California Resources Corp (CRC)

Price$54.22Cached quoteAs of 2026-09-05 18:49 UTC

AI: Undervalued

Price checkThe shares look inexpensive if recent cash generation and cost savings prove repeatable.

Using 88.8 million shares and $1.29 billion of net debt at June 2026, the equity is worth about $4.8 billion and the whole business about $6.1 billion. Against management’s 2026 adjusted EBITDAX guidance of $1.2-$1.3 billion, a cash-profit measure before interest, taxes and several non-cash items, that is roughly 4.7-5.1 times. FY2025 free cash flow, meaning operating cash left after capital spending, was $543 million, equal to about 11% of today’s equity value. Those figures support an Undervalued verdict, though 2026 cash generation has been uneven.

Big pictureCash generation has been resilient over years, but 2026 has already shown sharp swings.

From 2021 through 2025, operating cash flow minus capital spending ranged from $311 million to $543 million and averaged about $429 million, close to 9% of today’s equity value. That durability matters because reported earnings are unusually noisy: first-quarter 2026 net income was a $711 million loss, then second-quarter net income was $514 million, largely because commodity-derivative values swung sharply. First-half 2026 free cash flow was only $82 million, so the current valuation still needs cash generation to recover toward its multi-year pattern.

Business strengthScale and cost savings are improving, but acquisitions increased debt and diluted earlier shareholders.

Debt is manageable but no longer light. June 2026 net debt was about $1.29 billion, roughly one year of the midpoint of guided adjusted EBITDAX, while current assets of $697 million were below current liabilities of $1.06 billion. Liquidity remained about $1.32 billion. CRC also refinanced $550 million of 8.25% notes with 7.25% notes due 2035, extending maturities. In 2025 it spent $377 million on buybacks and $136 million on dividends, yet Aera and Berry share issuance left outstanding shares about 29% above 2023.

What could change the storyHigher oil and lower maintenance spending could unlock upside; weak cash recovery would erase it.

The bull case strengthens if CRC delivers at least the low end of its $1.2-$1.3 billion 2026 adjusted EBITDAX range, converts more of that profit into cash, and reduces net debt below roughly $1 billion. Recent Brent oil prices near the mid-$90s per barrel are above management’s full-year assumption of $84.51, while spending needed to keep California production flat has fallen and $103 million of annualized Berry savings could help. The bear case strengthens if oil falls materially, first-half cash weakness persists, or new infrastructure and carbon projects consume cash without meaningful returns.

AI: News

Second-quarter resultsSecond-quarter cash improved, but adjusted earnings missed expectations and full-year profit guidance remained cautious.

On August 10, CRC reported $114 million of second-quarter free cash flow, $88 million of adjusted net income and $338 million of adjusted EBITDAX. It guided to $1.2-$1.3 billion of adjusted EBITDAX and $520-$560 million of 2026 capital spending, while cutting long-term California spending needed to keep production flat by about 5%, to $450-$475 million. The mix matters because core cash improved even though adjusted earnings fell short of expectations, leaving investors to weigh better efficiency against commodity sensitivity.

Crimson pipeline acquisitionCRC completed a small pipeline acquisition that should improve access to higher-value California oil markets.

CRC announced the $63 million all-cash Crimson Midstream deal on August 10 and closed it on September 1 after California regulatory approval. The acquired network includes about 2,000 miles of pipelines with roughly 400,000 barrels-per-day of transportation capacity. Management priced the deal at about 4.4 times expected 2027 adjusted operating cash profit. The strategic benefit is better market access and transportation flexibility; the risk is that a modest purchase still adds integration work when debt is already much higher than in 2023.

Carbon storage reaches revenueCarbon TerraVault moved from development into revenue, giving CRC a real but still tiny new business.

On August 10, CRC said Carbon TerraVault I had begun injecting carbon dioxide and generating its first revenue, making the project operational rather than purely prospective. The carbon-management segment recorded only $1 million of second-quarter revenue and an $8 million adjusted EBITDAX loss, so it is not yet a meaningful earnings contributor. The investment case improves if more storage customers sign contracts and revenue scales without large new spending; otherwise, carbon management remains an option value rather than current cash support.

Debt maturity extensionCRC replaced near-term expensive debt with longer-dated notes, modestly lowering interest costs but paying a premium.

In June, CRC issued $550 million of 7.25% senior notes due 2035 and used the proceeds plus cash to redeem its remaining $550 million of 8.25% notes due 2029. The lower interest rate saves about $5.5 million annually before other effects and pushes that maturity out six years. CRC paid a $23 million redemption premium and recorded a $28 million debt-extinguishment loss, so the refinancing improved maturity risk more than it created immediate value.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012
Revenue	$2.91B	$2.54B	$2.15B	$2.64B	$2.05B	$1.09B	$2.27B	$2.59B	$1.94B	$1.62B	$2.40B	$4.17B	$4.28B	$4.07B
Gross profit	$1.46B	$1.41B	$1.54B	$1.97B	—	—	$65.0M	$295.0M	$3.0M	—	—	—	—	—
Gross margin	50.10%	55.58%	71.55%	74.42%	—	—	2.86%	11.39%	0.15%	—	—	—	—	—
Operating expenses	$3.07B	$2.59B	$2.02B	$1.95B	—	—	—	—	—	—	$354.0M	$302.0M	$266.0M	$273.0M
Operating income	$598.0M	$620.0M	$808.0M	$812.0M	$293.0M	−$1.78B	$429.0M	$769.0M	$73.0M	−$293.0M	−$5.14B	−$2.35B	—	—
Operating margin	20.55%	24.44%	37.49%	30.72%	14.31%	−162.91%	18.90%	29.69%	3.77%	−18.08%	−213.98%	−56.29%	—	—
EBITDA	$1.11B	$1.01B	$1.03B	$1.01B	$506.0M	−$1.45B	$900.0M	$1.27B	$617.0M	$266.0M	−$4.14B	−$1.15B	—	—
EBITDA margin	38.11%	39.73%	47.94%	38.21%	24.71%	−132.88%	39.65%	49.07%	31.87%	16.41%	−172.20%	−27.58%	—	—
Net income	$363.0M	$376.0M	$564.0M	$524.0M	$612.0M	$1.89B	−$28.0M	$328.0M	−$266.0M	$279.0M	−$3.55B	−$1.43B	$869.0M	$699.0M
Net profit margin	12.47%	14.82%	26.17%	19.83%	29.88%	172.99%	−1.23%	12.66%	−13.74%	17.21%	−147.90%	−34.36%	20.28%	17.16%
Basic EPSper basic share	$4.17	$4.74	$8.10	$6.94	$7.46	$40.59	-$0.57	$6.77	-$6.26	$6.76	-$92.79	-$37.54	$22.40	$18.00
Diluted EPSper diluted share	$4.15	$4.62	$7.78	$6.75	$7.37	$40.42	-$0.57	$6.77	-$6.26	$6.76	-$92.79	-$37.54	$22.40	$18.00

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

13.49%of listed shares

BlackRock, Inc.11.98M shares · Jun 30, 2026

View holders

Top 20 reported holders of CRC
Holder	% owned
BlackRock, Inc.	13.49%11.98M shares
CANADA PENSION PLAN INVESTMENT BOARD	7.89%7.01M shares
Gimbel Daniel Scott	7.03%6.24M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	5.94%5.27M shares
Sourcerock Group LLC	5.51%4.89M shares
STATE STREET CORP	4.84%4.3M shares
DIMENSIONAL FUND ADVISORS LP	4.47%3.97M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.19%3.72M shares
AMERICAN CENTURY COMPANIES INC	3.07%2.73M shares
Orbis Allan Gray Ltd	2.73%2.42M shares
FMR LLC	2.68%2.38M shares
Invesco Ltd.	2.56%2.28M shares
VICTORY CAPITAL MANAGEMENT INC	2.40%2.13M shares
GEODE CAPITAL MANAGEMENT, LLC	2.34%2.07M shares
CITADEL ADVISORS LLC	2.10%1.87M shares
HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC	2.01%1.79M shares
MORGAN STANLEY	1.68%1.5M shares
Bank of New York Mellon Corp	1.35%1.2M shares
Grantham, Mayo, Van Otterloo & Co. LLC	1.02%907.66K shares
NORTHERN TRUST CORP	1.01%901.51K shares

Percentages use 88.82M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys5$1.36M disclosed value

Sells (SEC code S)17$228.35M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 4, 2026Form 4 · 10b5-1	Bys Jay A.EVP & Chief Commercial Officer	SellCommon Stock	11.9K	$61.68	$734.4K	171.3K
May 12, 2026Form 4	Preston Michael L.EVP, Chf Strategy Officer & GC	SellCommon Stock	26.4K	$59.82	$1.58M	104.2K
Mar 12, 2026Form 4	CANADA PENSION PLAN INVESTMENT BOARDTenPercentOwner	SellCommon Stock · indirect	3.50M	$61.10	$213.85M	7.01M
Mar 11, 2026Form 4	Gould Christopher D.EVP & Chief Sustainability Off	SellCommon Stock	24.3K	$62.21	$1.51M	131.5K
Mar 9, 2026Form 4	Hayat OmarEVP & Chief Operating Officer	SellCommon Stock	23.0K	$65.87	$1.52M	82.2K

Review ownership filings at SEC.gov ↗

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California Resources Corp (CRC)

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