities in Small-Cap and Dividend Stocks Amid Market Volatility
- Small-Cap Resilience: Despite the S&P 500's approximately 4% decline year-to-date, the small-cap focused Russell 2000 index shows slight positive movement in 2026, indicating resilience in small-cap stocks that may attract investors seeking stable income during market volatility.
- Mid-Cap Outperformance: The mid-cap S&P 400 index has gained nearly 3% year-to-date, appealing to investors due to its relative stability and lower valuations, suggesting that mid-cap stocks may represent a safer investment choice in the current market environment.
- Defensive Dividend Stocks: Dividend-paying stocks have outperformed the broader market this year as they provide reliable income to smooth out market fluctuations, and combining investments in small- and mid-cap stocks could yield success for investors focusing on quality names.
- Energy Sector Potential: Among the screened stocks, three are in the energy sector and benefit from rising oil prices, with analysts projecting at least 10% upside to their average 12-month price targets, highlighting the increased attractiveness of energy stocks amid geopolitical risks.
See More
Carbon Management Firm Q1 Performance Update
- First Carbon Capture Project: The upcoming CO2 injection at CRC's Elk Hills plant marks California's inaugural carbon capture and storage project, positioning CTV as one of only two U.S. oil and gas companies with EPA-permitted operations, enhancing its market standing in carbon management.
- EPA Permit Acceleration: The U.S. EPA selected CTV VII as the sole regional project, reflecting its efforts to expedite carbon storage permitting, which is expected to facilitate faster project advancement and market acceptance for the company.
- Federal Support Reinstated: The Department of Energy has reopened negotiations with California State University Bakersfield to support EPA Class VI well characterization work at Elk Hills, further solidifying CTV's technical foundation in carbon storage.
- Financial Guidance Outlook: Projected capital expenditures for Q2 2026 are between $2 million and $5 million, with total annual spending expected to range from $12 million to $20 million, demonstrating the company's confidence and commitment to future investments in carbon management.
See More
Carbon Management Firm Q1 Performance Update
- Carbon Capture Progress: Carbon TerraVault Holdings is preparing for CO₂ injection at California's first carbon capture and storage project at Elk Hills, positioning CRC as one of only two U.S. oil and gas companies with EPA-permitted operations, which is expected to enhance its market position in carbon management.
- Regulatory Support Strengthened: The U.S. EPA has selected CTV VII as the sole regional project under its expedited Class VI permit review program, reflecting efforts to accelerate carbon storage permitting, which will provide crucial support for future project approvals and boost market confidence.
- Financial Performance Improvement: In Q1 2026, the Carbon Management Business reported an adjusted EBITDAX of -$8 million, an improvement from -$15 million in the same period last year, indicating positive progress in cost control and operational efficiency.
- Optimistic Outlook: The company expects to receive at least two additional EPA Class VI draft permits in 2026, further advancing carbon capture project implementation, while engaging in discussions with multiple customers for power supply, aiding CRC's strategic positioning in the renewable energy sector.
See More
Analysis of Companies Trading Near 52-Week Highs
- Ryder's Underperformance: Despite a one-month return of 9.6%, Ryder's annual revenue growth of only 3.7% over the past two years falls short of industrial sector standards, indicating limitations in rapid growth, while flat earnings per share put it at a disadvantage compared to peers.
- Viasat's Growth Struggles: With an 18.2% one-month return, Viasat has seen its earnings per share decline by 2.6% annually due to new share issuances over the past five years, and its cash-burning tendencies raise concerns about sustainable shareholder value generation, reflecting failures in its growth strategies.
- California Resources' Strong Performance: California Resources boasts a one-month return of 7.1% and an impressive annual revenue growth of 16.9% over the past five years, indicating a significant increase in market share during this cycle, complemented by a gross margin of 57.1% and a free cash flow margin of 14.3%, providing various options for capital deployment.
- Market Trend Analysis: While current market attention on these stocks is rising, short-term trends do not always guarantee long-term success, prompting investors to carefully assess fundamentals to avoid losses from chasing short-term fluctuations.
See More
California Resources Corporation to Release Q1 2026 Financial Results
- Earnings Release Schedule: California Resources Corporation plans to release its Q1 2026 financial results on May 5, 2026, after market close, which is expected to impact investor confidence by showcasing the company's latest advancements in energy transition.
- Conference Call Timing: The company will hold a conference call on May 6, 2026, at 1:00 PM ET to discuss the financial results, providing pre-registration options to enhance participation and information dissemination efficiency.
- Participation Methods: Participants can join the call by dialing 877-328-5505 or accessing the company website, ensuring timely communication of information while offering a 90-day digital replay to enhance transparency.
- Company Background: California Resources Corporation is an independent energy and carbon management company committed to environmental stewardship and safely providing local energy, focusing on carbon capture and storage projects to demonstrate its strategic positioning in sustainable development.
See More
NASDAQ 100 Pre-Market Indicator Rises Significantly
- Market Indicator Surge: The NASDAQ 100 Pre-Market Indicator rises by 190.77 points to 23,323.54, indicating a positive shift in market sentiment that may attract more investors to tech stocks.
- Active Stock Performance: NIO Inc. (NIO) increases by 0.1799 to $5.49 with a trading volume of 1,285,942 shares, currently at 83.82% of its target price of $6.55, reflecting market confidence in its future growth.
- Nokia Price Recovery: Nokia Corporation (NOK) rises by 0.11 to $8.09 with 627,214 shares traded, currently exceeding its target price of $7.73 by 104.66%, indicating optimism about its business outlook.
- IonQ Buy Recommendation: IonQ, Inc. (IONQ) climbs by 0.52 to $28.03 with a trading volume of 526,164 shares, as Zacks reports its average recommendation is in the 'buy range', showcasing investor recognition of its technology.
See More
Investment Opportunities in Small-Cap and Dividend Stocks Amid Market Volatility
- Small-Cap Resilience: Despite the S&P 500's approximately 4% decline year-to-date, the small-cap focused Russell 2000 index shows slight positive movement in 2026, indicating resilience in small-cap stocks that may attract investors seeking stable income during market volatility.
- Mid-Cap Outperformance: The mid-cap S&P 400 index has gained nearly 3% year-to-date, appealing to investors due to its relative stability and lower valuations, suggesting that mid-cap stocks may represent a safer investment choice in the current market environment.
- Defensive Dividend Stocks: Dividend-paying stocks have outperformed the broader market this year as they provide reliable income to smooth out market fluctuations, and combining investments in small- and mid-cap stocks could yield success for investors focusing on quality names.
- Energy Sector Potential: Among the screened stocks, three are in the energy sector and benefit from rising oil prices, with analysts projecting at least 10% upside to their average 12-month price targets, highlighting the increased attractiveness of energy stocks amid geopolitical risks.
See More
