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    California Resources (CRC) Could Be 31% Undervalued After Its Crimson Midstream Deal

    Simply Wall St·09/03/2026 19:17:58
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    California Resources (CRC) has completed its roughly US$63 million all cash acquisition of Crimson Midstream Holdings, following approval from the California Public Utilities Commission. This provides investors with fresh information on the company’s energy and carbon management infrastructure footprint.

    California Resources’ recent Crimson Midstream deal comes after a mixed share price pattern, with the stock down around 12% over the past 90 days but still showing a 15.5% year to date share price return and a 59.7% five year total shareholder return. This signals longer term momentum despite shorter term weakness.

    Scan for other energy and infrastructure stocks that could benefit from similar pipeline and carbon management themes using our hand picked 38 power grid technology and infrastructure stocks

    California Resources now trades after a pullback yet still carries strong multi year returns and a sizeable gap to analyst targets. Has the Crimson Midstream deal set up further upside, or did most of the opportunity already pass?

    Most Popular Narrative: 30.9% Undervalued

    California Resources last closed at $53.57, while the most followed narrative sees fair value around $77.55. The gap rests on a very specific earnings and cash flow story that goes well beyond near term share moves.

    The company's advanced progress and upcoming operational launch of California's first CCS project, alongside legislative support for CO2 pipelines and clean power procurement, positions CRC to capture meaningful new, high-margin revenue streams from carbon management services, boosting long-term earnings and margins.

    Read the complete narrative.

    Want to see what really sits under that fair value for California Resources? The narrative leans heavily on rising margins, new carbon revenue and a reevaluation of future earnings power. Curious which specific profit and revenue paths need to play out for that to hold up.

    Result: Fair Value of $77.55 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, California Resources still faces unresolved permitting uncertainty in California and early stage CCS projects that could delay or reduce the earnings path behind that 30.9% undervaluation narrative.

    Find out about the key risks to this California Resources narrative.

    Next Steps

    Feeling mixed about the California Resources story so far is natural, especially with both risks and rewards in play. Move quickly to review the same underlying data and decide where you stand by checking the 4 key rewards and 2 important warning signs

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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.