Raymond James 41st Annual Institutional Investors Conference Mark Smith Sr. EVP & CFO March 2, 2020
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…
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,…
Key Highlights 4th Quarter 2019 104 Total Wells Drilled1 123 146 308 Million 19 Million Includes 15 internally Mboe/d Million2 Reduction funded wells 62% Oil 62 million internally funded Adj.EBITDAX3 PRODUCTION TOTAL…
Large Resource Base with Production Diversity SACRAMENTO BASIN Gas Optionality Largest Producer in California1 1 Producer 4,000 BOE/d2 Operate with 86% of basin production 85% of basin mineral acreage 12,000 wells Across…
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 +…
Enhanced Inventory Growth and Expanded 3P Position 2019 Highlights Growth in Unproved Reserves1 Life-of-field studies increased unproved resources 2,500 Recent exploration success not included 2,250 Organic F&D costs were 8.75 per BOE…
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…
Current Enterprise Value Deeply Discounted 0 1 25 20 15 Value (B) Infrastructure and Other1 10 Surface Acreage2 Unproved3 Current EV of 6.1 Bn5 5 PUD4 PD4 0 55 Brent 65 Brent 75 Brent 1-5 See endnotes in…
Unlocking Value with a Deep Inventory of Actionable Projects at 60 Brent 50 45 Steamflood Fully burdened, growth-focused 40 Waterflood Full Cycle Cost1 (/Boe) Primary portfolio 35 Shale Gas 30 Achieve a VCI of 1.3 or greater…
Pressure Tested Through the Commodity Price 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…
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…
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…
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…
Accelerating Value and Derisking Inventory through Development JVs Up to 140MM Total of 200MM fully funded 138MM funded through 2019 Up to 500MM Current commitment of 320MM, with 134MM funded through 2019 Focus on three fields…
JVs Provide Additional Capital Flexibility Net Production By Commodity (MBOEPD) Oil NGL Gas Total Capital1 CRC Capital (Internally Funded) 160 320 140 280 Production (MBOEPD) 120 240 Capital (MM) 100 200 80 160 60…
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…
2020 Dynamic Capital Plan 2020E Total Internal Capital 100 to 300 Million 2020 Estimated Total Capital Program Other 1 260 to 500 Million Exploration Expect to Remain within Drilling and Discretionary Cash Flow Facilities…
Strengthening the Balance Sheet Capitalization (MM) Debt Maturities (MM) As of 12/31/19 3,000 2020 Notes (Repaid) 1st Lien 2014 Revolving Credit Facility (RCF) 518 2nd Lien Notes 1st Lien 2017 Term Loan 1,300 1st Lien 2016 Term…
Strengthening the Balance Sheet Remains a Priority Target 2.5x 3x Leverage Ratio Continue to Employ Leverage ALL of the ABOVE 9.0x 8.0x Approach Total Debt / LTM Adj. EBITDAX1 7.0x 6.0x 5.0x Capital Disciplined Asset…
Disciplined Execution on Highest Value Projects VALUE DRIVEN Balance capital investment with Financial Strengthening Efforts Portfolio of world-class assets investable for best long-term value creation throughout the commodity…
APPENDIX
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…
Conventional Exploration Program Generates Substantial Value 10 well exploration program in 2017 and 2018 Delineation and expansion of proven play trends Multiple Small plus new impact play concepts Joint Ventures Reduced risk via…
Strategically Built Oil Hedge Portfolio Strategy Purchased 1Q20 2Q20 3Q20 4Q20 Protect cash flow, operating Sold Calls Calls margins and capital Purchased Barrels per Day 30,000 20,000 13,000 8,000 investment program Puts Weighted…
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) (Pre-spin)…
CRCs Natural Gas Liquids Marketing CRC is the largest NGLs producer in California CRC Average of Proxy Peers Premium % Over Proxy Peers' Avg Approximately 15,000 bpd 50 180% Breakdown of CRCs NGLs production: NGL Realized Price…
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…
End Notes From Slide 12 1Reflects the value of facilities and midstream assets, excluding assets owned by the Ares JV, at 50% of estimated replacement value. This discount is estimated to exceed the burden on reserves that would be…
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