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California Resources Corporation (CRC)

Company Dividend Discount ModelIndustry: Oil & Gas Exploration & ProductionSector: Energy

Valuation Snapshot

Stable Growth$30.38 - $43.72$36.89
Multi-Stage$49.71 - $54.56$52.09
Blended Fair Value$44.49
Current Price$53.18
Upside-16.34%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%-32.78%1.270.910.660.160.000.000.000.000.000.13
YoY Growth--39.51%37.29%321.43%0.00%0.00%0.00%0.00%0.00%-100.00%-99.80%
Dividend Yield--2.88%1.69%1.72%0.35%0.00%0.00%0.00%0.00%0.00%1.30%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)384.00
(-) Cash Dividends Paid (M)138.00
(=) Cash Retained (M)246.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)76.8048.0028.80
Cash Retained (M)246.00246.00246.00
(-) Cash Required (M)-76.80-48.00-28.80
(=) Excess Retained (M)169.20198.00217.20
(/) Shares Outstanding (M)89.3089.3089.30
(=) Excess Retained per Share1.892.222.43
LTM Dividend per Share1.551.551.55
(+) Excess Retained per Share1.892.222.43
(=) Adjusted Dividend3.443.763.98
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$30.38$36.89$43.72
Upside / Downside-42.88%-30.64%-17.79%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)384.00380.16376.36372.59368.87365.18376.14
Payout Ratio35.94%46.75%57.56%68.38%79.19%90.00%92.50%
Projected Dividends (M)138.00177.72216.64254.76292.10328.66347.93

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)161.26162.90164.55
Year 2 PV (M)178.36182.02185.71
Year 3 PV (M)190.31196.19202.20
Year 4 PV (M)197.98206.19214.64
Year 5 PV (M)202.13212.65223.61
PV of Terminal Value (M)3,508.893,691.603,881.85
Equity Value (M)4,438.914,651.554,872.56
Shares Outstanding (M)89.3089.3089.30
Fair Value$49.71$52.09$54.56
Upside / Downside-6.53%-2.05%2.60%

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