Skip to main content 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. Investor Presentation | Shale Experts
Loading...
Pm

43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp.

California Resources Corp. · Mar 25, 2015 · 31 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 1
    43RD ANNUAL ENERGY CONFERENCE Scotia Howard Weil Todd Stevens President & CEO New Orleans, LA March 25, 2015
  2. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 2
    CRC at a Glance World-Class Resource Base Sacramento Basin In 4 of 12 largest fields in the 19 MMBoe Proved Reserves 9 MBoe/d production continental U.S. 768 MMBoe proved reserves Capital Structure San Joaquin Basin 525 MMBoe…
  3. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 3
    Overview of California Resources Corporation California Pure-Play Net Resource Overview Total proved reserves by basin Avg. net production by An independent E&P company spun off by (12/31/2014) basin (12/31/2014) Occidental Los Angeles…
  4. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 4
    CRCs Average Production Expected to Be Essentially Flat in 2015 versus 2014 Resource base enables predictable production profile Conventional assets have relatively low decline rates, long production life Steamflood and waterflood…
  5. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 5
    Self-Funded Capital Investment Program Commentary 2015 Total Capital Budget 2015 capital budget of 440 million expected to Other Total: 440 million 95 1 be directed almost entirely towards oil-weighted 22% Drilling production 150…
  6. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 6
    Capital Allocation Priority: De-Leveraging Balance Sheet Exploring adjustments to capital structure Total long-term debt: 6.4 billion at Year-end 2014 Have received a 24-month amendment to revolver and term loan Resource base…
  7. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 7
    Capital Structure & Hedges Deleveraging is a priority Capitalization as of 12/31/14 (MM) 1 2.0Bn Senior Unsecured RCF 360 Recently approved credit facility amendment Senior Unsecured Term Loan 1,000 Senior Unsecured Notes 5,000…
  8. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 8
    Long Term Value Creation Driven by World Class Asset Base 9
  9. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 9
    CRC is the Leading Operator in California Top California Producers in 2014* 200 192 180 159 160 Gross Operated MBoe/d 139 140 120 100 80 60 39 37 40 20 - CRC CVX Aera Energy FCX LINE Growth of Top California…
  10. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 10
    World Class Assets with Significant Development Opportunities Total California as of 12/31/2014 Diversity of basins, drive mechanisms. Net Proved Reserves (MMBoe) 768 % Oil Net Proved 72% Predictable production, low decline rates.…
  11. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 11
    Large in Place Volumes with Significant Upside for CRC Recovery Factors for Discovered Fields In place volumes of 40 Bn Boe at low Billion Boe recovery factor (22%) to date 45 40 Conventional value chain approach to life of field…
  12. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 12
    Creating a Recovery Value Chain Conventional fields in various stages of Typical Recoveries by Mechanism Type development 80 Base assets in place advancing recovery 70 with traditional means Moving recoveries from primary through…
  13. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 13
    CRC Price Realizations Oil Price Realization Gas Price Realization WTI Realizations Brent NYMEX Realizations 120 5.0 4.31 4.39 111.70 110.90 4.5 108.76 3.73 110 4.0 103.80 104.02 4.11 4.34 3.5 2.94 99.51 3.0 3.66 /Mcf…
  14. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 14
    Elk Hills Field - Overview Overview Field Map CRCs flagship asset, a 104-year old field with exploration opportunities RR Gap Large fee property with multiple stacked reservoirs Light oil from conventional and unconventional…
  15. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 15
    Wilmington Field - Overview Overview Field Map CRCs flagship coastal asset: acquired in 2000 Field discovered in 1932; 3rd largest field in the U.S. Over 7 billion barrels OOIP (34% recovered to date)1 Depths 2,000 10,000 (TVDSS)…
  16. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 16
    Conventional Waterflood Example Field discovered in 1920s by a major oil company Mount Poso Multiple stacked zones 1,200 2,000 5,000 BOPD 500 Ownership by Other Companies 4,500 450 150 MMBoe in place at 6% RF 4,000 Well Count…
  17. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 17
    Conventional Steamflood Example Year over Year Performance Eastern San Joaquin Valley Steamflood 15,000 Net Oil (bopd) 110,000 Two major intervals 1,500 2,500 14,000 Steam (bspd) 100,000 13,000 500 MMBoe in place at 35% RF…
  18. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 18
    Proven Track Record in Sensitive Environments Operator of choice in coastal environments Proven coexistence with sensitive environmental receptors 2 billion gallons of water supplied to agriculture in 2014 Excellence in safety and…
  19. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 19
    Well Positioned for Growth in Recovery World-class asset base with diverse and rich resources. Capacity for significant production growth at higher prices as we develop high-return, lower-risk development opportunities. Committed to…
  20. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 20
    California Resources Corporation Appendix 21
  21. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 21
    Non-GAAP Reconciliation for Adjusted EBITDAX For the Year Ended December 31, ( in millions) 2014 2013 Net Income/(loss) (1,434) 869 Interest Expense 72 - Income taxes expense/(benefit) (987) 578 Depreciation, depletion and…
  22. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 22
    Recently Approved Credit Facility Amendment Provides Additional Financial Flexibility Lender group approved several amendment provisions to provide CRC additional flexibility to manage our business through challenging commodity price…
  23. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 23
    Acquisitions Over the Years 1998 2009 2014 SJV North 2,500,000 Kettleman North Dome 2,000,000 SJV Central 40M acres 1.2MM acres 2.4M acres Elk Hills and Kern Front Acquisition of Vintage and Leading privately held acreage…
  24. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 24
    San Joaquin Basin Overview Basin Map Oil and gas discovered in the late 1800s Currently accounts for 70% of CRC production Kettleman 25 billion barrels OOIP in CRC fields1 Cretaceous to Pleistocene sedimentary section (25,000…
  25. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 25
    Los Angeles Basin Overview Basin Map Large, world class basin with thick deposits Kitchen is the entire basin, hydrocarbons did not migrate laterally; basin depth (30,000 ft) 10 billion barrels OOIP in CRC fields1 Most significant…
  26. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 26
    Sacramento Basin Overview Basin Map Exploration started in 1918 and focused on seeps and topographic highs. In the 1970s the use of multifold 2D seismic led to largest discoveries Cretaceous Starkey, Winters, Forbes, Kione, and the…
  27. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 27
    Ventura Basin Overview Basin Map Estimated 3.5 billion barrels OOIP in CRC fields1 Operate 29 fields (about 40% of basin) 300,000 net acres Multiple source rocks: Miocene (Monterey and Rincon Formations), Eocene (Anita and Cozy…
  28. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 28
    Capex Reduction 2014 2015 Oct Nov Dec Jan Feb Mar Rigs 28 25 6 4 3 3 Quarterly Operations 520 135-150 * CAPEX, mm Focus on investing within expected cash flows despite availability of additional investment opportunities that…
  29. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 29
    Opex Reduction 2014 Q1 Q2 Q3 Q4 Production costs /boe 18.43 18.46 17.74 16.07 Workforce redeployed to focus on reducing costs and building a robust project pipeline Targeting 6-month payout on workovers at current prices…
  30. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 30
    VALUE CREATION INDEX Measures value created per dollar investment (Bang for the buck) Corporate Target 1.3 PV10 pre-tax cash flows VCI = PV10 of investments Project A Project B Project C Max IRR% Max VCI Max NPV Period Capital…
  31. 43RD ANNUAL ENERGY CONFERENCE SCOTIA HOWARD WEIL – California Resources Corp. – slide 31
    Shale Geological Overview 0 GR 150 Successful in upper Monterey using precise development approach 3,000 Expanding efforts into lower Monterey and other shales Total Organic N Depth Thickness Porosity Permeability Carbon Play (ft)…

From the store

Browse maps, data & reports in the Shale Experts store