California Resources Corporation · NYSE:CRC
California Resources — Q2 2025 Earnings Presentation
27 slides from California Resources's earnings presentation, Aug 6, 2025
Slide 1: Second Quarter 2025 Results
Second Quarter 2025 Results August 5, 2025
Slide 2: 2Q25 Key Takeaways
2Q25 Key Takeaways 1. RECORD QUARTERLY CAPITAL RETURNS TO SHAREHOLDERS1 $287MM 2Q25 TOTAL SHAREHOLDER RETURN1 ▪ Repurchased $228MM of shares in a private deal at $46/sh and $24MM in the open market at avg. ~$43.41/sh $35 $252 ▪ $205MM remaining under the authorized share repurchase program ▪ Share r
Slide 3: Execution, Execution, Execution
Execution, Execution, Execution 3
Slide 4: Generating Record Shareholder Returns
Generating Record Shareholder Returns Competitive Dividend Yield vs. Market2 Dividend Yield (%) 4% Returned 3% $287MM Dividends and Buybacks in 2Q251 2% 1% 0% S&P S&P Mid S&P Small XOP 500 Cap 400 Cap 600 O&G E&P ETF ~263% Of Free Cash Flow* in 2Q25 ~86% since May 2021 Significant Return of Capital
Slide 5: Demonstrating Operational Excellence & Lower Costs
Demonstrating Operational Excellence & Better Capital Efficiency Lower Costs ($MM) • Key drivers of lower 1H25 costs vs. 2H24: reductions in G&A, decrease in production and GHG taxes and lower non-energy operating costs1 ~11% • Reservoir outperformance driven by continuous focus on Improvement opera
Slide 6: Delivered on Aera Merger Synergies Goal
Delivered on Aera Merger Synergies Goal One Year Post Close Implemented $235MM Industrial Scale Logic Aera Merger Synergies Solidified Cross-Asset Synergies Operating Costs $109MM Improved Long-Term Operational Efficiencies G&A Expenses Enhanced Team Alignment and $66MM Collaboration Interest Expens
Slide 7: Increasing Operational Intensity in 2H25
Increasing Operational Intensity in 2H25 Adding Activity in 2H25 ▪ Added second rig in Kern County in late June 2025 for a total 16 well 2025 drilling program ▪ Investments focused on high-value, high-margin sidetracks and workovers ▪ Targeting development program IRRs of >30% at $63 Brent / $3.50 N
Slide 8: 2Q25 Results
2Q25 Results Commodity 2Q25E1 2Q25A Higher Adj. EBITDAX* Expectations Brent ($/Bbl) $63.00 $66.76 Adj EITDAX* ($MM) $1,300 Brent realized price with hedge ($/Bbl) N/A $66.73 Oil realization without derivative settlements (% of Brent) 96% – 100% 97% $1,100 Operational and Financial Net Production (MB
Slide 9: Operational Momentum: Enhanced 2025 Outlook
Operational Momentum Stronger 2025 Free Cash Flow* Outlook Despite Lower Oil Price Forecast 2025 Enhanced Outlook Driven By Free Cash Flow Before Net Changes in Operating Assets and Liabilities1 ($MM) Strong Reservoir Performance Aera Merger Synergies ~9% Higher Electricity Margin Improvement Lower
Slide 10: 2025E Guidance
2025E Guidance
Slide 11: Driving Operational Strength and Efficiency in 2025
Driving Operational Strength and Efficiency in 2025 DRIVEN PRIMARILY BY SYNERGIES, EXPECTING EVEN LOWER COSTS1, 2 IN 2025 ~2% OPERATIONAL EFFICIENCIES AND ENERGY COST SAVINGS REDUCED 2025E D&C AND WORKOVER CAPITAL GUIDANCE2 ~3% DRIVEN PRIMARILY BY PROJECT OPTIMIZATION CASH FLOW CARBON RAISED PRODUCT
Slide 12: 2025E Guidance (as of August 5, 2025)
2025E Guidance (as of August 5, 2025) 3Q25E Oil and Carbon 2025E Oil and Carbon CRC Guidance Consolidated Natural Gas Management Consolidated Natural Gas Management Net Production (MBoe/d) ~79% Oil 135 – 139 134 – 138 Margin from Purchased Commodities*, 1 ($MM) $17 – $25 $65 – $80 Electricity Margin
Slide 13: Why California Resources Corporation?
Why California Resources Corporation? LEADING CARBON MANAGEMENT BUSINESS PREMIER BALANCE SHEET WITH STRONG FREE CASH FLOW GENERATION SUSTAINABLE SHAREHOLDER RETURNS DISCIPLINED CAPITAL ALLOCATION Higher Less Better Cashflow Carbon California 13
Slide 14: Appendix
Appendix
Slide 15: Unique California Based Pure–Play Footprint
Unique California Based Pure–Play Footprint Superior Portfolio Characteristics ▪ Strategic Acreage Footprint: Advantaged position in key California basins provides capital deployment flexibility ▪ High-Quality, Low-Decline Assets: Conventional reservoirs with low capital intensity and stable product
Slide 16: Leading California's Decarbonization
Leading California’s Decarbonization EXPANDING OUR CO2 PERMITTING LEADERSHIP ADVANCING DECARBONIZATION IN CALIFORNIA ▪ Third party funding through partnership with Brookfield Renewable - Global ▪ Received CA’s first EPA Class VI permits for CTV I – 26R Energy Transition Fund (Initial commitment of u
Slide 17: Well Positioned to Decarbonize California's Largest Industries
Well Positioned to Decarbonize California’s Sacramento Largest Industries CTV V 603MW SMUD ▪ CTV reservoirs are in proximity to the state’s highest emitting industries ▪ Resource inventory and infrastructure in place to supply energy today 240MW ▪ Ability to provide power services with: Hull Street
Slide 18: California's Premier Carbon Management Provider
California’s Premier Carbon Management Provider ▪ Received Kern County Board of Supervisors’ approval of the conditional use permits for the CTV I CCS project ▪ Received CA’s first EPA Class VI permits for CTV I – 26R; Approved California’s first CCS project at Elk Hills Cryogenic Gas Plant ▪ Antici
Slide 19: Leading EPA Class VI Permitting Pipeline
Leading EPA Class VI Permitting Pipeline (As of July 18, 2025) EPA Regions1 EPA Class VI Projects Under Review1 82 59 51 48 47 8 5 3 9 7 24 23 13 8 3 4 4 2 2 6 4 Region: 4 5 6 7 8 9 CTV # Wells # Applications EPA Projected Permit Timeline1 Targeting additional permitted CO2 space in 2025 See slide 2
Slide 20: Strong Commodity Price Realizations
Strong Commodity Price Realizations ▪ Crude: Crude indices experienced increased volatility during 2Q25 with CALIFORNIA IS AN OIL ISLAND AND THE LARGEST U.S. GDP CONTRIBUTOR prices slumping on ‘Liberation Day’ tariff announcements and OPEC (amounts shown as % of U.S. domestic GDP) returning offline
Slide 21: Hedge Portfolio (as of June 30, 2025)
Hedge Portfolio (as of June 30, 2025) OIL 3Q25E 4Q25E 1Q26E 2Q26E 2H26E 2027E 2028E SOLD CALLS Barrels per Day 30,000 29,000 35,000 35,000 35,000 - - STRATEGY Brent Weighted-Average Price $87.08 $87.13 $83.86 $83.86 $83.86 - - CRC’s hedging strategy is designed to meet our business objectives should
Slide 22: Strong Balance Sheet, Ample Liquidity and Financial Flexibility
Strong Balance Sheet, Ample Liquidity and Financial Flexibility 6/30/25 NET DEBT* SNAPSHOT MULTIPLES DEMONSTRATE FLEXIBILITY ($MM) ($MM) Revolving Credit Facility (RCF) $ - RCF Borrowing Base $1,500 7.125% 2026 Senior Notes 122 8.250% 2029 Senior Notes 900 2Q25 Free Cash Flow* $109 Face Value of Deb
Slide 23: Glossary
Glossary Term Definition Term Definition Bcf Billion Cubic Feet KMTPA Thousand Metric Tons Per Annum BMT Billion Metric Tons LCFS Low Carbon Fuel Standard BTM Behind-the-Meter LTM Last Twelve Months CARB California Air Resources Board MMT Million Metric Tons CCS Carbon Capture and Storage MMTPA Mill
Slide 24: 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. Excludes excise taxes and commissions paid on share repurchases. (2) Total year 2025E guidance assume
Slide 25: Assumptions, Estimates and Endnotes (Cont.)
Assumptions, Estimates and Endnotes (Cont.) Slide 16: (1) Source: EPA, www.epa.gov/uic/class-vi-wells-permitted-epa. “Permit Volumes” refers to carbon storage shown in EPA Class VI permits that CTV has received or submitted. The actual volumes that CTV may ultimately store may differ from the permit
Slide 26: Forward-Looking / Cautionary Statements – Certain Terms
Forward – Looking / Cautionary Statements – Certain Terms Forward-Looking Statements: 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 sta
Slide 27: Cashflow Carbon California
Joanna Park Daniel Juck VP, Investor Relations & Treasurer Sr. Director, Investor Relations 818-661-3731 818.661.6045 Joanna.Park@crc.com Daniel.Juck@crc.com Higher Less Better Cashflow Carbon California