We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
California Resources (CRC) Up 14.5% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
It has been about a month since the last earnings report for California Resources Corporation (CRC - Free Report) . Shares have added about 14.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is California Resources due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Key Highlights
• Total operating revenues: $924 million, up 5% year over year vs $877 million in Q4 2024 and beating the Zacks Consensus Estimate of $787 million.
• Adjusted EPS: $0.47, down 48% year over year vs $0.91 in Q4 2024 and missing the Zacks Consensus Estimate of $0.49.
• Net income: $12 million, down 64% year over year vs $33 million in Q4 2024.
• Net total production: 137 Mboe/d, down 3% year over year vs 141 Mboe/d but beating the Zacks Consensus Estimate of 136 Mboe/d.
• Net oil production: 109 MBbl/d, down 3% year over year vs 112 MBbl/d but topping the Zacks Consensus Estimate of 108 MBbl/d.
Headline Drivers and Mix
Fourth-quarter results reflected solid revenue growth and stable production levels but weaker earnings due to higher operating costs and non-cash charges. The increase in revenues was primarily driven by a $126 million gain from commodity derivatives, compared with a $49 million loss in the prior-year quarter, along with contributions from electricity sales and marketing activities.
Realizations remained strong, with oil prices averaging 97% of Brent before hedges, highlighting CRC’s pricing strength in California’s regional market.
Operating costs totaled $325 million, while general and administrative expenses were $95 million. Adjusted EBITDAX reached $251 million, and free cash flow totaled $115 million during the quarter.
Oil accounted for roughly 80% of total production, underscoring the company’s oil-weighted asset base.
Segment Performance
CRC’s oil and natural gas segment delivered stable output, with net production averaging 137 Mboe/d. Oil volumes declined slightly year over year, reflecting normal field decline and portfolio mix changes, though production remained broadly stable sequentially due to continued development activity across the company’s conventional reservoirs.
The carbon management segment, operated through Carbon TerraVault, remained in an investment phase and posted a segment loss as CRC continued advancing CCS initiatives. Construction of the company’s first CCS project at the Elk Hills cryogenic gas plant was substantially completed, with first CO2 injection targeted for spring 2026 subject to regulatory approval.
Electricity and marketing activities also contributed to earnings, with electricity margin reaching $40 million in the quarter.
Balance Sheet and Liquidity
CRC ended the quarter with $117 million of available cash and cash equivalents (excluding restricted cash) and total liquidity of approximately $1.4 billion, including borrowing capacity under its revolving credit facility.
Operating cash flow was $235 million, while total capital investments were $120 million during the quarter.
The company also returned $59 million to shareholders, including $34 million in dividends and $25 million in share repurchases, continuing its shareholder-return strategy.
Management Commentary and Outlook
Management emphasized CRC’s strong operational execution and strategic progress, including the completion of its all-stock combination with Berry Corporation on Dec. 18, 2025, which is expected to generate $80–$90 million in annual synergies within 12 months.
Looking ahead, CRC expects 2026 net production to average 152–157 Mboe/d, representing roughly 12% year-over-year growth, with oil accounting for about 81% of volumes.
Capital investments for 2026 are projected between $430 million and $470 million, including $280–$300 million allocated to drilling, completions and workovers.
Adjusted EBITDAX for 2026 is expected in the range of $970 million to $1.07 billion, reflecting ongoing cost reductions and integration benefits from recent mergers.
Management also reiterated its focus on disciplined capital allocation, stable cash generation and continued development of its carbon management platform to support long-term value creation.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 233.2% due to these changes.
VGM Scores
Currently, California Resources has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise California Resources has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
California Resources is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Range Resources (RRC - Free Report) , a stock from the same industry, has gained 8.8%. The company reported its results for the quarter ended December 2025 more than a month ago.
Range Resources reported revenues of $811.86 million in the last reported quarter, representing a year-over-year change of +8.3%. EPS of $0.82 for the same period compares with $0.68 a year ago.
For the current quarter, Range Resources is expected to post earnings of $1.07 per share, indicating a change of +11.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +12.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Range Resources. Also, the stock has a VGM Score of B.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
California Resources (CRC) Up 14.5% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for California Resources Corporation (CRC - Free Report) . Shares have added about 14.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is California Resources due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Key Highlights
• Total operating revenues: $924 million, up 5% year over year vs $877 million in Q4 2024 and beating the Zacks Consensus Estimate of $787 million.
• Adjusted EPS: $0.47, down 48% year over year vs $0.91 in Q4 2024 and missing the Zacks Consensus Estimate of $0.49.
• Net income: $12 million, down 64% year over year vs $33 million in Q4 2024.
• Net total production: 137 Mboe/d, down 3% year over year vs 141 Mboe/d but beating the Zacks Consensus Estimate of 136 Mboe/d.
• Net oil production: 109 MBbl/d, down 3% year over year vs 112 MBbl/d but topping the Zacks Consensus Estimate of 108 MBbl/d.
Headline Drivers and Mix
Fourth-quarter results reflected solid revenue growth and stable production levels but weaker earnings due to higher operating costs and non-cash charges. The increase in revenues was primarily driven by a $126 million gain from commodity derivatives, compared with a $49 million loss in the prior-year quarter, along with contributions from electricity sales and marketing activities.
Realizations remained strong, with oil prices averaging 97% of Brent before hedges, highlighting CRC’s pricing strength in California’s regional market.
Operating costs totaled $325 million, while general and administrative expenses were $95 million. Adjusted EBITDAX reached $251 million, and free cash flow totaled $115 million during the quarter.
Oil accounted for roughly 80% of total production, underscoring the company’s oil-weighted asset base.
Segment Performance
CRC’s oil and natural gas segment delivered stable output, with net production averaging 137 Mboe/d. Oil volumes declined slightly year over year, reflecting normal field decline and portfolio mix changes, though production remained broadly stable sequentially due to continued development activity across the company’s conventional reservoirs.
The carbon management segment, operated through Carbon TerraVault, remained in an investment phase and posted a segment loss as CRC continued advancing CCS initiatives. Construction of the company’s first CCS project at the Elk Hills cryogenic gas plant was substantially completed, with first CO2 injection targeted for spring 2026 subject to regulatory approval.
Electricity and marketing activities also contributed to earnings, with electricity margin reaching $40 million in the quarter.
Balance Sheet and Liquidity
CRC ended the quarter with $117 million of available cash and cash equivalents (excluding restricted cash) and total liquidity of approximately $1.4 billion, including borrowing capacity under its revolving credit facility.
Operating cash flow was $235 million, while total capital investments were $120 million during the quarter.
The company also returned $59 million to shareholders, including $34 million in dividends and $25 million in share repurchases, continuing its shareholder-return strategy.
Management Commentary and Outlook
Management emphasized CRC’s strong operational execution and strategic progress, including the completion of its all-stock combination with Berry Corporation on Dec. 18, 2025, which is expected to generate $80–$90 million in annual synergies within 12 months.
Looking ahead, CRC expects 2026 net production to average 152–157 Mboe/d, representing roughly 12% year-over-year growth, with oil accounting for about 81% of volumes.
Capital investments for 2026 are projected between $430 million and $470 million, including $280–$300 million allocated to drilling, completions and workovers.
Adjusted EBITDAX for 2026 is expected in the range of $970 million to $1.07 billion, reflecting ongoing cost reductions and integration benefits from recent mergers.
Management also reiterated its focus on disciplined capital allocation, stable cash generation and continued development of its carbon management platform to support long-term value creation.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 233.2% due to these changes.
VGM Scores
Currently, California Resources has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise California Resources has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
California Resources is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Range Resources (RRC - Free Report) , a stock from the same industry, has gained 8.8%. The company reported its results for the quarter ended December 2025 more than a month ago.
Range Resources reported revenues of $811.86 million in the last reported quarter, representing a year-over-year change of +8.3%. EPS of $0.82 for the same period compares with $0.68 a year ago.
For the current quarter, Range Resources is expected to post earnings of $1.07 per share, indicating a change of +11.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +12.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Range Resources. Also, the stock has a VGM Score of B.