Here's Why California (CRC) Stock Is A Must Buy Right Now
Zacks Investment Research | Dec 04, 2018 08:45PM ET
We are upbeat about California Resources Corporation’s (NYSE:CRC) prospects and believe it is a promising pick right now.
The company currently carries a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best opportunities for investors.
Let’s take a look at the other factors that make this firm an attractive bet.
CaliforniaResources is the leading explorer and producer of oil and natural gas in California. Notably, the company carries out operations in prolific resources across the state. Through the first nine months of 2018, the company drilled roughly 151 wells that yield 131,000 barrels of oil equivalent (BoE) per day.
Of the total $550-million capital spending through the first nine month of 2018, roughly $467 million has been internally generated by the company. This reflects California Resources’ strong and reliable operations. In fact, the company managed to boost its adjusted earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses (EBITDAX) to $803 million from $548 million.
Moreover, the current weak crude pricing scenario will not be a drag on California Resources given the company’s plan to hedge 50% of oil production in 2019.
California Resources Corporation Price and Consensus
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