How Investors Are Reacting To California Resources (CRC) Breaking Ground on Carbon Capture Venture

• California Resources Corporation and Brookfield recently broke ground on Carbon TerraVault I, California’s first commercial carbon capture and storage project at Elk Hills Field in Kern County, following receipt of key regulatory permits and unanimous local government approval.
• This project stands out as a significant step for the state’s carbon management sector, aiming to support California’s carbon neutrality goals by storing up to 1.6 million metric tons of CO₂ per year.
• We’ll explore how breaking ground on the Carbon TerraVault I joint venture may reshape California Resources’ future investment profile and long-term earnings outlook.

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California Resources Investment Narrative Recap

To be a shareholder in California Resources right now, you need confidence that regulatory reforms and new carbon capture initiatives will unlock value in both oil and gas and emerging carbon management services. The groundbreaking at Carbon TerraVault I is a pivotal moment for CRC’s carbon capture ambitions, but near-term catalysts and risks for the stock remain most tied to regulatory clarity for their core oil operations; this news does not appear to materially change those factors in the immediate future.

Against the backdrop of this carbon capture milestone, CRC also completed a $400 million senior notes offering on October 8, 2025, adding financial flexibility for both ongoing operations and the pending Berry merger. This move strengthens CRC’s ability to fund capital projects and manage legacy debt, supporting key catalysts like project execution and integration synergies following the merger, while also ensuring resources are in place for carbon initiatives like Carbon TerraVault I.

Yet, despite these developments, investors should keep a close watch on the persistent uncertainty around California’s permitting environment, because if new drilling approvals remain delayed...

Read the full narrative on California Resources (it's free!)

California Resources is expected to see revenues fall to $3.0 billion and earnings decline to $161.5 million by 2028. This projection reflects a 5.9% annual decrease in revenue and a $503.5 million drop in earnings from the current $665.0 million.

Uncover how California Resources' forecasts yield a $65.64 fair value, a 39% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members estimated a wide fair value range for CRC, from US$65.64 to US$106.91, with two distinct perspectives represented. Amid this variety, the ongoing reliance on timely regulatory reform stands out as a key driver for CRC’s future revenue and cash flow, prompting the need to consider both optimism about carbon investments and caution over policy headwinds.

Explore 2 other fair value estimates on California Resources - why the stock might be worth just $65.64!

Build Your Own California Resources Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free California Resources research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate California Resources' overall financial health at a glance.

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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.

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