• 4 minutes Phase One trade deal, for China it is all about technology war
  • 7 minutes IRAN / USA
  • 11 minutes Shale Oil Fiasco
  • 16 minutes Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 11 hours Indonesia Stands Up to China. Will Japan Help?
  • 4 hours Which emissions are worse?: Cows vs. Keystone Pipeline
  • 13 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 14 hours Trump capitulated
  • 5 hours Thanks to Trump, the Iranian Mullahs Are Going Bankrupt
  • 18 hours Three oil pipeline projects inch toward goal-line for Canada
  • 22 hours The Libyan Oil in a Sea of Chaos, War and Disruptions
  • 2 days Trump has changed into a World Leader
  • 16 hours Yet another Petroteq debt for equity deal
  • 12 hours US Shale: Technology
  • 8 hours Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 1 day OIL & GAS LOSSES! Schlumberger Posts $10B Loss in 2019
  • 13 hours Gravity is a scam!
  • 2 days Iranian government can do everything to avoid attacking American people.
Alt Text

Is This The End For Big Oil Dividends?

Big oil has been living…

Alt Text

Iran Regime Change Could Push To $40 Oil

It sounds counterintuitive and counterlogical,…

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. .vemba-player-sticky{ min-width: 800px; z-index: 100000; }

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,…




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News