California Resources (CRC) operations are trending well, with the company drilling much faster and better than anticipated both in its California and Uinta Basin, Utah assets, UBS said in a Monday research note.

This development is expected to drive estimated capital expenditure to the high end of the guided range, UBS said, adding that it is maintaining its fiscal 2026 capex forecast.

For Q2, UBS forecasts adjusted EBITDAX OF $340 million versus Wall Street view of $372 million, and expects Wall Street estimates to come down toward the $330 million to $345 million range. UBS forecasted Q2 capex $140 million.

In a partnership with Beacon Data Centers, California Resources is planning to develop the Golden Valley Technology data center campus, which will use about 275 megawatts of power from its Elk Hills Power Plant, which represents another market for both the company's gas and carbon capture capabilities, UBS noted.

UBS lowered its price target to $70 from $78 and maintained its buy rating.

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