California Resources' (CRC) 2026 plan demonstrates the low-decline nature of its wells, RBC Capital Markets analysts said in a Monday note.

The company's overall production is expected to fall by less than 1% per quarter to roughly 152 Mboe per day by the end of the year, analysts said.

California Resources' conventional inventory has relatively lower subsurface risk because many of the potential locations are shallow infill or enhanced recovery drilling, analysts said.

RBC said the company has flexibility and infrastructure capacity for growth in 2027 and beyond, but noted that this would depend on the oil macro and permitting progress.

RBC has an outperform rating on the stock and a $70 price target.

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