California Resources Faces Permit Challenges And Oversupply Risks—Analyst Sees Growth, But Stay Cautious
J.P. Morgan analyst
Earlier in March,
The analyst notes that the company delivered a strong fourth quarter, with EBITDA beating estimates, solid operations, and continued momentum in CCS volume agreements.
Magana writes that the company faces challenges maintaining output due to strict
While the Aera acquisition bolstered the business, concerns remain about its oil exposure amid potential oversupply in 2025, adds the analyst.
The analyst says that the company's permit inventory rebuild is stalled as CalGEM revises well procedures, and a new bill may allow local governments to impose further restrictions.
Magana says the company is also exploring clean power, aiming to connect
While CRC has unique CCS and power opportunities, regulatory uncertainty and ongoing permitting challenges keep the analyst cautious.
Investors can gain exposure to the stock via
Price Action: CRC shares are up 2.59% at
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