Skip to main content Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. Investor Presentation | Shale Experts
Loading...
Pm

Bank of America Merrill Lynch Global Energy Conference – California Resources Corp.

California Resources Corp. · Nov 14, 2018 · 58 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. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 1
    CRC: VALUE-DRIVEN Bank of America Merrill Lynch Global Energy Conference Todd Stevens President & CEO November 14, 2018 Miami Beach, FL
  2. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 2
    The VCI Difference Delivers Real Value Delivering Smart Growth and Real Value Value-directed investments Value Disciplined capital allocation Focus Enhanced returns over full-cycle time frame Prioritization of projects and drives…
  3. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 3
    CRCs Value-Driven Strategic Approach Capture Value of Ensure Effective Drive Operational Strengthen Portfolio Capital Allocation Excellence Balance Sheet Pursue value-driven Utilize VCI-based Streamline processes Reinvest to grow…
  4. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 4
    Key Highlights 3rd Quarter 2018 3QYTD 2018 95 Gross Wells 252 Gross Wells Drilled1 ACTIVITY Drilled1 includes 59 CRC wells includes 151 CRC wells 136 Mboe/d PRODUCTION 131 Mboe/d 62% Oil 62% Oil 196 Million2 550 Million2…
  5. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 5
    World-Class Hydrocarbon Province with Significant Potential Remaining Recoverable Resources California a Top Oil Province (BBOE*) Five of the largest conventional, onshore fields in California the lower 48 Permian (Wolfcamp +…
  6. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 6
    Strength of Portfolio Allocation Strategy Supported by Diverse Assets SACRAMENTO BASIN Largest Operator in California Gas Optionality Operate with 1 Producer - 5,000 86% of basin production BOE/d1 12,000 wells across 731 MMBOE2 in…
  7. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 7
    Enhanced Inventory Growth and Expanded 3P Position First Half 2018 Highlights Unproven Reserves1 Growth Mid-year reserves audited by Ryder Scott Proved reserves today only 5% lower despite 25% 2,500 decrease in price from the Spin…
  8. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 8
    Unlocking Value with a Deep Inventory of Actionable Projects at 75 Brent 50 Steamflood Fully burdened, growth- 45 Full Cycle Cost1 (/Boe) Waterflood focused portfolio 40 Primary 35 Shale 30 Achieve a VCI of 1.3 or Gas 25…
  9. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 9
    CRC Price Realizations Oil Price Realization (with Hedges) Gas Price Realization WTI Realizations Brent NYMEX Realizations 80 74.90 75.97 4.00 70 67.18 67.88 69.50 3.50 2.95 3.00 3.16 * 2.87 61.54 3.00 2.75 60 2.50 2.88 52.18…
  10. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 10
    Pressure Tested Through Cycle and Focused on Long-Term Value SEPARATION VALUE TRANSITION TO OFFENSE VALUE- 480 ANNOUNCEMENT PRESERVATION DRIVEN 110 GROWTH Brent Crude Oil Price (/BBL) Quarterly Capital (MM) Spin 360 Date 80…
  11. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 11
    Dynamic Capital Allocation Through Commodity Cycle High-Price Scenario Invest to accelerate production growth and explore/pilot new resources Over Add facilities (steam and water handling) to support pace of growth 1.5B High cash…
  12. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 12
    CRCs Dynamic Portfolio Provides Flexibility 100% Gas 75% Shale Portfolio Mix Primary 50% Waterflood 25% Steamflood 0% Workover 800 800 800 600 600 600 400 400 400 200 200 200 BOEPD BOEPD BOEPD Oil Oil…
  13. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 13
    Strategic Development Joint Ventures BSP & MIRA Reversion Estimates 550 Million Portfolio Flexibility Total Potential and Optionality JV Capital 65 240 Million Enable High Margin 75 Estimated Last Date Invested Through of BSP…
  14. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 14
    Unparalleled California Expertise Top California Producers in 2017 Extensive Field 200 Operations Experience Largest 3-D Seismic Gross Operated MBOE/d 163 150 142 Position in California of observed field 122 behavior and…
  15. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 15
    Elk Hills Flagship Asset in San Joaquin Basin Large field with 100% NRI 10 billion original BOE in place within multiple reservoirs Produces 60,000 BOE/d with annual 10% base decline Infrastructure provides low-cost advantage…
  16. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 16
    Leveraging Infrastructure for Nearby Low-Cost Field Development Coring up with Elk Hills Southern San Joaquin Valley Consolidation Elk Hills serves as the hub Power, pipelines, compression Connecting fields and building out Lower…
  17. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 17
    Developing Entire Southern San Joaquin Basin into Core Area Redevelopment, expansion and additional recovery in existing CRC operated fields Large Inventory of Development Projects Large fields with low recovery factors Original MMBOE…
  18. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 18
    Conventional Exploration Program Generates Real Value 9 well exploration program since mid-year 2017 Multiple Small Joint Ventures Delineation and expansion of proven play trends plus SIGNED SEVEN new impact play concepts JVs…
  19. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 19
    Strengthening the Balance Sheet Remains a Priority Target 2x-3x Leverage Ratio 1 Continue to Employ Leverage Core Adjusted EBITDAX Leverage 10.0x ALL of the ABOVE Approach Total Debt / Adj. EBITDAX1 8.0x 6.0x Capital…
  20. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 20
    Recent Transactions - Improving Debt Metrics Capitalization (MM) Highlights 9/30/2018 1st Lien 2014 Revolving Credit Facility (RCF) 342 Received 8th Amendment to the 2014 Credit Agreement to repurchase 1st Lien 2017 Term Loan 1,300…
  21. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 21
    Disciplined Capital Plan Leverages Portfolio of Projects and Management Expertise 2019 Expected Capital Allocation Core Program and Expected Outcomes Expect to Buena Vista Live Within Elk Hills Long Beach Cash Flow 30-40% Kern…
  22. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 22
    Cash-Neutral Scenarios Targeting Double-Digit EBITDAX Growth Estimated Cash-Neutral Crude Oil Production Outcomes 130 120 Oil Production Targeting 10-15% discretionary cash flow for balance sheet strengthening1 110 7%…
  23. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 23
    Continuous Efforts Provide Pathway to Reasonable Leverage Estimated Leverage Ratios 10.0x Total Debt/Adj. EBITDAX1 8.0x 6.0x 4.0x 2.0x 0.0x 2016 2017 2018E 2 2019E 2020E 2021E 2022E 65 75 85 Core Adj. EBITDAX1…
  24. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 24
    Current Enterprise Value Deeply Discounted 28 24 20 Infrastructure2 16 Value (Billion) Surface & Minerals3 12 Unproved4 8 Current EV PUD 1 of 7.3 Bn5 4 PD1 0 65 Brent 75 Brent 85 Brent 1-5 Seeendnotes in the…
  25. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 25
    Investment Proposition: Delivering Smart Growth and Real Value Portfolio of world- Deep operational Disciplined and Robust inventory Integrated and class assets knowledge and effective capital of high value complementary investable…
  26. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 26
    APPENDIX
  27. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 27
    2018 Capital Investment Program Aligned with Mid-Cycle Pricing Production Enhancement Plans for 2018 CRC 2018 capital plan directed to oil-weighted projects in core fields: Elk Hills, Dynamic plan that can be scaled up or Buena…
  28. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 28
    Investment Grade Assets with a Non-Investment Grade Balance Sheet 2017 Operational Metrics1 CCC+ 2017 Financial Metrics1 CRCs S&P Corporate Family Rating 3 Yr F&D, All-In (/BOE) Recycle Ratio (3 Yr Avg) 15 3.0 10 2.0 Free Cash Flow…
  29. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 29
    Summary of Mid-Year 2018 Reserves Changes 96% Half-Year Proven Organic 731…
  30. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 30
    Opportunistically Built Oil Hedge Portfolio 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Strategy Sold Calls Barrels per Day 15,000 15,000 5,000 - - - Weighted Average Protect cash flow, Ceiling Price per Barrel 58.83 66.15 68.45 - - -…
  31. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 31
    California Policies Impact Natural Gas Prices Aliso Canyon Effect on Inventory Lack of Natural Gas Storage and Peak Demand Daily SoCalGas natural gas inventories 20 14 12 10 8 Source: EIA 6 Impact of Solar Generation…
  32. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 32
    CRCs Regulatory Strategy Advances Californias Leading Standards Growing Permit Inventory CRCS CONSISTENT REGULATORY STRATEGY (Permitted drilling rig days at end of period) 1200 Reflect Californians values Solicit community input…
  33. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 33
    CRC Positioned as Californias Operator of Choice Proudly share states commitment to natural resources Proven track record in sensitive coastal, urban and agricultural settings Design and maintain facilities with a highly qualified…
  34. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 34
    Buena Vista Field Applying our Asset Playbook to Adjacent Field Large field adjacent to Elk Hills 7 billion original BOE in place, 10% Rf Buena Vista Decades of production history, 10% annual base decline 18,000 3P reserves of 245…
  35. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 35
    LA Basin World-Class Wilmington Field World-class waterflood 7 billion original BOE in place, 34% Rf Partnership with State of California and City of Long Beach Operational excellence Decades of operational experience Low annual…
  36. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 36
    Wilmington Production Sharing Contracts Over 25% of CRCs oil production is subject to Effect of Oil Price on Net Production Production Sharing Contracts (PSC) PSC Mechanics Gross Production CRC pays partners share of the Operating…
  37. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 37
    Wilmington Production Sharing Contract LBU PSC Over 90% of CRCs Long Beach production is 50,000 covered under Production Sharing Contracts Base Incremental End of (PSCs) with the State and the City of Long Beach 40,000 LBU Base…
  38. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 38
    Renewed Investment in Analog Field Huntington Beach Onshore Large underdeveloped field 2 billion original BOE in place, 30% Rf Waterflood, low annual base…
  39. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 39
    Low-Cost Capital Workovers Deliver Value and Volume Existing assets in multiple stacked pay zones 12,000 wellbores with pay behind pipe Workover Program CRC owned processing facilities 14,000 Low-risk, high-reward well work…
  40. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 40
    Expanding CRCs Asset Playbook to Ventura Basin Prolific basin with a long history, including the first commercial oil well in California Operate more than 20 fields CRC Operated Fields in the Ventura Basin 9 billion original BOE in…
  41. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 41
    Sacramento Basin Provides Gas Optionality Prolific gas basin THOMPKINS HILL 1,000 mcfd CRC is largest operator in basin, operates 86% of 125 BCF cum production 2017 average production of 33 MMCF/D WILLOWS Rio Vista is core asset…
  42. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 42
    Elk Hills CO2 Project: Advancing Contingent Resources Many CRC fields suitable for additional EOR Project scope recovery techniques Utilizing 6 MMCF/day miscible gas from Elk Hills plant Permits approved, injection begins 4Q18 Large…
  43. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 43
    Conventional Exploration Program Generates Real Value 9 well exploration program since mid-year 2017 Multiple Small Joint Ventures Delineation and expansion of proven play trends plus SIGNED SEVEN new impact play concepts JVs…
  44. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 44
    Example Life Cycle of Wellbore with Stacked Reservoirs 1 3 A 3 2 2 B 1 NPV 10 (MM) IRR (%) VCI Bank of America Merrill Lynch Global Energy Conference 45
  45. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 45
    Example Life Cycle of Wellbore with Multiple Recoveries 450 30% 1 400 25% 350 300 20% Recovery Factor 250 BOEPD 3 2 15% 200 3 2 150 10% 100 5% 1 50 0 0% 0 5 10 15 years Primary Workover Water Flood…
  46. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 46
    Steamflood Overview 20 TULARE Steam injection contributes to over 1.2 MMBO/d of production worldwide SHALLOW SANDS ETCHEGOIN 40 SANDS Thermal techniques account for over 40% of US EOR production; 95% of these are in…
  47. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 47
    Steamflood Single Pattern Mechanics Up-front steam costs scale with gas price Injection Production Well Well Ramp-Up Peak Mature Steam Generator Steam Injection Rate Oil and Water Steam and Hot Oil Zone near Condensed…
  48. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 48
    Greenfield Steamflood Type Pattern 100 Kern Front Actuals 75 N. Antelope Lost Hills NYMEX Hills Kern Front VCI 3.5 3 2.5 Composite McDonald BOEPD 50 Type Curve Anticline 65 1.9 2.0 2.1 Midway McKittrick Sunset 75 2.5…
  49. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 49
    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…
  50. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 50
    Waterflood Single Pattern Mechanics Fill Up Recovery Redevelopment Injection Rate Injection Rate Oil Rate Oil Rate Establish Facilities & Reservoir Fill- Expected Water Rate High initial rates targeting bypassed up /…
  51. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 51
    Waterflood New Pattern Composite Type Well 60 Mount Poso Actuals Kettleman 45 Buena Vista Actuals EUR Mount Poso VCI 165 190 215 Elk Hills BOEPD 30 Paloma 65 2.2 2.6 2.9 Buena Vista 75 2.8 3.2 3.7 Composite 15 Type…
  52. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 52
    Waterflood Redevelopment Type Well 160 Huntington Beach Actuals 120 EUR VCI 140 165 190 BOEPD 80 East Wilmington Actuals Elk Hills 65 1.9 2.3 2.6 Composite Type well West Wilmington 75 2.4 2.9 3.3 Actuals 40 San…
  53. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 53
    Deeper Horizons Primary Overview 20 TULARE CRC experiences repeatable success in deeper (10,000 ft.) producing horizons and projects with SHALLOW SANDS high IPs ETCHEGOIN 40 SANDS Generally characterized by sandstones with…
  54. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 54
    Primary Type Well Deeper Horizons 900 Kettleman 750 BV Nose Actuals EUR 600 Bardsdale VCI 400 430 460 Actuals BOEPD Elk Hills Paloma 450 BV Nose Rio Viejo 65 2.2 2.3 2.5 Pleito Ranch Yowlumne Wheeler Ridge 300 Actuals…
  55. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 55
    California Shale Overview 20 TULARE Upper Monterey Shale Reservoirs (Infill): naturally fractured, low permeability reservoirs. Produce from SHALLOW SANDS conventional structural and stratigraphic traps containing hydrocarbons…
  56. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 56
    California Shale Type Well 500 Elk Hills (2001-2003) Kettleman 400 Rose New Pool Type Curve Elk Hills N. Shafter VCI Infill New Pool 300 Railroad Gap BOEPD 65 1.5 2.2 Gunslinger Asphalto 200 Actuals Buena Vista…
  57. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 57
    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…
  58. Bank of America Merrill Lynch Global Energy Conference – California Resources Corp. – slide 58
    End Notes From Slide 25 1CRC estimate of reserves value as of December 31, 2017, including reserves acquired in the Elk Hills transaction at the indicated Brent prices. Includes field-level operating expenses, G&A and taxes other than…

From the store

Browse maps, data & reports in the Shale Experts store