California Resources Q4 adjusted net income misses expectations

Overview

• Energy and carbon management firm's Q4 adjusted net income missed analyst expectations

• Company advancing carbon capture projects, first CO2 injection at Elk Hills in spring 2026

• Signed MOUs for 6.8 mln metric tons per annum carbon capture capacity

Outlook

• Company anticipates 2026 capital investments of $12 - $20 mln

• California Resources sees 1Q26 adjusted EBITDAX between $(10) mln and $(5) mln

Result Drivers

• CARBON CAPTURE EQUIPMENT - Completed construction at Elk Hills for California's first CCS project, targeting first CO2 injection in spring 2026

• MOUS SIGNED - Signed MOUs for 6.8 mln metric tons per annum with industrial and power partners for energy transition solutions

• SCALABLE PLATFORM - Positioned Carbon TerraVault as a scalable carbon capture and credit platform with measurable emissions reductions

Company press release: ID:nGNX5DvK9v

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for California Resources Corp is $65.00, about 10.5% above its February 27 closing price of $58.84

• The stock recently traded at 42 times the next 12-month earnings vs. a P/E of 17 three months ago

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