CRC Overview Diverse, low-risk and low-decline production portfolio California Sacramento Basin 3,000 BOE per day3 Largest oil and gas producer in CA with 3Q20 production of 106 World-Class Mboepd (60% oil) Asset Base Largest…
CRC New Foundation Peers CRC Sustainable Operations Low Corporate Decline Rate1 New Strong Flatter Organization Balance Sheet with Leaner Structure with Enduring Cost 45% Reductions 40% 35% Decline Rate1 (%) 30% 25% CRCS…
CRC Supplies Essential California Energy ECONOMY CALIFORNIA IS THE LARGEST U.S. GDP CONTRIBUTOR Worlds 5th largest economy and biggest contributor to domestic GDP1, 7.8% California is the second-largest energy consuming state and…
CRC Situated in a Premier Oil Province Remaining Recoverable Remaining Resources Recoverable Resources(BBOE) (Bbl) California a Top Oil-Producing Province California Five of the largest conventional, onshore fields in the Lower 48…
CRCs Advantages Aligned with Investor Proposition CRCs Advantages vs. Shale Peers CRC Aligns with E&P Investor Preferences Shale High production decline Production Low production decline helps Operational excellence delivers margins…
Diverse Assets with Flexible Development Opportunities World-class resource base with a diverse asset base and extensive high-quality inventory Proven operator at managing and growing a profitable business, with strong historical F&D…
Significant CRC Inventory at Current Market Pricing Steamflood Robust project inventory with Waterflood full cycle cost below 35/Boe Primary Shale Gas Large resource base continues to grow Optimized portfolio capable of growth…
Maximize Margins and Free Cash Flow through Active Cost Management Margin Improvement Operating Margins Higher At Similar Realized Prices 30 Operating Margin (/Boe) Reduced costs by 300+ million1 majority will be sustainable 25…
California Is An Energy Island CA Depends Upon Imports To Satisfy Demand1 Crude Imports Are Waterborne Due To Lack Of Crude Pipelines CA Oil Pricing Highest In US2 OIL DEMAND US Regional Prices, % Brent Buena Vista (CA) 100% 30%…
That Drives Premium Pricing for CRC CRC Production Mix (3QYTD 2020) Local vs. US Pricing Benchmarks CRC Positioning Product Energy Equivalent Revenue (unhedged) Crude Price, 12/1/20, /bbl 3rd largest crude producer in CA…
Further Margin Uplift Through Integrated Model Elk Hills power plants integration with the Elk Hills field offers significant strategic value Elk Hills power plant saves CRC 100mm/year through self-supply/generation of power Ability…
Financial Flexibility Across Oil Prices 50 Brent Accelerate Development Program Drill in high-graded portfolio Focus on ESG/sustainability projects diversification of business Shareholder return initiatives DISCRETIONARY CASH FLOW…
CRCs Financial Framework Prioritize Strong Credit Metrics and Balance Sheet Health Target of 1x leverage Maintain healthy liquidity, asset and fixed charge coverage Pursue free cash flow generation Exercise Capital Discipline…
CRCs Refreshed and Simplified Capital Structure Pro Forma Net Debt as of September 30, 2020 1.2 billion borrowing base 541 Million 540 million RBL Cash interest of L+3.0% - L+4.0% based in Millions 41(1) Facility on utilization…
Hedging Program Supports Cash Flows Hedges in Place (1) Strategy 100% CRC hedging strategy typically utilizes a mixture of Puts, Participating Collars and Swaps to protect cash flow and to 75% 80% ensure CRCs ability to live within…
Leading Financial Metrics Oil Peers Gas Peers Production (Q320, Mboepd) Total Proved Reserves (2019YE, MMBoe) Adj. EBITDAX (3Q20 YTD Annualized, mm)2 1,600 2,000 240 CRC Total Proved Reserves of 489 MMboe based on 12/1/2020 Strip1…
CRC Demonstrates ESG Leadership Environmental Social Governance CRCs 2030 Sustainability Goals align with CRCs new Board of experienced, independent Californias landmark goals as a signatory of Safety performance continues to surpass…
Concluding Remarks California Resources Corporation Portfolio of world-class assets investable throughout the commodity cycle Disciplined capital allocation in a robust inventory of conventional low-decline projects to deliver…
Adjusted EBITDAX Reconciliation We define adjusted EBITDAX as net (loss) income before interest and debt expense, net income taxes, depreciation, depletion and amortization; exploration expense; other unusual, out-of-period and…
Other Reconciliations Leverage and Net Debt We calculate the leverage ratio by dividing net debt by adjusted EBITDAX for the applicable period. We define net debt as the face value of our debt less cash used to collateralize letters of…
Other Reconciliations (contd) PV-10 PV-10 is a financial measure that represents the present value of estimated future cash inflows from proved oil and natural gas reserves, less future development and production costs, discounted at…
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