Today’s Hot Stock Under Review: California Resources Corporation (NYSE: CRC)

Jorge Malinowski

I am Jorge Malinowski and I’m passionate about business and finance news with over 4 years in the industry starting as a writer working my way up into senior positions.

I am the driving force behind Seeking Review with a vision to broaden the company’s readership throughout 2016. I am an editor and reporter of “Basic Materials” category.

Address: 4316 Victoria Street, Baton Rouge, LA 70806, USA
Phone: (+1) 225-263-7957
Email: jorge.malinowski@seekingreview.com
Jorge Malinowski

LOS ANGELES, August 15, 2019 – Shares of California Resources Corporation (NYSE: CRC) declined -14.29% to $9.36. The stock grabbed the investor’s attention and traded 3.073M shares as compared to its average daily volume of 2.21M shares. The stock’s institutional ownership stands at 66.30%.

California Resources Corporation (CRC) recently reported a net loss attributable to common stock (CRC net loss) of $67.0M, or $1.38 per diluted share, for the first quarter of 2019. Adjusted net income for the first quarter of 2019 was $31.0M, or $0.63 per diluted share.

First Quarter 2019 Results:

For the first quarter of 2019, CRC reported a net loss attributable to common stock of $67.0M, or $1.38 per diluted share, contrast to a loss of $2.0M, or $0.05 per diluted share for the same period of 2018. Adjusted net income1 for the first quarter of 2019 was $31.0M, or $0.63 per diluted share, contrast with adjusted net income of $8.0M, or $0.18 per diluted share for the same prior year period. First quarter of 2019 adjusted net income excluded $97.0M of non-cash derivative losses on commodity contracts, a $3.0M non-cash derivative loss from interest-rate contracts as well as a net gain of $6.0M on debt repurchases and $4.0M of unusual and infrequent items.

EBITDAX for the first quarter of 2019 was $301.0M and cash offered by operating activities was $158.0M, which included interest payments of $72.0M.

Production costs for the first quarter of 2019 were $233.0M contrast to $212.0M for the first quarter of 2018. The increase is attributable to the Elk Hills transaction, cash-settled stock-based compensation, energy costs and other items.

General and administrative (G&A) expenses were $83.0M for the first quarter of 2019 contrast to $63.0M for the same prior-year period. CRC’s cash-settled stock-based compensation expense increased about $7.0M because of the increase in the Company’s stock price in the first quarter of 2019. In Addition To, 2019 G&A expenses increased by about $3.0M as certain costs are no longer collected from CRC’s former working interest partner following the Elk Hills transaction.

CRC reported taxes other than on income of $41.0M for the first quarter of 2019 contrast to $38.0M for the same prior year period. Exploration expense was $10.0M for the first quarter of 2019, $2.0M higher in the first quarter of 2019 than the same prior-year period because of a boostd exploration budget.

CRC’s internally funded capital investment for the first quarter of 2019 totaled $104.0M, of which $93.0M was directed to drilling and capital workovers. CRC’s JV partner Benefit Street Partners (BSP) also invested $27.0M, which is included in CRC’s consolidated results. CRC’s JV partner Macquarie Infrastructure and Real Assets Inc. (MIRA) invested an additional $7.0M, which is excluded from CRC’s consolidated results.

CRC has a market value of $466.78M while its EPS was booked as $7.19 in the last 12 months. The stock has 49.87M shares outstanding. In the profitability analysis, the company has gross profit margin of 71.30% while net profit margin was 10.70%. Beta value of the company was 4.52; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.50.

Jorge Malinowski

Jorge Malinowski

I am Jorge Malinowski and I’m passionate about business and finance news with over 4 years in the industry starting as a writer working my way up into senior positions. I am the driving force behind Seeking Review with a vision to broaden the company’s readership throughout 2016. I am an editor and reporter of “Basic Materials” category. Address: 4316 Victoria Street, Baton Rouge, LA 70806, USA Phone: (+1) 225-263-7957 Email: jorge.malinowski@seekingreview.com