California Resources Corporation · NYSE:CRC
California Resources — Investor Presentation (January 2021)
26 slides from California Resources's investor presentation, Jan 21, 2021
Slide 1: California Resources Corporation, January 2021
Le . CALIFORNIA January 2021
Slide 2: Forward Looking / Cautionary Statements - Certain Terms
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 thos
Slide 3: Forward Looking / Cautionary Statements - Certain Terms (cont'd)
Forward Looking / Cautionary Statements - Certain Terms (cont’d) The market data and certain other statistical information used throughout this presentation includes industry data that are based on independent industry publications, government publications or other published independent sources. Som
Slide 4: Executive Summary
Executive Summary CALIFORNIA RATION
Slide 5: CRC Investment Considerations
CRC Investment Considerations + Repositioning the company concurrent with a CEO search + Full-Scale Business Review \ California = jeeairie New Strategic . , iaMfinand $ ~3,000 BOE per day? Di " * Chairman and Interim CEO with substantial financial and operational irection turnaround experience * Op
Slide 6: Strategic Focus and Long-Term Repositioning
Strategic Focus and Long-Term Repositioning Near-Term Focus - 2021/2022 Substantial Liquidity and Downside Cash Flow Protection Through Hedge Strategy Rationalizing Asset Portfolio * Targeting a streamlined, resilient portfolio that retains * Maintain 2021/2022 hedged levels at ~80% of upside antici
Slide 7: Preliminary 2020E Results and Capital Budget Guidance
Preliminary 2020E Results and Capital Budget Guidance 2020E Estimates Total Production (Mboepd) 105 - 115 Exit Rate * 103 Oil Production (Mbopd) 67 - 72 Exit Rate * 63 $MM Revenues $1,543 - $1,573 ‘Adj. EBITDAX” 466 - 476 Discretionary Cash Flow”® $231 - $235 Capital Adjusted Free Cash Flow* $174 =
Slide 8: Summary Highlights
Summary Highlights New Strategic Direction Strong Financial Position Cash-Advantaged Portfolio Integrated Model Wa Committed to ESG Advancement Va CALIFORNIA RESOURCES: CORPORATION:
Slide 9: Business Overview
Business Overview CALIFORNIA RATION
Slide 10: CRC Supplies Essential California Energy
CRC Supplies Essential California Energy ECONOMY CALIFORNIA IS THE LARGEST U.S. GDP CONTRIBUTOR + World's 5th largest economy and biggest contributor to domestic GDP?, California is the second-largest energy consuming state and consumes ~2% of : the world’s daily crude oil production 4 ong 7.8% 14.8
Slide 11: CRC Situated in a Premier Oil Province
CRC Situated in a Premier Oil Province California - a Top Oil-Producing Province ¢ Five of the largest conventional, onshore fields in the Lower 48 * Over 35 billion BOE* produced since 1876 * Still discovering the extent of remaining potential * Over 10 billion BOE* in remaining recoverable resourc
Slide 12: CRC's Advantages Aligned with Investor Proposition
CRC’s Advantages Aligned with Investor Proposition | CRC’s Advantages vs. Shale Peers ) CRC Aligns with E&P Investor Preferences Shale High production decline a ssateces SeOMaTIOR Production Low produ: decline hel Decline Stability of cash flows Realizations at large discount to WTI Market Pricing P
Slide 13: Diverse Assets with Flexible Development Opportunities
Diverse Assets with Flexible Development Opportunities ¢ Cash-advantaged portfolio with a diverse asset base and extensive high-quality inventory * Proven operator at managing and growing a profitable business, with strong historical F&D and Recycle profitability performance* a 5 6 - 9 E * Total Pro
Slide 14: CRC's Asset Portfolio: Liquids-Weighted Production
CRC’s Asset Portfolio: Liquids-Weighted Production ef i: SANTA BARBARA Bekdils |= { as SAN LUIS AN Luts oe i son osasntisn “=¥ ve EBuenaVista}—_ Mount Poso ha Round Mountain KERN » ay py Ee, EX wimington |< [itiintington Beach] we * pivensiog S ORANGE y CALIFORNIA (1) RATION 1 Elk Hills Area Wilming
Slide 15: Significant CRC Inventory at Current Market Pricing
Significant CRC Inventory at Current Market Pricing Robust project inventory with a0 e relia full cycle cost below $35/Boe @ Primary © Shale x2 © Gas * Large resource base continues to grow $ 3 20 3 * Optimized portfolio capable of growth fo across commodity price cycles ap * All projects deliver ro
Slide 16: California Is An Energy Island
Califor Is An Energy Island... CA Depends Upon Imports To Satisfy Demand | Crude Imports Are Waterborne Due To Lack Of Crude Pipelines | OIL DEMAND 1,688 MBOPD 2019 = California Supply = Domestic Import * Foreign Import NATURAL GAS DEMAND CALIFORNIA REFINERY INPUTS 5.90 BCFPD CA AKN. Foreign 2019 Pr
Slide 17: That Drives Premium Pricing for CRC
That Drives Premium Pricing for CRC CRC Production Mix (80YTD 2020) Local vs. US Pricing Benchmarks CRC Positioning Product _ Energy Equivalent Revenue (unhedged) Crude Price, 12/1/20, $/bb! . d 2 wm(oK) $44.55 > 3 largest crude producer in CA = > Realized pricing premium oS 62% 81% Buena Vista (CA)
Slide 18: Further Margin Uplift Through Integrated Model
Further Margin Uplift Through Integrated Model * Elk Hills power plant’s integration with the Elk Hills field offers significant strategic value * Elk Hills power plant saves CRC ~$100mm/year through self-supply/generation of power * Ability to sell excess power produced ty * Operations streamlining
Slide 19: Hedging Program Supports Cash Flows
Hedging Program Supports Cash Flows * CALIFORNIA ATION Strategy CRC hedging strategy typically utilizes a mixture of Puts, Collars and Swaps to protect cash flow and to ensure CRC's ability to live within cash flow, and is also aligned with CRC’s RBL requirements Cash Flow Protected CRC has hedges i
Slide 20: Leading Financial Metrics
Leading Financial Metrics HE oilrcers (Gas Peers Adj. EBITDAX (3Q20 LTM, $MM)? | Production (Q3’20, Mboepd) | | Total Proved Reserves (2019YE, MMBoe) 1,600 renee eer ene 1 CRC Total Proved Reserves of ' 489 MMboe based on 1 "12/1/2020 Strip* 240 $2,000 $1,500 4180 1,200 42 106 800 644 $1,000 $681 |
Slide 21: CRC Demonstrates ESG Leadership
CRC Demonstrates ESG Leadership Environmental Social Governance CRC’s 2030 Sustainability Goals align with CRC’s new Board of experienced, independent California's landmark goals as a signatory of Safety performance continues to surpass industry Directors from diverse backgrounds will build on the P
Slide 22: Appendix
Appendix Rey RESOURCES 22
Slide 23: Adjusted EBITDAX Reconciliation
Adjusted EBITDAX Reconciliation We define adjusted EBITDAX as net (loss) income before interest and debt expense, net income taxes, depreciation, depletion and amortization; exploration expense; other unusual, out-of-period and infrequent items; and other non-cash items. We believe this measure prov
Slide 24: Other Reconciliations
Other Reconciliations Leverage and Net Debt We calculate the leverage ratio by dividing net debt by adjusted EBITDAX for the applicable period. We define net debt as the face value of our debt less cash used to collateralize letters of credit outstanding and available cash. We believe the leverage r
Slide 25: Other Reconciliations (cont'd)
Other Reconciliations (cont'd) Discretionary Cash Flow Twelve Months Ended December 31,2020 ($ millions) Estimated Adjusted EBITDAX $407 Cash Interest (95) Distributions paid to BSP JV (64) Distributions paid to Ares JV (70) Cash used for asset retirement obligations and idle well testing (9) Estima
Slide 26: Le . CALIFORNIA
Le . CALIFORNIA
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