California Resources Corporation · NYSE:CRC
California Resources — Q1 2025 Earnings Presentation
29 slides from California Resources's earnings presentation, May 7, 2025
Slide 1: First Quarter 2025 Results
First Quarter 2025 Results May 7, 2025
Slide 2: 1Q25 Key Takeaways — Execution, Execution, Execution
1Q25 Key Takeaways — Execution, Execution, Execution $186MM 1Q25 OPERATING CASH FLOW 1. STRONG FINANCIAL & OPERATIONAL PERFORMANCE $55 $131 Generated $328MM of Adj. EBITDAX*, exceeding guidance Delivered strong reservoir performance: flat QoQ net production - above guidance midpoint Capex Free Cash
Slide 3: Robust 2025 Outlook, Strong Balance Sheet, Focus on Shareholder Returns
Robust 2025 Outlook, Strong Balance Sheet, Focus on Shareholder Returns REAFFIRMING 2025E ADJ. EBITDAX* GUIDANCE1 DESPITE A ~16% DECREASE IN $1,100 - $1,200MM 2025 BRENT EXPECTATIONS 2025E CONTROLLABLE COST STRUCTURE ~15% IMPROVEMENT VS PRO FORMA 2023 BASELINE2 TARGETING TO REALIZE $185MM OF THE $23
Slide 4: Strong 1Q25
Strong 1Q25 Execution, Execution, Execution
Slide 5: Demonstrating Strong 1Q25 Results
Demonstrating Strong 1Q25 Results Commodity 1Q25E1 1Q25A Stability of Cash Flows Brent ($/Bbl) $76.54 $74.92 Net Cash Flow Before Changes in Working Capital* ($MM) $275 Brent realized price with hedge ($/Bbl) N/A $72.01 Oil without derivative settlements (% of Brent) 94% – 98% 98% Operational and Fi
Slide 6: Record Quarterly Returns to Shareholders
Record Quarterly Returns to Shareholders Consistent Track Record of Shareholder Returns1 Competitive Dividend Yield vs. Market2 Dividends & Share Repurchases ($MM) Dividend Yield (%) 5% $160 Shares Repurchased $140 2.3MM in 1Q25 4% $120 $100 3% $80 2% $60 $40 1% $20 $0 0% 2Q21 3Q21 4Q21 1Q22 2Q22 3Q
Slide 7: Enhancing Our Cost Structure
Enhancing Our Cost Structure Targeting Lower Controllable Operating Costs Estimating a Decrease in Operating Cost Structure3 Non-Energy Operating Costs1 ($MM) ($MM) $460 $1,100 ~9% $440 Est. Decline In Operating $1,000 Cost Structure3 $420 $900 2H24A 1H25E 2 Expecting Reduction in G&A G&A Expenses (
Slide 8: Executing on Our $235MM Total Synergies Target
Executing on Our $235MM Total Synergies Target Aera Merger Related Annual Synergies ($MM) Targeted Annual Synergies Realized Annual Synergies to Date $250 $235MM Delivering on Our Targets $200 ▪ $173MM or ~74% of total expected $150MM synergies realized to date $150 ▪ Expecting to realize $185MM of
Slide 9: Why California Resources Corporation?
Why California Resources Corporation? LEADING CARBON MANAGEMENT BUSINESS PREMIER BALANCE SHEET WITH STRONG FREE CASH FLOW GENERATION SUSTAINABLE SHAREHOLDER RETURNS STRATEGY DISCIPLINED CAPITAL ALLOCATION Higher Less Better Cashflow Carbon California 9
Slide 10: 2Q25E and FY25E Guidance
2Q25E and FY25E Guidance
Slide 11: Integrated Business Strategy and Strong Hedge Book Protect Cash Flows
Integrated Business Strategy and Strong Hedge Book Protect Cash Flows 2024A Revenue Sources Breakdown (%) 2025E & 2026E Oil Hedge Cash Settlements1 ($MM) $350 78% Diversified, low capital intensity, low decline, conventional portfolio coupled with a strong hedge $300 book protects and maximizes valu
Slide 12: Lower Cost Structure & Integrated Strategy Provides Resilience in 2025
Lower Cost Structure & Integrated Strategy Provides Resilience in 2025 ▪ Conventional, low decline, low capital intensity asset base provides ample run rate for Brent WTI CRC to efficiently deploy capital towards better return and future growth potential projects CRC Near Term O&G >25% IRR >25% IRR
Slide 13: Enhancing Cash Flow Through Realized Portfolio Synergy – Natural Gas Optimization
Enhancing Cash Flow Through Realized Portfolio Synergy – Natural Gas Optimization Connected Elk Hills Produced Natural Gas to Belridge Steamfloods Natural Gas Usage At EHPP EHPP Limited EHPP Full ▪ Situation: In periods of low electricity prices, CRC manages EHPP Output Output margin by reducing the
Slide 14: 2025E Guidance (as of May 7, 2025)
2025E Guidance (as of May 7, 2025) 2Q25E Oil and Carbon 2025E Oil and Carbon CRC Guidance Consolidated Natural Gas Management Consolidated Natural Gas Management Net Production (MBoe/d) ~79% Oil 133 – 137 132 – 138 Margin from Purchased Commodities1 ($MM) $20 – $25 $80 – $95 Electricity Margin2 ($MM
Slide 15: Appendix
Appendix
Slide 16: Progressing Huntington Beach Real Estate Asset Development
Progressing Huntington Beach Real Estate Asset Development 1.2 miles of direct access to Pacific Coast Highway Pacific Coast Highway Fort Apache Huntington Beach – Highlands HUNTINGTON BEACH UPDATE| 92 ACRE PARCEL TIMELINE ▪ Sold Fort Apache (0.9-acre parcel) for total proceeds of ~$10MM in ▪ Propos
Slide 17: 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 18: Well Positioned to Decarbonize California’s Largest Industries
Well Positioned to Decarbonize California’s Largest Industries ▪ CTV reservoirs are in proximity to the state’s highest emitting industries Sacramento ▪ Resource inventory and infrastructure in place to supply energy today ▪ Ability to provide power services with: CTV V o Accelerated time-to-market
Slide 19: 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 ▪ Received CA’s first EPA Class VI permits for CTV I – 26R; Approved California’s first CCS project at cryogenic gas plant at Elk Hills ▪
Slide 20: Leading EPA Class VI Permitting Pipeline (As of April 25, 2025)
Leading EPA Class VI Permitting Pipeline (As of April 25, 2025) EPA Regions1 EPA Class VI Projects Under Review1 63 59 45 47 8 5 3 21 9 7 20 13 7 4 4 8 2 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 21: Strong Commodity Price Realizations
Strong Commodity Price Realizations ▪ Crude: Crude prices experienced limited volatility during 1Q25 with prices CALIFORNIA IS AN OIL ISLAND AND THE LARGEST U.S. GDP CONTRIBUTOR moving lower across the quarter. Price direction was influenced by (amounts shown as % of U.S. domestic GDP) anticipation
Slide 22: Hedge Portfolio (as of March 31, 2025)
Hedge Portfolio (as of March 31, 2025) OIL 2Q25E 3Q25E 4Q25E 1Q26E 2026E 2027E 2028E SOLD CALLS Barrels per Day 30,000 30,000 29,000 15,000 15,000 - - STRATEGY Brent Weighted-Average Price $87.08 $87.08 $87.13 $85.00 $85.00 - - CRC’s hedging strategy is designed to meet our business objectives shoul
Slide 23: Strong Balance Sheet, Ample Liquidity and Financial Flexibility
Strong Balance Sheet, Ample Liquidity and Financial Flexibility 3/31/25 NET DEBT* SNAPSHOT MULTIPLES DEMONSTRATE FLEXIBILITY ($MM) ($MM) Revolving Credit Facility (RCF) $ - RCF Borrowing Base $1,500 7.125% 2026 Senior Notes 122 8.250% 2029 Senior Notes 900 1Q25 Free Cash Flow* $131 Face Value of Deb
Slide 24: 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 MMT Million Metric Tons CARB California Air Resources Board MMTPA Million Metric Tons Per Annum CCS Carbon Capture and Stora
Slide 25: Assumptions, Estimates and Endnotes
Assumptions, Estimates and Endnotes Slide 2: (1) Includes gas processing costs. (2) 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.
Slide 26: Assumptions, Estimates and Endnotes (Cont.)
Assumptions, Estimates and Endnotes (Cont.) Slide 12: (1) Source: CRC internal estimates. Project economics reflect available inventory supported by permits in hand. (2) CRC 2025E free cash flow breakeven, the price of oil at which CRC’s total operating costs, total capital, interest and dividends a
Slide 27: Assumptions, Estimates and Endnotes (Cont.)
Assumptions, Estimates and Endnotes (Cont.) Slide 22: (1) Purchased and sold puts with the same strike price have been netted together. (2) Represents estimated net cash settlement payments for derivative contracts and forward commodity prices as of March 31, 2025. Slide 23: (1) Available cash and c
Slide 28: 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 29: Cashflow Carbon California
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