California Resources Reports Q4 2023 Earnings with Mixed Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14 hours ago
0mins
Should l Buy CRC?
Source: seekingalpha
- 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.
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Analyst Views on CRC
Wall Street analysts forecast CRC stock price to rise
9 Analyst Rating
9 Buy
0 Hold
0 Sell
Strong Buy
Current: 58.840
Low
56.00
Averages
64.33
High
72.00
Current: 58.840
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.
California Resources to Release Q4 Earnings
- Earnings Release Date: California Resources is set to announce its Q4 earnings on March 2, which is highly anticipated by the market and expected to reveal the company's performance amid current economic conditions.
- Earnings Per Share Forecast: Analysts project an EPS of $0.50, a significant drop from $0.91 last year, indicating the profitability pressures and challenges the company is facing in the competitive landscape.
- Stock Price Reaction: Ahead of the earnings report, California Resources' stock rose 2.6% on Friday, reflecting investor optimism regarding the upcoming financial results, which may indicate confidence in the company's future performance.
- Market Impact Analysis: The anticipated decline in EPS could affect investor sentiment; while the short-term stock price increase is positive, the long-term implications of reduced profitability may negatively impact shareholder returns.
See More
California Resources Corporation Q4 2025 Earnings Call Highlights
- 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.
See More
California Resources Reports Q4 2023 Earnings with Mixed Results
- 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.
See More
California Resources Corporation Q4 Earnings Preview
- Earnings Release Announcement: California Resources Corporation is set to release its Q4 earnings before the market opens on March 2, with analysts projecting earnings of $0.50 per share, a significant drop from $0.91 per share in the same quarter last year, indicating pressure on profitability.
- Revenue Expectations Decline: The consensus estimate for quarterly revenue stands at $789.83 million, down from $877 million reported last year, highlighting revenue challenges amid competitive and cost pressures faced by the company.
- Shareholder Approval for Merger: On December 15, Berry received shareholder approval for its merger with California Resources, a strategic move aimed at enhancing market position and achieving economies of scale, although it may face short-term profitability declines.
- Stock Price Movement: Shares of California Resources rose 2.6% to close at $58.84 on Friday, suggesting that despite the downward earnings expectations, market optimism regarding the merger prospects may be supporting stock performance.
See More
Analysis of Insider Buying in Small-Cap ETF
- Insider Buying Ratio: Within the iShares S&P Small-Cap 600 Value ETF, 10.2% of holdings have seen insider buying in the past six months, indicating management's confidence in future growth, which may attract more investor interest.
- Lumen Technologies Activity: Lumen Technologies, comprising 0.63% of the ETF, has had 2 directors and officers purchase shares recently, reflecting a positive outlook from insiders that could bolster market confidence in its stock.
- California Resources Transactions: California Resources Corp, ranked 27th in the ETF with approximately 0.54% allocation, also saw 2 directors and officers file for recent stock purchases, suggesting a proactive stance from its governance team that may enhance investor trust.
- ETF Asset Allocation: The total holdings of LUMN and CRC in the iShares S&P Small-Cap 600 Value ETF are valued at $46,399,924 and $40,312,778 respectively, highlighting their significance in the ETF's investment strategy, which could influence overall investment decisions.
See More
Sourcerock Increases Stake in California Resources Corporation to 3.18 Million Shares
- Increased Stake: Sourcerock Group raised its stake in California Resources Corporation by 1.18 million shares in Q3, bringing total holdings to 3.18 million shares, with a value increase to $169.14 million, indicating strong confidence in the company.
- Asset Allocation: Following the increase, California Resources now represents 11.5% of Sourcerock's 13F assets, highlighting its significance in the investment portfolio and potentially influencing future investment decisions.
- Cash Flow Performance: In Q3, California Resources generated $279 million in operating cash flow and $188 million in free cash flow, demonstrating financial resilience amid oil price fluctuations, which supports dividend and buyback initiatives.
- Dividend Growth: The company's management raised the quarterly dividend by 5% to $0.405 per share while retiring its 2026 notes, enhancing liquidity and showcasing robust financial management capabilities.
See More
California Resources to Release Q4 Earnings
- Earnings Release Date: California Resources is set to announce its Q4 earnings on March 2, which is highly anticipated by the market and expected to reveal the company's performance amid current economic conditions.
- Earnings Per Share Forecast: Analysts project an EPS of $0.50, a significant drop from $0.91 last year, indicating the profitability pressures and challenges the company is facing in the competitive landscape.
- Stock Price Reaction: Ahead of the earnings report, California Resources' stock rose 2.6% on Friday, reflecting investor optimism regarding the upcoming financial results, which may indicate confidence in the company's future performance.
- Market Impact Analysis: The anticipated decline in EPS could affect investor sentiment; while the short-term stock price increase is positive, the long-term implications of reduced profitability may negatively impact shareholder returns.
See More
California Resources Corporation Q4 2025 Earnings Call Highlights
- 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.
See More
California Resources Reports Q4 2023 Earnings with Mixed Results
- 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.
See More
California Resources Corporation Q4 Earnings Preview
- Earnings Release Announcement: California Resources Corporation is set to release its Q4 earnings before the market opens on March 2, with analysts projecting earnings of $0.50 per share, a significant drop from $0.91 per share in the same quarter last year, indicating pressure on profitability.
- Revenue Expectations Decline: The consensus estimate for quarterly revenue stands at $789.83 million, down from $877 million reported last year, highlighting revenue challenges amid competitive and cost pressures faced by the company.
- Shareholder Approval for Merger: On December 15, Berry received shareholder approval for its merger with California Resources, a strategic move aimed at enhancing market position and achieving economies of scale, although it may face short-term profitability declines.
- Stock Price Movement: Shares of California Resources rose 2.6% to close at $58.84 on Friday, suggesting that despite the downward earnings expectations, market optimism regarding the merger prospects may be supporting stock performance.
See More
Analysis of Insider Buying in Small-Cap ETF
- Insider Buying Ratio: Within the iShares S&P Small-Cap 600 Value ETF, 10.2% of holdings have seen insider buying in the past six months, indicating management's confidence in future growth, which may attract more investor interest.
- Lumen Technologies Activity: Lumen Technologies, comprising 0.63% of the ETF, has had 2 directors and officers purchase shares recently, reflecting a positive outlook from insiders that could bolster market confidence in its stock.
- California Resources Transactions: California Resources Corp, ranked 27th in the ETF with approximately 0.54% allocation, also saw 2 directors and officers file for recent stock purchases, suggesting a proactive stance from its governance team that may enhance investor trust.
- ETF Asset Allocation: The total holdings of LUMN and CRC in the iShares S&P Small-Cap 600 Value ETF are valued at $46,399,924 and $40,312,778 respectively, highlighting their significance in the ETF's investment strategy, which could influence overall investment decisions.
See More
Sourcerock Increases Stake in California Resources Corporation to 3.18 Million Shares
- Increased Stake: Sourcerock Group raised its stake in California Resources Corporation by 1.18 million shares in Q3, bringing total holdings to 3.18 million shares, with a value increase to $169.14 million, indicating strong confidence in the company.
- Asset Allocation: Following the increase, California Resources now represents 11.5% of Sourcerock's 13F assets, highlighting its significance in the investment portfolio and potentially influencing future investment decisions.
- Cash Flow Performance: In Q3, California Resources generated $279 million in operating cash flow and $188 million in free cash flow, demonstrating financial resilience amid oil price fluctuations, which supports dividend and buyback initiatives.
- Dividend Growth: The company's management raised the quarterly dividend by 5% to $0.405 per share while retiring its 2026 notes, enhancing liquidity and showcasing robust financial management capabilities.
See More
