---
title: "California Resources Offers Responsible Oil, Gas Exposure With Carbon Capture and Storage Upside, RBC Says"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/271549332.md"
description: "California Resources (CRC) offers investors responsible oil and gas exposure with potential from its carbon capture and storage business, according to RBC Capital Markets. The recent $717 million all-stock merger with Berry (BRY) suggests a low enterprise value relative to CRC's valuation. RBC highlights CRC's 20-year drilling inventory, low well costs, and a slight production decline. The firm expects new permits by March 2026 and has resumed coverage with an outperform rating and a $70 price target. CRC shares fell nearly 3% recently, trading at $45.04."
datetime: "2026-01-05T17:26:00.000Z"
locales:
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  - [en](https://longbridge.com/en/news/271549332.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/271549332.md)
---

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# California Resources Offers Responsible Oil, Gas Exposure With Carbon Capture and Storage Upside, RBC Says

12:26 PM EST, 01/05/2026 (MT Newswires) -- California Resources ( CRC ) offers investors exposure to responsibly sourced oil and gas with a more visible path to production resiliency and upside from its evolving carbon capture and storage business, RBC Capital Markets said.

The all-stock $717 million combination with Berry (BRY) implies an enterprise value to earnings before interest, taxes, depreciation and amortization of less than three times, which is below California Resources' ( CRC ) relative valuation.

RBC said in a Sunday note that California Resources ( CRC ) has a drilling inventory of over 20 years with predictable outcomes and slight decline rates. The well costs are under $1 million, and the production profile has a small incline over the first 1+ years before moving to a slight decline of less than 10%.

The investment firm expects the company to receive new oil & gas permits around March 2026. In 2026, five rigs will operate on combined properties with production declining slightly using about $500 million in capital, while a 6-7 rig plan could maintain production at between $575 and $600 million.

RBC resumed coverage of California Resources ( CRC ) with an outperform rating and a $70 price target, citing high-quality upstream assets, Carbon Management Business momentum and attractive valuation.

Shares of the company were down nearly 3% in recent Monday trading.

Price: 45.04, Change: -1.35, Percent Change: -2.91

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

### Related Stocks

- [Berry Corporation (BRY.US)](https://longbridge.com/en/quote/BRY.US.md)
- [California Resources Corporation (CRC.US)](https://longbridge.com/en/quote/CRC.US.md)

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