Skip to main content Johnson Rice & Company Energy Conference – California Resources Corp. Investor Presentation | Shale Experts
Loading...
Pm

Johnson Rice & Company Energy Conference – California Resources Corp.

California Resources Corp. · Sep 22, 2016 · 36 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. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 1
    Johnson Rice & Company 2016 Energy Conference Scott Espenshade VP - Investor Relations New Orleans, LA September 20-22, 2016
  2. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 2
    CRCs Large Resource Base with Advantaged Infrastructure World-Class Resource Base Sacramento Basin Operate in 4 of 12 largest fields in the 14 MMBoe Proved Reserves continental U.S. 6 MBoe/d production 644 MMBoe proved reserves…
  3. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 3
    Diverse Assets with Flexible Development Opportunities 2015 Net Proved Reserves (MMBoe) 644 Diversity of basins, drive mechanisms 2015 % Oil Net Proved1 72% Pre-Tax Proved PV-10 ( billion)2 5.1 Predictable production, low decline…
  4. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 4
    2016 Strategic Focus Protect the Base Defend our Margins Deleverage the Balance Sheet for Flexibility Prepare for Change in Cycle 6 JRCO 2016
  5. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 5
    History of Proactive Strategic Decisions Swift, decisive actions have positioned company through the commodity downturn. Proactive discussions with lenders and solid asset base provide line of sight to a recovery and an actionable…
  6. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 6
    Low Decline Asset Base Requires Low Levels of D&C* Capital Production By Stream (MBoe/d) Down Rich asset portfolio and thoughtful capital 12-14% With allocation deliver high margin production and 160 MBoe/d Only 25MM 159 MBoe/d…
  7. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 7
    Asset Base Preserves Value Based on 7/1/2016 proved reserve report run* Strip prices as of 7/22/2016 No capital invested beyond proved developed reserves No value included for non-proved or non-borrowing base assets Total Proved…
  8. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 8
    NAV1 Well in Excess of Market Value 20,000 18,000 16,000 14,000 12,000 (MM) Resource Inventory2 10,000 8,000 Proved Value 6,000 PDP Value Current EV of 5.9 Bn4 4,000 Land & 2,000 Infrastructure3 0 Strip Price…
  9. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 9
    Capital Allocation Strategies with Improving Strip Investment balanced against deleveraging Base Case Pricing* opportunities with goal of high single-digit production growth Existing Core Areas Focus on 2-3 Growth Areas Elk Hills…
  10. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 10
    Reduced Debt by Over 1.4 Billion to Date Total Debt 7,000 100 94 90 6,000 80 5,000 70 Total Debt (MM) 64 Brent Oil (/Bbl) 55 60 4,000 51 47 47 50 45 3,000 35 40 2,000 30 20 1,000 10 0 0 10/1/14 3/31/15…
  11. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 11
    Significant Debt Reduction From Post-Spin Peak Executed on best available deleveraging options with lowest persistent cost to the income statement and on a per share basis 7,000 6,000 Total Debt ( MM) 6,765* 5,000 5,315…
  12. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 12
    Living within Cash Flow Plus Additional Liquidity 1,400 1,200 Revolver Availability 11 1,000 800 Revolver Availability 11 (MM) 600 Credit Amendment CapEx 23 HSE Capital Investment HSE Capital Investment 400 Term Loan…
  13. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 13
    Sophisticated Well Surveillance Enhances Base Continued Improvement in Downtime Since Spin 9,000 8,000 7,000 6,000 Gross B/d 5,000 4,000 3,000 2,000 1,000 0 Well Servicing Surface Reservoir Drilling 15…
  14. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 14
    16 Rig Count 0 10 20 40 50 60 30 JRCO 2016 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Workover rigs Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Drilling rigs Jan-16…
  15. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 15
    Continued Operating Cost Reductions and Efficiencies Defend Margins Down 2.09/Boe 18.00 Or 13% decrease 2015 Avg: 16.30 16.00 1H 2016 Avg: 14.21 14.00 Production Costs (/Boe) 12.00 10.00 8.00 6.00 4.00 2.00 - 1Q…
  16. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 16
    San Joaquin Basin Overview Basin Map Oil and gas discovered in the late 1800s Accounts for 69% of CRC production Kettleman 25 billion barrels OOIP in CRC fields1 Cretaceous to Pleistocene sedimentary section (25,000 feet) Lost…
  17. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 17
    Elk Hills - Resilient Asset Base 90 1,200 80 Pre Spin-off CRC 1,000 70 Net Development Capital (MM) Total Production (MBoe/d) 60 800 50 600 40 30 400 20 200 10 0 0 2010 2011 2012 2013 2014 2015 1H 2016 Net…
  18. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 18
    Effective Management of Elk Hills Field Operating Costs Elk Hills Field Water-Oil Elk Hills Field - Opex per Elk Hills Field - Opex, /Boe Ratio (WOR) Well 18.00 5,000 16.46 Opex, /boe 16 160,000 16.00 Well Counts 136,000 14.31…
  19. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 19
    Elk Hills Adjacent Field: Buena Vista Field Development Effective Production Management TVD Current net production of 10,000 Boe/d (no rigs since 2014) 2500 Surveillance with modern tools Daily exception reports/weekly pattern…
  20. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 20
    Value Chain Progress: Building Inventory Across 137 Fields Legacy Field Review - Paloma Technical reevaluation doubled OOIP estimate Analog field performance Applying new technology and thinking Kern Front to generate new…
  21. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 21
    Progressing Inventory to VCI Threshold 7,000 Economic Project Inventory 6,000 5,000 Drilling and Workover Capex (MM) 4,000 VCI 1.0 3,000 VCI 1.3 2,000 1,000 0 2015 2016 2015 2016 2015 2016 40 50 60 Brent Marker…
  22. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 22
    Elk Hills Analog: Kettleman North Dome Rio Lobo OOIP of 4 billion barrels, 14,000 Acres (2 mi. seismic survey wide, 15 mi. long) 1000s of feet of stacked pay KNDU Light oil API 36o Field Boundary WI=100% and NRI=80% in KNDU Lost…
  23. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 23
    Poised to Take Advantage of a Commodity Price Recovery World-Class Resource Base: Sacramento Basin 14 MMBoe Proved Reserves 6 MBoe/d production Large inventory of assets across basins and drive mechanisms that provide strong returns…
  24. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 24
    California Resources Corporation Appendix 26 JRCO 2016
  25. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 25
    Continued Progress on Balance Sheet Pro forma as of 6/30/16 to reflect the term loan Deleveraging is a priority, over 1.4 billion transactions and the tender offers (MM) decrease to date from post-spin peak. 1st Lien Secured RCF1 821…
  26. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 26
    Opportunistically Built Oil Hedge Portfolio* Q3 Q4 Q1 Q2 Q3 Q4 1Q 2Q 3Q 4Q 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 Calls Barrels per Day 19,000 25,000 12,100 5,000 10,000 15,000 24,500 21,400 20,000 20,000 Wtd Avg Ceiling…
  27. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 27
    CRC - Leading California Producer California Pure-Play Top California Producers in 2015* 200 196 An independent E&P company spun off by 180 161 Occidental 160 Gross Operated Mboe/d 134 140 Focused on high-return assets in…
  28. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 28
    Elk Hills Area - Overview Overview Field Map CRCs flagship asset, a 100 year-old field with exploration opportunities RR Gap Large fee property with multiple stacked reservoirs Light oil from conventional and unconventional…
  29. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 29
    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…
  30. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 30
    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) 1H…
  31. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 31
    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…
  32. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 32
    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…
  33. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 33
    Large in Place Volumes with Significant Upside for CRC Recovery Factors for Discovered Fields In place volumes of 40 billion Boe at Billion Boe low recovery factor (22%) to date 45 Conventional value chain approach 40 to life of field…
  34. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 34
    A Net Water Supplier 3% 3% WATER MANAGED IN CRCs OPERATIONS Produced Water Fresh Water Non-Fresh Water In 2015, CRCs steamflood operations supplied more than 2.6 billion gallons over 8,100 acre-feet of water for irrigation…
  35. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 35
    Non-GAAP Reconciliation for Adjusted EBITDAX For the For the Second Quarter Six Months Ended June 30, Ended June 30, ( in millions) 2016 2015 2016 2015 Net loss (140) (68) (190) (168) Interest and debt expense 74 83 148 162…
  36. Johnson Rice & Company Energy Conference – California Resources Corp. – slide 36
    Non-GAAP Reconciliation for PV-10 At December ( in millions) 31, 2015 PV-10 of Proved Reserves 5,059 Present value of future income taxes discounted at (1,035) 10% Standardized Measure of Discounted Future Net 4,024 Cash…

From the store

Browse maps, data & reports in the Shale Experts store