California Resources Corp

California Resources Corporation announced the acquisition of Crimson Midstream and reported second quarter results that beat expectations on operational efficiency. The all-cash Crimson deal adds a roughly 2,000-mile network of California crude oil pipelines, and the company expects final CPUC approval later this month. CRC also commenced CO2 injection and achieved first revenue at California's first Carbon Capture and Sequestration project at Elk Hills. The company reported adjusted EBITDAX of $338 million and free cash flow before working capital of $151 million, while reducing planned 2026 drilling and completion capital by $10 million due to efficiency gains. Management expects full-year oil realizations of approximately 94% of Brent, within its original guidance range.

California Resources Corp reported second-quarter 2026 results, with net production averaging 149,000 barrels of oil equivalent per day and oil representing 81% of total volume. The company achieved more than 100% of its 2026 Berry synergy target six months ahead of schedule, delivering approximately $103 million in annualized savings, and now expects cumulative synergies and structural cost reductions of up to $470 million through 2028. CRC also announced the accretive Crimson midstream acquisition at 4.4 times estimated 2027 EBITDA, which enhances market access and price realizations. Adjusted EBITDAX was $338 million, operating cash flow before working capital was $300 million, and free cash flow before working capital was $151 million. Full-year production guidance is approximately 153,000 barrels of oil equivalent per day, with capital expenditures maintained at $520 million to $560 million.

Carbon TerraVault Holdings, a subsidiary of California Resources Corporation, has started carbon dioxide injection and revenue generation at Carbon TerraVault I, California's first carbon capture and storage project. The project sources emissions from CRC's Elk Hills Cryogenic Gas Plant. For the second quarter of 2026, the Carbon Management Business reported operating revenues of $1 million, general and administrative expenses of $2 million, other operating expenses net of $7 million, capital investments of $3 million, and an adjusted EBITDAX loss of $8 million. The company provided third quarter 2026 guidance for capital investments of $0 to $2 million, general and administrative expenses of $0 to $2 million, and other operating expenses net of $4 to $12 million, with full-year 2026 guidance for capital investments of $10 to $18 million, general and administrative expenses of $4 to $10 million, and other operating expenses net of $20 to $30 million.

The Motley Fool compared Atlas Energy Solutions and California Resources, concluding California Resources is the better buy for 2026 based on valuation. Atlas Energy Solutions, a Permian Basin proppant and logistics provider, posted fiscal 2025 revenue of nearly $1.1 billion but swung to a net loss of roughly $50.3 million, with negative free cash flow of nearly $31 million and a forward P/E of 21.7 times. California Resources, an independent producer and carbon management developer in California, reported fiscal 2025 revenue of nearly $3.7 billion and net income of $359 million, generating positive free cash flow of $543 million and trading at a forward P/E of 8.2 times. Analyst projections see Atlas revenue growing about 2.5% in fiscal 2026 to $1.2 billion with a wider net loss of $95 million, while California Resources faces lower sales of $3.4 billion and a swing to a net loss in 2026 before a return to growth in 2027. The article favors California Resources due to its significantly lower valuation multiples.

StockStory highlights two value stocks with compelling risk-reward profiles and one to avoid. Lennar is flagged as a value trap due to a 9.2% average decline in backlog, an 8.9% annual drop in earnings per share over five years, and shrinking returns on capital, trading at a forward P/E of 13.3x. CNX Resources stands out with a 68% gross margin, a 1.9 percentage point EBITDA margin improvement over five years, and strong free cash flow, trading at a forward P/E of 12.1x. California Resources is favored for its 17.3% annual revenue growth over five years, 57.2% gross margin, and 12.9% free cash flow margin, trading at a forward P/E of 7.7x.

Wall Street analysts are bullish on Alphabet, ANI Pharmaceuticals, and California Resources, with consensus price targets implying significant upside. Alphabet, trading at $359.49, has a consensus target of $432.83, suggesting a 20.4% return, driven by strong revenue growth and expanding margins in its core search business, Google Cloud, and YouTube. ANI Pharmaceuticals, at $86.03, has a target of $109.88, implying a 27.7% return, supported by 33.6% annual revenue growth and a sharp increase in free cash flow margin. California Resources, at $51.26, has a target of $82.45, implying a 60.9% return, backed by 17.3% annual revenue growth and a 57.2% gross margin.

StockStory identifies Simply Good Foods as a stock to sell, while California Resources and Talos Energy are highlighted as unprofitable companies with solid fundamentals that could turn losses into long-term gains. Simply Good Foods, known for its Atkins brand, posted a trailing 12-month GAAP operating margin of negative 9.1%, with muted 6% annual revenue growth over three years and a forecasted revenue decline of 5.7% for the upcoming 12 months. California Resources, operating major California oil fields, achieved 17.3% annual revenue growth over five years, a gross margin of 57.2%, and a free cash flow margin of 12.9%. Talos Energy, which produces oil and gas in the Gulf of Mexico, recorded 16.9% annual revenue growth over eight years, a gross margin of 72.4%, and strong free cash flow generation.

California Resources Corporation was a leading contributor to the Meridian Contrarian Fund in the first quarter of 2026. The fund, managed by ArrowMark Partners, highlighted the company's unique ability to provide carbon-neutral energy, land, and water for AI data centers in California, along with continued oil production growth. Higher oil prices at quarter end also boosted the stock. The fund slightly trimmed its position on strength as part of its risk management process. California Resources Corporation closed at $53.72 per share on June 26, 2026, with a market capitalization of $4.77 billion, and its shares gained 17.87% over the past 52 weeks.