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CRC 2017 Analyst and Investor Day – California Resources Corp.

California Resources Corp. · Mar 22, 2017 · 100 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. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 1
    CRC 2017 Analyst & Investor Day March 22, 2017 Bakersfield, California
  2. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 2
    2017 CRC Analyst & Investor Day Overview Todd Stevens CRC Strategy and Investment Opportunity Bob Barnes Operations Overview Shawn Kerns Growth and Life of Field Plans Darren Williams Exploration Francisco Leon Portfolio…
  3. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 3
    CRC STRATEGY & INVESTMENT OPPORTUNITY CRC 2017 Analyst & Investor Day Todd Stevens President & CEO March 22, 2017
  4. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 4
    Portfolio Built For Any Price Environment Key Messages of the Day 1. World Class Assets Bull Market Undervalued Significant Inventory Resilient Model Demonstrated Optionality 2. Focused on Value 3. Poised to Grow Oil Price…
  5. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 5
    Strategy at a Glance Short-Term Long-Term Value Directed Investments Protect Base Production Defend Margins Live within Cash Flow Value Smart Growth (per share) Focus Live within Cash Flow Targeting Balance Sheet…
  6. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 6
    Value Proposition Multiple Ways to Increase Valuation Positioned to move Disciplined Portfolio Leads to EBITDAX from Defense to Management Growth Offense Joint Ventures Increasing Investments and Rigs Deployed Opportunistic…
  7. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 7
    Largest California Producer with Deep Regional Insight Top California Producers in 2016*…
  8. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 8
    Benefits of the Spin: Focus Led to Improvements Entrepreneurial culture Disciplined capital allocation through portfolio management Principal drivers: o Maximize long-term value VCI 1.3 o Financial discipline self-funding…
  9. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 9
    Post-Spin Transformation Culture Silo / Separate One CRC CRC Regulatory Engagement Reactive Proactive Focus Employee Engagement Low High Debt 7BN 4BN Financial Capital Efficiency Low High Priorities Annual Production Costs…
  10. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 10
    California Operator of Choice Proven coexistence with sensitive environmental receptors 4 billion gallons of water supplied to agriculture in 2016 Excellence in safety and mechanical integrity Recognized by national safety and…
  11. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 11
    Focus on Life of Fields 6,000 5,000 Steamflood Waterflood Primary Unconventional Drilling and Workover Capex (MM) 4,000 Gas 75 MMBOE VCI 3,000 50 25 2,000 Opportunities for further 1,000 improvement through…
  12. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 12
    Creeping Back to Mid-Cycle Pricing WTI Daily Price Frequency Conventional/Pre-Shale New Normal Tight Spare Capacity; Political Premiums Frequency (Days) WTI /Bbl Source: Bloomberg 13 2017 CRC Analyst Day
  13. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 13
    Capital Allocation Strategies at Various Brent Oil Prices Priorities: VCI and payback (Liquidity) Mix between steam floods (highest VCI); quick payout workovers; Up to Wilmington (low capital intensity); opportunistically capture…
  14. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 14
    Capital Investment Program Living within Cash Flow Moving from Defense to Offense CRC 2017 capital plan of 300 million before JV funding will be directed to oil-weighted projects in our core fields: Elk Hills, Wilmington, Kern Front,…
  15. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 15
    Portfolio Flexibility Provides Range of Crude Oil Scenarios Estimated Crude Oil Production Outcomes 160 Oil Production MB/d 140 Combined with improving and stabilizing 120 commodity prices, we are positioned for 100 Portfolio…
  16. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 16
    The Case for CRC: Investment Thesis Overview Investment Case for CRC Competitive Advantages World-class assets with Resilient model that Focused on value Operational Grow within Industry leading Integrated and significant inventory…
  17. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 17
    OPERATIONS OVERVIEW CRC 2017 Analyst & Investor Day Bob Barnes EVP Operations
  18. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 18
    CRCs Large Resource Base with Advantaged Infrastructure World-Class Resource Base Operate in 4 of 12 largest fields in the continental U.S. Sacramento Basin 11 MMBOE Proved Reserves 568 MMBOE proved reserves 6 MBOE/d production 140…
  19. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 19
    San Joaquin Basin An American Super Basin Overview Basin Map Oil and gas discovered in the late 1800s 70% of CRC production is from San Joaquin Basin Cretaceous to Pleistocene sedimentary section (25,000 feet) Source rocks are…
  20. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 20
    Elk Hills Area CRCs Flagship Asset Overview Field Map CRCs flagship, a 100 year-old field with exploration opportunities Light oil from conventional and unconventional production Largest gas and NGL producing field in California, one…
  21. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 21
    Elk Hills Area Reservoir Stacks on Stacks 14Z Northwest Stevens Goliath 31S Structure EH-Shallow Oil Zone TULARE SHALLOW SANDS Carneros Sands A1-A6 Sands T Sands 26R Sands Western SOZ: T&N Sands D Shales NA&B Shales Bittium Sands…
  22. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 22
    Elk Hills Area Shale WSOZ FIELD MAP Overview Shale Field Map Formation: Monterey 2,500 to 13,000 average measured depth…
  23. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 23
    Driving Costs Down Elk Hills Field Operating Costs* ElkElk Hills Field Hills FieldWater-Oil Water-OilRatio (WOR) Ratio (WOR) Elk ElkHills HillsField Field- OPEX OPEXper per Well Well ElkHills Elk Hills Field Field OPEX,…
  24. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 24
    Integrated Infrastructure Provides Operational Control and Improved Margins Consolidated Control Facility (CCF) Largest gas plant complex in California CGP1 (200 MMSCFD) LTS1 (160 MMSCFD) LTS2 (160 MMSCFD) CGP1 Amine, GTU2 & GTU3…
  25. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 25
    Coles Levee New Portfolio Entrant: Leveraging Infrastructure Synergies Overview Field Map Acquired by CRC in December 2015 Operations consolidated in January 2016 60% staffing reduction Coles Levee gas plant shut down in December…
  26. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 26
    Buena Vista - Overview Overview 1C Compressor Site Discovery Date: 1910 Formation: Etchegoin sand and Monterey shale 2,000 to 6,000 average MD 25-34 API gravity FY 2016 production of 8 MBOE/d 280 active producers, 72 active…
  27. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 27
    Buena Vista Nose Conventional: Development of Exploration Success FIELDMAP Overview BV Nose Primary Potential Development Discovery Date: 2012 Formation: Stevens Sandstone, Turbidities/Deep Marine 10,000 average True Vertical Depth…
  28. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 28
    Kettleman North Dome Delineating this Elk Hills Analog for Future Growth KETTLEMAN NORTH DOME MAP Overview Faulted 4-way anticline with multiple stacked oil and gas reservoirs Discovery date: 1928 Area: 14,000 acres (22 sq. miles) 2…
  29. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 29
    Los Angeles Basin Kitchen is the Entire Basin Overview Basin Map World-class hydrocarbon-rich sedimentary basin with large quantities of stacked pay 10 billion barrels OOIP in CRC fields Kitchen is the entire basin, hydrocarbons did…
  30. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 30
    Wilmington World-Class Waterflood Overview Field Map Large, well-defined pay zones in 7 major stacked turbidite sandstone reservoirs High quality, prolific sands drive productive wells and bypassed-pay opportunities Deep understanding…
  31. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 31
    Ventura Basin Birthplace of the California Oil Industry Overview Field Map Prolific basin with a long history, including the first commercial oil well in California 8 billion barrels OOIP in CRC fields1 Operate 26 fields (over half…
  32. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 32
    Sacramento Basin Significant Gas Optionality 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,…
  33. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 33
    Defending Margins by Managing Costs CRC CRCCOST COSTTRENDS TRENDS 20.00 16.00 12.00 /BOE 8.00 4.00 - 2014 2015 2016 Surface Operations/Maintenance Downhole Maintenance/Workovers Supports Purchased…
  34. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 34
    Well Maintenance Scorecard Developed and implemented standardized process for well Well Well Servicing Servicing Downtime Downtime maintenance operations 8,000 Automated scheduling Gross BOE/d 6,000 Standardized economic…
  35. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 35
    Redesigning Wells and Finding Efficiencies 2016 program achieved 23% lower well costs compared to prior similar wells Efficiency drivers: 2016 Drilling Savings Rig costs Rig optimization and day work rate reduction 100% 4% Logging…
  36. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 36
    CRC Drives California Rig Count Activity California rig count has averaged 30 rigs over the past decade CRC assets have accounted for approximately half of the activity Excess capacity in the California service and supply sector…
  37. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 37
    Deep Inventory of Actionable Projects Portfolio Spectrum 50 Growth portfolio focus, 45 fully burdened All projects meet VCI 1.3 40 threshold at 65 Brent Steamflood Full Cycle Cost (/BOE) and 3.50 NYMEX, and 35 Waterflood…
  38. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 38
    Low-Cost Capital Workovers Deliver Big Value and Volumes 2016 FY 2016 FY 2017 2016 Pre-Tax CRC WORKOVER EXIT RATE AVERAGE AVERAGE JOB COUNT CAPITAL NPV-10* VCI* PROGRAM Net MBOE/d Net MBOE/d Net MBOE/d MM MM 2.0 0.5 2.6 133 17 83…
  39. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 39
    Resilient Resource Base Highly Capital Efficient ProductionBy Production By Stream Stream (MBOE/d) (MBOE/d) 180 600 160 MBOE/d 160 159 MBOE/d 500 140 MBOE/d 140 120 400 100 104 MBbl/d MBOE/d 99 MBbl/d MM 91…
  40. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 40
    GROWTH AND LIFE OF FIELD PLANS CRC 2017 Analyst & Investor Day Shawn Kerns EVP Corporate Development
  41. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 41
    Large in Place Volumes with Significant Upside OOIP (Billions of OOIP BOE)&&Recovery Recovery Factor to date 50 135 fields across 4 major basins 45 40 In place volumes of 44 Billion BOE at low recovery factor (22%) to date…
  42. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 42
    Substantial Resource Base 5 Largest CRC Fields Numerous large scale fields in CRC portfolio 10 Billon 10 Presence in all four key basins 8.0 Billion 7.5 Billion High confidence in development 7.2 Billion 3D seismic and…
  43. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 43
    Stacked Reservoirs Lead to Multiple…
  44. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 44
    Life of Field Plans Growing Inventory 3P Resource Growth Comprehensive technical review of 40% CRC field areas 2,000 1,750 Updated Geologic models, OOIP 1,500 Teams shared analog experience across 1,250 826 CRC 250%New…
  45. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 45
    Analog Expertise Leads to Development Success CRC fields get bigger Multiple recovery mechanisms Stacked pay Elk Hills New pools discovered Elk Hills paved way for many ELK ELK HILLS HILLS learnings Buena 100,000 Vista Early…
  46. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 46
    Buena Vista Hills Growth Potential Buena Vista - Redevelopment Growth Focus Area for CRC Three separate structures of stacked pay Elk 2nd largest CRC field by OOIP Hills 20 square miles of potential Buena Vista Operations Only…
  47. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 47
    Buena Vista Nose Field Extension FIELDMAP New Pool Discovery Buena Vista - Extension Conventional reservoir 10,000 depth Stratigraphic trap hidden since 1939 9 wells penetrated, never recognized 3D seismic tie-in with Elk Hills BV…
  48. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 48
    Kettleman Field Area Field Discovered 1928 Analogous reservoir sequence to Elk Hills 4+ billion barrels in place 7 major stacked pay zones Low recovery factors Technical Life of Field Plan Completed 200 square mile 3D seismic…
  49. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 49
    Kettleman Growth Program Multiple Growth Targets Key Growth Opportunities Appraisal Program o Analog to Elk Hills and San o Pool Extensions and Underdeveloped Fault o IPs as high as 300 500 BOE/d Joaquin valley properties Blocks o…
  50. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 50
    Track Record of Implementing Growth Plans Unconventional Shale Unconventional Shale Conventional Primary Conventional Primary Buena VistaVista Buena Pleito Ranch Pleito Life of field plans developed by 10.0 5.0 technical…
  51. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 51
    Diverse Assets with Flexible Development Opportunities World-class resource base that is positioned to grow Utilizing current costs, a flat 55 Brent deck1, PV-102 of proved reserves of 5.4 BN or 9.7 BN3 for proved, probable and possible…
  52. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 52
    Life of Field Plans Result in Economic Inventory Total LOF Actionable Near Term Growth Economic Inventory Years of Economic Inventory1 Producer Drill Count by Price Scenario 8,000 Rigs/YR 55 65 75 7,000 4 51 6,000 6 34 5,000…
  53. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 53
    Joint Venture with Benefit Street Partners Highlights San Joaquin Basin Map Up to 250 MM over 2 years Initial 50 MM tranche Kettleman Focus will start in San Joaquin Basin Elk Hills, Kettleman and Buena Vista Lost Hills…
  54. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 54
    EXPLORATION CRC 2017 Analyst & Investor Day Darren Williams EVP Exploration
  55. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 55
    Conventional Exploration Play Concepts Structural Plays Underexplored hydrocarbon basins SHALLOW 20 TULARE SANDS Large, structural play trends with multiple stacked reservoirs World-Class source rocks Proprietary geologic models…
  56. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 56
    Proven Value Creation Through Exploration Exploration Driven Production Growth Conventional exploration program focused on 30,000 discovery of high value resources that high-grade Gross Production (BOE/d) 25,000 CRC development…
  57. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 57
    Competitive Advantage Drives Success Technical capabilities Largest 3-D Seismic Position in California Proprietary geologic models and knowledge Operating experience and optimization from offset field developments Stable leasehold…
  58. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 58
    Exploration Portfolio Doubled SHALLOW TULARE 2 BBOE 20 SANDS Net Unrisked Resource 40 ETCHEGOIN 2,500 6,000 SANDS 5,650 Potential Net Unrisked Resource Potential (MMBOE) 5,000 150 Prospects 2,000 4,800 In Proven…
  59. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 59
    Deep Inventory of Projects With Demonstrated Success SAN JOAQUIN BASIN SAN JOAQUIN BASIN SAN JOAQUIN BASIN VENTURA BASIN STRUCTURAL PLAYS STRATIGRAPHIC PLAYS SEISMIC DRIVEN PLAYS STACKED SAND PLAYS NET UNRISKED RESOURCE 170 MMBOE…
  60. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 60
    Exploration Activity Sacramento Basin Gas Prospect CRC Exploration Program 50+ square mile (32,000 acres) 4-way closure with stacked reservoir potential, mappable at surface and on proprietary 2D seismic Conventional Deeper Primary…
  61. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 61
    California Resource Play Opportunity TULARE Reservoir 4,000-5,000 20 SANDS SHALLOW Proven source rocks in Lower Monterey, Kreyenhagen and Moreno with Stacked Wet Gas and Oil Column 40 ETCHEGOIN stacked reservoir potential…
  62. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 62
    Deliberate and Staged Kreyenhagen Reservoir Evaluation Utilizing field development activities at CRC-Operated Kreyenhagen Play Fairway and Producing Wells Kettleman North Dome field Key resource play elements confirmed in Kreyenhagen…
  63. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 63
    Material Growth Opportunity Underexplored, world-class hydrocarbon province Proven value creation and organic growth through exploration success Unparalleled portfolio of onshore U.S. conventional exploration assets Significant…
  64. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 64
    PORTFOLIO MODELING CRC 2017 Analyst & Investor Day Francisco Leon VP Portfolio Management & Strategic Planning
  65. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 65
    Capital Allocation Decisions 135 Fields 4 Producing Basins 100+ Producing Horizons LIFE OF FIELD PLANS Steamflood Waterflood Primary Shale Gas CASH FLOW EBITDAX VCI INVESTMENT PROGRAM 66 2017 CRC Analyst Day
  66. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 66
    Example Life Cycle of Well Bore with Stacked Reservoirs Overall Wellbore Economics Workovers enhance life of wellbores VCI = 2.8 Capital = 2.1 MM VCI = 7.3 4 Convert to WF Injector (select wells) Capital = 150K VCI = 5.2 3…
  67. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 67
    Multiple Recovery Methods with High Value Creation Steamfloods Waterfloods Primary Shales Gas 4.0 3.0 VCI 2.0 1.0 0.0 Kern Front Buena Vista Bardsdale Asphalto Grimes Lost Hills Elk Hills Buena Vista Nose Buena Vista…
  68. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 68
    High Cash Margins by Mechanism Type* 100% 60 55 56 53 80% 47 Realized Price /BOE 40 60% 36 % Oil 40% 21 20 as % of Brent cash margin 20% 35% 37% 50% 28% 10% 35% 0 0% Steamflood Waterflood Primary Shales Gas…
  69. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 69
    California is an Energy Island Top Waterborne by Source (Kbpd) Saudi Arabia 311 Ecuador 195 Alaska North Slope 194 Colombia 119 Kuwait 96 API Weighted Average California 18 CAPTIVE CRC 23 MARKET Waterborne Imports 30 CA…
  70. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 70
    California Natural Gas Market CRC produces 183,500 Mcf/d (3% of CA demand) Canada Ability to service markets throughout CA as well as others 80% sold to Southern CA markets via SoCal Gas, Kern, Mojave 20% sold to Northern CA market…
  71. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 71
    CRC Price Realizations Oil Price Realization Gas Price Realization 120 WTI Realizations Brent NYMEX Realizations 110 108.76 5.00 4.39 104.16 4.50 100 99.51 4.00 3.73 90 97.97 93.00 4.34 92.30 3.50 80 3.66 3.00 2.75 /Bbl 70…
  72. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 72
    Near Term Growth Plan Opportunities Total LOF Actionable Near Term Growth Steamflood Waterflood Primary 750 600 900 15,125 Total Net Producer Locations 1,690 2,300 Near Term Growth Projects 550 550 2,500 Additional Actionable…
  73. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 73
    Steamfloods Overview 20 TULARE SHALLOW SANDS Steam injection contributes to over 1.2 MMBO/d of production worldwide ETCHEGOIN 40 SANDS Thermal techniques account for over 40% of US EOR production; 95% of these are in…
  74. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 74
    Steamflood Single Pattern Mechanics Up-front steam costs scale Injection Well Production with gas price Well Steam Generator Ramp-Up Peak Mature Steam Injection Rate Oil and Water Steam and Hot Oil Zone near original…
  75. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 75
    Greenfield Steamflood Type Pattern 100 Kern Front Actuals 75 N. Antelope Lost Hills Hills Kern Front McDonald Composite Anticline NYMEX Type Curve Midway 50 McKittrick VCI 3.5 3 2.5 Sunset 55 1.3 1.4 1.5 25 65 1.9 2.0…
  76. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 76
    Waterflood Overview 20 TULARE Water-flooding techniques are the most commonly used EOR production methods SHALLOW SANDS 40 ETCHEGOIN SANDS 20 40% of the oil-in-place can be recovered The oil rate decline for waterfloods is…
  77. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 77
    Waterflood Single Pattern Mechanics Fill Up Recovery Redevelopment Injection Rate Injection Rate Oil Rate Oil Rate Establish Facilities & Reservoir Expected Water Rate High initial rates targeting Fill-up / Plateau…
  78. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 78
    Waterflood New Pattern Composite Type Well 60 Kettleman Mount Poso Actuals Mount Poso 45 Buena Vista Actuals Elk Hills Paloma Buena Vista EUR 30 VCI 165 190 215 55 1.6 1.9 2.1 Composite Rincon South Mountain Type Curve 15…
  79. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 79
    Waterflood Redevelopment Type Well 160 Huntington Beach Actuals 120 Elk Hills EUR 80 Composite Type well VCI 140 165 190 East Wilmington Actuals San Miguelito 55 1.4 1.6 1.9 West Wilmington Actuals 40 Huntington 65 1.9…
  80. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 80
    Deeper Horizons Primary Overview TULARE 20 CRC has experienced repeatable success in deeper (10,000 ft.) producing horizons and projects with high IPs SHALLOW SANDS 40 ETCHEGOIN SANDS Generally characterized by sandstones…
  81. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 81
    Primary Type Well Deeper Horizons 900 Kettleman 750 BV Nose Actuals Elk Hills Paloma 600 Bardsdale BV Nose Rio Viejo Actuals Yowlumne Wheeler Ridge EUR 450 Pleito Ranch VCI 400 430 460 Pleito Ranch Bardsdale 55 1.7 1.8…
  82. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 82
    California Shale Overview 20 TULARE Upper Monterey Shale Reservoirs (Infill): naturally fractured, low permeability reservoirs. Produce from conventional structural and stratigraphic traps containing hydrocarbons migrated from source…
  83. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 83
    California Shale Type Well 500 Kettleman Rose 400 N. Shafter Elk Hills (2001-2003) Elk Hills Railroad Gap Asphalto 300 New Pool Type Curve Buena Vista Gunslinger VCI Infill New Pool Gunslinger Actuals 200 Rose/N.…
  84. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 84
    Sacramento Basin Gas Overview 20 TULARE CRC is the largest gas producer in California SHALLOW SANDS 40 ETCHEGOIN SANDS Operates 85% of the gas production in the Sacramento Basin Gas production is a natural hedge to rising…
  85. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 85
    Investment Allocation through the Commodity Cycle Bull Market Invest to accelerate production growth and explore/pilot new resources Add facilities (steam and water handling) to support pace of growth Cash generation is high VCI…
  86. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 86
    Dynamic Portfolio Provides Flexibility Higher Oil to Gas Price Ratio Lower Oil to Gas Price Ratio 100% Gas 75% Unconventional Portfolio Mix Primary 50% Waterflood 25% Steamflood Workover 0% 800 800 800 600 600 600…
  87. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 87
    STRENGTHENING THE BALANCE SHEET CRC 2017 Analyst & Investor Day Mark Smith Sr. EVP & CFO
  88. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 88
    History of Proactive Strategic Decisions Swift, decisive actions have positioned the company for growth through the commodity downturn. Proactive discussions with lenders and solid asset base provide line of sight to a recovery and an…
  89. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 89
    Significant Debt Reduction from Post-Spin Peak Chose options to maximize deleveraging and minimize recurring cost to the income statement on a per share basis 7,000 Total Debt ( MM) 6,000 6,765(1) 5,000 5,268 - 4,000…
  90. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 90
    Strengthening the Balance Sheet Capitalization as of 12/31/16 (MM) Deleveraging remains a priority; 1.5 billion decrease to date from post-spin peak, focused on organic and opportunistic 1st Lien Secured RCF 1 847 deleveraging going…
  91. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 91
    Living within Cash Flow Plus Additional Liquidity 1,600 1,400 1,200 1 Revolver Availability 1 1 Revolver Availability 1 1,000 JV Receipts JV Investments JV Receipts (MM) 800 JV Investments 3 Capital Investment…
  92. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 92
    1 Opportunistically Built Oil Hedge Portfolio Q1 Q2 Q3 Q4 1Q 2Q 3Q 4Q 2017 2017 2017 2017 2018 2018 2018 2018 Calls Barrels per Day 12,100 5,000 10,000 15,000 15,600 15,000 15,000 15,000 Wtd Avg Ceiling Price 56.37 55.05 56.15…
  93. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 93
    Reserves Value1 In Excess EV 24 22 20 18 16 14 (Billion) 12 Surface & Minerals2 10 Infrastructure3 8 Unproved4 6 Current EV of 5.9 Bn5 4 Proved Value PDP Value 2 0 55 Brent 65 Brent 75 Brent 1-5 See…
  94. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 94
    CRC Significantly Undervalued Relative to Peers EV/EBITDA Stock FCF Positive Ticker %Oil 2017E 14.0x DNR 96% 12.0x OAS 82% EV/2017E EBITDA 10.0x CRC WLL 72% 8.0x PE 67% 6.0x CRC 65% 4.0x CXO 61% EGN 61% 2.0x MUR 59%…
  95. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 95
    Portfolio Flexibility Provides Range of Crude Oil Scenarios Estimated Crude Oil Production Outcomes Capital focused on oil projects that provide 160 Increasing Low Compounding + = Oil Production MB/d 140 Margins Decline Rates…
  96. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 96
    Project Inventory Drives Organic Deleveraging Estimated Leverage Ratios 10.0x 8.0x Total Debt/LTM EBITDAX 6.0x 4.0x 2.0x 0.0x 2016 2017E 2018E 2019E 2020E 55 65 75 Note: All cases are self-funding.…
  97. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 97
    The Case for CRC : Investment Thesis Overview Investment Case for CRC Competitive Advantages World-class assets with Resilient model that Focused on value Operational Grow within Industry leading Integrated and significant inventory…
  98. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 98
    APPENDIX
  99. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 99
    CRC Management Presenters Mr. Stevens was selected to lead CRC in July 2014. Previously, he served for 20 years with Occidental Todd A Stevens Petroleum as VP of Corporate Development, Oxy Oil & Gas VP California Operations, and…
  100. CRC 2017 Analyst and Investor Day – California Resources Corp. – slide 100
    CRC Management Prior to this role, Mr. Pineci was Vice President and Controller of Occidental, overseeing its finance and accounting functions. Previously, he served as Senior Vice President, Occidental Oil and Gas, as well as Vice Roy…

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