Texas Capital Securities reiterates Buy rating on Berry Petroleum stock

Published 10/09/2025, 19:28
Texas Capital Securities reiterates Buy rating on Berry Petroleum stock

Investing.com - Texas Capital Securities has reiterated its Buy rating and $7.50 price target on Berry Petroleum (NASDAQ:BRY) following the release of draft legislation in California. The news also positively impacts California Resources Corporation (CRC), which currently trades below InvestingPro’s Fair Value and maintains a strong "GREAT" financial health rating with a 55.71% gross profit margin.

The California legislature released draft text of CA SB-237 on Wednesday, which Texas Capital Securities views as a significant positive for Berry Petroleum and California Resources Corporation. According to InvestingPro data, analysts are increasingly optimistic about CRC’s prospects, with 9 analysts recently revising earnings estimates upward. Get access to 10+ more exclusive ProTips and comprehensive analysis through InvestingPro’s detailed Research Report.

Key provisions in the draft bill would deem the Environmental Impact Report certified by Kern County to be sufficient for compliance with the California Environmental Quality Act for local oil and gas permitting, potentially limiting legal challenges that currently slow the permitting process.

The proposal would allow up to 2,000 new drill permits per year in Kern County, with additional permits possible if necessary to supply 25% of in-state refinery feedstock demand, not including workovers and side-track permits.

The CEQA exemption would remain effective until January 1, 2026, unless modified through subsequent statute, with Texas Capital Securities viewing the legislation as a key step toward California’s goal of stabilizing in-state production volumes to help lower prices at the pump.

In other recent news, California Resources Corporation reported strong financial results for the second quarter of 2025, outperforming analyst expectations. The company achieved an earnings per share of $1.10, surpassing the anticipated $0.90, and reported revenues of $978 million, significantly above the expected $784 million. In addition to these financial achievements, BofA Securities increased its price target for California Resources to $60, maintaining a Buy rating. This adjustment follows California’s efforts to revive oil and gas permitting in the state. Similarly, Mizuho raised its price target for the company to $64, citing capital efficiencies and potential value creation through regulatory and legislative pathways. These developments reflect positive sentiment from investment firms regarding California Resources’ future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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