California Resources Boosted By Rising Brent-WTI Spread

Vlae Kershner3.06K FollowersFollow5ShareSavePlay(8min)CommentsSummaryA change in state law last year allowed California Resources to obtain new drilling permits in Kern County.The company took advantage by buying a competitor and expanding its drilling operations.CRC's pricing benefits from being tied to the higher Brent price rather than West Texas Intermediate.The company's projected free cash flow this year will enable substantial share buybacks. ClaudioVentrella/iStock via Getty Images The rising tide in energy prices this year has lifted almost all boats.

The State Street Energy Select Sector SPDR ETF (XLE) is up 33% year-to-date, with only one of its 22 components, Expand Energy (This article was written byVlae Kershner3.06K FollowersFollowI am a 35-year stock market investor, MBA, and retired reporter and editor for the San Francisco Chronicle. My primary style is a mix of growth and income, with attention to special situations.Analyst’s Disclosure: I/we have a beneficial long position in the shares of CRC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.