Intrinsic value of California Resources Corporation - CRC

Previous Close

$9.77

  Intrinsic Value

$567.47

stock screener

  Rating & Target

str. buy

+999%

Previous close

$9.77

 
Intrinsic value

$567.47

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of CRC stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  4,902
  7,574
  11,327
  16,435
  23,188
  31,878
  42,789
  56,185
  72,297
  91,316
  113,394
  138,635
  167,102
  198,819
  233,776
  271,937
  313,249
  357,644
  405,050
  455,397
  508,617
  564,657
  623,473
  685,039
  749,344
  816,399
  886,231
  958,886
  1,034,431
  1,112,950
Variable operating expenses, $m
  1,677
  2,590
  3,874
  5,621
  7,930
  10,902
  14,634
  19,215
  24,725
  31,230
  38,781
  47,413
  57,149
  67,996
  79,951
  93,002
  107,131
  122,314
  138,527
  155,746
  173,947
  193,113
  213,228
  234,283
  256,276
  279,208
  303,091
  327,939
  353,775
  380,629
Fixed operating expenses, $m
  1,302
  1,331
  1,360
  1,390
  1,420
  1,452
  1,484
  1,516
  1,550
  1,584
  1,619
  1,654
  1,691
  1,728
  1,766
  1,805
  1,844
  1,885
  1,926
  1,969
  2,012
  2,056
  2,102
  2,148
  2,195
  2,243
  2,293
  2,343
  2,395
  2,447
Total operating expenses, $m
  2,979
  3,921
  5,234
  7,011
  9,350
  12,354
  16,118
  20,731
  26,275
  32,814
  40,400
  49,067
  58,840
  69,724
  81,717
  94,807
  108,975
  124,199
  140,453
  157,715
  175,959
  195,169
  215,330
  236,431
  258,471
  281,451
  305,384
  330,282
  356,170
  383,076
Operating income, $m
  1,924
  3,653
  6,093
  9,425
  13,837
  19,524
  26,672
  35,454
  46,022
  58,503
  72,995
  89,568
  108,263
  129,095
  152,059
  177,130
  204,273
  233,445
  264,597
  297,682
  332,658
  369,488
  408,144
  448,608
  490,874
  534,947
  580,847
  628,604
  678,261
  729,874
EBITDA, $m
  2,727
  4,894
  7,950
  12,118
  17,637
  24,748
  33,684
  44,661
  57,870
  73,468
  91,578
  112,288
  135,648
  161,678
  190,371
  221,696
  255,610
  292,057
  330,978
  372,315
  416,013
  462,027
  510,321
  560,875
  613,679
  668,742
  726,086
  785,750
  847,788
  912,269
Interest expense (income), $m
  0
  378
  579
  983
  1,552
  2,325
  3,347
  4,663
  6,315
  8,343
  10,783
  13,662
  17,005
  20,826
  25,136
  29,938
  35,231
  41,008
  47,263
  53,985
  61,162
  68,785
  76,842
  85,327
  94,232
  103,553
  113,289
  123,441
  134,014
  145,014
  156,451
Earnings before tax, $m
  1,546
  3,074
  5,110
  7,873
  11,512
  16,177
  22,009
  29,138
  37,678
  47,720
  59,333
  72,563
  87,436
  103,959
  122,120
  141,899
  163,265
  186,182
  210,612
  236,520
  263,874
  292,646
  322,817
  354,376
  387,321
  421,658
  457,406
  494,590
  533,247
  573,422
Tax expense, $m
  417
  830
  1,380
  2,126
  3,108
  4,368
  5,942
  7,867
  10,173
  12,884
  16,020
  19,592
  23,608
  28,069
  32,972
  38,313
  44,082
  50,269
  56,865
  63,860
  71,246
  79,014
  87,161
  95,682
  104,577
  113,848
  123,500
  133,539
  143,977
  154,824
Net income, $m
  1,128
  2,244
  3,730
  5,747
  8,404
  11,809
  16,066
  21,271
  27,505
  34,836
  43,313
  52,971
  63,829
  75,890
  89,148
  103,586
  119,183
  135,913
  153,747
  172,660
  192,628
  213,631
  235,656
  258,695
  282,744
  307,811
  333,906
  361,051
  389,270
  418,598

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  11,454
  17,697
  26,465
  38,400
  54,177
  74,481
  99,975
  131,274
  168,917
  213,356
  264,940
  323,915
  390,426
  464,530
  546,205
  635,367
  731,889
  835,616
  946,379
  1,064,011
  1,188,359
  1,319,292
  1,456,713
  1,600,558
  1,750,805
  1,907,475
  2,070,632
  2,240,387
  2,416,894
  2,600,350
Adjusted assets (=assets-cash), $m
  11,454
  17,697
  26,465
  38,400
  54,177
  74,481
  99,975
  131,274
  168,917
  213,356
  264,940
  323,915
  390,426
  464,530
  546,205
  635,367
  731,889
  835,616
  946,379
  1,064,011
  1,188,359
  1,319,292
  1,456,713
  1,600,558
  1,750,805
  1,907,475
  2,070,632
  2,240,387
  2,416,894
  2,600,350
Revenue / Adjusted assets
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
Average production assets, $m
  9,721
  15,020
  22,462
  32,591
  45,981
  63,214
  84,851
  111,415
  143,364
  181,081
  224,861
  274,914
  331,364
  394,258
  463,577
  539,251
  621,172
  709,207
  803,214
  903,051
  1,008,588
  1,119,715
  1,236,347
  1,358,432
  1,485,950
  1,618,919
  1,757,395
  1,901,471
  2,051,276
  2,206,980
Working capital, $m
  25
  38
  57
  82
  116
  159
  214
  281
  361
  457
  567
  693
  836
  994
  1,169
  1,360
  1,566
  1,788
  2,025
  2,277
  2,543
  2,823
  3,117
  3,425
  3,747
  4,082
  4,431
  4,794
  5,172
  5,565
Total debt, $m
  8,041
  13,659
  21,551
  32,292
  46,491
  64,765
  87,710
  115,878
  149,758
  189,753
  236,178
  289,255
  349,115
  415,809
  489,316
  569,562
  656,433
  749,787
  849,473
  955,342
  1,067,255
  1,185,095
  1,308,774
  1,438,234
  1,573,456
  1,714,459
  1,861,301
  2,014,081
  2,172,937
  2,338,047
Total liabilities, $m
  10,309
  15,927
  23,819
  34,560
  48,759
  67,033
  89,978
  118,146
  152,026
  192,021
  238,446
  291,523
  351,383
  418,077
  491,584
  571,830
  658,701
  752,055
  851,741
  957,610
  1,069,523
  1,187,363
  1,311,042
  1,440,502
  1,575,724
  1,716,727
  1,863,569
  2,016,349
  2,175,205
  2,340,315
Total equity, $m
  1,145
  1,770
  2,647
  3,840
  5,418
  7,448
  9,998
  13,127
  16,892
  21,336
  26,494
  32,391
  39,043
  46,453
  54,620
  63,537
  73,189
  83,562
  94,638
  106,401
  118,836
  131,929
  145,671
  160,056
  175,080
  190,747
  207,063
  224,039
  241,689
  260,035
Total liabilities and equity, $m
  11,454
  17,697
  26,466
  38,400
  54,177
  74,481
  99,976
  131,273
  168,918
  213,357
  264,940
  323,914
  390,426
  464,530
  546,204
  635,367
  731,890
  835,617
  946,379
  1,064,011
  1,188,359
  1,319,292
  1,456,713
  1,600,558
  1,750,804
  1,907,474
  2,070,632
  2,240,388
  2,416,894
  2,600,350
Debt-to-equity ratio
  7.020
  7.720
  8.140
  8.410
  8.580
  8.700
  8.770
  8.830
  8.870
  8.890
  8.910
  8.930
  8.940
  8.950
  8.960
  8.960
  8.970
  8.970
  8.980
  8.980
  8.980
  8.980
  8.980
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
Adjusted equity ratio
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,128
  2,244
  3,730
  5,747
  8,404
  11,809
  16,066
  21,271
  27,505
  34,836
  43,313
  52,971
  63,829
  75,890
  89,148
  103,586
  119,183
  135,913
  153,747
  172,660
  192,628
  213,631
  235,656
  258,695
  282,744
  307,811
  333,906
  361,051
  389,270
  418,598
Depreciation, amort., depletion, $m
  803
  1,241
  1,856
  2,693
  3,800
  5,224
  7,013
  9,208
  11,848
  14,965
  18,584
  22,720
  27,385
  32,583
  38,312
  44,566
  51,337
  58,612
  66,381
  74,632
  83,354
  92,538
  102,177
  112,267
  122,806
  133,795
  145,239
  157,146
  169,527
  182,395
Funds from operations, $m
  1,932
  3,485
  5,587
  8,441
  12,204
  17,033
  23,079
  30,479
  39,353
  49,801
  61,896
  75,691
  91,214
  108,473
  127,460
  148,153
  170,520
  194,525
  220,128
  247,292
  275,982
  306,170
  337,834
  370,962
  405,550
  441,606
  479,146
  518,197
  558,797
  600,993
Change in working capital, $m
  9
  13
  19
  26
  34
  43
  55
  67
  81
  95
  110
  126
  142
  159
  175
  191
  207
  222
  237
  252
  266
  280
  294
  308
  322
  335
  349
  363
  378
  393
Cash from operations, $m
  1,923
  3,472
  5,568
  8,415
  12,170
  16,990
  23,024
  30,412
  39,273
  49,706
  61,786
  75,565
  91,072
  108,315
  127,285
  147,962
  170,313
  194,303
  219,891
  247,040
  275,716
  305,890
  337,540
  370,654
  405,228
  441,270
  478,796
  517,834
  558,420
  600,601
Maintenance CAPEX, $m
  -502
  -803
  -1,241
  -1,856
  -2,693
  -3,800
  -5,224
  -7,013
  -9,208
  -11,848
  -14,965
  -18,584
  -22,720
  -27,385
  -32,583
  -38,312
  -44,566
  -51,337
  -58,612
  -66,381
  -74,632
  -83,354
  -92,538
  -102,177
  -112,267
  -122,806
  -133,795
  -145,239
  -157,146
  -169,527
New CAPEX, $m
  -3,646
  -5,298
  -7,442
  -10,129
  -13,390
  -17,232
  -21,638
  -26,564
  -31,949
  -37,716
  -43,780
  -50,053
  -56,450
  -62,894
  -69,319
  -75,674
  -81,921
  -88,035
  -94,007
  -99,837
  -105,537
  -111,127
  -116,632
  -122,085
  -127,518
  -132,969
  -138,476
  -144,075
  -149,806
  -155,704
Cash from investing activities, $m
  -4,148
  -6,101
  -8,683
  -11,985
  -16,083
  -21,032
  -26,862
  -33,577
  -41,157
  -49,564
  -58,745
  -68,637
  -79,170
  -90,279
  -101,902
  -113,986
  -126,487
  -139,372
  -152,619
  -166,218
  -180,169
  -194,481
  -209,170
  -224,262
  -239,785
  -255,775
  -272,271
  -289,314
  -306,952
  -325,231
Free cash flow, $m
  -2,225
  -2,630
  -3,116
  -3,570
  -3,914
  -4,043
  -3,838
  -3,164
  -1,884
  141
  3,040
  6,928
  11,902
  18,035
  25,383
  33,975
  43,826
  54,931
  67,272
  80,822
  95,547
  111,409
  128,369
  146,392
  165,443
  185,495
  206,526
  228,519
  251,468
  275,370
Issuance/(repayment) of debt, $m
  2,790
  5,618
  7,892
  10,741
  14,199
  18,273
  22,945
  28,169
  33,879
  39,995
  46,425
  53,077
  59,860
  66,693
  73,507
  80,246
  86,870
  93,354
  99,686
  105,869
  111,913
  117,840
  123,679
  129,460
  135,222
  141,003
  146,842
  152,780
  158,856
  165,110
Issuance/(repurchase) of shares, $m
  378
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  3,168
  5,618
  7,892
  10,741
  14,199
  18,273
  22,945
  28,169
  33,879
  39,995
  46,425
  53,077
  59,860
  66,693
  73,507
  80,246
  86,870
  93,354
  99,686
  105,869
  111,913
  117,840
  123,679
  129,460
  135,222
  141,003
  146,842
  152,780
  158,856
  165,110
Total cash flow (excl. dividends), $m
  942
  2,989
  4,776
  7,171
  10,286
  14,231
  19,107
  25,004
  31,995
  40,136
  49,466
  60,005
  71,762
  84,729
  98,890
  114,222
  130,696
  148,285
  166,958
  186,691
  207,460
  229,249
  252,048
  275,852
  300,665
  326,498
  353,368
  381,299
  410,324
  440,481
Retained Cash Flow (-), $m
  -1,506
  -624
  -877
  -1,193
  -1,578
  -2,030
  -2,549
  -3,130
  -3,764
  -4,444
  -5,158
  -5,897
  -6,651
  -7,410
  -8,167
  -8,916
  -9,652
  -10,373
  -11,076
  -11,763
  -12,435
  -13,093
  -13,742
  -14,384
  -15,025
  -15,667
  -16,316
  -16,976
  -17,651
  -18,346
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  -564
  2,365
  3,899
  5,977
  8,708
  12,200
  16,558
  21,874
  28,231
  35,692
  44,307
  54,108
  65,111
  77,318
  90,722
  105,305
  121,044
  137,912
  155,882
  174,927
  195,025
  216,156
  238,306
  261,468
  285,641
  310,831
  337,052
  364,323
  392,673
  422,135
Discount rate, %
  14.50
  15.23
  15.99
  16.79
  17.62
  18.51
  19.43
  20.40
  21.42
  22.49
  23.62
  24.80
  26.04
  27.34
  28.71
  30.14
  31.65
  33.23
  34.90
  36.64
  38.47
  40.40
  42.42
  44.54
  46.76
  49.10
  51.56
  54.14
  56.84
  59.68
PV of cash for distribution, $m
  -493
  1,781
  2,499
  3,213
  3,867
  4,405
  4,777
  4,953
  4,921
  4,693
  4,301
  3,790
  3,214
  2,622
  2,059
  1,555
  1,129
  788
  528
  340
  210
  124
  70
  38
  20
  10
  4
  2
  1
  0
Current shareholders' claim on cash, %
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0

California Resources Corporation is an independent oil and natural gas exploration and production company, with operating properties within the State of California. The Company produced approximately 140 thousand barrels of oil equivalent per day (MBoe/d), as of December 31, 2016. As of December 31, 2016, the Company had net proved reserves of 568 million barrels of oil equivalent (MMBoe). As of December 31, 2016, it drilled 42 development wells with 37 wells in the San Joaquin basin and five in the Los Angeles basin, which included over 30 steamflood and eight waterflood wells. As of December 31, 2016, the Company produced 36 billion barrels of oil equivalent (BBoe), including approximately 20 BBoe in the San Joaquin basin, 11 BBoe in the Los Angeles basin, three BBoe in the Ventura basin and 10 trillion cubic feet (Tcf) of natural gas in the Sacramento basin. Its operations included 135 fields with 8,837 gross active wellbores, as of December 31, 2016.

FINANCIAL RATIOS  of  California Resources Corporation (CRC)

Valuation Ratios
P/E Ratio 1.5
Price to Sales 0.2
Price to Book -0.7
Price to Tangible Book
Price to Cash Flow 3.2
Price to Free Cash Flow 7.6
Growth Rates
Sales Growth Rate -22.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -81.3%
Cap. Spend. - 3 Yr. Gr. Rate -46.2%
Financial Strength
Quick Ratio 0
Current Ratio 0.1
LT Debt to Equity -927.8%
Total Debt to Equity -945.8%
Interest Coverage 0
Management Effectiveness
Return On Assets 4.2%
Ret/ On Assets - 3 Yr. Avg. -14.4%
Return On Total Capital 5.6%
Ret/ On T. Cap. - 3 Yr. Avg. -19.9%
Return On Equity -37.9%
Return On Equity - 3 Yr. Avg. -160%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 54.4%
Gross Margin - 3 Yr. Avg. 62.4%
EBITDA Margin 43.4%
EBITDA Margin - 3 Yr. Avg. -61%
Operating Margin 40.2%
Oper. Margin - 3 Yr. Avg. -82.5%
Pre-Tax Margin 11.5%
Pre-Tax Margin - 3 Yr. Avg. -95.9%
Net Profit Margin 15.9%
Net Profit Margin - 3 Yr. Avg. -58.3%
Effective Tax Rate -38.8%
Eff/ Tax Rate - 3 Yr. Avg. 12.4%
Payout Ratio 0%

CRC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CRC stock intrinsic value calculation we used $3064 million for the last fiscal year's total revenue generated by California Resources Corporation. The default revenue input number comes from 0001 income statement of California Resources Corporation. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our CRC stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 14.5%, whose default value for CRC is calculated based on our internal credit rating of California Resources Corporation, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of California Resources Corporation.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of CRC stock the variable cost ratio is equal to 34.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1274 million in the base year in the intrinsic value calculation for CRC stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 7.2% for California Resources Corporation.

Corporate tax rate of 27% is the nominal tax rate for California Resources Corporation. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the CRC stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for CRC are equal to 198.3%.

Life of production assets of 12.1 years is the average useful life of capital assets used in California Resources Corporation operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for CRC is equal to 0.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $-361 million for California Resources Corporation - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 48.831 million for California Resources Corporation is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of California Resources Corporation at the current share price and the inputted number of shares is $0.5 billion.

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