CRC

California Resources Corporation - Ordinary Shares - New

Energy, Industrial/Transportation


Presented:04/25/2024
Price:$55.26
Cap:$3.80B
Current Price:$51.03
Cap:$4.57B

Presented

Date04/25/2024
Price$55.26
Market Cap$3.80B
Ent Value$4.07B
P/E Ratio7.15x
Book Value$32.30
Div Yield2.14%
Shares O/S68.76M
Ave Daily Vol999,097
Short Int12.82%

Current

Price$51.03
Market Cap$4.57B
California Resources Corp. is an independent energy and carbon management company, which engages in energy transition. It focuses on increasing the value of land, mineral and technical resources for decarbonization by developing carbon capture, storage and other emissions reducing projects. The company was founded on April 23, 2014 and is headquartered in Long Beach, CA.

Please note, this is an update to California Resources Corp (CRC) - Long, which was originally pitched on 07/23/2023.

Publicly traded companies mentioned herein: California Resources Corp (CRC), Occidental Petroleum Corp (OXY)

Highlights

The presenter remains long shares of California Resources Corp (CRC), an O&G company that was spun out of Occidental Petroleum Corp (OXY) in 2014. As part of the spin-off, CRC was levered up to pay a dividend to OXY shareholders, went bankrupt, and the presenter got involved as CRC came out of bankruptcy. He is bullish on the core O&G business because the barriers to entry in California are extremely high and environmental regulations have blocked the company from drilling more wells, allowing CRC to extract strong pricing from its existing wells and return capital to shareholders. There are two other sources of value in the forms of carbon capture efforts and its real estate ownership, the latter of which can be realized after wells are tapped. In his base case scenario, a SOTP analysis creates a $90 price target compared to the current $55 share price.

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Idea Discussion

Commentor 1 - 2 weeks ago

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