Skip to main content January 2019 Corporate Presentation – California Resources Corp. | Shale Experts
Loading...
Pm

January 2019 Corporate Presentation – California Resources Corp.

California Resources Corp. · Jan 10, 2019 · 33 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. January 2019 Corporate Presentation – California Resources Corp. – slide 1
    CRC: VALUE-DRIVEN January Corporate Presentation
  2. January 2019 Corporate Presentation – California Resources Corp. – slide 2
    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…
  3. January 2019 Corporate Presentation – California Resources Corp. – slide 3
    Positioned for Value-Driven and Sustainable Growth The VCI Difference Delivers Real Value Value-directed investments Value Disciplined capital allocation Focus Enhanced returns over full-cycle time frame Drives team alignment…
  4. January 2019 Corporate Presentation – California Resources Corp. – slide 4
    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 +…
  5. January 2019 Corporate Presentation – California Resources Corp. – slide 5
    Large Resource Base with Production Diversity SACRAMENTO BASIN Largest Operator in California1 Gas Optionality Operate with 1 Producer - 5,000 86% of basin production BOE/d2 12,000 wells across 731 MMBOE3 in Mid-Year 2018 85% of…
  6. January 2019 Corporate Presentation – California Resources Corp. – slide 6
    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 YE 2014…
  7. January 2019 Corporate Presentation – California Resources Corp. – slide 7
    Unparalleled California Expertise and Insight 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…
  8. January 2019 Corporate Presentation – California Resources Corp. – slide 8
    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…
  9. January 2019 Corporate Presentation – California Resources Corp. – slide 9
    Current Enterprise Value Deeply Discounted 28 24 20 Infrastructure2 16 Value (Billion) Surface & Minerals3 12 Unproved4 8 PUD 1 Current EV of 6.7 Bn5 4 PD1 0 65 Brent 75 Brent 85 Brent 1-5 Seeendnotes in the…
  10. January 2019 Corporate Presentation – California Resources Corp. – slide 10
    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…
  11. January 2019 Corporate Presentation – California Resources Corp. – slide 11
    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…
  12. January 2019 Corporate Presentation – California Resources Corp. – slide 12
    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…
  13. January 2019 Corporate Presentation – California Resources Corp. – slide 13
    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 NINE new impact play concepts JVs…
  14. January 2019 Corporate Presentation – California Resources Corp. – slide 14
    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…
  15. January 2019 Corporate Presentation – California Resources Corp. – slide 15
    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…
  16. January 2019 Corporate Presentation – California Resources Corp. – slide 16
    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…
  17. January 2019 Corporate Presentation – California Resources Corp. – slide 17
    Demonstrated Experience Controlling Production Costs through Price Cycle 5 years of Production Costs & Capital Investment 1,200 Keen focus on both alignment of capital investment and control of production 1,100 costs 2014…
  18. January 2019 Corporate Presentation – California Resources Corp. – slide 18
    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…
  19. January 2019 Corporate Presentation – California Resources Corp. – slide 19
    JVs Provide Additional Capital Flexibility Net Production By Stream (Mboe/d) 160 240 Oil NGL Gas Total Capital* CRC Capital (Internally Funded) mid-cycle scenario 140 210 120 180 100 150 Capital (MM) MBoe/d 80 120…
  20. January 2019 Corporate Presentation – California Resources Corp. – slide 20
    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…
  21. January 2019 Corporate Presentation – California Resources Corp. – slide 21
    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 - - -…
  22. January 2019 Corporate Presentation – California Resources Corp. – slide 22
    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…
  23. January 2019 Corporate Presentation – California Resources Corp. – slide 23
    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…
  24. January 2019 Corporate Presentation – California Resources Corp. – slide 24
    APPENDIX
  25. January 2019 Corporate Presentation – California Resources Corp. – slide 25
    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…
  26. January 2019 Corporate Presentation – California Resources Corp. – slide 26
    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…
  27. January 2019 Corporate Presentation – California Resources Corp. – slide 27
    Accelerating Value and Derisking Inventory through JVs Highlights: Highlights: Up to 250MM over 2 years Up to 300MM o Three tranches of 50MM o Current commitment of 140MM o Total of 150MM funded DrillCo type structure where…
  28. January 2019 Corporate Presentation – California Resources Corp. – slide 28
    Significant Reduction in Total Debt 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…
  29. January 2019 Corporate Presentation – California Resources Corp. – slide 29
    Summary of Mid-Year 2018 Reserves Changes 96% Half-Year Proven Organic 731…
  30. January 2019 Corporate Presentation – California Resources Corp. – slide 30
    CRCs BOE Recovery per Foot Competes With Major Shale Plays Normalizing estimated ultimate recovery (EUR) vs. measured depth shows CRC advantage Better recovery factors driven by low decline rate waterfloods and steamfloods Diverse…
  31. January 2019 Corporate Presentation – California Resources Corp. – slide 31
    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…
  32. January 2019 Corporate Presentation – California Resources Corp. – slide 32
    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…
  33. January 2019 Corporate Presentation – California Resources Corp. – slide 33
    End Notes From Slide 10 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