• In August 2025, California Resources Corporation announced its second quarter results, highlighting a substantial year-over-year increase in revenue, net income, and production, alongside the completion of a major share buyback and declaration of a quarterly dividend.
• A key insight is the company's rapid turnaround, moving from a small net loss a year earlier to strong profitability, signaling significant operational and financial improvements.
• We'll explore how record quarterly production and earnings impact California Resources' longer-term investment narrative and outlook.

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California Resources Investment Narrative Recap

To be a shareholder in California Resources, you need to believe the company can maintain strong, consistent production growth despite California’s uncertain regulatory environment, and continue to deliver operational improvements and cash returns to shareholders. The recent news, highlighting record quarterly results, a major buyback, and a steady dividend, reinforces California Resources’ momentum, but does not materially change the need to watch for near-term regulatory shifts, which remain the most immediate catalyst and the biggest risk to the business.

Among the latest announcements, management issued updated guidance projecting full-year net production of 134 MBoe/d to 138 MBoe/d, with net income of US$375 million to US$405 million. This outlook ties directly to how well California Resources can sustain its recent growth in output and earnings, which underpins both investor sentiment and the stock’s value proposition in the short term.

Yet, despite improving performance, persistent uncertainty about future drilling permits and California’s regulatory direction is something investors should fully understand before...

Read the full narrative on California Resources (it's free!)

California Resources is projected to generate $3.0 billion in revenue and $166.8 million in earnings by 2028. This reflects a 5.8% annual decline in revenue and a $498.2 million decrease in earnings from the current level of $665.0 million.

Uncover how California Resources' forecasts yield a $59.42 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided two fair value estimates from US$59.01 to US$59.42 per share, illustrating a tightly clustered outlook. While production gains could support these valuations, continued regulatory delays could pressure longer-term growth, so be sure to explore additional viewpoints.

Explore 2 other fair value estimates on California Resources - why the stock might be worth just $59.01!

Build Your Own California Resources Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your California Resources research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free California Resources research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate California Resources' overall financial health at a glance.

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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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