Citigroup has shifted its view on $CRC, downgrading the stock from ‘Buy’ to ‘Neutral’ while slashing the price target from $62 to $36. This move stems from increasing pressure on oil prices, with West Texas Intermediate (WTI) crude sliding below $62 per barrel—falling short of what Citi identifies as the marginal cost threshold for sustainable production, estimated around $65.
📌 The downgrade reflects growing caution around California Resources’ geographic exposure and cost structure. Operating primarily in California, where regulatory hurdles and production costs run higher than average, the company faces a more challenging path in navigating prolonged commodity price weakness. Citi analysts flagged these macroeconomic headwinds as potential drags on near- to medium-term performance.
📌 While the fundamentals of the business remain intact, and management continues to focus on efficiency and capital discipline, the downgrade signals that upside potential may be more limited in the current oil pricing environment.
💰 Dividend Fundamentals
💡 $CRC pays an annual dividend of $1.55 per share, offering investors a yield of roughly 4.84%.
💡 The dividend is distributed quarterly, with the most recent ex-dividend date occurring on March 10, 2025.
💡 With a dividend payout ratio of 33.55%, the company maintains a conservative approach, allowing room to reinvest in operations while continuing to reward shareholders.
📌 For income-focused investors, the dividend remains a bright spot. However, the downgrade serves as a timely reminder to evaluate the risk/reward balance—especially in light of oil market fluctuations and broader economic uncertainty.