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Analyst Day and Site Tour - Bakersfield – California Resources Corp.

California Resources Corp. · Oct 14, 2015 · 85 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. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 1
    Bakersfield ANALYST DAY & SITE TOUR October 14, 2015
  2. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 2
    CRC AGENDA Day One Strategic Overview of CRC Todd Stevens, President & CEO Marketing Overview Carlos Contreras, VP Marketing Regulatory Overview Charlie Weiss, EVP Public Affairs Waterflood Primer Jerry Foster, Manager IOR/EOR Los…
  3. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 3
    World Class Resource Base Interests in 4 of the 12 largest fields in the lower 48 states 768 MMBoe proved reserves (12/31/2014) Largest producer in California on a gross operated basis with significant exploration and development…
  4. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 4
    FLEXIBLE HIGH RETURN INVENTORY Capital associated with currently identified projects delivering VCI 1.3* Current average well cost 1.1 MM Multi-year inventory to maintain flat production at different points in the price curve…
  5. Analyst Day and Site Tour - Bakersfield – 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 be directed almost entirely towards oil-weighted 95 22% Drilling investment 150…
  6. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 6
    EXPLORATION OVERVIEW Darren Williams EVP Exploration October 14, 2015
  7. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 7
    EXPLORATION KEY TAKEAWAYS Material growth portfolio in an Sacramento Basin underexplored, world-class Dry gas & shale hydrocarbon province Proven value creation through exploration success San Joaquin Basin Heavy oil, light oil,…
  8. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 8
    CALIFORNIA EXPLORATION HISTORY CALIFORNIA EXPLORATION HISTORY Multiple 1 Bn Boe+ Drill Oil and Gas Drill Surface Small discoveries from 1880s to 4.0 Seeps Features 2D Seismic Discoveries 40 1940s based upon surface Annual…
  9. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 9
    DEMONSTRATED VALUE CREATION THRU EXPLORATION EXPLORATION DRIVEN PRODUCTION GROWTH 2007-2014 exploration program Activity: 130 wells Geologic success rate: 70% Net 3P Reserves Adds: 218 MMBoe 3P Finding cost: 3.55 / Boe 2014…
  10. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 10
    DRIVERS FOR SUCCESS SAN JOAQUIN LAND & SEISMIC MAP EXPLORATION TEAM EXPERIENCE PROPRIETARY GEOLOGIC MODELS Shallow 4-way - Existing fields Deep 4-way exploration Largest land position in State Highly experienced team…
  11. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 11
    CONVENTIONAL EXPLORATION ASSETS Unparalleled portfolio of onshore US conventional exploration assets SAN JOAQUIN BASIN FIELDS & PLAY TYPES Significant value creation opportunity from deep inventory of near-field exploration…
  12. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 12
    CONVENTIONAL EXPLORATION PORTFOLIO EXPLORATION PORTFOLIO RISK vs RESOURCE Unparalleled exploration assets Material, low risk conventional onshore US exploration portfolio 125+ independent oil and gas prospects 10 key play trends…
  13. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 13
    RECENT 750 BOPD EXPLORATION SUCCESS Conventional reservoir in structural trap within CRC Operated field area Multiple, stacked deepwater sand reservoirs Reservoir interval 1 (deepest zone) 58 gross hydrocarbon bearing sand Peak…
  14. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 14
    SHALE RESOURCES 2,500 EXPLORATION SHALE RESERVOIR POTENTIAL Multiple, regionally extensive UPPER MONTEREY organic-rich shale reservoirs - 4,000 8,000 Exploration targets in Lower LOWER MONTEREY Monterey, Whepley, Kreyenhagen and…
  15. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 15
    SHALE RESOURCES Monterey Successful in upper Monterey using precise development approach Expanding efforts into lower Monterey and other shales Total Organic Depth Thickness Porosity Permeability Carbon Play (ft) (gross ft) (%) (mD)…
  16. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 16
    KREYENHAGEN RESERVOIR Vclay DlogR TOC HYDROCARBON MATURITY & TOC MAP Type IIs organic black Vaqueros 0 shale deposited in a Kr. Upper CORE restricted marine basin 100 TOC 2% Extensive, consistent 200 reservoir mapped…
  17. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 17
    KREYENHAGEN RESERVOIR PROPERTIES Reservoir properties key to storage capacity, Bed-limited fractures completion effectiveness & well drainage Average porosity 10% High quartz content CORE INTERVAL 50-80% by volume Through-…
  18. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 18
    PROVEN KREYENHAGEN RESERVOIR PRODUCTION Vclay DlogR ORIGINAL OIL IN PLACE & VERTICAL PRODUCERS MAP Production in 20 vertical Vaqueros wells from Kreyenhagen 0 Kr. Upper reservoir 100 30 Day IPs: 10-300+ BOPD 200 CRC…
  19. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 19
    KEY ELEMENTS OF SUCCESSFUL RESOURCE PLAYS CASHALES CA SHALES TOC & Thermal Maturity Hydrocarbon generation potential & type Reservoir Presence Hydrocarbon storage & repeatability & Extent Brittleness & Fractures Drainage…
  20. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 20
    EXPLORATION SUMMARY Material growth portfolio in an Sacramento Basin underexplored, world-class Dry gas & shale hydrocarbon province Proven value creation through exploration success San Joaquin Basin Heavy oil, light oil, dry gas…
  21. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 21
    NORTHERN OPERATIONS Robert Barnes EVP Northern Operations October 14, 2015
  22. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 22
    CRC NORTH KEY TAKEAWAYS World-Class Assets Great Reservoirs Base production surveillance is generating results Cost reduction with minimal impact on production Sustainable reduced costs and a culture of low cost operating…
  23. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 23
    CRC NORTH OPERATIONS AT GLANCE 8,098 active wells 6,919 producers 1,025 injection/disposal wells 79% production by beam pump Infrastructure Consolidated Control Facility 3 gas plants (CGP1, LTS1, LTS2) 520 MMCFD processing…
  24. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 24
    CRC NORTH WELL COUNT CRC - NORTHERN OPERATIONS ACTIVE WELL COUNT REPORT TOTAL PROD/INJ 7,944 Jun-2015 Beam ESP Flowing Prog Cavity Hydraulic Gas Lift Injection 5,454 184 958 188 79 56 1,025 Source: Weatherford, Company data…
  25. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 25
    CRC NORTH PERFORMANCE METRICS 2014Q4 2015Q1 2015Q2 Total Hours (MM) 3.0 1.7 1.5 Net Production (MBOEPD) 123.4 121.4 120.2 Oil (MBD) 66.7 66.5 66.0 Capital (MM) 372 90 50 Cash OPEX (MM) 163 153 144 Realized Price (/BOE) 50.97 34.61 39.44…
  26. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 26
    DEFENDING MARGINS BY MANAGING COSTS CRC NORTH COST TRENDS 25.00 20.00 28% Decrease 15.00 /BOE 10.00 5.00 - 2012 2013 2014 1H 2015 Surface Operations and Maintenance Downhole Maintenance Workovers/Well…
  27. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 27
    WELL SERVICING SCORECARD Waiting on Hoist Downtime 2,500 1,400 1,200 2,000 1,000 1,500 800 boepd boepd 1,000 600 400 500 200 0 0 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015…
  28. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 28
    WORLD-CLASS UPTIME WELLS, PLANTS AND INFRASTRUCTURE 100% 99% 98% 97% Proudction Uptime 96% 95% 94% 93% 92% 91% 90% 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 29 Analyst Presentation Day 2
  29. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 29
    WORKOVERS LOW CAPITAL, GREAT RETURNS CAPEX Incremental Rate Incremental Rate Payout ROR Description VCI 10 (MM) (BOPD) (BOEPD) (YRS) (%) 8 - Artificial Lift Upgrade 7.6 662 914 1.3 155 5.3 18 - Add Perfs CRC Workover Net…
  30. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 30
    DEFEND CRCS MARGINS CRC North Operated Areas H1 2015 Production and Operating Margins 1000 60 50 55% Oil Field Operating Margin (/BOE) 100 40 40% Oil Net Rate (MBOE/D) 30 100% Oil 10 35% Oil 20 100% Oil 95%…
  31. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 31
    ELK HILLS AREA AT A GLANCE 3,726 active wells 3,319 producers 407 injection/disposal wells 89% production by beam pump Infrastructure Consolidated Control Facility 3 gas plants (CGP1, LTS1, LTS2) 520 MMCFD processing capacity…
  32. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 32
    MAJOR GAS & POWER FACILITIES Largest gas plant complex in California CGP1 (200 MMSCFD) LTS1 (160 MMSCFD) LTS2 (160 MMSCFD) On Standby CGP1 Amine, GTU2 & GTU3 (CO2) Consolidated Control Facility (CCF) 550 Megawatt Power Plant…
  33. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 33
    CGP1 BENEFITS Cryogenic Gas Plant (CGP1) started up in mid-2012 Added 3,000 bpd of NGL production due to improved recovery Improved sales gas quality to consistently meet customer BTU and Dew Point specs Californias largest…
  34. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 34
    SAN JOAQUIN BASIN WEST TO EAST SEISMIC CROSS-SECTION SW NE San Andreas Fault System 5 miles Belgian Elk Hills Bowerbank North Kern Mount Anticline & Shafter Front Poso Midway Sunset Etchegoin Deep Marine Upper Monterey…
  35. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 35
    ELK HILLS MAJOR PRODUCING ZONES 6 Deep Expl. 36 Analyst Presentation Day 2
  36. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 36
    BUILDING LIFE OF FIELD PLANS ELK HILLS ELK HILLS FIELD DEVELOPMENT Multiple recovery mechanisms Primary 100,000 Waterflood Unconventional 80,000 Exploration Improved base decline 60,000 Discoveries Net BOEPD 15%/yr…
  37. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 37
    EFFECTIVE MANAGEMENT OF ELK HILLS OPERATING COSTS* Elk Hills Field Water-Oil Elk Hills Field - Opex Elk Hills Field - Opex, /boe Ratio (WOR) per Well 18.00 5,000 Opex, 15.0 160,000 16.46 /boe 136,00 16.00 Well 14.5 0 Counts 4,500…
  38. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 38
    GREATER ELK HILLS AREA RESERVOIRS 39 Analyst Presentation Day 2
  39. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 39
    PROGRESSING INVENTORY TO VCI THRESHOLD GEHA INVENTORY 2016 -2020 VCI = 1.0 VCI = 1.3 Plan Year 2016 to 2020 Plan Year 2016 to 2020 50 Oil, 3.00 Gas (3.50 Gas for = 2017) 50 Oil, 3.00 Gas (3.50 Gas for = 2017) Prod Drill Inj Drill Prod…
  40. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 40
    MT POSO REDEVELOPMENT Old steamfloods have hotplate heated Vedder generating drilling opportunities Expanding waterflood development from North part to the South area of the field 6 Recent wells (4 verticals and 2 horizontals) with…
  41. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 41
    PLEITO RANCH Discovery date: 1957 CRC Drilled 36 wells to date Formations: Santa Margarita and Chanac Complex Upturn Play Trap Depths: 9,000 15,100 MD WI = 100% and P1 NRI = 96% In place: 250 MMBO / Cum. Prod: 12 MMBO / 5% RF…
  42. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 42
    IMPROVED WATERFLOOD - BUENA VISTA 7,000 WF Base WF Dev Wedge 6,000 5,000 Oil Produciton Rate (BOPD) 4,000 3,000 2,000 Risked Potential of 6,000 BOPD 1,000 Assumes Increm. RF 7% - 2015 2017 2019 2021 2023 2025 2027…
  43. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 43
    CRC NORTH SUMMARY World-Class Assets Great Reservoirs Base production surveillance is generating results Cost reduction with minimal impact on production Sustainable reduced costs and a culture of low cost operating Expansive,…
  44. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 44
    THERMAL EOR OVERVIEW Past, Present and Future Victor Ziegler, Ph.D. Director Corporate Development October 14, 2015
  45. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 45
    THERMAL EOR OVERVIEW Provide an overview and update on the status of thermal enhanced oil recovery (TEOR) Discussion includes: Thermal Process Historical Overview Economic Barometer Future Opportunities 46 Analyst…
  46. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 46
    KEY THERMAL HIGHLIGHTS Steam injection is the most successful EOR process Up to 70% of the oil-in-place in a reservoir may be recovered by steamflooding Application of new technologies has enhanced steamflooding even in mature areas…
  47. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 47
    THERMAL EOR PROCESSES Source: Department of Energy Cyclic steam injection A three-step well stimulation process Used as a precursor and supplement to steamflood 48 Analyst Presentation Day 2
  48. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 48
    THERMAL EOR PROCESSES STEAMFLOOD Steamflood Source: Department of Energy Continuous steam injection into a pattern Rapid heating of the pattern area; steam over-rides oil column 49 Analyst Presentation Day 2
  49. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 49
    THERMAL EOR PROCESSES Source: Department of Energy In situ combustion Inject air, which reacts with the oil to generate high temperatures (1,000 F) Unstable process, which has poor reservoir sweep and oil recovery 50 Analyst…
  50. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 50
    HEAVY OIL RECOVERY EFFICIENCY Steam has larger target oil recovery Steamflood High Reserves Hot Waterflood Combustion Med Cyclic Steam Cold Waterflood Low Natural Depletion Low Med High Investment 51 Analyst…
  51. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 51
    U.S. THERMAL EOR (TEOR) Source: Oil and Gas Journal April 2014 Steam injection has been the most successful EOR process in the U.S. High prices have kept production flat for the last 10 years 52 Analyst Presentation Day 2
  52. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 52
    TYPICAL STEAMFLOOD FIELD Kern Front 53 Analyst Presentation Day 2
  53. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 53
    EFFECTIVE ENHANCED RECOVERY METHOD Long history with initial projects begun in the 1930s Implementation of multi-pattern pilots, however, did not begin until the 1950s Success of steam pilots minimized the use of air injection Price…
  54. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 54
    PRODUCTION REFLECTS PATTERN RESPONSE 95% of U.S. steamfloods are in Kern County, CA Typical steam pattern response stabilized plateau rate even though number of projects was decreasing 55 Analyst Presentation Day 2
  55. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 55
    KEY IMPROVEMENTS IN THERMAL PRACTICES Reservoir heat management 1986 price decline triggered advances in steamflood management SFR = 2.5 bs/mcf; SOR 5 bs/bo steam fuel costs 6/bo for 3/mcf Multi-reservoir steamflood development…
  56. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 56
    RESERVOIR HEAT MANAGEMENT Steamfloods are different than waterfloods waterfloods require a constant injection rate Reducing steam injection in mature patterns keeps steam in pattern area, minimizes steam production and provides…
  57. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 57
    MULTI-RESERVOIR STEAMFLOOD DEVELOPMENT Multiple zones may be developed either simultaneously or sequentially (bottoms-up order) Vertically expanding a steamflood pattern to an overlying reservoir greatly extends the productive…
  58. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 58
    MULTI-RESERVOIR STEAMFLOOD RATE PROFILE Initial Steamflood Cyclic Steam Vertical Expansion Steamfloods 9-pattern project at Kern Front Initial steamflood was into Etchegoin sand in 1991 Vertical expansion steamfloods were…
  59. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 59
    CALIFORNIA SERVES AS TRAINING GROUND Source: Oil and Gas Journal April 2014 Thermal EOR accounts for 1.2 Mmbopd of world-wide oil production Venezuela and Canada are the two largest TEOR producers The US is the third largest TEOR…
  60. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 60
    MAIN ECONOMIC BAROMETER Brent / Henry Hub Ratio 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 Ratio Economic Limit Even with recent price drop, TEOR remains attractive investment with oil/gas ratio 5x (currently…
  61. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 61
    REGULATORY FOCUS FOR THERMAL IN CA Fresh water use, under drought conditions CRC is a net supplier of water to agriculture CRC provides more treated, reclaimed water from TEOR operations than the amount of fresh water we purchase…
  62. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 62
    STEAMFLOOD INNOVATIONS Source: GlassPoint Source: IPTC 17407 Enclosed parabolic solar troughs to pre-heat feedwater or generate steam Permanently buried seismic sources and receivers to provide daily images of the movement of a…
  63. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 63
    FUTURE OPPORTUNITIES NEW RESERVOIRS Heavy oil sand Majority of known heavy oil sands are already developed Carbonates, diatomite and siliceous shale reservoirs containing both light and heavy oils are the next targets 64…
  64. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 64
    POTENTIAL RECOVERY MECHANISMS Capillary imbibition Viscosity reduction Thermal expansion Viscosity reduction is the primary recovery mechanism In fractured reservoirs, low matrix permeability means heat transfer is…
  65. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 65
    KEY THERMAL HIGHLIGHTS Steam injection contributes over 1 million bopd worldwide Up to 70% of the oil-in-place in a reservoir may be recovered by steamflooding Reservoir heat management and multi-zone development have enhanced…
  66. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 66
    THERMAL OPERATIONS - STEAMFLOODING Jeff Hatlen Chief Reservoir Engineer Thermal Operations October 14, 2015
  67. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 67
    KEY STEAMFLOOD TAKE-AWAYS Up-front Investment Strong Margins Stable/Long-Lived Declines Strong Backside Cash Flow Creates Real Value 68 Analyst Presentation Day 2
  68. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 68
    INTRODUCTION TO STEAMFLOODING Steamfloods have a life cycle Immature High injection rate Steam Steam build-out Breakthrough Mature Oil drainage Heat cuts Strong cash flow Oil Steamfloods follow a path Primary production…
  69. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 69
    STEAMFLOOD TARGETS Our reservoirs are like a layer cake of sandstone and clay Each sandstone layer is important To achieve the highest cash margins, we need to control each layer Understanding how steam moves through these layers…
  70. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 70
    STEAM MOVEMENT AND IMPACT Oil & Water Oil & Water Steam Injection Start of steam injection Effluent Steam breakthrough Steam Heat management 71 Analyst Presentation Day 2
  71. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 71
    STEAMFLOODING: PATTERN DEVELOPMENTS OVER MULTIPLE YEARS Patterns are the Fundamental Building Blocks Production well 2014 2016 2015 Injection well 5-spot Pattern Displacement Project Field Development Typical 5 acres…
  72. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 72
    THERMAL PROCESS : PATTERN LIFE CYCLE Ramp-up Peak Mature Steam Injection Rate Facilities Established Maximum Oil Rate Stable Oil Decline Maximize injection Steam Breakthrough Injection Reduction 6mo 2+ yrs 73 Analyst…
  73. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 73
    KERN FRONT STACKED INTERVALS 74 Analyst Presentation Day 2
  74. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 74
    STEAMFLOOD SURVEILLANCE 75 Analyst Presentation Day 2
  75. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 75
    STEAM MANAGEMENT 76 Analyst Presentation Day 2
  76. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 76
    STEAMFLOOD LEARNINGS Kern Front 77 Analyst Presentation Day 2
  77. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 77
    LOST HILLS ADDITIONAL OPPORTUNITIES Cold Oil Short Circuiting Layer Cold Oil Previous Operator Pattern Group 78 Analyst Presentation Day 2
  78. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 78
    MULTI-YEAR OF INVENTORY OF PATTERNS Lost Hills Kern Front 79 Analyst Presentation Day 2
  79. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 79
    DEEP INVENTORY FUELS THERMAL GROWTH 2011-2020 Thermal Operations Production 30,000 25,000 20,000 Net BOEPD 15,000 10,000 5,000 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Kern Front Lost Hills…
  80. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 80
    ROBUST MARGINS DESPITE LOW PRICES 2015 Thermal Operations Op. Margin as % of Oil Price 100% 70 60 57 55 Operating Margin as % of Oil Price 75% 50 47 47 47 42 42 41 40 50% 30 58% 58% 20 25% 49% 48% 41% 43% 44%…
  81. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 81
    STRONG BACKSIDE CASH FLOW CREATES REAL VALUE Positive Cash 0 Representative example; based on CRC estimates. Kern Front Field Example 82 Analyst Presentation Day 2
  82. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 82
    KEY STEAMFLOOD TAKE-AWAYS Up-front Investment Strong Margins Stable/Long-Lived Declines Strong Backside Cash Flow Creates Real Value 83 Analyst Presentation Day 2
  83. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 83
    CALIFORNIA RESOURCES CORPORATION APPENDIX 84 Analyst Presentation Day 2
  84. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 84
    Non-GAAP Reconciliation for Adjusted EBITDAX For the For the Six Second Quarter Months Ended Full Ended June 30, June 30, Year ( in millions) 2015 2014 2015 2014 2014 Net Income/(loss) (68) 246 (168) 469 (1,434) Interest expense…
  85. Analyst Day and Site Tour - Bakersfield – California Resources Corp. – slide 85
    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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