UBS has initiated coverage of California Resources with a Buy rating and a price target of $68, highlighting the company's unique position in exploration and production due to its diversified asset base, which includes power, real estate, and a developing carbon capture, utilization, and storage (CCUS) business. The firm anticipates that the company will start receiving its Class VI permits in Q4, which is expected to serve as a key catalyst for growth in the CCUS unit.