California Resources is the second-best performer in 2018
In 2018, California Resources (CRC) is turning out to be the second-best performing energy stock from the oil and gas production—or upstream—sector in the US. California Resources is primarily a crude oil and natural gas producer with operations exclusively in California. So far in 2018, CRC has increased by ~96% from its 2017 close of $19.44 to $38.14.
In 2018, the strong increase in CRC’s stock price is easily outperforming the rise in the Energy Select Sector SPDR Fund (XLE) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). Year-to-date in 2018, XLE and XOP are up by ~8% and ~16%, respectively.
California Resources’ revenues and earnings
In Q1 2018, California Resources reported revenues of ~$609 million, which are higher by ~3% when compared with Q1 2017 revenues of ~$590 million. In Q1 2018, California Resources turned profitable after reporting losses in Q1 2017. In Q1 2018, CRC posted adjusted profit of ~$8 million from the loss of ~$43 million in Q1 2017. On a per share basis, California Resources posted adjusted profit of $0.18 per share in Q1 2018 from the loss of $1.02 per share in Q1 2017.
Next, we’ll compare 2018 returns of Denbury Resources (DNR) with various broader energy market and energy commodities, and we’ll also analyze fundamental metrics.