California Resources Corporation · NYSE:CRC
California Resources — Merger or Acquisition (February 2024)
19 slides from California Resources's merger presentation, Feb 7, 2024
Slide 1: Expanding Our Leading Energy Platform
Expanding Our Leading Energy Platform Complementary Assets and Highly Accretive Transaction
Slide 2: Cautionary Note Regarding Forward-Looking Statements
(i) the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the transaction that could reduce anticipated benefits or cause the parties to abandon the transaction, (ii) the occurrence of any event, change or other circumstances that could give rise to th
Slide 3: Complementary Combination, Higher Returns & Enhanced Platform
Complementary Combination, Higher Returns & Enhanced Platform 3 ATTRACTIVELY PRICED AND ACCRETIVE TO KEY FINANCIAL METRICS EXPANDS CALIFORNIA’S LEADING ENERGY AND CARBON PLATFORM SIGNIFICANT SYNERGIES WITH UPSIDE MAINTAIN STRONG BALANCE SHEET & SHAREHOLDER RETURNS STRATEGY ▪ Expect leverage ratio* o
Slide 4: Aera Assets Overview
Aera Assets Overview 4See Slide 16 “Assumptions, Estimates and Endnotes”. HIGH QUALITY ASSETS ▪ Vast, conventional, low-decline, 95% oil- weighted ▪ Acreage position largely held in fee ▪ Long history of successful infill developments ▪ Owned in-field infrastructure STRONG FREE CASH FLOW GENERATION
Slide 5: California's Premier Energy Platform Pro Forma Operating Metrics
California’s Premier Energy Platform 5 Pro Forma Operating Metrics 3Q23 Net Total Production (MBOED) 85 76 161 3Q23 Oil (%) 60% 95% 76% PDP Decline (%) 10% - 15% 10% - 15% 10% - 15% NRI (%) 86% 95% 91% Net Mineral Acres (‘000s) 1,692 220 1,912 2022 Reserves1 (MMBOE) 417 262 679 Financial Estimates (
Slide 6: Strengthening Our Carbon TerraVault Story
▪ New ownership of Aera’s brownfield emissions and sequestration reservoirs improves integrated project economics and unlocks a faster path to decarbonization ▪ Able to provide carbon storage for 100MMT of emissions in the San Joaquin Basin ▪ Adds additional emissions reducing opportunities with Sol
Slide 7: Expanding Cash Flow and Free Cash Flow Generation
Expanding Cash Flow and Free Cash Flow Generation $0 $300 $600 $900 Accretive to Operating Cash Flow Per Share Resilient Free Cash Flow* Generation 7 ~80% of pro forma 2024E net oil production hedged, underpins cash flow Pro forma 2024E ~90% uplift in cash flow from operations and >140% in free cash
Slide 8: Top-Tier Independent, Low Decline, Conventional Oil Producer
Top-Tier Independent, Low Decline, Conventional Oil Producer 0 20 40 60 80 100 120 140 160 180 CIVI PR PF CRC MUR CHRD MTDR CRGY KOS SM CPE VTLE TALO CRC MGY BRY 2024E Net Oil Production (MBOD)1 Peer Group 2022 SEC Reserves2 (MMBOE) PRO FORMA 2024E BASE OIL DECLINE RATE: ~13% PEER GROUP5 AVERAGE BAS
Slide 9: Synergies to Drive Significant Cost Savings
Synergies to Drive Significant Cost Savings Pro Forma 2023 Operating Costs and G&A Synergies CAPEX & Infrastructure Synergies Pro Forma 15 Months Post Close Est. Annualized Synergies ($MM) See Slide 16 “Assumptions, Estimates and Endnotes”. 9 + All-In Costs1 ~$1.0B PV-10 of Est. Organic Synergies Ov
Slide 10: Compelling Shareholder Returns Program
0% 1% 2% 3% 4% Compelling Shareholder Returns Program1 10See Slide 17 “Assumptions, Estimates and Endnotes”. Fixed Dividend Current ~2.70% Fixed Yield2 S&P Small Cap 600 XOP O&G E&P ETF S&P Mid Cap 400 S&P 500 Real EstateEnergy Utilities Consumer Staples Materials Financials IndustrialsHealth Care I
Slide 11: Free Cash Flow Deployment Priorities
0.0x 0.5x 1.0x 1.5x 2.0x ▪ Free Cash Flow Deployment Priorities Significant FCF Drives Shareholder Returns, Balance Sheet Strength & Growth Opportunities $0.0 $1.5 $3.0 $4.5~$3.0B Pro Forma 5 Year Cumulative Free Cash Flow* ($B) Return Significant Cash to Shareholders ▪ Intends to increase fixed div
Slide 12: Expanding California's Leading Energy Platform
12 + See Slide 17 “Assumptions, Estimates and Endnotes”. EXPANDING CALIFORNIA’S LEADING ENERGY PLATFORM Expands Leading Carbon Management Platform and Continued Leadership Across Sustainability Initiatives Accretive Across Key Financial Metrics Creates Scale and Asset Durability Enhances Cash Flow,
Slide 13: Appendix
Appendix
Slide 14: Pro Forma 2024 Estimates
Pro Forma 2024 Estimates (complete guidance available at closing) 14 Midstream Infrastructure Carbon Capture & StorageLow Carbon Intensity Production BTM Solar Opportunities FTM/Grid Power Production Geothermal Opportunities Southern California Central California Northern California ~76% ~8% ~16% Oi
Slide 15: Strong Capital Structure & Credit Profile
Strong Capital Structure & Credit Profile 15 Transaction Value $2.1B Equity (21.2 million shares at $46.81 per share as of February 2, 2024) ~$1.0B Assumed Debt and Other1 ~$1.1B Transaction Summary ▪ 21.2MM shares of CRC’s common stock to be issued to Aera’s owners, IKAV managed entities and CPP In
Slide 16: Assumptions, Estimates and Endnotes
Assumptions, Estimates and Endnotes: Pro forma 2024 estimates. This presentation includes certain forward-looking estimates of our pro forma combined operating and financial results for the year ended December 31, 2024. Unless otherwise noted, pro forma 2024 estimates are calculated assuming (i) the
Slide 17: Assumptions, Estimates and Endnotes (cont.)
Assumptions, Estimates and Endnotes (cont.): Endnotes (cont.): Slide 10: (1) Future quarterly dividends and share repurchases are subject to changes in commodity prices, restrictions in our credit agreement covenants and approval of CRC’s Board. (2) Represents annualized 2024E fixed dividend by CRC’
Slide 18: Glossary
Term Definition Bcf Billion Cubic Feet BMT Billion Metric Tons CARB California Air Resources Board CCS Carbon Capture and Storage CCS+ Carbon Capture and Storage + EOR CDMA Carbon Dioxide Management Agreement CEQA California Environmental Quality Act CGP Cryogenic Gas Plant CI Carbon Intensity CMB C
Slide 19: Investor Relations and Media Contacts
Joanna Park (Investor Relations) 818-661-3731 Joanna.Park@crc.com Richard Venn (Media) 818-661-6014 Richard.Venn@crc.com
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