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UBS Global Oil and Gas Conference – California Resources Corp.

California Resources Corp. · May 19, 2015 · 33 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. UBS Global Oil and Gas Conference – California Resources Corp. – slide 1
    UBS Global Oil and Gas Conference Todd Stevens President & CEO Austin, TX May 19-20, 2015
  2. UBS Global Oil and Gas Conference – 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. UBS Global Oil and Gas Conference – California Resources Corp. – slide 3
    Overview of California Resources Corporation California Pure-Play Net Resource Overview Total proved reserves by basin Total identified gross drilling An independent E&P company spun off by (12/31/2014) locations by basin2 Occidental…
  4. UBS Global Oil and Gas Conference – California Resources Corp. – slide 4
    Focus on Oil Enhances Base & Margins Production By Stream (MBoe/d) Resource base enables predictable Average production profile Total Production 159 Mboe/d Conventional assets have relatively low decline rates, long production life…
  5. UBS Global Oil and Gas Conference – California Resources Corp. – slide 5
    Self-Funded Capital Investment Program Commentary 2015 Total Capital Budget 2015 capital budget of 440 million expected to Other 1 Total: 440 million 95 be directed almost entirely towards oil-weighted 22% Drilling production 150…
  6. UBS Global Oil and Gas Conference – California Resources Corp. – slide 6
    Capital Allocation Priority: De-Leveraging Balance Sheet Exploring adjustments to capital structure Total long-term debt: 6.5 billion, net, at 3/31/2015 Have received an amendment to revolver and term loan through end of 2016…
  7. UBS Global Oil and Gas Conference – California Resources Corp. – slide 7
    Capital Structure & Hedges Capitalization as of 3/31/15 (MM) Senior Unsecured RCF 1 570 Senior Unsecured Term Loan 1,000 Deleveraging is a priority Senior Unsecured Notes 5,000 Total Debt 6,570 Credit facility amendment provides…
  8. UBS Global Oil and Gas Conference – California Resources Corp. – slide 8
    Long Term Value Creation Driven by World Class Asset Base 9
  9. UBS Global Oil and Gas Conference – California Resources Corp. – slide 9
    CRC is the Leading Operator in California Top California Producers in 2014* 195 200 180 159 Gross Operated MBoe/d 160 139 140 120 100 80 60 37 35 40 20 - CRC CVX Aera Energy FCX LINE Growth of Top California…
  10. UBS Global Oil and Gas Conference – California Resources Corp. – slide 10
    World Class Assets with Significant Development Opportunities As of 12/31/2014 Diversity of basins, drive mechanisms. Net Proved Reserves (MMBoe) 768 % Oil Net Proved 72% Predictable production, low decline rates. Pre-Tax Proved…
  11. UBS Global Oil and Gas Conference – 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. UBS Global Oil and Gas Conference – 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 with traditional means 70 Moving recoveries from primary…
  13. UBS Global Oil and Gas Conference – California Resources Corp. – slide 13
    CRC Price Realizations Oil Price Realization Gas Price Realization WTI Realizations Brent NYMEX Realizations 120 110.90 111.70 108.76 110 5.0 4.31 4.39 99.51 4.5 100 103.80 104.02 3.73 93.00 4.0 90 95.12 94.21 97.97 104.16 3.5…
  14. UBS Global Oil and Gas Conference – California Resources Corp. – slide 14
    Elk Hills Field - Overview Overview Field Map CRCs flagship asset, an over 100 year-old field with exploration opportunities RR Gap Large fee property with multiple stacked reservoirs Light oil from conventional and unconventional…
  15. UBS Global Oil and Gas Conference – 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. UBS Global Oil and Gas Conference – 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. UBS Global Oil and Gas Conference – 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) 100,000 500 MMBoe in place at 35% RF 13,000…
  18. UBS Global Oil and Gas Conference – 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. UBS Global Oil and Gas Conference – 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. UBS Global Oil and Gas Conference – California Resources Corp. – slide 20
    California Resources Corporation Appendix 21
  21. UBS Global Oil and Gas Conference – California Resources Corp. – slide 21
    Non-GAAP Reconciliation for Adjusted EBITDAX For the First Quarter For the Year Ended March 31, Ended December 31, ( in millions) 2015 2014 2014 2013 Net Income/(loss) (100) 223 (1,434) 869 Interest Expense 79 - 72 - Income taxes…
  22. UBS Global Oil and Gas Conference – 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 the challenging commodity…
  23. UBS Global Oil and Gas Conference – 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. UBS Global Oil and Gas Conference – California Resources Corp. – slide 24
    San Joaquin Basin Overview Basin Map Oil and gas discovered in the late 1800s Accounts for 70% of CRC production Kettleman 25 billion barrels OOIP in CRC fields1 Cretaceous to Pleistocene sedimentary section (25,000 feet) Lost…
  25. UBS Global Oil and Gas Conference – 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. UBS Global Oil and Gas Conference – 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. UBS Global Oil and Gas Conference – 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. UBS Global Oil and Gas Conference – California Resources Corp. – slide 28
    Capex Reduction 2014 Actual 2015 Actual 2015 Expected Oct Nov Dec Jan Feb Mar Apr May Jun Rigs 28 25 6 4 3 3 3 3 3 Quarterly 110- Operations 520 133 120* CAPEX, mm Focus on investing within expected cash flows despite…
  29. UBS Global Oil and Gas Conference – California Resources Corp. – slide 29
    Opex Reduction 2014 2015 Q1 Q2 Q3 Q4 Q1 Production costs 18.43 18.46 17.74 16.07 16.20 /boe Workforce redeployed to focus on reducing costs and building a robust project pipeline Targeting 6-month payout on workovers at current…
  30. UBS Global Oil and Gas Conference – 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. UBS Global Oil and Gas Conference – 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)…
  32. UBS Global Oil and Gas Conference – California Resources Corp. – slide 32
    Reducing Freshwater Use 4% 2% WATER USED IN CRCS OPERATIONS Produced Water Fresh Water Non-Fresh Water In 2014, CRCs steamflood operations supplied more than 2 billion gallons or over 6,200 acre-feet of water for agricultural…
  33. UBS Global Oil and Gas Conference – California Resources Corp. – slide 33
    Non-GAAP Reconciliation for PV-10 At December 31, ( in millions) 2014 PV-10 16,091 Present value of future income taxes discounted at 10% (5,263) Standardized Measure of Discounted Future Net Cash 10,828 Flows PV-10 is a…

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