California Resources (CRC) recently broke ground on Carbon TerraVault I, which is being recognized as California’s first commercial carbon capture and storage project. The milestone, supported by final regulatory and local approvals, signals a major step forward for CRC’s climate-focused ambitions.
See our latest analysis for California Resources.
CRC shares have pulled back recently, with an 18.2% fall in the past month and a total shareholder return of -4.7% over the last year, even as the company broke ground on its landmark carbon capture project and completed a significant $400 million debt offering. Despite this near-term dip, CRC’s long-term total return over three years remains in positive territory. This suggests that investor sentiment may shift as new projects come online and industry momentum evolves.
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With shares well below analyst targets and a breakthrough project underway, investors must decide: does the current discount signal untapped value, or is the market already pricing in CRC’s future growth potential?
At $47.28 per share, the most widely followed narrative calculates California Resources’ fair value at $65.64. This positions the stock with meaningful upside based on their projections. This sets the stage for a compelling outlook, where industry trends and internal catalysts could make a significant difference in how investors value CRC going forward.
The company’s advanced progress and upcoming operational launch of California’s first CCS project, alongside legislative support for CO2 pipelines and clean power procurement, positions CRC to capture meaningful new, high-margin revenue streams from carbon management services, boosting long-term earnings and margins.
Want to know what really drives this high fair value? The linchpin is bold projections about future profit margins, capital returns, and shrinking share counts. The trigger is a major inflection in the CCS business that could rewrite CRC’s growth story. Uncover the numbers and scenarios fueling this valuation—see why this narrative is creating buzz.
Result: Fair Value of $65.64 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, continued regulatory uncertainty and the capital needed for well remediation remain major risks. These factors could significantly impact CRC’s growth story.
Find out about the key risks to this California Resources narrative.
If you want to dig into the numbers and form your own perspective, it only takes a few minutes to put together your own narrative. Do it your way
A great starting point for your California Resources research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include CRC.
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