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CRC, California Resources

Oil & Gas Producers capital-intensive Distress / turnaroundCyclical

An oil and gas business, whose fortunes rise and fall with a price it does not set.

Latest annual: FY2025 10-K

CRC · California Resources

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$2.9B

+14.7% YoY · 5% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $3.0B 5-yr avg $2.5B

Gross margin 27%

Operating margin −10.0% 5-yr avg 25.5%

ROIC −5% 5-yr avg 17%

Owner-earnings margin 13% 5-yr avg 19%

Free cash flow margin 13% 5-yr avg 18%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock. Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: Operating margin has run about 19% through the cycle, a solid margin the cost base and competition set as much as the price does. The margin is cyclical, swinging between −214% and 37% over the years, so the through-cycle figure carries more than any single year — and the balance sheet at the trough more than the peak. Capital spending runs about 11% of sales, below what it charges for depreciation, so the return earned on what it sinks into that plant weighs as much as the margin. Read this kind of business on the commodity price, and the cost to lift a barrel. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has sat near the cost of capital (median 13%). By owner earnings: roughly 12% of revenue reaches owners as cash, though it swings, and customers and suppliers fund the business through negative working capital. The cycle and the balance sheet decide this one; the worst year tells more than the median, and the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2015–2025

realized figures from each filing · older years to the left

2015’15	2016’16	2017’17	2018’18	2019’19	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$2.4B	$1.6B	$1.9B	$2.6B	$2.3B	$2.0B	$2.6B	$2.2B	$2.5B	$2.9B	$3.0B	RevenueRevenue
15%	14%	13%	12%	13%	10%	8%	12%	13%	11%	12%	SG&A / revenueSG&A/rev
($5.1B)	($293M)	$73M	$769M	$429M	$293M	$812M	$808M	$620M	$598M	($299M)	Operating incomeOp. inc.
−214.0%	−18.1%	3.8%	29.7%	18.9%	14.3%	30.7%	37.5%	24.4%	20.5%	−10.0%	Operating marginOp. mgn
($3.6B)	$279M	($266M)	$328M	($28M)	$612M	$524M	$564M	$376M	$363M	($463M)	Net incomeNet inc.
—	—	—	0%	—	—	31%	25%	27%	28%	—	Effective tax rateTax rate
											Cash flow & returns
$403M	$130M	$248M	$461M	$676M	$660M	$690M	$653M	$610M	$865M	$778M	Operating cash flowOp. cash
$1.0B	$559M	$544M	$502M	$471M	$213M	$198M	$225M	$388M	$511M	$513M	DepreciationDeprec.
$3.0B	($708M)	($30M)	($369M)	$233M	($165M)	($32M)	($136M)	($154M)	($9M)	$728M	Working capital & otherWC & other
$401M	$75M	$371M	$690M	$455M	$194M	$379M	$185M	$255M	$322M	$398M	CapexCapex
16.7%	4.6%	19.2%	26.6%	20.0%	9.5%	14.3%	8.6%	10.1%	11.1%	13.3%	Capex / revenueCapex/rev
$2M	$55M	($123M)	($41M)	$221M	$466M	$492M	$468M	$355M	$543M	$380M	Owner earningsOwner earn.
0.1%	3.4%	−6.4%	−1.6%	9.7%	22.8%	18.6%	21.7%	14.0%	18.7%	12.7%	Owner earnings marginOE mgn
$2M	$55M	($123M)	($229M)	$221M	$466M	$311M	$468M	$355M	$543M	$380M	Free cash flowFCF
0.1%	3.4%	−6.4%	−8.8%	9.7%	22.8%	11.8%	21.7%	14.0%	18.7%	12.7%	Free cash flow marginFCF mgn
—	—	—	—	—	$52M	$0	$0	$853M	$440M	$440M	AcquisitionsAcquis.
$12M	—	—	—	$0	$14M	$59M	$81M	$113M	$136M	$137M	Dividends paidDiv. paid
—	—	—	—	$0	$148M	$313M	$143M	$192M	$377M	—	BuybacksBuybacks
-78%	-6%	—	16%	—	15%	26%	27%	11%	9%	-5%	ROICROIC
—	—	—	—	—	36%	28%	25%	11%	10%	-16%	Return on equityROE
—	—	—	—	—	35%	25%	22%	7%	6%	−21%	Retained to equityRetained/eq
											Balance sheet
$12M	$12M	$20M	$17M	$17M	$305M	$307M	$496M	$372M	$132M	$40M	Cash & investmentsCash+inv
$200M	$232M	$277M	$299M	$277M	$245M	$326M	$216M	$330M	$333M	$454M	ReceivablesReceiv.
$58M	$58M	$56M	$69M	$67M	$60M	$60M	$72M	$90M	$106M	$107M	InventoryInvent.
$257M	$219M	$257M	$390M	$296M	$266M	$345M	$245M	$369M	$452M	$472M	Accounts payablePayables
$1M	$71M	$76M	($22M)	$48M	$39M	$41M	$43M	$51M	($13M)	$89M	Operating working capitalOper. WC
$438M	$425M	$483M	$640M	$491M	$753M	$864M	$929M	$1.0B	$938M	$788M	Current assetsCur. assets
$605M	$726M	$732M	$607M	$709M	$854M	$894M	$616M	$980M	$1.1B	$1.4B	Current liabilitiesCur. liab.
0.7×	0.6×	0.7×	1.1×	0.7×	0.9×	1.0×	1.5×	1.0×	0.9×	0.5×	Current ratioCurr. ratio
$7.1B	$6.4B	$6.2B	$7.2B	$7.0B	$3.8B	$4.0B	$4.0B	$7.1B	$7.4B	$7.1B	Total assetsAssets
$6.1B	$5.3B	$5.3B	$5.3B	$5.0B	$589M	$592M	$540M	$1.1B	$1.3B	$1.4B	Total debtDebt
$6.1B	$5.3B	$5.3B	$5.2B	$5.0B	$284M	$285M	$44M	$760M	$1.2B	$1.4B	Net debt / (cash)Net debt
-15.8×	-0.9×	0.2×	2.0×	1.1×	—	—	14.4×	7.1×	5.6×	-2.8×	Interest coverageInt. cov.
($916M)	($557M)	($814M)	($361M)	($389M)	$1.7B	$1.9B	$2.2B	$3.5B	$3.7B	$2.9B	Shareholders’ equityEquity
											Per share
38.3M	40.4M	42.5M	47.4M	49.0M	83.0M	77.6M	72.5M	81.4M	87.4M	88.7M	Shares out (diluted)Shares
$62.74	$40.12	$45.55	$54.64	$46.33	$24.67	$34.06	$29.72	$31.17	$33.30	$33.83	Revenue / shareRev/sh
$-92.79	$6.91	$-6.26	$6.92	$-0.57	$7.37	$6.75	$7.78	$4.62	$4.15	$-5.22	EPS (diluted)EPS
$0.05	$1.36	$-2.89	$-0.86	$4.51	$5.61	$6.34	$6.46	$4.36	$6.21	$4.28	Owner earnings / shareOE/sh
$0.05	$1.36	$-2.89	$-4.83	$4.51	$5.61	$4.01	$6.46	$4.36	$6.21	$4.28	Free cash flow / shareFCF/sh
$0.31	—	—	—	$0.00	$0.17	$0.76	$1.12	$1.39	$1.56	$1.54	Dividends / shareDiv/sh
$10.47	$1.86	$8.73	$14.56	$9.29	$2.34	$4.88	$2.55	$3.13	$3.68	$4.49	Cap. spending / shareCapex/sh
$-23.92	$-13.79	$-19.15	$-7.62	$-7.94	$20.34	$24.02	$30.61	$43.46	$42.04	$32.90	Book value / shareBVPS

The diluted share count moved ×1.69 into 2021 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Per-share growththe realized rate an owner's share compounded

	10-yr	5-yr
Revenue / share	−6.1%/yr	+7.8%/yr (4-yr)
Owner earnings / share	+61.3%/yr	+2.6%/yr (4-yr)
EPS	—	−13.4%/yr (4-yr)
Dividends / share	+17.4%/yr	+74.3%/yr (4-yr)
Capital spending / share	−9.9%/yr	+12.0%/yr (4-yr)
Book value / share	—	+19.9%/yr (4-yr)

The record, charted

FY2015–2025

Each measure over its full record; the current point and the worst year marked.

Share count

87Mpeak FY2025

ROIC

9%low FY2015

Net debt ÷ owner earnings

2.1×peak FY2015

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$543Mowner earningsvs.$363Mnet incomelow FY2017

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2015FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned $363M of profit into $543M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income$363M

Owner earnings$543M · 19% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$363M	$376M	$564M	$524M	$612M
Depreciation & amortizationnon-cash charge added back	+$511M	+$388M	+$225M	+$198M	+$213M
Working capital & othertiming of cash in and out, other non-cash items	−$9M	−$154M	−$136M	−$32M	−$165M
Cash from operations	$865M	$610M	$653M	$690M	$660M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$322M	−$255M	−$185M	−$198M	−$194M
Owner earnings	$543M	$355M	$468M	$492M	$466M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	—	−$181M	—
Free cash flow	$543M	$355M	$468M	$311M	$466M
Owner-earnings marginowner earnings ÷ revenue	19%	14%	22%	19%	23%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 5.6×

Comfortable

Operating income $598M ÷ interest expense $106M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? $1.3B · 2.1× operating profit

Meaningful net debt

Cash $132M − debt $1.4B

What this means
Netting $132M of cash and short-term investments against $1.4B of debt leaves $1.3B owed, about 2.1× a year's operating profit (2.3× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? -16d

Negative, funded by others

DSO 42 + DIO 18 − DPO 75 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. A negative cycle is a quiet moat: suppliers and customers fund the operation (Buffett's “float”), the company grows on other people's money.

Is it a good business?

Return on invested capital 11%

Solid through the cycle

8-yr median, range -78%–27%; 9% latest = NOPAT $432M ÷ invested capital $4.9B

Industry peers: median 3%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 8 years (it ran 9% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 10%

Solid through the cycle

10-yr median margin, range -6%–23%; latest $543M = operating cash $865M − maintenance capex $322M

Industry peers: median 26%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 19% of revenue this year, a 10% median across 10 years.
Are earnings backed by cash? 2.38×

Cash-backed

Cash from ops $865M ÷ net income $363M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 94%

Returns most of it

Dividends + buybacks $513M ÷ Owner Earnings $543M

What this means
Of $543M Owner Earnings, $513M (94%) went back to shareholders, $136M dividends, $377M buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 0.63×

Harvesting

Capex $322M ÷ depreciation $511M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 1 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $2.9B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 0.89×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $1.4B vs ($112M) WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 3 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · 6 of 10 yrs

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $4.89/share (latest year $4.09), the averaged base the calculator's gate runs on, and book value is $41.38/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2015–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 7 of 10

What this means
Lost money in 3 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 3 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −76% → 27% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about −76% early to 27% lately, median 19% — pricing power intact or improving.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth +32%/yr

What this means
Owner earnings grew about 32% a year over the record.
Worst year 2015 · −214.0% op. margin

What this means
Operations went underwater in 2015, understand why before trusting the good years.
Dividend record rising

What this means
Paid and raised the dividend across the record, the continuity Graham prized.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$788M

Cash & short-term investments$40M
Receivables$454M
Inventory$107M
Other current assets$187M

Current liabilities$1.4B

Debt due within a year$122M
Accounts payable$472M
Other current liabilities$847M

Current ratio0.55×all current assets ÷ what's due · Graham looked for 2×

Quick ratio0.47×stricter: inventory excluded

Cash ratio0.03×strictest: cash alone against what's due

Working capital($653M)the cushion left after near-term bills

Debt due this year vs. cash$122M due · $40M cash cash alone won't cover the maturities; it leans on refinancing or operating cash · both figures from the Mar 31, 2026 balance sheet

Revenue, latest quarter vs. a year ago−87.0%the freshest read on whether the business is still growing

Current ratio, recent quarters2.4× → 0.5×

Deeper floors

Tangible book value$2.9Bequity stripped of goodwill & intangibles

Debt incl. operating leases$1.5B$68M of it operating leases

Deferred revenue$11Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2015–2025

Over the record, the business generated $5.4B of operating cash; how management split it reads as a reinvestor, most operating cash is plowed back into the business.

Reinvested$3.3B · 62%
Dividends$415M · 8%
Buybacks$1.2B · 22%
Retained (debt / cash)$481M · 9%

Returned to owners$1.6B
65% of the owner earnings the business produced over the span, $415M as dividends and $1.2B as buybacks.
Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span debt fell $4.7B and cash and short-term investments rose $28M.
Average price paid for buybacks$43.70
Across the years where the filing reports a share count, 27M shares were bought for $1.2B, about $43.70 each. Year to year the price paid ranged from $36.19 (2021) to $52.61 (2024); its heaviest year, 2025, paid $45.27 ($377M).
Net change in share count131.6%
The diluted count rose from 38M to 89M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record$1.56/sh
Paid in 6 of the years on record, the per-share dividend growing about 31% a year. It was cut at least once along the way.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	—	$17.6M	$30.9M	$466M
2022	Mark A. McFarland	$2.8M	$3.4M	$492M
2023	—	$915k	−$2.7M	$468M
2023	—	$10.2M	$14.0M	$468M
2024	Francisco J. Leon	$8.0M	$6.6M	$355M
2025	Francisco J. Leon	$12.1M	$9.5M	$543M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years. A dash under the name means the filing tags the figure without naming the officer.

Insider ownership<1%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.

Inverting the record

Invert: instead of why California Resources is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2015–2025.

3 of the 5 tests turned up something to look into; the other 2 came back clean.

Look hereDid the share count rise anyway?131.6%
Diluted shares grew 131.6% over 2015–2025, even as the company spent $1.2B on buybacks. The repurchases were outrun by issuance — to staff, in a raise, or in a deal — and the filing says which; owners' slice still shrank. Read the buyback line beside this one, not on its own.
Look hereDid receivables and inventory outpace sales?11% → 19% of sales
Receivables and inventory grew from $258M to $561M while revenue grew 25%: working capital is climbing faster than sales (11% of revenue then, 19% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.
Look hereAre "one-time" charges a yearly habit?6 of 10 years
Management took an impairment or write-down in 6 of the last 10 years, $5.0B in all. Taken across the majority of the record, the "one-time" label is wearing thin — ask whether these are past deals coming due rather than genuinely isolated events. Read it beside the goodwill the company still carries.

And these came back clean

Is it less profitable than it was?
Did debt outgrow the business?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

Peers, Oil & Gas Producers

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
CRGYCrescent Energy	$3.6B	—	13.6%	2%	23%
SMSM Energy	$3.2B	62%	19.8%	8%	47%
RRCRange Resources	$3.0B	91%	5.4%	-3%	26%
CRCCalifornia Resources	$2.9B	24%	19.7%	13%	12%
MURMurphy Oil	$2.7B	100%	11.6%	3%	46%
CNXCNX Resources	$2.2B	—	-3.2%	-0%	24%
DECDiversified Energy Company	$1.8B	—	29.2%	14%	15%
HESMHess Midstream LP	$1.6B	—	60.4%	—	48%
Group median	—	76%	16.7%	3%	25%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what California Resources has delivered.

California Resources’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, California Resources earns about $345M on its 11.9% median owner-earnings margin. This year’s 18.7% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($345M) Net of stock comp Steady-state · maintenance capex ($456M)

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The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25−2%/yr

Owner-earnings growth · ’15→’25+32%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $380M on 89M shares outstanding, per the 10-Q cover, as of 2026-03-31; net debt $1.4B. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($398M) runs well above depreciation ($513M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $456M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh CRC against another business →

Cite: Owner Scorecard, "California Resources (CRC), the owner's record," https://ownerscorecard.com/c/CRC, data as of 2026-07-09.

Manual order: ← CRBG its page in the Manual CRCL →

Industry order: ← COP the Oil & Gas Producers chapter CRGY →