(CRC) California Resources - Ratings and Ratios

California Resources Corporation (CRC) is a leading independent energy and carbon management company in the United States, specializing in the exploration, development, and production of crude oil, natural gas liquids, and natural gas. The company operates through two primary segments: Oil and Natural Gas, and Carbon Management. In the Oil and Natural Gas segment, CRC supplies California refineries, marketers, and other purchasers with hydrocarbons. In the Carbon Management segment, the company deploys its Carbon TerraVault platform to design, install, operate, and maintain CO2 capture equipment, transportation assets, and storage facilities. Additionally, CRC owns and operates power generation facilities, including smaller gas-fired power plants that provide energy for its oil and natural gas operations. Incorporated in 2014, CRC is headquartered in Long Beach, California, and plays a pivotal role in advancing sustainable energy solutions while managing carbon emissions.

CRCs strategic focus extends beyond conventional energy production. The company is committed to integrating advanced technologies and infrastructure to support a low-carbon energy future. Through its Carbon TerraVault initiative, CRC is at the forefront of carbon capture, utilization, and storage (CCUS) solutions, which are critical for achieving net-zero emissions targets. The companys power generation assets are primarily used to support its oil and gas operations, enhancing operational efficiency and reducing reliance on external power sources. This dual focus on energy production and carbon management positions CRC as a key player in the evolving energy landscape.

From a technical perspective, CRCs stock has shown recent weakness, with the last price of $35.62 falling below the 20-day SMA of $36.97 and the 50-day SMA of $41.15. However, the stock remains above the 200-day SMA of $48.86, indicating long-term strength. The Average True Range (ATR) of $1.96 suggests manageable volatility. On the fundamental side, CRCs market cap of $3.17 billion reflects its scale in the energy sector. The trailing P/E of 7.58 and forward P/E of 14.68 indicate undervaluation relative to future earnings expectations. The price-to-book ratio of 0.90 signals that the stock is trading below its book value, while the price-to-sales ratio of 1.08 points to moderate valuation relative to revenue. The return on equity of 10.63% highlights profitable operations.

Over the next three months, CRC is expected to face headwinds from declining oil prices and elevated operational costs. However, the companys strategic investments in carbon management and power generation are likely to drive long-term growth. Technically, the stock may consolidate near current levels, with support around the 200-day SMA of $48.86. Fundamentally, CRCs focus on sustainable energy solutions and carbon reduction aligns with global energy transition trends, positioning the company for potential upside as demand for low-carbon energy solutions grows.