LONG BEACH, Calif. - California Resources Corporation (NYSE: NYSE:CRC), an independent company specializing in energy and carbon management, announced today that Clio C. Crespy will take over as Executive Vice President and Chief Financial Officer starting January 1, 2025. Crespy, a seasoned investment banker with a focus on energy, power, carbon management, and sustainability, will succeed the current CFO, Nelly Molina, who is set to step down at the end of the year.
Crespy's career includes a recent position as Senior Managing Director at Guggenheim Securities, where she headed the Global Energy & Power's sustainability practice. Before that, she served as Managing Director at Evercore, advising upstream energy companies and power producers. Her earlier experience includes a role at BNP Paribas (OTC:BNPQY) and a start at the World Bank. Crespy is also a graduate of Sciences Po, Paris, with a Master’s degree in Finance and Strategy.
Francisco Leon, President and CEO of CRC, expressed confidence in Crespy's appointment, citing her extensive involvement in significant company initiatives such as the Carbon TerraVault joint venture and the DAC hub at Elk Hills. Leon also acknowledged Molina's contributions, particularly during the company's Aera merger and efforts to reinforce CRC's balance sheet.
Crespy shared her enthusiasm for her new role, emphasizing her commitment to creating shareholder value and advancing the company's strategic objectives. CRC is known for its focus on environmental stewardship and local, responsibly sourced energy, as well as its initiatives in carbon capture and storage (CCS) and other emissions-reducing projects.
The appointment is part of CRC's ongoing commitment to the energy transition and its strategy to maximize land and mineral ownership value through decarbonization efforts. This news is based on a press release statement from California Resources Corporation.
In other recent news, California Resources Corporation has been in the spotlight due to its robust third-quarter performance and promising future projects. The company's earnings report indicated a strong financial position, with $402 million in adjusted EBITDAX and $141 million in free cash flow, alongside a return of $76 million to shareholders. This performance was underpinned by the successful merger with Aera Energy, which has positioned California Resources as the largest oil producer in the state.
Furthermore, Mizuho (NYSE:MFG) Securities has raised its price target for California Resources from $62.00 to $66.00, maintaining an Outperform rating on the shares. This adjustment follows the company's impressive Q3 performance and synergies realized through the Aera Energy merger. The firm's analysts noted the potential of upcoming catalysts to further improve the company's market position.
In addition to its financial achievements, California Resources is making significant strides in carbon management. The company is awaiting the Environmental Protection Agency's Class VI permit for its inaugural carbon sequestration project and is developing a series of brownfield carbon capture and storage projects. These initiatives, along with collaborations with tech companies for carbon capture solutions, are the latest developments in the company's strategic growth and operational efficiency plans.
Lastly, the company has hedged 72% of its 2025 oil production at $67 per barrel and plans to continue share repurchases, with $600 million remaining under authorization. Despite uncertainties around the timeline for the resolution of CalGEM's drilling permit process, the company remains optimistic about its future, leveraging bipartisan support for carbon capture and sequestration.
InvestingPro Insights
As California Resources Corporation (NYSE: CRC) prepares for a leadership transition in its finance department, recent data from InvestingPro sheds light on the company's financial health and market performance. CRC's market capitalization stands at $5.46 billion, reflecting its significant presence in the energy sector.
The company's P/E ratio of 8.28 suggests that it may be undervalued compared to its earnings, which aligns with an InvestingPro Tip indicating that CRC is "Trading at a low P/E ratio relative to near-term earnings growth." This could be an attractive point for investors considering the upcoming leadership change and the company's focus on energy transition strategies.
CRC has demonstrated strong financial performance, with a gross profit margin of 53.67% for the last twelve months as of Q3 2024. This robust profitability is complemented by the company's dividend policy. An InvestingPro Tip highlights that CRC "Has raised its dividend for 4 consecutive years," with a current dividend yield of 2.6%. The consistent dividend growth, which saw a 37.17% increase in the last twelve months, may appeal to income-focused investors and signals management's confidence in the company's financial stability.
The market seems to be responding positively to CRC's strategic direction and financial management. The stock is trading near its 52-week high, with a 27.99% price total return over the past six months. This performance is particularly noteworthy given the challenges facing the energy sector and the company's focus on transitioning towards more sustainable practices.
For investors seeking a deeper understanding of CRC's potential, InvestingPro offers 11 additional tips that could provide valuable insights into the company's prospects. These tips, along with real-time metrics, can help investors make more informed decisions as CRC navigates the evolving energy landscape under new financial leadership.
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