California Resources Corporation · NYSE:CRC
California Resources — Barclays CEO Energy-Power Conference 2021
26 slides from California Resources's conference presentation, Sep 9, 2021
Slide 1: Charting a new course
“Charting a new course” Wan cauironnia Barclay’s CEO Energy-Power Conference Presentation RESOURCES CORPORATION September 2021
Slide 2: Mac McFarland, President & CEO; Francisco Leon, EVP & CFO
Mac McFarland President & CEO Francisco Leon EVP & CFO
Slide 3: Forward Looking / Cautionary Statements
) Forward Looking / Cautionary Statements - Certain Terms ‘The Information included herein contains forward-looking statements that involve risks and uncertainties that could materially affect our expected results of operations, liquidity, cash flows and business prospects. Such statements include t
Slide 4: CRC: Strong Foundation and Quality Investment Opportunity
} CRC : Strong Foundation and Quality Investment Opportunity SUSTAINABLE CASH FLOW BUSINESS MODEL MULTIPLES COMPARED TO PEERS SHOW STRONG * Conventional, low to mid-teens decline assets, reinvest <50% of discretionary cash flow 35% INVESTMENT OPPORTUNITY * High margins: oil weighted with favorable B
Slide 5: Stewarding Our Returns-Focused Business Model
Slide 6: Strong 1H21 Results Drive Significant Shareholder Returns
) Strong 1H21 Results Drive Significant Shareholder Returns CONTINOUSLY EVALUATING BEST METHODS a ‘Sacramento Basin TO INCREASE SHAREHOLDER RETURNS ~3,300 BOE per day* Return Cash to Shareholders ‘San Joaquin Basin ~74,500 BOE per day % + Acquired 1,600 BOE per day * $250 MM Share Repurchase Program
Slide 7: Cost Control Enabling Margin Expansion
) Cost Control Enabling Margin Expansion $70 $60 $50 $40 Costs ($/boe) w 8 e S io) $10 $0 $68.65 $37.79 2019 (Predecessor)* lm Full OPS Cost* “5 $43.53 _ $31.66 2020 Combined (Non-GAAP) * Mmm G&A '~20% COST REDUCTION SINCE 2019 1H21 Sucessor' Interest --@- Realized Realized Oil Price w Hedge ($/bbl)
Slide 8: Full Year Outlook Remains Strong
} Full Year Outlook Remains Strong Total Production (Mboepd)” Oil Production (Mbopd)? Operating Costs ($MM) Capital Spend ($MM) CURRENT GUIDANCE FY 202167 97-100 60 - 62 $670 - 695 $18.36 - $19.63 $/boe $170 - $190 $4.66 - $5.37 $/boe Maintaining Operational Excellence = 3" drilling rig operating in
Slide 9: New Chapter: Low Carbon Opportunities
New Chapter : Low Carbon Oppo
Slide 10: Positioning for the Future
> Positioning for the Future CARBON OPPORTUNITIES Up to 1 BMT of Potential CO, Permanent Storage Capacity for CRC Strategically Placed Infrastructure Across CA Opportunity to Participate in Full CCS Value Chain Carbon TerraVault I: New ~40 MMT of Total Est. CO, Permanent Storage Project* Filed for u
Slide 11: CRC Potential: A Promising CCS Environment in California
) CRC Potential: A Promising CCS Environment in California TOTAL ESTIMATED CO, STORAGE CAPACITY IN O&G RESERVOIRS* «i Total CA Storage (Low Estimate) << CRC Has Up to 1 BMT? of Est. CO, Storage Capacity “California should pursue key enablers for CCUS to contribute towards the state's 2045 carbon neu
Slide 12: CRC Is Well Positioned to Help California Reach a Low Carbon Future
) CRC Is Well Positioned to Help California Reach a Low Carbon Future = CRC has up to 60%" of all available O&G storage reservoirs in CA Geologic * Identified an est, ~4BMT" of CO, storage capacity Contsingient = Large, deep, well-understood reservoirs with thick caprock containment = One of the lar
Slide 13: A Pipeline of Projects Through Carbon TerraVault
) A Pipeline of Projects Through Carbon TerraVault eer utr CRC’s Est. CO, STORAGE CAPACITY ACCOMPLISHED ZT ELK HILLS: VALIDATED GEOLOGICAL PROPERTIES & FULL SURFACE RIGHTS = Filed for up to 10 MMT Class VI EPA well permit for storage a = in AL & A2 reservoir a = Filed conditional use permit (CUP) wi
Slide 14: Parallel Paths to Develop Additional Carbon TerraVault Projects
) Parallel Paths to Develop Additional Carbon TerraVault Projects eye RE uur 2021 2022 2023 2024 2025 2026 2027 * 40 MMT CCS Project J » Class VI EPA & CUP Permits filed + Progressing further discussions with ] various stakeholders * Estimated FID end of 2023 * Initial Injection Mid 2025 ] PublicRev
Slide 15: Strengthening Solar Capability
> Strengthening Solar Capability SELF SUPPLY | BEHIND THE METER: ~ . mand ye ‘ San Joaquin Basin i = Advancing an agreement with SunPower for a 12 MW behind-the-meter solar project at Mt. Poso = Est. ~10,470 MT of CO, annual LCFS credit generation’ and reduction of $1.41/BOE in field OPEX? ‘Mount Po
Slide 16: New Chapter: Decarbonizing California through Carbon Capture
) New Chapter: Decarbonizing California through Carbon Capture 6 4 Committed to ESG Advancement “co, Carbon Storage Update J J October 6", 2021 1-2PMEDT CRC’s assets are well suited for CCS and uniquely positioned to aid California in its energy transition ESSE, september 2024 16
Slide 17: c E ® i) = (+) A
2 c E ® 4 i) = 8 (+) A
Slide 18: CRC's Low Valuation Provides Equity Upside
) CRC’s Low Valuation Provides Equity Upside STRONG FCF YIELD TOP QUARTILE LEVERAGE 25% ax & 30% = _ ie 23 S 15% aa Eto bok 3 sx é we 0% ox Le aa ot OD Own GQ HRaSHA MS B 4a Oo tT HM On Bo war a ae H 3 2 gaag ag egudaegae 8 2 g 2 § UNDERVALUED RELATIVE TO PEERS _ & ox gn i. B 6x B Ee ‘e - z 3 x ae a
Slide 19: Supplemental Materials
ae >) SUPPLEMENTAL MATERIALS ay
Slide 20: CRC is a Net Water Supplier to California
) CRC is a Net Water Supplier to California WATER STRATEGY OBJECTIVES = Create long-term value from produced water = Help farmers and communities solve a key challenge = Minimize CRC’s fresh water use in operations = Reduce operating expenses Supplied 4.63 billion gallons of reclaimed water to For e
Slide 21: Emphasizing CRC's Asset Quality
) Emphasizing CRC’s Asset Quality 2021 YTD DEVELOPMENT PERFORMANCE: = 2 rigs running in San Joaquin basin during Q2 = Focused on shallow, high margin oil projects in the Mt. Poso, Elk Hills, and Buena Vista fields. iount eso]? = CRC has invested in 88 capital workovers across multiple fields at an a
Slide 22: Hedging Program Protects Cash Flow
) Hedging Program Protects Cash Flow >) OIL HEDGE PROTECTION? as of june 30, 2021 3Q21 4Q21 1922 2Q22 2H22 FY23 Berm a6e8s | 97,097 | 95,987 | 3543 28,773 14,790 SOLD CALLS > STRATEGY weiptee = CRC hedging strategy typically utilizes a mixture of Puts, Collars and eta | OAT | #808 | Sear! | eoGs’ |
Slide 23: Maintaining Balance Sheet Strength, Liquidity, and Financial Flexibility
} Maintaining Balance Sheet Strength, Liquidity, and Financial Flexibility $1,000 $800 $600 $ Millions $400 $200 $0 ESTIMATED LIQUIDITY ROLL FORWARD* $518 MM 6/30/21 Liquiaity 3021-4Q21 6 Increase in ~$770 MM ‘Available Cash NO SIGNIFICANT MATURITIES UNTIL 2026 6/30/21 Liquidity 2022 16/30/2021 Revo
Slide 24: Adjusted EBITDAX Reconciliation
) Adjusted EBITDAX Reconciliation We define adjusted EBITDAX as earnings before interest expense; income taxes; depreciation, depletion and amortization; exploration expense; other unusual, infrequent and out-of-period items; and other non-cash items. We believe this measure provides useful informat
Slide 25: Leverage & Free Cash Flow Reconciliation 2021E
) Leverage & Free Cash Flow Reconciliation 29 20216 Leverage and Net Debt ($in mitlions) Low High We calculate the leverage ratio by dividing net debt by adjusted EBITDAX for Face value of debt $600 $600 the applicable period. We define net debt as the face value of our debt less. available cash. We
Slide 26: California Resources Corporation
Ls axpl RESOURCES CORPORATION Joanna Park (Investor Relations) | Richard Venn (Media) 818-661-3731 818-661-6014 Joann
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