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Does Record Production Change The Bull Case For California Resources Stock?

Simply Wall St·11/07/2026 00:29:32
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  • California Resources reported third quarter 2026 revenue of US$421 million, a net loss of US$315 million, and record net total production of 152 MBoe/d. The company also declared a US$0.42 per share dividend and outlined new production guidance for late 2026.
  • The memorandum of understanding with Bloom Energy to assess over 1 gigawatt of fuel cell power paired with carbon capture positions California Resources to test a larger role in California power and carbon management, alongside its existing oil and gas operations.
  • The next focus is on how California Resources’ record production, together with the Bloom Energy fuel cell and CCS collaboration, reshapes its investment narrative.

Scan beyond California Resources and compare this carbon and energy story with hand-picked peers by reviewing the 29 resilient stocks with low risk scores that pair resilient balance sheets with steadier risk profiles.

California Resources Investment Narrative Recap

To own California Resources, you need to be comfortable with a business that is currently loss making but still leaning into its California focused oil, gas and carbon platform. The latest quarter showed revenue of US$421 million and a net loss of US$315 million, so the near term story hinges on whether operational execution can steady earnings.

The near term catalyst is operational reliability around production and infrastructure, supported by guidance for fourth quarter 2026 net production of 150 MBoe/d to 152 MBoe/d. The key risk is that cost pressure or new takeaway or marketing issues again weigh on margins and keep reported losses front and center for investors.

The memorandum of understanding with Bloom Energy is the announcement that directly ties into catalysts discussed for California Resources. It connects the firm’s Carbon TerraVault storage portfolio with over 1 gigawatt of fuel cell projects paired with carbon capture and storage, which speaks to the carbon management leg of the story.

Execution on this agreement could influence how quickly carbon management evolves from concept to a more visible service business, even though the memorandum is non binding and subject to permits and final investment decisions. For investors, progress updates, permitting milestones and any third party offtake agreements around these projects may shape sentiment around longer term earnings mix.

California Resources' narrative projects US$3.8b revenue and US$584.6 million earnings by 2029. This projection assumes revenue remains roughly flat over the period and would require an earnings increase of about US$705.6 million from current earnings, which are a US$121.0 million loss.

Discover why California Resources' fair value suggests a 63% potential upside to its current price, which may be realized more quickly than many investors anticipate.

NYSE:CRC 1-Year Stock Price Chart
NYSE:CRC 1-Year Stock Price Chart

Exploring Other Perspectives

One alternate view puts California Resources’ carbon and fuel cell ambitions at the center. The most pessimistic analysts already expected revenue to sit near US$3.8b by 2029 with earnings around US$608.6 million, yet still saw only a US$59.75 target. That is a much tougher stance than consensus, and the latest results could prompt these narratives to shift. You can use that gap to compare several viewpoints before deciding how this new information fits your own expectations.

Explore 3 other California Resources fair value estimates, including one that suggests as much as 6% downside from the current price.

The Verdict Is Yours

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Looking For More Investment Ideas Beyond California Resources?

Once you have a handle on California Resources, it can help to widen the lens and compare it with other opportunities that fit different risk and income preferences using the Simply Wall St Screener.