• 3 minutes The World Economic Forum (WEF) - Davos 2022 Conference held this last week of May
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 21 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 2 days "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
  • 14 hours "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 4 days Advancing Fundamental Drilling Science - Geothermal drilling successes offer potential gain for petroleum industry
  • 2 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
Three Bullish Factors That Could Send Oil To $120

Three Bullish Factors That Could Send Oil To $120

Oil prices have been rising…

Saudi Arabia Is Not Spending Its Oil Windfall

Saudi Arabia Is Not Spending Its Oil Windfall

Saudi Arabia, the world’s top…

David Messler

David Messler

Mr. Messler is an oilfield veteran, recently retired from a major service company. During his thirty-eight year career he worked on six-continents in field and…

More Info

Premium Content

Analysts Are Wrong About This Under-The-Radar U.S. Producer

In mid-2017, California Resources, (CRC), took off like a rocket, reaching a peak of over $50 a share before the world changed in early October of 2018.

The CRC long thesis is pretty straight-forward. CRC's insulated market in California, imports almost 60 percent of its crude from overseas. It takes a lot of oil to keep ~50 million people standing still on freeways, trying to get to work or home.

Source A common scene from the 405 in LA.

With its production tied to Brent pricing, CRC should be able to sell every barrel it can produce at a nice profit. Combine that with its low decline ratio from convention reservoirs, and investors have flocked to the stock.

It has rallied nicely from its Dec 24th low, but in recent weeks has stalled out under $30, and recently the bottom has just fallen out. Now headed back to recent lows the question naturally arises…what gives with CRC?

Analyst downgrade due to debt

The market has become much less forgiving of corporate debt over the past few months, taking down the valuations of companies with too much of it. It's kind of funny in a way though, when you think about it (as I often do), the same analysts who loved CRC a year ago when it was on its impressive ramp to ~$50-ish a share, and using the same fact-set, essentially, does a 180 on the stock. Not an uncommon situation in analyst world.

Source

We should acknowledge though for a company with $1.3 bn in market capitalization,…





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News