RBC Capital has revised its price target for California Resources (CRC, Financial) from $68 to $60, although it continues to uphold an Outperform rating for the company's shares. Despite the adjusted valuation, the firm remains confident in California Resources' strategic direction.
The company has made noteworthy strides in its oil and gas operations by effectively managing decline rates and reducing its cost structure. These efforts are crucial for enhancing operational efficiency and maintaining competitive advantage in the sector.
Additionally, RBC anticipates updates from California Resources' management regarding the commencement of their first carbon capture and storage (CCS) project. Investors are also keen to hear about advancements in the sale process of the Huntington Beach asset, regarded as a significant component in the company's portfolio restructuring.
