Critical Survey: California Resources (OTCMKTS:CRCQQ) vs. Carbon Energy (OTCMKTS:CRBOD)

Valuation and Earnings

This table compares California Resources and Carbon Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
California Resources	$2.63 billion	0.00	-$28.00 million	N/A	N/A
Carbon Energy	$116.63 million	0.00	$1.10 million	($1.84)	0.00

Carbon Energy has lower revenue, but higher earnings than California Resources.

Insider and Institutional Ownership

35.7% of California Resources shares are owned by institutional investors. Comparatively, 10.5% of Carbon Energy shares are owned by institutional investors. 4.1% of California Resources shares are owned by insiders. Comparatively, 7.1% of Carbon Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares California Resources and Carbon Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
California Resources	-95.33%	-4.31%	-3.78%
Carbon Energy	-38.38%	-8.44%	-2.43%

Summary

Carbon Energy beats California Resources on 5 of the 9 factors compared between the two stocks.

About California Resources

California Resources Corporation operates as an oil and natural gas exploration and production company in the State of California. The company sells crude oil, natural gas, and natural gas liquids to marketers, California refineries, and other purchasers that have access to transportation and storage facilities. It holds interests in approximately 2.2 million net acres of mineral acreage. As of December 31, 2019, the company had net proved reserves of 644 million barrels of oil equivalent. It also engages in the generation and sale of electricity to the grid and utility customers. The company was founded in 2014 and is based in Los Angeles, California. On July 15, 2020, California Resources Corporation, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

About Carbon Energy

Carbon Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids properties in the United States. It focuses on conventional and unconventional reservoirs, including shale, tight sand, and coalbed methane located in the Appalachian, Illinois, and Ventura Basins. As of December 31, 2018, it owned working interests in 7,100 net wells and royalty interests in approximately 900 wells located in California, Illinois, Indiana, Kentucky, Ohio, Tennessee, Virginia, and West Virginia, as well as had leasehold positions in approximately 340,700 net developed acres and approximately 1,319,200 net undeveloped acres. The company was formerly known as Carbon Natural Gas Company and changed its name to Carbon Energy Corporation in June 2018. Carbon Energy Corporation was founded in 2007 and is based in Denver, Colorado.