• 简

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Will CRC’s First Brownfield Power CCS Deal Reshape California Resources’ (CRC) Carbon Management Narrative?

    Simply Wall St·12/18/2025 16:15:40
    语音播报
    • In December 2025, California Resources Corporation’s Carbon TerraVault unit signed a non-binding Memorandum of Understanding with Middle River Power to become the exclusive provider of CO2 transportation and sequestration services for two California gas-fired power plants emitting up to 2.75 million metric tons of CO2 annually.
    • This first agreement for a brownfield power facility in Northern California could help advance CRC’s carbon management ambitions and support the state’s wider decarbonization efforts if the projects progress through permitting and final investment decisions.
    • We’ll now examine how this first brownfield power carbon capture partnership may influence California Resources’ investment narrative and carbon management outlook.

    Find companies with promising cash flow potential yet trading below their fair value.

    California Resources Investment Narrative Recap

    To own California Resources, you need to believe its legacy California oil and gas assets can keep generating solid cash while its carbon management arm gradually scales. The Middle River Power MOU supports the CCS narrative but, as a non binding deal that still depends on permits and final investment decisions, it does not materially change the near term focus on regulatory risk around drilling permits and Class VI approvals.

    The Berry merger, approved by Berry shareholders in mid December, is the other recent development most relevant here, since it could reshape CRC’s cash flow base, capital needs and balance sheet just as it pursues CCS growth. How well CRC integrates Berry while advancing Carbon TerraVault projects like the Middle River Power partnership will be central to how investors think about both upside and execution risk.

    But investors should also be aware that if Class VI permitting is slower or tougher than expected, CRC’s CCS ambitions and related returns could...

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

    California Resources' narrative projects $3.0 billion revenue and $161.5 million earnings by 2028. This implies revenue declining by 5.9% per year and an earnings decrease of $503.5 million from $665.0 million today.

    Uncover how California Resources' forecasts yield a $65.64 fair value, a 44% upside to its current price.

    Exploring Other Perspectives

    CRC 1-Year Stock Price Chart
    CRC 1-Year Stock Price Chart

    Simply Wall St Community members value CRC anywhere between US$65.64 and US$131.53 per share across 2 separate models, highlighting very different expectations. Some of those views may not fully reflect how dependent CRC’s carbon management plans are on timely EPA Class VI approvals and broader California regulatory outcomes, so it can be useful to compare several perspectives before forming an opinion.

    Explore 2 other fair value estimates on California Resources - why the stock might be worth over 2x more than the current price!

    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.

    Seeking Other Investments?

    Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

    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.