When the Oil’s Down, the Dividend’s Up: A $4M Wager on California’s Energy Gamble 🎲

Picture this: November 14th, a day when the sun rose in Florida, the SEC filed paperwork, and Kore Advisors decided to play energy roulette with California Resources Corporation (CRC +0.14%). They bought 75,141 shares-$4 million worth-for their third-quarter portfolio. Now, hold on to your hard hats, because this gets juicier than a Kern County oil well.

What Exactly Transpired Here?

Let’s rewind. Kore Advisors LP, a fund with the thrill-seeking energy of a 1970s game show host, initiated a new position in CRC. That’s finance-speak for “Hey, boss, we’re buying a chunk of that California oil company!” According to the SEC filing (dated November 14), they now hold $4 million in CRC shares. Their portfolio now boasts 13 “reportable positions”-which, in plain English, means they’ve got 13 investments they can’t hide from their mom… or the government.

More Than Just a Sneeze in a Windstorm

This isn’t a fly-by-night fling. The CRC bet accounts for 4.6% of their $87.48 million in U.S. equity holdings. To put it in perspective: If their portfolio were a Thanksgiving dinner, CRC’s the yam casserole-noticeable, but not the turkey. Their top holdings post-filing? A who’s-who of energy stocks:

NYSE:UP: $31.29 million (35.8% of AUM) – The Thanksgiving turkey.
NYSE:GEO: $14.78 million (16.9% of AUM) – The mashed potatoes.
NYSE:CRGY: $13.19 million (15.1% of AUM) – The cranberry sauce.
NYSE:WOLF: $9.70 million (11.1% of AUM) – The green bean casserole.
NYSE:AR: $7.01 million (8.0% of AUM) – The dinner roll.

And CRC? Let’s call it the horseradish. Spicy, but not everyone’s cup of crude.

Meet CRC: The Company That’s Not in a Netflix Show

Metric	Value
Revenue (TTM)	$3.51 billion – Enough to buy a small island nation.
Net income (TTM)	$384.00 million – Not quite Elon-level, but nothing to sneeze at.
Dividend yield	3.7% – Sweeter than a sugar cube in a bear market.
Price (as of Wednesday)	$44.04 – Cheaper than a Hollywood script rewrite.

Company Snapshot: Drilling Down (Literally)

CRC produces oil, gas, and natural gas liquids. They also sell electricity to utilities. Think of them as the Amazon Prime of energy-except instead of two-day shipping, they offer two-phase extraction.
They control the entire supply chain, from exploration to sales. It’s like owning both the spaghetti factory and the spaghetti-eating contest.
They serve California refineries and utilities. Fun fact: Their trucks don’t honk; they roar.

CRC’s the biggest independent energy player in California. With mineral rights covering more land than a Hollywood backlot, they’re leveraging scale like a director yelling “Cut!” at a bloated budget.

Trader’s Take: Why Bet on a Stock That’s Down 14.5%?

Let’s cut to the chase: CRC’s stock slid 14.5% over the past year. The S&P 500? Up 15%. But here’s the twist: CRC’s cash flow’s stronger than a double espresso. In Q3 alone, they generated $279 million in operating cash flow. That’s enough to pay dividends ($0.405 per share, up 5%) and buy back debt like a desperate pawnshop owner.

Production held steady at 137 thousand barrels per day. Oil’s 78% of their output-so if gasoline prices spike, CRC’s the goose that lays golden eggs. Adjusted EBITDAX? $338 million. Liquidity? Over $1.1 billion. This isn’t speculative; it’s the financial equivalent of wearing a seatbelt in a demolition derby.

For long-term investors, CRC’s a disciplined player in a sector known for wild nights and regrettable IPOs. They’re not chasing growth-they’re the tortoise in the oilfield race. And in a portfolio full of high-beta daredevils, this stake’s the designated driver.

Glossary: Because Finance Needs More Jargon

Reportable AUM: The financial equivalent of your mom asking, “How much money are you carrying?”

Position: Not a yoga pose. It’s how much stock a fund owns.

Stake: No vampires involved. Just ownership in a company.

Initiated: Trader lingo for “We just bought a date for the prom.”

Filing: The SEC’s way of saying, “Show me the money!”

Integrated model: Controlling your supply chain from A to Z. Like Disney owning Marvel, Lucasfilm, and your soul.

Mineral acreage: Land where you dig for treasure. Pirates not included.

Gathering: Collecting oil/gas. Not to be confused with collecting vintage vinyl.

Processing: Cleaning up raw oil. Think of it as the oil’s first spa day.

Dividend yield: Your cut of the company’s profits. Better than a participation trophy.

Resilience: Surviving market crashes like a cockroach in a nuclear winter.

TTM: The last 12 months. Not to be confused with TMI-though both can be awkward.

2025-12-25 03:20