Wayman Value Investing - New Stock Recommendation - April 2024
A new position is being added to the Wayman portfolio
# # # New Position # # #
California Resources Corporation (CRC)
Recent Price: 53.33
Market Cap: 3.67B
P/FCF: 7.96
P/E: 6.89
P/S: 1.30
LT Debt/Eq: 0.27
Projected 4yr FCF: 2.3B
Wayman Portfolio Tier: Stash
California Resources Corporation operates as an independent oil and natural gas exploration and production, and carbon management company in the United States. The company explores, produces, and markets crude oil, natural gas, and natural gas liquids for marketers, California refineries, and other purchasers. It also engages in the generation and sale of electricity to the wholesale power market and utility sector. It also develops various carbon capture and storage projects in California. The company was incorporated in 2014 and is based in Long Beach, California.
In the realm of oil’s future, debates rage, but amid the fervor lies a compelling opportunity for astute investors to capitalize on the intense convictions of others. California Resources Corporation (CRC) emerges as a standout in this landscape, navigating the intricate regulatory web of California’s energy sector with resilience and innovation.
With California’s stringent regulatory environment as both a hurdle and a catalyst, CRC’s strategic evolution underscores its resilience and adaptability. The company’s emphasis on low-carbon production not only aligns with evolving environmental mandates but also holds promise for substantial shareholder returns. While the industry grapples with polarization, CRC’s forward-thinking approach presents a unique opportunity for investors to outmaneuver market volatility and capitalize on misperceptions.
Despite the polarizing nature of discussions surrounding energy, CRC’s strategic positioning and operational expertise offer a potential pathway to sustained growth and profitability. As investors evaluate the risks and rewards of energy investments, CRC stands out as a compelling option, poised to navigate regulatory challenges and capitalize on emerging opportunities in California’s dynamic energy landscape.
Please keep in mind that while some investors might rely on market catalysts when considering what new positions to take, Wayman considers its style to be “catalyst-free investing.” Our reason for purchasing will always be based on our calculations which show a business is worth far more than where the market is pricing it. - Frank Memcaj, Founder of Wayman Value Investing