• California Resources Corporation recently achieved the first carbon dioxide injection at its Carbon TerraVault I project at Elk Hills Field in Kern County, marking California’s first operational carbon capture and storage facility capable of ultimately storing up to 38 million metric tons of CO2 in depleted oil and gas reservoirs.
• This initial injection not only reduces CRC’s own operational emissions but also creates a new market for industrial CO2 storage in the state, potentially reshaping how the company is viewed as an energy and carbon management provider.
• We’ll now examine how bringing Carbon TerraVault I’s first CO2 storage online could influence California Resources’ investment narrative and future earnings mix.

Rare earth metals are the new gold rush. Find out which 27 stocks are leading the charge.

California Resources Investment Narrative Recap

To own California Resources you need to believe its core, heavily regulated California oil and gas business can generate enough cash to fund a credible shift into carbon management. The first CO2 injection at Carbon TerraVault I strengthens the near term catalyst around CCS, but it does not remove the key risk that permitting uncertainty and environmental obligations in California could still disrupt production and keep earnings volatile.

The most relevant recent update is CRC’s weak Q1 2026 print, with revenue of US$119,000,000 and a net loss of US$711,000,000, following prior profitability. That backdrop makes the launch of CTV I more important to the story, because it highlights a potential new income stream just as traditional operations are under earnings pressure and the company continues to return capital through dividends and buybacks.

Yet against this promise, investors should also be aware of the risk that California’s regulatory direction could still...

California Resources' narrative projects $4.0 billion revenue and $464.1 million earnings by 2029. This requires 5.3% yearly revenue growth and about a $101 million earnings increase from $363.0 million today.

Uncover how California Resources' forecasts yield a $81.50 fair value, a 40% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts already assumed CRC’s CCS build out would lift revenue toward about US$4.4 billion and earnings near US$846 million by 2029, which is far more upbeat than the baseline narrative focused on permitting and cost risks, and the new CTV I milestone could either reinforce or challenge those expectations as you compare these very different views.

Explore 2 other fair value estimates on California Resources - why the stock might be worth over 3x more than the current price!

Form Your Own Verdict

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your California Resources research is our analysis highlighting 4 key rewards and 2 important warning signs 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.

No Opportunity In California Resources?

Early movers are already taking notice. See the stocks they're targeting before they've flown the coop:

• Invest in the nuclear renaissance through our list of 88 elite nuclear energy infrastructure plays powering the global AI revolution.
• Capitalize on the AI infrastructure supercycle with our selection of the 48 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow.
• This technology could replace computers: discover 30 stocks that are working to make quantum computing a reality.

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.