Skip to main content Q1 2017 Earnings Presentation – California Resources Corp. | Shale Experts
Loading...
Pm

Q1 2017 Earnings Presentation – California Resources Corp.

California Resources Corp. · May 4, 2017 · 29 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. Q1 2017 Earnings Presentation – California Resources Corp. – slide 1
    First Quarter 2017 Earnings Review Todd Stevens President & CEO Los Angeles, CA May 4, 2017 Mark Smith Sr. EVP & CFO
  2. Q1 2017 Earnings Presentation – California Resources Corp. – slide 2
    1Q 2017…
  3. Q1 2017 Earnings Presentation – California Resources Corp. – slide 3
    Reserves Value1 In Excess of EV 24 22 20 18 16 14 (Billion) 12 Surface & Minerals2 10 Infrastructure3 8 Unproved4 6 Current EV of 5.6 Bn5 4 Proved Value PDP Value 2 0 55 Brent 65 Brent 75 Brent 1-5 See…
  4. Q1 2017 Earnings Presentation – California Resources Corp. – slide 4
    JVs Validate Inventory and Enhance Value 550 Million Portfolio Flexibility SIGNED TWO Total Potential JV Capital and Optionality JVs Kettleman North Dome Enables High 200 Million Margin Production Lost Hills INVESTMENTS…
  5. Q1 2017 Earnings Presentation – California Resources Corp. – slide 5
    Joint Ventures: A Force Multiplier The JVs add more than production. They allow us to develop our inventory ahead of schedule, bringing forward production sooner than if we relied solely on cash from operations. AND APPLY OR…
  6. Q1 2017 Earnings Presentation – California Resources Corp. – slide 6
    Capital Investment Program Living within Cash Flow Moving from Defense to Offense CRC 2017 capital plan will be directed to oil-weighted projects in our core fields: Elk Hills, The JV capital increases Wilmington, Kern Front, Buena…
  7. Q1 2017 Earnings Presentation – California Resources Corp. – slide 7
    Deep Inventory of Actionable Projects Portfolio Spectrum 50 Growth portfolio focus, fully burdened 45 All projects meet VCI 1.3 40 threshold at 65 Brent Steamflood Full Cycle Cost (/Boe) and 3.50 NYMEX, and Waterflood 35…
  8. Q1 2017 Earnings Presentation – California Resources Corp. – slide 8
    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 Portfolio commodity prices, we are positioned for 100…
  9. Q1 2017 Earnings Presentation – California Resources Corp. – slide 9
    Resilient Resource Base Turning Point Production By ) Stream (Mboe/d) 180 200 160 175 140 150 120 125 Capital (MM) 100 100 MBoe/d 80 75 60 50 40 20 25 0 0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17E…
  10. Q1 2017 Earnings Presentation – California Resources Corp. – slide 10
    Living within Cash Flow 225 175 125 MM 75 25 -25 1Q16 2Q16* 3Q16 4Q16* 1Q17 Adj. EBITDAX** Operating Cash Flow Capital Investment *Operating cash flow includes a semi-annual cash property tax payment and 2Q16 and…
  11. Q1 2017 Earnings Presentation – California Resources Corp. – slide 11
    CRC Price Realizations Oil Price Realization (with Hedges) Gas Price Realization WTI Realizations Brent NYMEX Realizations 120 5.00 110 4.39 99.51 4.50 100 4.00 4.34 90 93.00 3.50 3.26 80 92.30 3.00 2.75 2.42 /Bbl /Mcf…
  12. Q1 2017 Earnings Presentation – California Resources Corp. – slide 12
    Improving Operating Cash Margin 24.00 CRC COST TRENDS 20.00 16.00 /Boe 12.00 8.00 4.00 - 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 Operating Cash Margin = Oil and Gas Revenue including settled hedges LOE Taxes Other…
  13. Q1 2017 Earnings Presentation – California Resources Corp. – slide 13
    CRC Pivots to Increased Activity & Higher Cash Flows 250 200 Operating Cash Flow 150 MM 100 133 115 50 0 1Q16 Volume Price Costs Interest Working 1Q17 Capital and Other 1Q 2017 Earnings 14
  14. Q1 2017 Earnings Presentation – California Resources Corp. – slide 14
    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 Continue to seek opportunistic transactions that reduce overall debt 7,000…
  15. Q1 2017 Earnings Presentation – California Resources Corp. – slide 15
    Living within Cash Flow Plus Additional Liquidity 1,800 1,600 1,400 Revolver Availability 11 1,200 Revolver Availability 11 1,000 JV Receipts (MM) JV Receipts JV Investments JV Investments 800 3 Capital Investment 3…
  16. Q1 2017 Earnings Presentation – California Resources Corp. – slide 16
    Quarterly Cost Comparison 1Q16 4Q16 1Q17 Production 13.69 17.50 17.70 costs (/Boe) Taxes other than on income 39 26 33 (MM) Exploration 5 10 6 expense (MM) Interest 74 85 84 expense (MM) 1Q 2017 Earnings 17
  17. Q1 2017 Earnings Presentation – California Resources Corp. – slide 17
    1Q17 Results Summary Comparison 1Q16 4Q16 1Q17 Adjusted Earnings per Share* (2.60) (1.76) (1.02) Oil Production 98 MBbl/d 87 MBbl/d 86 MBbl/d Total Production 148 MBoe/d 135 MBoe/d 132 MBoe/d Realized Oil Price w/ Hedge (/Bbl) 36.39…
  18. Q1 2017 Earnings Presentation – California Resources Corp. – slide 18
    2Q17 Guidance Anticipated Realizations Against the Prevailing Index Prices for 2Q17 Oil 88% to 92% of Brent NGLs 53% to 57% of Brent Natural Gas 78% to 82% of NYMEX Production, Capital and Income Statement Guidance Production…
  19. Q1 2017 Earnings Presentation – California Resources Corp. – slide 19
    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…
  20. Q1 2017 Earnings Presentation – California Resources Corp. – slide 20
    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…
  21. Q1 2017 Earnings Presentation – California Resources Corp. – slide 21
    Appendix
  22. Q1 2017 Earnings Presentation – California Resources Corp. – slide 22
    Strengthening the Balance Sheet Capitalization as of 3/31/17 (MM) Deleveraging remains a priority; 1.6 billion decrease to date from post-spin peak 1st Lien Secured RCF 1 769 1st Lien Secured Term Loan (1L) 609 Going forward, we are…
  23. Q1 2017 Earnings Presentation – California Resources Corp. – slide 23
    1 Opportunistically Built Oil Hedge Portfolio Strategy Protect cash flow for capital investments and covenant compliance Calls3 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 Barrels per Day 5,600 5,600 10,600 16,200 15,500…
  24. Q1 2017 Earnings Presentation – California Resources Corp. – slide 24
    Accelerating Value and Derisking Inventory through JVs Highlights: Highlights: Up to 250MM over 2 years Up to 300MM Initial tranche of 50MM Initial commitment of 160MM funded DrillCo type structure where Investor funds Investor…
  25. Q1 2017 Earnings Presentation – California Resources Corp. – slide 25
    Typical Industry JV Structure Hurdle Rate Based on recent industry JV 7,000.00 Production deals, a typical deal structure is Reached o Partner pays 80-100% Capital 6,000.00 o Receives 80-100% Working Interest 5,000.00 o…
  26. Q1 2017 Earnings Presentation – California Resources Corp. – slide 26
    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…
  27. Q1 2017 Earnings Presentation – California Resources Corp. – slide 27
    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…
  28. Q1 2017 Earnings Presentation – California Resources Corp. – slide 28
    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…
  29. Q1 2017 Earnings Presentation – California Resources Corp. – slide 29
    Life of Field Plans Growing Inventory 3P Resource Growth Comprehensive technical review of 40% of CRCs fields 2,000 1,750 Updated Geologic models, OOIP 1,500 Teams shared analog experience across 1,250 826 CRC 250%New…

From the store

Browse maps, data & reports in the Shale Experts store