California Resources Preferred Over Atlas Energy Solutions for 2026 on Valuation

The Motley Fool··Read original
2▲1 ▼1Impact / 5
Summary · why it matters

The Motley Fool compared Atlas Energy Solutions and California Resources, concluding California Resources is the better buy for 2026 based on valuation. Atlas Energy Solutions, a Permian Basin proppant and logistics provider, posted fiscal 2025 revenue of nearly $1.1 billion but swung to a net loss of roughly $50.3 million, with negative free cash flow of nearly $31 million and a forward P/E of 21.7 times. California Resources, an independent producer and carbon management developer in California, reported fiscal 2025 revenue of nearly $3.7 billion and net income of $359 million, generating positive free cash flow of $543 million and trading at a forward P/E of 8.2 times. Analyst projections see Atlas revenue growing about 2.5% in fiscal 2026 to $1.2 billion with a wider net loss of $95 million, while California Resources faces lower sales of $3.4 billion and a swing to a net loss in 2026 before a return to growth in 2027. The article favors California Resources due to its significantly lower valuation multiples.

Impact on assets 4

Synthetic Biology (non-pharma)▲ · 2 stocks
Energy▼ · 1 stocks
Atlas Energy Solutions Inc.
AESI
▼ NegativeCapitalrelevance

Atlas Energy Solutions reported a net loss and negative free cash flow, with a higher forward P/E of 21.7, making it less attractive on valuation compared to California Resources.

Energy Transition & Power Demand▲ · 1 stocks
California Resources Corp
CRC
▲ PositiveCapitalrelevance

California Resources has a lower forward P/E of 8.2, positive net income and free cash flow, and is favored by the article as the better buy for 2026 based on valuation.

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