California Resources Corp (NYSE:CRC) President and CEO, Leon Francisco, has sold a significant portion of his holdings in the company, according to a recent SEC filing. On November 6, Francisco sold a total of 12,500 shares of common stock, amounting to approximately $700,797. The shares were sold at prices ranging from $55.32 to $57.74 per share.
Following these transactions, Francisco's direct ownership in the company stands at 153,857 shares. The sales were conducted under a pre-established Rule 10b5-1 trading plan, which was adopted by Francisco on June 6, 2024. This plan allows insiders to set up a predetermined schedule for selling company stock to avoid any potential conflicts of interest.
Investors will be watching closely to see how these sales impact the stock's performance in the coming days.
In other recent news, California Resources Corporation reported robust third-quarter earnings, following its successful merger with Aera Energy. The company highlighted a strong financial position, with $402 million in adjusted EBITDAX and $141 million in free cash flow, and a return of $76 million to shareholders. The merger has positioned CRC as California's top oil producer, with Q3 production averaging 145,000 barrels of oil equivalent per day.
The company also detailed progress in carbon management initiatives, including a partnership with Hull Street Energy, and outlined a positive outlook for 2025, with 72% of its oil production hedged at $67 per barrel. Over 55% of the projected $235 million in annual synergies from the Aera merger have been realized ahead of schedule.
Despite uncertainties around the timeline for the resolution of CalGEM's drilling permit process, CRC expressed optimism about collaborations with tech companies for carbon capture solutions, leveraging its infrastructure. These are among the recent developments for California Resources Corporation.
InvestingPro Insights
California Resources Corp (NYSE:CRC) has been demonstrating strong financial performance, which adds context to the recent insider sale by CEO Leon Francisco. According to InvestingPro data, CRC's market capitalization stands at $5.05 billion, with a P/E ratio of 7.87, indicating that the stock may be undervalued relative to its earnings.
An InvestingPro Tip highlights that CRC has been trading near its 52-week high, which aligns with the timing of Francisco's stock sale. This could suggest that the CEO believes the stock is currently well-valued. Additionally, the company has shown a strong return over the last three months, with a price total return of 24.67% in that period.
Investors should note that CRC operates with a moderate level of debt and has been profitable over the last twelve months. The company's dividend yield of 2.74% and a remarkable dividend growth of 37.17% in the last twelve months as of Q3 2024 may appeal to income-focused investors. This is further supported by another InvestingPro Tip, which points out that CRC has raised its dividend for 4 consecutive years.
For those interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for CRC, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.