California Resources Corporation · NYSE:CRC
California Resources — Q4 2024 Earnings Presentation
31 slides from California Resources's earnings presentation, Mar 3, 2025
Slide 1: Executing Today, Building for Tomorrow
Executing Today, Building for Tomorrow Fourth Quarter and Full Year 2024 Results March 3, 2025
Slide 2: Delivered on All Fronts in 2024
Delivered on All Fronts in 2024 California’s Premier Energy Platform STRONG FINANCIAL AND OPERATING RESULTS 110MBOE/D (90% Average NRI) Delivered 2024 TOTAL NET PRODUCTION2 SIGNIFICANTLY INCREASED SCALE WITH AERA MERGER Demonstrated improved capital efficiency, robust reservoir $1,006MM 73% 9% 18% O
Slide 3: National Cement's Trusted Decarbonization Partner
National Cement’s Trusted Decarbonization Partner1 PARTNERSHIP HIGHLIGHTS “Lebec Net Zero” Aims to Produce California’s First ▪ CTV plans to develop transportation and sequestration solutions for up Carbon-Neutral Cement in Kern County to 1.0 MMTPA of CO₂ emissions captured from National Cement’s ex
Slide 4: 2025 Strategy Drives Advantaged Business Model
2025 Strategy Drives Advantaged Business Model Higher Less Better Integrated Strategy Cashflow Carbon California Enhances Asset Portfolio Value 2025E Outlook2 ▪ Reinforce California’s leading O&G Business through improved OPTIMIZE & capital efficiencies EXPAND ▪ Expand Carbon Management Business and
Slide 5: Why California Resources Corporation?
Why California Resources Corporation? LEADING CARBON MANAGEMENT BUSINESS PREMIER BALANCE SHEET WITH STRONG FREE CASH FLOW GENERATION STRONG SHAREHOLDER RETURNS STRATEGY DISCIPLINED CAPITAL ALLOCATION Higher Less Better Cashflow Carbon California
Slide 6: Executing Our Strategy
Executing Our Strategy
Slide 7: Significantly Reducing Our Cost Structure
Significantly Reducing Our Cost Structure Lower Costs for the Combined Company in 2025E: Ahead of Schedule on $235MM in Targeted Synergies Annualized Aera Merger Run-rate Savings ~$220MM ~$125MM ($MM) 2025E Improvement vs 2025E Improvement vs $250 Pro Forma Combined 20231 Annualized 2H24 Actuals3 $2
Slide 8: Driving Capital Efficiencies With Aera Merger
Driving Capital Efficiencies With Aera Merger Gross Production (MBoe/d) STRONG FOCUS ON BASE PRODUCTION DRIVES OPERATIONAL RESULTS 175 172 ▪ Successfully integrated Aera operations 170 ▪ Managing base declines through 165 1631 ▪ Optimized and integrated operational remote surveillance systems reduci
Slide 9: Enhancing Asset Portfolio Value Through Our Integrated Strategy
Enhancing Asset Portfolio Value Through Our Integrated Strategy STRONG PERFORMANCE OVER THE PAST 3 YEARS Average Daily4 2024 Margin ($MM) Margin from Purchased Commodities1 Electricity Margin 2 NYMEX HH $2.41 $200 PG&E Citygate $3.09 SoCal Border $2.19 $150 SoCal Citygate $2.48 $100 $50 $0 2022 2023
Slide 10: Leading California's Decarbonization
Leading California’s Decarbonization EXPANDING OUR CO2 PERMITTING LEADERSHIP ADVANCING DECARBONIZATION IN CALIFORNIA ▪ 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 ▪ Permits became effective February 3, 2025 ▪
Slide 11: Returning Significant Cash to Shareholders
Returning Significant Cash to Shareholders1 Competitive Dividend Yield vs. Market3 Dividend Yield (%) In 2024 Returned 4% 3% in Dividends and $92MM Buybacks in 4Q241, 2 2% 1% 0% S&P S&P Mid S&P Small XOP $303MM 500 Cap 400 Cap 600 O&G E&P ETF in Dividends and Buybacks in 20241, 2 $1,060MM since May
Slide 12: YE24 Results and 2025E Guidance
YE24 Results and 2025E Guidance
Slide 13: Delivered Strong 2024 Results
Delivered Strong 2024 Results Increased Scale Drives Adj. EBITDAX* Commodity 4Q24E1 4Q24A 2024A Adj. EBITDAX* ($MM) Brent ($/Bbl) $71.48 $73.97 $79.84 $1,100 Brent realized price with hedge ($/Bbl) N/A $73.00 $75.66 Brent realized price without hedge (% of Brent) 95% - 99% 98% 96% $1,000 Operational
Slide 14: Strong Balance Sheet, Ample Liquidity and Financial Flexibility
Strong Balance Sheet, Ample Liquidity and Financial Flexibility 12/31/24 NET DEBT* SNAPSHOT MULTIPLES DEMONSTRATE FLEXIBILITY ($MM) ($MM) Revolving Credit Facility (RCF) $ - RCF Borrowing Base $1,500 7.125% 2026 Senior Notes 245 4Q24 Free Cash Flow* $118 8.250% 2029 Senior Notes 900 4Q24 Net Debt* /
Slide 15: 2025E Guidance (as of March 3, 2025)
2025E Guidance (as of March 3, 2025) 1Q25E Oil and Carbon 2025E Oil and Carbon Guidance Consolidated Natural Gas Management Consolidated Natural Gas Management Net Production (MBoe/d) ~79% Oil 138 – 142 132 – 138 Margin from Purchased Commodities1 ($MM) $10 – $15 $80 – $95 Electricity Margin2 ($MM)
Slide 16: Appendix
Appendix
Slide 17: 2024 Reserves
2024 Reserves Durable 1P Est. 4Q24 Net Asset % PD1/PUD MMBOE % Oil Annual R/P3 ($70 Brent)2 Production (Years) ~7% PUD Inventory Decline (MBOE/D) San Joaquin 91% 9% 431 77% ~12% 112 11 Basin ~5% PUD Los Angeles 100% 72 99% ~8% 17 12 Basin PV10 ~93% PD1 $8.9B5 ~95% PD1 Sacramento PV10 84% 16% 3 0% ~9
Slide 18: CTV Dropdown Mechanism
CTV Dropdown Mechanism TIMING JV ▪ 35% of annual CO2 storage capacity for Carbon TerraVault JV (“CTV JV”) 26R reservoir under CCS contracts 26R Milestone 1 Milestone 2 Milestone 3 | Third First Installment Second Installment Installment Brookfield 49% Capital Call For Brookfield $46MM Brookfield $46
Slide 19: Making Tangible Steps Towards Decarbonizing California's Industries
Making Tangible Steps Towards Decarbonizing California’s Industries CO2 Emissions Agreement Emitter Project Type Service (MMTPA) Type1 Brownfield CRC | CalCapture Post - Combustion Capture to Storage ~1.4 In House CRC | Cryogenic Gas Plant Pre - Combustion Capture to Storage ~0.1 In House CRC | Carb
Slide 20: 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 21: Leading EPA Class VI Permitting Pipeline
Leading EPA Class VI Permitting Pipeline (As of February 14, 2025) EPA Regions1 EPA Class VI Projects Under Review1 59 59 47 8 31 5 3 9 7 15 19 13 7 8 3 2 2 4 4 2 2 6 4 Region: 3 4 5 6 7 8 9 CTV # Wells # Applications EPA Projections CTV I 26R Region 6 Peer Region 5 Peer Region 5 Peer Region 5 Peer
Slide 22: Commitment to Sustainability in 2024
Commitment to Sustainability in 2024 Caring About Our Environment AWARDS ▪ Received MiQ ‘Grade A’ certification for its methane emissions performance in the Los Angeles Basin ▪ Recertified Wildlife Habitat Council projects at THUMS, Bolsa Chica and Elk Hills ▪ Delivered more than 112 million barrels
Slide 23: Strong Commodity Price Realizations
Strong Commodity Price Realizations ▪ Crude: Crude prices were generally firm in 4Q24 supported by evolving CALIFORNIA IS AN OIL ISLAND AND THE LARGEST U.S. GDP CONTRIBUTOR geopolitical dynamics following the US election and uncertain (amounts shown as % of U.S. domestic GDP) international economic
Slide 24: Hedge Portfolio (as of December 31, 2024)
Hedge Portfolio (as of December 31, 2024) OIL 1Q25E 2Q25E 3Q25E 4Q25E 2026E 2027E 2028E SOLD CALLS STRATEGY CRC’s hedging strategy is designed to Barrels per Day 30,000 30,000 30,000 29,000 15,000 - - Brent meet our business objectives should Weighted-Average Price $87.08 $87.08 $87.08 $87.13 $85.00
Slide 25: 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 26: 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. Figures exclude excise taxes and commissions paid on share repurchases. (2) 1H24 includes legacy CRC
Slide 27: Assumptions, Estimates and Endnotes
Assumptions, Estimates and Endnotes Slide 11: (1) All CRC’s future quarterly dividends and share repurchases are subject to commodity prices, debt agreement covenants and Board of Directors approval. (2) Excludes excise taxes and commissions paid on share repurchases. (3) Source: FactSet. Represents
Slide 28: Assumptions, Estimates and Endnotes
Assumptions, Estimates and Endnotes Slide 18: (1) Total Brookfield payments to CRC corresponding to their 49% interest in the 26R reservoir are expected to total up to ~$185MM at FID. $92MM has been received to date with the third and final installment of the 26R pore space contribution from Brookfi
Slide 29: 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 30: Forward-Looking / Cautionary Statements – Certain Terms (Cont.)
Forward – Looking / Cautionary Statements – Certain Terms (Cont.) CRC cautions you not to place undue reliance on forward-looking statements contained in this document, which speak only as of the filing date, and CRC undertakes no obligation to update this information. This document may also contain
Slide 31: Investor Relations and Media Contacts
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