• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 2 hours Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 21 hours Ethanol is the SAVIOR of the Oil Industry, Convenience Store Industry, Automotive Supply Chain Industry and Much More!
  • 3 hours Pepe Escobar: “How The Houthis Overturned The Chessboard”
  • 32 mins Shale profitability
  • 21 hours Instagram Now Banning Photos Of People At Gun Ranges, Claiming They Promote "Violence"
  • 2 hours A little something for all you Offshore swabbies
  • 1 day Famous Manufacturer of Anti-Ethanol Additives Proves Ethanol's Safety and Benefits
  • 15 hours Let's shut down dissent like The Conversation in Australia
  • 3 hours Democrats and Gun Views
  • 12 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 1 day One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 1 day Trump Accidentally Discusses Technology Used In The Border Wall
Alt Text

Where Is The World's Safest Source Of Oil?

Alberta Premier Jason Kenney claimed…

Alt Text

Oil Rises At End Of Wild Week

Following the wildest week oil…

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




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play