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California Resources Corporation (CRC)

NYSE - Nasdaq Real Time Price. Currency in USD
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45.55+0.11 (+0.24%)
As of 11:32AM EDT. Market open.

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  • C
    Well investment without an adequate knowledge on whatever you're investnig in is a total waste of resources and time. one should first
    strive to gather enough knowledge in any field he or she chooses to invest in
  • S
    California Resources to Continue Exploring Options, But Won't Give Updates on Ongoing Talks
    BY MT Newswires
    — 4:47 PM ET 03/27/2020

    04:47 PM EDT, 03/27/2020 (MT Newswires) -- California Resources (CRC) said in a statement Friday that it will continue exploring options but does not plan on providing updates concerning its ongoing discussions.
    The comment comes after Bloomberg Law reported, citing people with knowledge of the matter, that the oil and gas company is "seriously considering" bankruptcy after it failed to rework its debt out of court, as energy prices fell.
    Sources reportedly told Bloomberg that California Resources' (CRC) management is considering alternatives to address its close to $5 billion of debt after it pulled a proposed bond exchange because of poor market conditions.
  • S
    I call Ch-11 tonight.

    I don't think they'll get further forbearance from banks/term lenders unless they also get forbearance on the 2L - which would be logistically difficult.

    CRC might not care about being in default on the 2L, but the banks/term lenders wouldn't like it.
  • B
    There are a number of postings in regard to the value of the previous listing of CRC. If my memory is correct in the original spinoff of CRC Occidental the parish was roughly 8 to 9 dollars a share. But your broker will have that amount if you're looking to write it off this year. The other major question was that if you had CRC originally before the bankruptcy and you did not sell it is there any value in the stock and the simple answer to that is No. In the bankruptcy they did not give any consideration to the stockholders. The bondholders got a certain amount of money people holding debt, their vendors the banks everyone got a piece of the pie except for the existing stockholders they gotten zip. The only thing you can do if you owned it before is righted off. I held out for the longest time thinking that they would be able to pay off their debt with the production that they were producing and still be able to handle the operation. But apparently I was wrong. Now with the debt level down and if they keep production for they work at it might be a company worth looking at. I lost so much money this year in the oils and want to stay away for a while.
  • C
    I lost money on CRC bought at $19 added at $6 and sold all 1500 shares at $1.36.
    Are the management same?
    I would not buy again unless management changed.
  • L
    CRC and oil in Ca aren't going anywhere. This stock will continue its volatility and not necessarily parallel oil pricing. It will at some point be at 50+
  • L
    Here's my take. The Ca bill was meaningless and not mpacting CRC stock price with whatever happens. For many reasons CRC has fallen out of favor much like BAC years ago - regardless of fundamentals. It will kick back in when something precipitates a move. Don't think today was it. I am hoping Q2 earnings will drive that and if not then a spike in oil to 80 might. It will get there eventually. I am long and (much like BAC) will do very well with patience.
  • I
    Nice to see some insiders buying too
    Almost 14,000 shares
    California Resources Corp (CRC) President and CEO Todd A. Stevens Bought $51,000 of Shares
  • H
    CEO says CRC has 800 million BOE resource at $65 brent. Over 1 billion BOE at $75 brent. This is worth $75 billion or $52 billion resource. It is trade on less 1 billion market cap.
  • S
    From the bankruptcy filing, Docket 20, page 25:

    " existing equity interests in CRC will receive no recoveries"

  • R
    Citi think OXY a buy due to high free cash flow yield and its carbon capture business? I like OXY so nothing bad to say about that Call.

    Carbon capture business. C'mon - there is no comparison. CRC has more depleted reservoirs than OXY does (California been major oil producer for 75 years - The Delaware Basin of the Permian Basin that has most of OXY land is a more recent development). But even more important than magnitude of depleted reservoirs - California is offering massive subsidies for carbon capture projects. People want to be scared of CRC due to California politics, but fears over-rated. They are not going to ban oil and gas production so long as Cali still using gasoline. Gavin Newsom talking about banning oil and gas only to appease lefties in recall. Banning fracking though can be real, but then CRC has minimal reserves related to fracking reservoirs - CRC has industry leading reserve replacement solely on conventional reserves.

    Go search OXY+Citi+Seeking Alpha for article.

    But anyone that likes OXY should love CRC!

    CRC has a higher FCF yield (to EV) than OXY. OXY has high FCF yield to market cap because OXY still has loads of debt.

    CRC's low debt means it can aggressively buy-back shares at ultra-low valuations. I believe CRC will complete its $250 mm share buy-back by year-end - retiring about 10% of its shares O/S.
  • D
    Well in the final documents it says that new shares are going to be issued. Bond holders will get small equity stake warrants. 2016 term loan gets most of the new co. Shareholders get their shares cancelled and can write off their investment as a loss.

    “Holders of Interests in CRC shall not receive any Distributions on account of such Interest, and on and after the Effective Date, all Interests in CRC shall be cancelled, released and extinguished, and shall be of no further force and effect, whether surrendered for cancellation or otherwise.”
  • j
    After hearing about this company from Steve Grasso today, I looked into it. On the surface, I very much like what I see, from its growing cash flow, large oil equivalent reserves, and, last but definitely not least, its carbon sequestration projects. But when looking more deeply into the latest earnings, especially at the very end of the report, I see that this is yet another small oil and gas E&P company that way too heavily engages in hedging derivatives. Those derivatives must be significantly eating into its earnings potential as we speak, especially in this high price environment. This is very disappointing because considering this company's low net debt, I wouldn't have thought it would have to hedge nearly as much. Major turn off for me and I will be looking elsewhere. I probably will just add to my TTE (French TotalEnergies, the former Total) which has massive and growing free cash flow, is nicely exposed to nat gas along with crude (and especially sky high European nat gas), and is raking in hoards of cash with these Brent prices as high as they are. And it also has significant alternative energy projects to transition itself into the future (more than most, if not all, major integrated oil and gas companies).
  • r
    One overlooked U.S. producer has gotten some major slack from analysts recently, but they may be grossly underestimating its value
    One overlooked U.S. producer has gotten some major slack from analysts recently, but they may be grossly underestimating its value
  • s
    CA cannot allow CRC to go Bankrupt. The banks and bond holders would lose too much. The assets are clearly worth more than bankruptcy would bring. The FED should make a loan to be paid back in 1-2years. The country needs these assets working!!
  • R
    Bought more today - even up 10%. 10% is nothing - CRC had an EV of $7.5 billion in 2019. It is $3.0B now. Granted, production was 130,000 BOEs/d back then and now 100,000 BOEs/d now - so making that adjustment the equivalent was it "was" $5.8B. So trading at half of the EV/BOES/d now. HOWEVER! The price of oil, gas and NGLs is better than in 2019! And I argue that CRC has so much high yield debt it sucked-up all their cash flow after CAPEX. And the high debt and high coupons depressed the equity value. Now CRC's cash flow is mostly free cash flow. EV is $3B, but EBITDAX is $0.8B?! And that is with huge low-priced oil hedges. Unhedged at $70/bbl their EBITDAX would be like $1.1B That extra $0.3B is free cash flow (subject to paying taxes again in 2022, if any). CRC in 2022 (thankfully less hedges and at higher prices) could see EBITDAX of $1B (I am using higher gas prices - which now is over $6/mmbtu), interest at, interest at $40 mm and CAPEX at $300 mm (I assume quarterly run rate will go from $50 mm to $75 mm in 2022 as it should to maintain production flat/slight growth at 100,000 BOES/d). That's free cash flow of around $600 mm (maybe less if taxes...) So let's argue for $500 mm FCF yield of 25%?! CRC's debt will be lower too so expect a dividend and more share buy-backs (as they said in CC). Then on top of that a carbon capture business down the road that can generate $250 mm a year in revenues - not sure what the profit would be though.
  • B
    I was totally flabbergasted by this whole thing. In the fourth quarter report everything was looking good they indicated they have some cash on hand that they were looking forward to the upcoming year. I understand that when oil tumbled that it was going to cause some problems. But now oils is back up to $38 a barrel If oil stay between $25 and $40 a barrel, and they file for bankruptcy their assets will be worth a whole lot more than what they were when oil was $15 a barrel. Then again look at Chesapeake they were in Chapter 11 pop was almost worth nothing now the $34. What confuses me even more there are number analysis that just upgraded from a sell too a hold. Since were not receiving a lot of information from CRC I am still baffled.
  • A
    07/17/2020 08:41:11 Market Center Change Delisted from NYSE 07/17/2020 00:00:00 CRCQQ CALIFORNIA RES CORP Common Stock Other OTC
  • f
    Most of the naysayers on this board blame mgmt for being overlevered when it was Oxy mgmt that sank the ship. Now relatively debt free this will be a cash flow machine at current oil prices. Do. The work.
  • D
    All this optimism over the forbearance disclosure and yet we still don’t know Q1 numbers, or when to expect them, the execs received an advance on their bonuses, they haven’t ruled out ch 11, and confirmed they did not pay May interest and June payments are well within question. The run up seems overdone but in this market, being rationale leads to losses I guess.