Slide 1: Second Quarter 2024 Results
Second Quarter 2024 Results August 7, 2024
Slide 2: Presenters
Presenters Francisco Leon President and Chief Executive Officer Nelly Molina EVP and Chief Financial Officer
Slide 3: Key Takeaways
Higher Less Better Key Takeaways Cash Flow Carbon California MERGER CLOSED JULY 1, 2024 + ACCELERATED CASH RETURNS Raised fixed dividend by 25% 1 Returned $136MM or 142% of 1H24 FCF * to shareholders1 CRC STANDALONE METRICS Increased Aera merger targeted synergies to $235MM which includes a reductio
Slide 4: Reliable and Consistent Performance
Reliable and Consistent Performance
Slide 5: Executing Our Strategy
Executing Our Strategy Reservoirs and operational teams Lower Costs Track Record of Strong Returns of Cash performed above expectations Operating Costs ($MM) To Shareholders1 Gross Production (MBoe/d) 94.1 $413 92.0 ~$1.3B $332 FCF* Generated Since 2021 ~2% ~20% ~$0.9B 1H24 Decline Improvement Vs. ~
Slide 6: Top Quartile Cash Returns to Shareholders
Top Quartile Cash Returns to Shareholders1 More than Growing Fixed Dividend Quarterly Dividend ($/Share) Doubled Dividend In 3 Years 25% Increase in Quarterly Fixed Dividend to $0.3875/Share $136MM Returned to 2021 2022 2023 2024 Shareholders in 1H24 via Dividends, Buybacks1 Share Repurchase Program
Slide 7: Higher Synergies Significantly Enhance Outlook
Higher Synergies Significantly Enhance Outlook Targeted Aera Merger Synergies ($MM) Actioned within 6 Months Actioned within 6 Months Actioned within 15 Months Post Close Post Close Post Close (2H’24 Impact) (’25 Impact) (’25/’26 Impact) $250 Achieved $225 $200 $100MM ~$100MM2 $175 Raising Targeted
Slide 8: Aera Merger Complete – Bigger, Better and Stronger Together
Aera Merger Complete – Bigger, Better and Stronger Together 2H24 Outlook1: 2H24E Net Total Production 140 – 146MBOE/D Northern California (~79% oil | 90% NRI) 2H24E Adj. EBITDAX* Central California $720 – $760MM Southern California 2H24E Capital 2024E ACTIVE DRILLING RIGS $170 – $210MM 1 1 1H24 2H24
Slide 9: California’s Premier Carbon Management Provider
California’s Premier Carbon Management Provider Submitted a new Class VI permit application to the EPA for CTV VI with 102MMT of CO2 storage capacity Expecting the receipt of EPA Class VI 26-R permit in 4Q24 and targeting FID for CRC’s Cryo project and first CO2 injection at CTV I by year-end 2025 E
Slide 10: Our Emerging Vision for Data Centers
Our Emerging Vision for Data Centers CTV Offers Essential Solutions for Carbon Valley: Artificial Intelligence (AI) Data Centers: Where Silicon Valley and the Central Valley Meet • CTV owns assets located in proximity to heavily populated LA and Today Silicon Valley data center hubs and large indust
Slide 11: 2Q24 Results & 2H24 Outlook
2Q24 Results & 2H24 Outlook
Slide 12: 2Q24 Results
2Q24 Results INCREASED FREE CASH FLOW* EXPECTATIONS 1 Free Cash Flow* ($MM) 2Q24 Guidance 2Q24 Actual Brent ($/Bbl) $86.17 $85.00 Brent realized price with hedge ($/Bbl) N/A $81.29 Brent realized price without hedge (% of Brent) 97% - 99% 98% 1Q23 Natural Gas Price GUIDANCE Increase Net Production (
Slide 13: Demonstrating The Quick Benefits of Consolidation
Demonstrating The Quick Benefits of Consolidation EXPANDING NATURAL GAS DELIVERABILITY LOWER INTEREST EXPENSE CONSOLIDATING SATELLITE FIELDS Connected Elk Hills Natural Gas Assets to Belridge Steam Floods Annual Interest Expense ($MM) Optimized CRC Remote Field Monitoring to Belridge Control Facilit
Slide 14: Guidance (as of August 07, 2024)
Guidance (as of August 07, 2024) 3Q24E E&P, 2H24E E&P, Guidance Consolidated CMB Corp. & Other Consolidated CMB Corp. & Other Net Production (MBoe/d) ~ 79% Oil 141 – 145 140 – 146 Margin from Marketing of Purchased Commodities1 ($MM) $10 – $16 $24 – $30 Electricity Margin2 ($MM) $45 – $65 $65 – $80
Slide 15: Appendix
Appendix
Slide 16: CTV Assets Well-Positioned to Unlock AI Data Center Growth
CTV Assets Well-Positioned to Unlock AI Data Center Growth Long Runway Opportunity to Accommodate AI Data Center Growth1 ▪ Abundance of natural gas combined-cycle gas turbine (CCGT) power plants in California (~252)2 ▪ Potential for CTV to provide solution for baseload carbon-free energy for power 6
Slide 17: California’s AI Data Center Ecosystem
California’s AI Data Center Ecosystem Fragmented Data Center Market Comprised of Co-Locators Big-Tech with Owned Data Centers in California are primarily the large tech firms (Ex: AWS, Microsoft, Apple, etc.) ▪ CTV premium pore space can support multiple GWs or smaller increments (<100MW) of data ce
Slide 18: California CCS Projects
California CCS Projects CO2 Emissions Emitter Project Type Service (KMTPA) Agreement Type1 Capture to Post - Combustion ~1,400 In House Storage Capture to ~2,745KMTPA Pre - Combustion ~100 In House Storage Capture to Under Post - Combustion In House Storage Evaluation of CCS Projects Under Considera
Slide 19: Class VI Permitting Leadership
Class VI Permitting Leadership U.S. EPA Regions2 CTV Leads CA/Region 9 with EPA Class VI Permit Submissions ▪ CTV Elk Hills 26R (CTV I) is expected to receive final permits in 4Q241 ▪ CTV Elk Hills 26R (CTV I) permit approval would be first in California and first permit for 5 7 storage into a deple
Slide 20: Aera Merger Doubles BTM Solar Projects Pipeline
Aera Merger Doubles BTM Solar Projects Pipeline GRID SUPPLY | BEHIND THE METER UPDATE: ▪ ~34MW to be developed at Mt. Poso and Kern Front (Projects grandfathered into the Net Energy Metering (NEM) 2.0 program1) ▪ ~50MW to be developed at San Ardo and Belridge ▪ Material expansion opportunities BTM E
Slide 21: Experienced Board of Directors
Experienced Board of Directors Summary of Director and Director Andrew B. Tiffany (TJ) James N. James R. Francisco J. Mark A. (Mac) Christian S. William B. Bobby Alejandra (Ale) Qualifications and Experience Bremner Thom Cepak Chapman Jackson Leon McFarland Kendall Roby Saadati Veltmann Board of Dir
Slide 22: 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 ▪ Crude: 2Q24 crude prices were healthy but range-bound as the market digested mixed CALIFORNIA IS AN OIL ISLAND AND THE LARGEST U.S. GDP CONTRIBUTOR economic data, geopolitical considerations, and divergent glob
Slide 23: Hedge Portfolio
Hedge Portfolio OIL HEDGES1 As of June 30, 2024 3Q24 4Q24 1Q25 2Q25 2H25 Barrels per Day 30,000 29,000 30,000 30,000 29,500 STRATEGY SOLD CALLS Weighted- CRC’s hedging strategy is designed to meet our Average Price $90.07 $90.07 $87.08 $87.08 $87.11 business objectives should market prices decline p
Slide 24: Strong Balance Sheet, Ample Liquidity and Financial Flexibility
Strong Balance Sheet, Ample Liquidity and Financial Flexibility LIQUIDITY1 ($MM) 6/30/24 NET DEBT* SNAPSHOT $2,400 ($MM) $470MM $1,065MM $2,100 Revolving Credit Facility (RCF) $ 30 $1,800 $670MM $23MM $30MM $136MM $100MM 7.125% 2026 Senior Notes 545 $1,500MM $1,500 8.250% 2029 Senior Notes 600 $1,20
Slide 25: 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 26: Assumptions, Estimates and Endnotes
Assumptions, Estimates and Endnotes Slide 3: (1) All CRC’s future quarterly dividends and share repurchases are subject to commodity prices, debt agreement covenants and Board of Directors approval. Total shareholder return calculated through June 30, 2024. (2) When accounting for estimated cash int
Slide 27: Assumptions, Estimates and Endnotes (Cont.)
Assumptions, Estimates and Endnotes (Cont.) Slide 19: (1) CRC estimate. Subject to issuance of EPA class VI permits. (2) EPA, Source: www.epa.gov/uic/class-vi-wells-permitted-epa. (3) Based on EPA approvals. CTV IV is projected to complete preparation of final permit decision in July 2025 and CTV V
Slide 28: 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 29: 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 30: 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