Barclays CEO Energy-Power Conference Todd Stevens President & CEO September 4th, 2019
Positioned to Execute Our Strategy to Deliver Long Term Value The VCI Difference Delivers Real Value Value Value-directed investments Focus Disciplined capital allocation Enhanced returns over full-cycle time frame Drives…
CRCs Value-Driven Strategic Approach Capture Value Ensure Effective Drive Operational Strengthen of Portfolio Capital Allocation Excellence Balance Sheet Pursue value-driven Utilize VCI-based Streamline processes Reinvest to grow…
Californias Compelling Needs Worlds 5th largest economy runs first and foremost on energy Consume more gasoline than countries with populations 4x larger 37% of U.S. Port container traffic with the busiest ports in the country…
Pressure Tested Through Cycle and Focused on Long-Term Value SEPARATION VALUE TRANSITION TO OFFENSE QUICK 30 ANNOUNCEMENT PRESERVATION RESPONSE TO 110 Spin PRICE CHANGE Brent Crude Oil Price (/BBL) Brent Crude Price 25 Date…
Key Highlights 2nd Quarter 2019 39 Total Wells 129 Mboe/d 140 Million2 255 Million Drilled1 61% Oil 124 million 1.2 billion LTM Includes 37 CRC wells internally funded Adj.EBITDAX3 PRODUCTION ACTIVITY CAPITAL First Half…
World-Class Hydrocarbon Province with Significant Potential Remaining Recoverable Resources (BBOE1) California a Top Oil Province California Five of the largest conventional, onshore fields in the lower 48 Permian (Wolfcamp +…
Large Resource Base with Production Diversity SACRAMENTO BASIN Gas Optionality Largest Producer in California1 1 Producer 5,000 BOE/d2 Operate with 86% of basin production 85% of basin mineral acreage 12,000 wells Across…
Enhanced Inventory Growth and Expanded 3P Position 2018 Highlights Growth in Unproved Reserves1 Proved reserves today only 7% lower despite 29% 2,500 decrease in price from the YE 2014 2,250 Life-of-field studies increased unproved…
Unlocking Value with a Deep Inventory of Actionable Projects at 65 Brent 50 Steamflood Waterflood Fully burdened, growth-focused Primary 40 Full Cycle Cost1 (/Boe) portfolio Shale Gas 30 Achieve a VCI of 1.3 or greater at…
JVs Provide Additional Capital Flexibility Net Production By Stream (MBOEPD) 1TotalCapital reflected in the graph includes the capital investment of internal CRC capital as well as JV partners BSP and MIRA. Our consolidated…
Accelerating Value and Derisking Inventory through JVs Up to 300MM Up to 250MM Current commitment of 140MM, Up to 500MM Total of 200MM funded to date with 122MM funded to date Current commitment of 320MM Focus on four fields within…
Dynamic Capital Allocation Through Commodity Cycle High-Price Scenario Invest to accelerate production growth and explore/pilot new resources Add facilities (steam and water handling) to support pace of growth High cash generation…
Unparalleled California Expertise and Insight Extensive Field Core Assets Provide Largest 3-D Seismic Operations Experience Operational Leverage Position in California of observed field behavior and Decades demonstrated shallow base…
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…
Leveraging Infrastructure for Nearby Low-Cost Field Development Southern San Joaquin Valley Consolidation Coring up with Elk Hills Elk Hills serves as the hub Power, pipelines, compression Connecting fields and building out Lower…
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 500 identified…
Conventional Exploration Program Generates Substantial Value 10 well exploration program in 2017 and 2018 Delineation and expansion of proven play trends Multiple Small Joint plus new impact play concepts Ventures Reduced risk via…
Strengthening the Balance Sheet Remains a Priority Target 2x 3x Leverage Ratio Continue to Employ Leverage Core Adjusted EBITDAX1 Leverage ALL of the ABOVE 10.0x 9.0x Approach Total Debt / LTM Adj. EBITDAX1 8.0x 7.0x 6.0x…
Disciplined Capital Plan Leverages Project Portfolio 2019 Internally Funded 2019E Total Capital 2019E Internally Funded Capital Program Development Capital By Basin 350 to 385 Million 1 Expect to Align with Discretionary Cash…
Current Enterprise Value Deeply Discounted Current EV of 6.8 Bn5 1-5 See endnotes in the Appendix. See the Investor Relations page at www.crc.com for important information about 3P reserves and other hydrocarbon quantities.…
Disciplined Execution on Highest Value Projects to Deliver Substantial Value VALUE DRIVEN Balance capital investment with Financial Strengthening Efforts Portfolio of world-class assets investable for best long-term value creation…
APPENDIX
Opportunistically Built Oil Hedge Portfolio Strategy Purchased Protect cash flow, operating Sold Calls Calls margins and capital 3Q19 4Q19 1Q20 2Q20 investment program 35,000 25,000 10,000 Barrels per Day 40,000 Purchased Puts…
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…
Demonstrated Experience Controlling Production Costs Through Price Cycle Annual Production Costs & Capital Investment1 1,200 Capital investment scales with commodity price changes 1,100 2014 Production Costs (MM) Flexible…
2019 Capital Plan Flexes JV Capital CRC Capital JV Capital Brent (/bbl) 68 CRC flexes JV capital to 64 maintain activity level in the face of volatile 60 commodity prices 57 Internal capital was front-loaded in 1H19 during…
Advancing Californias Sustainability Strategy CRCs 2030 Goals demonstrate our long-term commitment to sustainable in-state energy production that meets the needs of Californias growing population and Californias leading safety, labor,…
CRCs Regulatory Strategy Advances Californias Leading Standards CRCS CONSISTENT REGULATORY STRATEGY Growing Permit Inventory Reflect Californians values (Permitted drilling rig days at end of period) 1600 Solicit community input…
California Policies Impact Natural Gas Prices Aliso Canyon Effect on Inventory Lack of Natural Gas Storage and Peak Demand Daily SoCalGas natural gas inventories (Bcf) 20 20 20 18 16 14 12 10 8 Source: EIA and SoCalGas…
Typical Industry JV Structure 7,000.00 Hurdle Rate Based on recent industry JV Reached Production deals, a typical deal structure is o Partner pays 80-100% Capital 6,000.00 o Receives 80-100% Working Interest 5,000.00 o…
Lost Hills Field 50% Operated Working Interest Sale + Joint Venture Completed a sale of operatorship and a 50% working interest in certain zones in the Lost Hills field Proposed Patterns Proposed Tulare Producer Over 200 MM in total…
End Notes From Slide 24 1 CRC estimate of reserves value as of December 31, 2018. Includes field-level operating expenses, G&A and taxes other than on income. Assumes 3.00/MMBTU NYMEX in all cases. 2 Reflectsthe value of facilities…
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