Goldman Sachs Global Energy Conference 2015 January 7-8, 2015 0
Cautionary Statements Regarding Hydrocarbon Quantities CRC has provided internally generated estimates for proved reserves and aggregated proved, probable and possible reserves (3P Reserves) as of December 31, 2013 in this presentation,…
Key Investment Highlights World Class Resource Base Interests in 4 of the 12 largest fields in the lower 48 states 744 MMBoe proved reserves Largest producer in California on a gross operated basis with significant exploration and…
Focused Business Strategy Grow NAV per share through exploration and development of under-exploited resources Self-funding capital program eliminates reliance on external capital Disciplined Capital Allocation Rigorously review…
The State of California is a World Class Oil Province Over 35 billion Boe produced since 18761 Pico Canyon 4 was the first well with 2 billion Boe commercial production west of the Rockies and produced from 1876 to 1992 Rich…
Overview of California Resources Corporation California Pure-Play Net Resource Overview Total proved reserves by basin Avg. net production by CRC is an independent E&P company focused on (12/31/2013) basin (YTD Q314) high-return assets…
CRC is the Leading Operator in California Top California Producers in 2013* 85% of CA production from top 5 operators* 200 188 180 Top 25 Companies MBoe/d % of CA 166 160 CRC 188.0 29% 147 Gross Operated MBoe/d Chevron 166.2…
Substantial Opportunity and Resource Rich Asset Base Total California 2013 Reserves Net Proved Reserves (MMBoe) 744 Sacramento Basin % Liquids Net Proved 81% Pre-Tax Proved PV-10 ( millions)1 14,018 San Joaquin Basin Net 3P…
Robust Returns Across Multiple Drive Mechanisms Single Well/Pattern Economics by Drive Mechanism: Before Tax IRR 1 80%-100%+ per well 50%+ per pattern 50%+ 30%-50% per pattern per well Primary Waterflood Steamflood…
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…
Large in Place Volumes with Significant Upside Recovery Factors for Discovered Fields Leading asset position to exploit Billion Boe 45 In place volumes of 40 Bn Boe at 40 low recovery factor (22%) to date 35 Conventional value chain…
Elk Hills Field Overview Overview Field Map CRCs flagship asset, a 103-year old field with exploration opportunities1 RR Gap Large fee property with multiple stacked reservoirs GS Light oil from conventional and unconventional…
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)…
Value-additive Growth Living within Cash Flow 250 Oil NGLs Gas 200 155 1581 150 MBoe/d (Net) 100 50 - - 1H'14 2014 2015 2016 Longer-term CRC has a significant portfolio of conventional and unconventional…
Proven Track Record in Sensitive Environments Operator of choice in coastal environments Proven coexistence with sensitive environmental receptors Excellence in safety and mechanical integrity 15
Financial Strength Provides Flexibility to Drive Growth Capital program: Invest within cash flow Est. Capitalization as of 10/1/14 (MM) 1 2.0Bn Senior Unsecured RCF 65 Growth strategy based on re-investment in Senior Unsecured Term…
Self-Funded Capital Investment Program Commentary 2014 Total Capital Budget 2014 capital budget of 2.1 billion represents Other 1 Exploration 145 an increase of 24% from 2013 95 7% 5% CRC plans to reinvest excess free cash flow…
The CRC Investment Opportunity World Class Resource Base Portfolio of Lower-Risk, High-Growth Opportunities Management Expertise California Heritage Shareholder Value Focus 19
California Resources Corporation Appendix 20
Non-GAAP Reconciliation for EBITDAX For the Year Ended December Last Twelve Months 31, 9 Months Ended, Ended, ( in millions) 2012 2013 9/30/2013 9/30/2014 9/30/2014 Net Income 699 869 657 657 869 Interest Expense - - - - -…
Acquisitions Over the Years 1998 2009 2014 SJV North 2,500,000 Kettleman North Dome SJV Central 2,000,000 40M acres 1.2MM acres 2.3MM acres Elk Hills and Kern Front Acquisition of Vintage and Leading privately held…
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…
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 fields Cretaceous to Pleistocene sedimentary section (25,000 feet)…
Ventura Basin Overview Basin Map Estimated 3.5 billion barrels OOIP in CRC fields1 Operate 25 fields (about 40% of basin) 257,500 net acres Multiple source rocks: Miocene (Monterey and Rincon Formations), Eocene (Anita and Cozy…
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 fields Most significant…
Waterflood Project Type Improving recovery from primary reservoirs Average Waterflood Pattern Production Response Redeveloping existing asset base 100 Wells already drilled 80 2012 2013 Average 2014 Curve Expand waterflood…
Steamflood Projects Improving recovery from heavy oil reservoirs Example Kern Front Pattern Add steam to make oil flow better 140 Proven process 120 100 Good quality reservoirs; high oil saturation 80 Bopd Reliable…
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)…
Endnotes 1) As of 12/31/13, CRCs probable reserves were 218 MMBoe (87% liquids) with a PV-10 of 4 billion and possible reserves were 136 MMBoe (83% liquids) with a PV-10 of 3 billion, each based on SEC pricing. 2) As of 12/31/13, CRCs…
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