Is California Resources (CRC) Cheap On Strong Q2 Results And New Production Guidance?
California Resources (CRC) is back in focus after reporting second quarter 2026 results and issuing fresh production guidance that gives investors more detail on current operations and expected output levels for the rest of the year.
See our latest analysis for California Resources.
At a share price of $53.24, California Resources has seen its 90 day share price return fall 14.18%. The year to date share price return of 14.77% and 1 year total shareholder return of 9.87% point to momentum that has cooled recently, despite stronger quarterly earnings, updated production guidance and ongoing investor outreach through recent conference appearances.
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California Resources now trades after a recent pullback, with that move sitting alongside a very strong second quarter profit print and firm production guidance. Is the share price adjusting to fundamentals, or simply reflecting a cooler mood around the stock as sentiment shifts?
Most Popular Narrative: 31.3% Undervalued
The most followed narrative values California Resources at $77.55 per share, compared with the latest close at $53.24, and frames that gap around carbon management and capital returns.
The company's advanced progress and upcoming operational launch of California's first CCS project, alongside legislative support for CO2 pipelines and clean power procurement, positions CRC to capture meaningful new, high-margin revenue streams from carbon management services, boosting long-term earnings and margins.
Want to see how this CCS story feeds into that valuation gap? The narrative leans heavily on higher margins, rising earnings, and a future profit multiple that undercuts the broader oil and gas sector. The full set of assumptions is where the real debate begins.
Result: Fair Value of $77.55 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, California Resources still faces meaningful risks, including ongoing regulatory uncertainty around drilling permits, as well as the execution and permitting of its early stage CCS projects.
Find out about the key risks to this California Resources narrative.
Next Steps
Given the mix of optimism around California Resources and the clear flags raised in this article, it makes sense to check the full risk and reward profile yourself. To see both sides laid out in one place, start with the 4 key rewards and 2 important warning signs.
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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.
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