California Resources Corp (NYSE:CRC) President and CEO Francisco Leon has sold a portion of his company shares, according to a recent filing with the Securities and Exchange Commission. The transaction, which took place on September 5, 2024, involved the sale of 7,500 shares at an average price of $49.18 per share, resulting in a total value of $368,878.
The sale was conducted automatically under a Rule 10b5-1 trading plan, which Leon had previously adopted on June 6, 2024. Such plans allow company insiders to establish pre-arranged plans to buy or sell shares at a predetermined time, providing a defense against potential accusations of insider trading.
Investors may note that the shares were sold in multiple transactions with prices ranging from $48.71 to $49.65. Following the sale, Leon still owns 166,357 shares of California Resources Corp directly.
This move by the CEO comes as part of his personal financial management strategy and is a routine disclosure required by corporate executives and directors. Shareholders and potential investors often monitor these transactions for insights into executive confidence and company health, although such sales do not always indicate a change in company outlook.
California Resources Corp, headquartered in Long Beach, California, is a company specializing in crude petroleum and natural gas. It is incorporated in Delaware and has been a significant player in the energy sector.
"In other recent news, California Resources Corporation (CRC) has reported strong financials for the second quarter following its merger with Aera. The company reported $139 million in adjusted EBITDAX and $63 million in free cash flow, returning $57 million to shareholders. CRC has projected a significant increase in cash flow in the second half of 2024, with an expected adjusted EBITDAX of around $1 billion.
Additionally, CRC recently determined the consideration for its cash tender offer to purchase a portion of its outstanding 7.125% senior notes due 2026. The offer aims to acquire up to $300 million of the aggregate principal amount currently in circulation. The tender offer is being managed by Jefferies LLC, Citigroup Global Markets Inc., and TD (TSX:TD) Securities (USA) LLC, with D.F. King & Co., Inc. serving as the depositary and information agent.
In other developments, CRC is managing its hedge book to support investments, debt servicing, and shareholder returns, with significant hedges in place for 2026. The company is also focusing on reducing net leverage and is considering refinancing or prepaying debt. These recent developments underline CRC's commitment to enhancing cash flow and accelerating decarbonization efforts, as well as its confidence in the intrinsic value of the business and prospects for power generation and data centers."
InvestingPro Insights
In light of the recent sale of shares by California Resources Corp's (NYSE:CRC) President and CEO, Francisco Leon, it is important for investors to consider various financial metrics and analyst insights that can provide a broader context to the company's current standing. According to InvestingPro, California Resources Corp has a market capitalization of $4.3 billion, reflecting its significant presence in the energy sector.
One of the key InvestingPro Tips is that the company has raised its dividend for three consecutive years, which could be seen as a sign of financial stability and a commitment to returning value to shareholders. This is further supported by a dividend yield of 3.15% as of late 2024, which is attractive to income-focused investors. Additionally, California Resources Corp has been profitable over the last twelve months, which may reassure investors about the company's ability to maintain operations and fulfill its dividend commitments.
From a valuation perspective, California Resources Corp is trading at a price-to-earnings (P/E) ratio of 20.18, which provides a measure of the company's current share price relative to its per-share earnings. However, investors should note that the adjusted P/E ratio for the last twelve months as of Q2 2024 stands at -77.65, indicating a potential discrepancy that warrants further investigation. This could be related to specific events or changes within the company or the industry that have impacted earnings.
For those looking for additional insights and analysis, InvestingPro offers a range of tips, with 9 additional tips listed for California Resources Corp at https://www.investing.com/pro/CRC. This includes observations on analyst revisions, debt levels, and longer-term performance metrics, which can help investors make more informed decisions.
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