California Resources (CRC) completed its first CO2 injection at Carbon TerraVault I, California's first operational carbon capture and storage site. The stock trades at $62.20, roughly 32% below the average analyst price target of $82.45, with an estimated intrinsic discount of about 69%. The valuation narrative suggests a fair value of $81.50, driven by expected revenue from carbon management services and legislative support for CCS and clean power procurement. However, this valuation depends on California permitting and CCS approvals progressing as planned. Regulatory delays or weaker demand for carbon storage could undermine the perceived undervaluation. The article highlights both the opportunity and the risks tied to execution in the carbon storage space.
