California Resources Corporation · NYSE:CRC
California Resources — Q3 2024 Earnings Presentation
27 slides from California Resources's earnings presentation, Nov 6, 2024
Slide 1: Third Quarter 2024 Results
Third Quarter 2024 Results November 6, 2024
Slide 2: Key Takeaways
Higher Less Better Key Takeaways Cash Flow Carbon California STRONG OPERATIONAL AND FINANCIAL RESULTS 145MBOE/D Net production sold at high end of quarterly guidance range on less than expected capital 1 Generated $402MM of adjusted EBITDAX* and $141MM of Free Cash Flow* 3Q24 NET PRODUCTION SOLD 78%
Slide 3: Strong Performance
Strong Performance
Slide 4: Enhancing Operational and Capital Efficiencies
Enhancing Operational and Capital Efficiencies Resilient Reservoir Performance Lower Operating Costs Lower Capital Gross Production (MBoe/d) Operating costs ($MM) Capital ($MM) 175 $350 $343 $100 171 170 $89 164 $311 $79 165 $300 160 ~4% ~9% ~11% 155 Decline Improvement Reduction 150 $250 $50 Pro Fo
Slide 5: Commitment to Returning Cash to Shareholders
Commitment to Returning Cash to Shareholders1 Competitive Dividend Yield vs. Market2 Dividend Yield (%) Returned 3% 2% in Dividends and $76MM Buybacks in 3Q24 1% 0% S&P S&P Mid S&P Small XOP $211MM 500 Cap 400 Cap 600 O&G E&P ETF in Dividends and Buybacks Year-to-Date3 $967MM since May 2021 Signific
Slide 6: Executing on ~$235MM in Targeted Aera Merger Synergies
Executing on ~$235MM in Targeted Aera Merger Synergies Annualized Aera Merger Run-rate Savings ($MM) $245 $135MM IMPLEMENTED TO DATE WITH $100MM REMAINING $210 We expect that the targeted synergies that have been implemented to date will be recognized in ~$100MM our financial results over future per
Slide 7: New Brownfield Agreement Enhances Carbon Management Portfolio
New Brownfield Agreement Enhances Carbon Management Portfolio DECARBONIZING CALIFORNIA’S ESSENTIAL & HARD TO ABATE INDUSTRIAL SECTORS CO2 Emissions Agreement Emitter Project Type Service (MMTPA) Type1 Capture to NEW Post - Combustion ~1.5 MOU ~4.3 3.0MMTPA ~3.0 Storage MMTPA MMTPA Ofof Brownfield CC
Slide 8: 3Q24 Results & Outlook
3Q24 Results & Outlook
Slide 9: Driving Down Costs and Delivering Durable Cash Flow
Driving Down Costs and Delivering Durable Cash Flow Declining Adj. G&A* Enhances Margins Durable Cashflow Generation Adj. General and Administrative Expenses* ($/Boe) Net cash provided by operating activities before changes $300 in operating assets and liabilities*($MM) $9 3Q24: ~$15MM impact from h
Slide 10: 3Q24 Results
3Q24 Results Guidance 3Q24E1 3Q24A Robust Production Management Brent ($/Bbl) $84.23 $78.54 Net Production Sold (MBoe/d) Brent realized price with hedge ($/Bbl) N/A $75.38 150 Brent realized price without hedge (% of Brent) 94% - 98% 98% 145 Operational and Financial Net Production Sold (MBoe/d) 141
Slide 11: Guidance (as of November 6, 2024)
Guidance (as of November 6, 2024) 4Q24E E&P, 2H24E E&P, Adj. EBITDAX* Expectations Guidance Consolidated CMB Corp. & Other Consolidated CMB Corp. & Other ($MM) Net Production Sold (MBoe/d) ~79% Oil 140 – 144 140 – 146 $1,000 Margin from Marketing of Purchased Commodities1 ($MM) $5 – $10 $24 – $30 $9
Slide 12: Preliminary 2025 Outlook
Preliminary 2025 Outlook Targeting Higher Margins Through Operational Efficiencies • On track to achieve ~$235MM in targeted Aera related synergies ➢ Targeting a gradual >5% YoY annual run-rate improvement in non-energy operating costs and adj. G&A* expenses1 by YE 2025 • Maintaining capital discipl
Slide 13: Appendix
Appendix
Slide 14: A Different Kind of Energy Company
A Different Kind of Energy Company 140 - 146MBOE/D (90% NRI) 2H24E TOTAL NET PRODUCTION SOLD California’s Energy Solutions Provider ~79% ~7% ~14% • California’s Largest Oil & Gas Producer1 Oil NGLs Gas Northern California • Multi Decade Track Record of Operations in California 2024E ACTIVE DRILLING
Slide 15: Our Emerging Vision for Data Centers
Our Emerging Vision for Data Centers CTV Offers Essential Solutions for Artificial Carbon Valley: Intelligence (AI) Data Centers: Where Silicon Valley and the Central Valley Meet • CTV owns assets located in proximity to heavily populated LA and Today Silicon Valley data center hubs and large indust
Slide 16: Making Tangible Steps Towards Decarbonizing California's Industries
Making Tangible Steps Towards Decarbonizing California’s Industries CO2 Emissions Emitter Project Type Service (MMTPA) Agreement Type1 Greenfield Capture to Post - Combustion ~1.4 In House Storage Capture to Pre - Combustion ~0.1 In House Storage Capture to Under Post - Combustion In House ~4.2MMTPA
Slide 17: California's Premier Carbon Management Provider
California’s Premier Carbon Management Provider Received the Kern County Board of Supervisors approval of the conditional use permits for the CTV I CCS project Expect to receive CA’s first EPA Class VI permits for CTV I – 26R in late 2024 with FID of cryogenic gas plant project expected shortly ther
Slide 18: Class VI Permitting Leadership
Class VI Permitting Leadership U.S. EPA Regions2 CTV Leads CA/Region 9 with EPA Class VI Permits Submissions ▪ CTV Elk Hills 26R (CTV I) is expected to receive final EPA permits in late 20241 ▪ CTV Elk Hills 26R (CTV I) EPA permits approval would be first in California and first 5 7 permits for stor
Slide 19: Strong Commodity Price Realizations in the State That Relies on External Energy Sources
Strong Commodity Price Realizations in the State That Relies on External Energy Sources CALIFORNIA IS AN OIL ISLAND AND THE LARGEST U.S. GDP CONTRIBUTOR (amounts shown as % of U.S. domestic GDP) ▪ Crude: Crude price volatility in 3Q24 was driven by heightened geopolitical tensions and deteriorating
Slide 20: Hedge Portfolio (as of September 30, 2024)
Hedge Portfolio (as of September 30, 2024) OIL 4Q24E 1Q25E 2Q25E 3Q25E 4Q25E 2026E 2027E 2028E SOLD CALLS Barrels per Day 29,000 30,000 30,000 30,000 29,000 5,000 - - Brent Weighted-Average Price $90.07 $87.08 $87.08 $87.08 $87.13 $85.00 - - SWAPS Barrels per Day 59,014 52,837 45,631 44,126 42,626 3
Slide 21: Strong Balance Sheet, Ample Liquidity and Financial Flexibility
Strong Balance Sheet, Ample Liquidity and Financial Flexibility LIQUIDITY1 ($MM) 9/30/24 NET DEBT* SNAPSHOT $2,400 $22 ($MM) $520 $847 $2,100 Revolving Credit Facility (RCF) $ - $1,800 $775 7.125% 2026 Senior Notes 245 $1,500 $211 8.250% 2029 Senior Notes 900 $1,200 $1,188 Face Value of Debt $ 1,145
Slide 22: Glossary
Glossary Term Definition Term Definition Bcf Billion Cubic Feet GHG Greenhouse Gas BMT Billion Metric Tons IRR Internal Rate of Return BTM Behind-the-Meter KMTPA Thousand Metric Tons Per Annum CARB California Air Resources Board LCFS Low Carbon Fuel Standard CCS Carbon Capture and Storage MMT Millio
Slide 23: Assumptions, Estimates and Endnotes
Assumptions, Estimates and Endnotes Slide 2: (1) All CRC’s future quarterly dividends and share repurchases are subject to commodity prices, debt agreement covenants and Board of Directors approval. Figures exclude excise taxes and commissions paid on share repurchases. (2) The MOU is non-binding an
Slide 24: Assumptions, Estimates and Endnotes
Assumptions, Estimates and Endnotes Slide 14: (1) Source: Enverus. 2023 data as of May 8, 2024. In 2023, California’s oil producers accounted for approximatively 23% of oil consumed by local refiners in California, source: www.energy.ca.gov. (2) CRC internal estimates. (3) Net leverage is calculated
Slide 25: Forward-Looking / Cautionary Statements – Certain Terms
Forward – Looking / Cautionary Statements – Certain Terms This document contains statements that CRC believes to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historica
Slide 26: Forward-Looking / Cautionary Statements – Certain Terms (Cont.)
Forward – Looking / Cautionary Statements – Certain Terms (Cont.) We caution you not to place undue reliance on forward-looking statements contained in this document, which speak only as of the filing date, and we undertake no obligation to update this information. This document may also contain inf
Slide 27: Investor Relations and Media Contacts
Joanna Park (Investor Relations) Richard Venn (Media) 818-661-3731 818-661-6014 . Joanna.Park@crc.com Richard.Venn@crc.com Higher Less Better Cashflow Carbon California