California Resources Corporation · NYSE:CRC
California Resources — Corporate Update (October 2021)
33 slides from California Resources's corporate update, Oct 6, 2021
Slide 1: Carbon Storage Update
“Positioned to be a premier carbon management provider in California” Carbon Storage Update October 6, 2021 ke CALIFORNIA USERRAVAULT
Slide 2: Presenters
Presenters ») Mac McFarland President & Chief Executive Officer ») Francisco Leon EVP & Chief Financial Officer ») Chris Gould EVP & Chief Sustainability Officer
Slide 3: Forward Looking / Cautionary Statements - Certain Terms
) Forward Looking / Cautionary Statements - Certain Terms This report contains forward-looking statements, including statements relating to the manner in which CRC intends to conduct certain of its activities with respect to developing and implementing a carbon storage program based on management's
Slide 4: Forward Looking / Cautionary Statements - Certain Terms (Cont.)
) Forward Looking / Cautionary Statements - Certain Terms (Cont.) Words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "goal," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "target, "will" or "would" and similar words that reflect
Slide 5: Glossary
> Glossary Term BMT Definition Billion Metric Tons Board of Directors Behind the Meter Celsius Cap and Trade California Air Resources Board Clean Air Task Force Carbon Capture and Storage Carbon Capture, Utilization and Storage Carbon Intensity Carbon Dioxide Carbon TerraVault Conditional Use Permit
Slide 6: Agenda
) Agenda =» — Introduction = CRC’s Unique Asset Position = — CRC’s Competitive Advantages for CCS Deployment = — CTV Economic Framework and Scaling Potential = — Positioned to be a Premier Carbon Management Provider in California
Slide 7: Enabling California's Climate Goals
) Enabling California’s Climate Goals California GHG Emissions (MMTCO,¢)4 500 468.0 ° “2080 Goal : 258.6 MMTCO,e 2045 Goal : Carbon Neutrality & Net-Negative Emissions ‘sThereafter 2000 CA EMISSIONS REDUCTION TARGETS* 447.9 418.2 Tey 2020 Goal : 431 MMTCO,e CALIFORNIA IS AN ECONOMIC POWERHOUSE = Cal
Slide 8: Domestic Economic Incentive & Legislative Support
) Domestic Economic Incentive & Legislative Support POTENTIAL ECONOMIC INCENTIVES*+ CALIFORNIA HAS THE MOST SUPPORTIVE DOMESTIC REGULATORY POLICIES? FEDERAL 45Q TAX CREDIT (%) $50 (2026) Est. Value (per MT of CO.) for Carbon Capture $35 (2026) Est. Value (per MT of CO.) for EOR Injection CALIFORNIA
Slide 9: CRC's Uniquely Positioned Asset Base
) CRC’s Uniquely Positioned Asset Base STABLE CONVENTIONAL ASSETS PROVIDE STRONG FINANCIAL FOUNDATION Sacramento Basin , - - a = Low decline, conventional assets with integrated infrastructure = Disciplined capital allocation with strong financial foundation = Robust Free Cash Flow generation = Pote
Slide 10: CRC has The Lowest Carbon Intensity Among Top US Oil & Gas Producers
) CRC has The Lowest Carbon Intensity Among Top 100 US Oil & Gas Producers 60 - CA CLEAN AIR TF B=} @ 160) >( 4 = Of Oil & Natural Gas Production in the United States| al June 2021 50 45 | 40 8 35 3 Q 30 wg 94% as yy below the _ 20 CRC average emitter 0.98 kg CO,/boe ae 100" of 100 wy 45% 10 benchma
Slide 11: CRC's Competitive Advantages
CRC’s Competitive Advantages & CALIFORNIA | YOSCAREON ae
Slide 12: CCS Technology Can Enable a Lower Carbon Future and CRC Is Well Positioned
) CCS Technology Can Enable a Lower Carbon Future and CRC Is Well Positioned to Provide It Application Capture » Requirements. « High concentration of emitters near CRC reservoirs eligible for LCFS credits « Strong historical relationships with major petrochemical complexes in the state = Access to
Slide 13: Assets Located in Proximity to Emission Sources across our Operating Basins
) Assets Located in Proximity to Emission Sources across our Operating Basins (@IFARBOY, 'TERRAVAULT san Francisco The CRC storage potential: = CAwide subsurface knowledge with >80% of CRC’s production from drilling at depths >2,600 feet? = Benefits from CRC having the largest 3D seismic coverage in
Slide 14: CRC's Inventory of Deep Wells Uniquely Positions it for CCS in California
) CRC’s Inventory of Deep Wells Uniquely Positions it for CCS in California ; Unlike Other CA Producers, Most of CRC’s Wells Are Deeper CO, Storage Generally Requires Depths >2,600 ft. Than 2,600 ft. Density Of CO, At Varying Depth+ Producing Wells Greater Than 2,600 ft. Depth? Courtesy of CO2CRC In
Slide 15: Developing CCS and CCUS in Parallel
) Developing CCS and CCUS in Parallel Planning to submit Class VI permit for 26R in 4Q21 Targeted Early-Stage Development Goals: 1% Injection by 20251 200 MMT permitted by 2025 ; 5 MMTPA injection by 2027+ = LEGEND - ‘ ‘ San Joaquin asin CaIGEM Administrative Boundaries mene = FEED Study: Class Ill
Slide 16: Positioned to be a Premier California Carbon Management Provider
Positioned to bea Premier California Carbon NEARAEING GT Provider.’ <2; ML, give ge cures WARRaur
Slide 17: CRC's Free Cash Flow Generation Provides Financial Flexibility
) CRC’s Free Cash Flow Generation Provides Financial Flexibility Targeting ~$2.5B+ Of Cumulative FCF12 After Reinvesting ~$1.7B? in the Upstream Business to Maintain Production in the Next 5 Years $2,500 $2,000 @ ($ b 8 a 8 is re a a 8 a = & ra e & g g é 3 2021 2022 2023E 2024E $1,500 $1,000 . = 202
Slide 18: Carbon TerraVault Example Economic "Type Curve"
) Carbon TerraVault Example Economic “Type Curve” EXAMPLE PROJECT ECONOMICS EXAMPLE PROJECT CASH FLOW PROFILE (PER MT OF INJECTED CO.) EST. CASH FLOW POSITIVE IN YEAR 4 WITH PAYBACK IN ~ 4 YEARS Unit Low High Notes/Incorporated Assumptions (REFLECTS MIDPOINT OF RANGE ESTIMATES) Total $/MT | $170 | $
Slide 19: Variety of Go-to-Market Business Models at Hand
) Variety of Go-to-Market Business Models at Hand CRC manages & operates capture & Transportation may or End-to-end value CRC owns and operates | conditioning may not be necessary ISERER Auer chain emission assets Manufacturing / tech development®, EPC, & | @S Some assets co- installation & facility
Slide 20: Developing a Project Playbook
) Developing a Project Playbook 2021 2022 2023 2024 2025 2026 2027 1 _) 1 1 tnd Permitting [EPAReview PubticReview Ye Targeting to permit the project in 2023" Engineering Design | Stakeholder & Coalition | EPA | LCFS | C&T | Land | Pipelines | Environmental Insurance Certification | Legal Authorizat
Slide 21: Real Solutions for a Low Carbon Future
) Real Solutions for a Low Carbon Future ull Partner With Emission Sources CalCapture Help Enablea Lower Carbon Future CALIFORNIA CARBON. TERRAVAULT Capture, Transport &/Or Storage ee Ww October 6, 2021. Positioned To Be California’s Premier Carbon Management Provider Leveraging Premier Land & Miner
Slide 22: Supplemental Slides
Supplemental Slides «: Pe Perera EE ee es SS }e CALIFORNIA | YOSCAREON ae
Slide 23: Federal 45Q - The Foundation
) Federal 45Q- The Foundation 45Q PROVIDES TAX CREDITS FOR CCUS per MT of CO, stored per MT of CO,utilized ANNUAL CAPTURE REQUIREMENTS = Power plants with >0.5 MMT CO, emissions must capture at least 0.5 MMT CO,; = Other power plants and industrial facilities must capture 0.1 MMT CO, TAX CREDIT TIME
Slide 24: Potential Enhancements to 45Q Could Accelerate CCS Development
) Potential Enhancements to 45Q Could Accelerate CCS Development 45Q DEVELOPMENTS ON THE FEDERAL LEGISLATION Further policy support is necessary to truly incentivize the development of CO, infrastructure to support CCS ona larger scale. Lawmakers are considering 45Q enhancements which could include:
Slide 25: LCFS - The Key | How It Works
) LCFS - The Key | How It Works CARB Sets annual Carbon Intensity (“Cl”) target in each year for Gasoline and Diesel Use credits banked from previous years Fuels that have higher Cl than ‘ww _ the target generate deficits and vw fuels with a lower Cl generate credits Fuel providers in California mus
Slide 26: LCFS - Qualifying Paths for CCS
) LCFS - Qualifying Paths for CCS EXPANSION TO CCS = In 2018, LCFS was amended to enable credit generation via CCS = Qualifying CCS projects reduce emissions associated with production of transport fuels sold in California or direct air capture of CO, = Credits available for captured carbon that is
Slide 27: CO2 Storage: Permitting
) CO, Storage: Permitting (CCUS/EOR) (CCS/Storage Only) Low Carbon Fuel Standard (LCFS) Requirements for Carbon Sink STORAGE MUST BE CERTIFIED FOR 45Q or LCFS Eligibility Class II Requirements for Carbon Sink Class VI Requirements for Carbon Sink Injection depth Injection / sequestrat jon zone Confi
Slide 28: Project Permitting: A Complex Process that CRC Knows
) Project Permitting: A Complex Process that CRC Knows Entity Turnaround Time Authorization Local Federal Tribal Weeks/few >18 /Action related to: Government State Agency Agency Government Private Party months -dyear months DOO wmtssie v ©) @& smigonjroaus =| (Of vv Pore Space ownership & Mineral ri
Slide 29: CRC's Reservoir Characteristics & Operational Data Are Key to Demonstrating Safe Containment
) CRC’s Reservoir Characteristics & Operational Data Are Key to Demonstrating Safe Containment ELK HILLS CROSS SECTION OIA Daur DEPTH CRC HAS THE LARGEST 3D SEISMIC COVERAGE IN CA+ = Storage candidates need certain reservoir 2 7 | ) characteristics such as Minimum Depth & LY ‘ELKHILLS CROSS SECTION
Slide 30: Elk Hills CalCapture CCUS Opportunity
> Elk Hills CalCapture CCUS Opportunity z Grid base load: -2.5M Oilfields: ~1.3M : 3] ri Say MWh/y ; \\ \ > Nn Residual emissions ~0.4 MMT/y CO;e SBM MWe Captured emissions 9 ~1.4 MMT/y CO,e Power plant CO, capture DDD ~. \ H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H
Slide 31: Example Project Economics Assumptions Used on Slide
) Example Project Economics Assumptions Used on Slide 18 Information presented on slide 18 shows example project economics for a CTV project. The structure of the project, financing and ownership of CTV project could take many forms and has not yet been negotiated. The terms and availability of thir
Slide 32: Free Cash Flow Reconciliation
) Free Cash Flow Reconciliation Management uses free cash flow, which is defined as net cash provided by operating activities less capital investment as a measure of liquidity. The following table presents a reconciliation of our net cash provided by operating activities to free cash flow. Free cash
Slide 33: Contact
sa) CALIFORNIA OO TERRAVAULT a | or > Joanna Park (Investor Relations) Richard Venn (Media) 818-661-3731 818-661-6014 Joanna.Park@crc.com Richard.Venn@ere.com
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