(CRC) California Resources - Ratings and Ratios

California Resources Corporation (CRC) is a leading independent oil and natural gas exploration and production company, with a strategic focus on Californias energy landscape. As one of the largest producers in the state, CRC operates in the San Joaquin and Los Angeles Basins, leveraging its deep expertise in conventional and unconventional resource development. The companys portfolio includes a mix of crude oil, natural gas, and natural gas liquids, which are critical to meeting Californias energy demands.

CRCs operations are complemented by its growing role in the energy transition. The company generates and sells electricity to the wholesale market and utilities, diversifying its revenue streams beyond traditional hydrocarbon production. Additionally, CRC is at the forefront of carbon management, developing innovative carbon capture and storage (CCS) projects. These initiatives not only align with Californias stringent environmental regulations but also position the company as a leader in the low-carbon future.

From a financial standpoint, CRC offers a compelling valuation story. With a market capitalization of $4.38 billion, the company trades at a P/E ratio of 6.83, indicating undervaluation relative to its earnings. The forward P/E of 13.37 suggests expectations of significant growth. The price-to-book ratio of 1.23 reflects a modest premium to its book value, while the price-to-sales ratio of 1.65 highlights reasonable valuation relative to its revenues.

CRCs strategic position in California, combined with its diversified operations and focus on sustainability, makes it a critical player in the states energy ecosystem. For investors and fund managers, CRC represents a unique opportunity to gain exposure to both traditional energy production and the emerging carbon management sector.