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LONG BEACH, Calif. - Carbon TerraVault Holdings, LLC (CTV), a carbon management subsidiary of California Resources Corporation (NYSE:CRC), has received authorization from the U.S. Environmental Protection Agency to construct carbon dioxide injection wells for its 26R storage reservoir. CRC, currently valued at $4.28 billion, has maintained strong financial health with an "GREAT" rating according to InvestingPro metrics, positioning it well for this significant infrastructure investment.
The company is targeting completion of California’s first carbon capture and storage (CCS) project at CRC’s Elk Hills cryogenic gas plant by the end of 2025. Pending final regulatory approvals, CTV expects to begin CO2 injection in early 2026.
"We remain intensely focused on executing CRC’s first CCS project at Elk Hills – a foundational step in enabling real decarbonization for California," said Francisco Leon, President and CEO of CRC.
The Carbon TerraVault Joint Venture (CTV JV) is a partnership between CRC, which owns 51%, and Brookfield, which holds the remaining 49% interest. The joint venture is developing both infrastructure and storage assets required for CCS development in California.
For the second quarter of 2025, CTV reported other operating expenses of $14 million, down from $18 million in the first quarter. General and administrative expenses remained steady at $3 million. Capital investments increased to $5 million from $2 million in the previous quarter. The parent company CRC has demonstrated robust financial performance, with a P/E ratio of 8.04 and impressive revenue growth of 42.27% over the last twelve months. InvestingPro analysis reveals 8 additional key metrics and insights available for subscribers, including detailed profitability and growth scores.
The company provided guidance for the third quarter, projecting capital expenditures of $8-10 million and other operating expenses of $7-13 million. For the full year 2025, CTV expects capital investments of $20-30 million and other operating expenses of $45-60 million.
CTV is also engaged in discussions with multiple potential counterparties to supply power from the Elk Hills power plant with a carbon capture and storage pathway. With analysts maintaining a bullish consensus on CRC and the stock currently trading below its Fair Value, investors seeking detailed analysis can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers CRC’s growth prospects and competitive positioning in the energy transition landscape.
This information is based on a press release statement from Carbon TerraVault Holdings.
In other recent news, California Resources Corporation has been the focus of several analyst upgrades and price target adjustments. JPMorgan upgraded the company’s stock from Neutral to Overweight, setting a new price target of $63, citing undervaluation based on the company’s proved developed producing assets. UBS also raised its price target to $58, maintaining a Buy rating, following a strong first-quarter update that highlighted the company’s integrated business model. Mizuho increased its price target to $61, expecting a significant free cash flow beat for the upcoming quarter.
Additionally, California Resources announced a stock buyback, agreeing to repurchase 4.95 million shares from IKAV Impact S.a.r.l. for $227.7 million. This transaction will reduce IKAV’s ownership to below 5% of the company’s outstanding shares, prompting changes in board representation, including the resignation of board member Bobby Saadati. Barclays also upgraded the stock to Overweight, raising the price target to $60, after positive feedback from investor meetings in Europe and noting a more favorable regulatory environment in California. These developments reflect a series of strategic moves and optimistic analyst perspectives on California Resources’ future performance.
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