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4Q 2021 Earnings Presentation – California Resources Corp.

California Resources Corp. · Feb 23, 2022 · 34 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. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 1
    Low Carbon Intensity Fuel for Today and Net Zero Fuel for The Future Fourth Quarter & Year End 2021 Results Strong Delivery in a Transformative Year February 24, 2022
  2. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 2
    Presenters Mac McFarland President & Chief Executive Officer Francisco Leon EVP & Chief Financial Officer
  3. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 3
    Delivered Strong Results in 2021 2021 Reliable, safe and ESG driven operations with low decline and low capital intensity production Low Carbon Intensity Est. average 2021 wellhead IRRs1 of 100 % E&P Business Exited 2021 with net…
  4. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 4
    Advancing the Strategy in 2022 2022 Entered 2022 with 4 drilling rigs 2022E Drilling & Completion capital of 215 to 225 MM to maintain oil production Low Carbon Intensity 2022E Total Capital of 330 to 375 MM including 55 to 65 MM…
  5. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 5
    4Q21 & Year over Year Progress
  6. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 6
    CRC 2021 Overview 100 MBOE/D 970 4 2021 NET PRODUCTION EMPLOYEES1 ACTIVE DRILING RIGS1 60% 13% 27% 19% 81% 1 3 STRONG FINANCIAL FOUNDATION RESPONSIBLE CAPITAL STEWARDSHIP Oil NGLs Gas Women Men LA Basin San Joaquin Basin 0.17 /…
  7. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 7
    Upheld Strong Results on Guidance RECORD FREE CASH FLOW4 GENERATION CAPABILITY FINAL GUIDANCE FINAL RESULTS 600 500 FY 2021E1 FY 2021 400 466 Free Cash Flow4 (MM) Net Total Production (Mboepd)2 99 - 101 100 300 200 Net…
  8. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 8
    Strong Price Realizations in CAs Improving Market Dynamics CRCs 4Q21 crude realizations remained strong, supported largely by moves CALIFORNIA IS AN ENERGY ISLAND AND THE LARGEST U.S. GDP CONTRIBUTOR in global crude pricing, while…
  9. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 9
    Continued Focus on Cost Management 20181 20191 20201 20211 COST CONTROL & MARGIN EXPANSION DESPITE RISING Costs (/Boe) Predecessor Predecessor Combined Successor ENERGY COSTS Energy operating costs2 3.62 3.71 3.95 5.09 70 65…
  10. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 10
    Continued Operational Excellence MAINTAINING NET OVERALL AND OIL PRODUCTION WITH LIMITED CRCS FOCUS ON SAFETY CONTINUES TO OUTPERFORM DRILLING & COMPLETION ACTIVITY THE INDUSTRY AVERAGE 120 60 0.35 CRC Oil & Gas Lost Time…
  11. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 11
    Strong Asset Performance Throughout 2021 2021 DEVELOPMENT PERFORMANCE: San Joaquin Basin 3 rigs in San Joaquin basin 1 rig in Long Beach Wells Drilled & Online 88 2021 : 104 Wells Drilled 96 Wells Online TMD (ft.) 4,023 Peak IP2…
  12. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 12
    Accelerated Shareholder Returns ANNOUNCED OVER 400 MM IN EXPECTED SHAREHOLDER RETURNS 35% of FCF1,2 450 Returned to Shareholders in 2021 400 65 MM Est. in Dividend4 Distributions 350 Repurchased 148 million in 2021 Share…
  13. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 13
    CRCs Reserves Value at Current Prices Demonstrates Equity Upside PV-10 RESERVES VALUE1 AND METRICS AT SEC PRICE DECK AND 80 BRENT PRICES SEC Price Deck3 80 Brent4 7,896 MM4 Total Proved Reserves / 2021 Exit Production5 13.8 years…
  14. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 14
    2022 Outlook
  15. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 15
    Strategic Divestiture - Lowering Costs & Reducing Carbon Intensity FULLY DIVESTING THE NON-CORE / NON-OPERATED INTEREST IN LOST HILLS ASSET 1.9 net mboepd in 2021; 100% oil Heavy crude (EOR steamflood) with 2021 operating expense of…
  16. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 16
    E&P Operational Outlook MAIN GOALS Maintain flat oil production from exit to exit (December 2021 net oil production at 58.5 mbo/d) despite asset sales and PSC effects Reduce non-energy operating costs per BOE1 by 5% YOY excluding…
  17. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 17
    Carbon Management Business in Development 2021 2022 2023 2024 2025 2026 2027 Submitted 2 Class VI EPA Permits Monitoring, Reporting and Verification Plan (MRV) & LCFS application on track CTV I Kern County CUP & additional permitting…
  18. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 18
    Solar Developments on Track SELF SUPPLY BEHIND THE METER UPDATE : BTM Development Capacity Est. Commercial Progressing our solar developments: Field (MW) Operation Mount Poso 12 1H23 39 MW Kern Front 23 2H23 of BTM projects in…
  19. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 19
    Corporate Guidance 500 CRC GUIDANCE1 E&P CMB FY22E 350 to 450 MM 85 MM to CMB 450 development & expenses Total Production2 (mboe/d) 93 to 90 93 to 90 Oil Production2 (mbo/d) 60 to 56 60 to 56 Free Cash Flow4,5 ( MM) 400…
  20. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 20
    Why California Resources Corporation Cyclical Investment Core Low Carbon Intensity Energy Operations Low Carbon Intensity Fuel for Today and Net Zero Fuel for The Future Energy Transition Thesis Unique Carbon Management Business…
  21. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 21
    Supplemental Materials
  22. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 22
    Wilmington Production Sharing Contracts (PSC) EFFECT OF OIL PRICE ON NET PRODUCTION1 For every 1/bbl increase/decrease in Brent price, Gross Production we expect a 100 bopd decrease/increase in +/- 1/bbl our net oil production…
  23. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 23
    Rise in the Commodity Outlook Outweighs the Decline of Net Barrels Due to PSC Effects Est. annual decline rate of 10% - 15% IMPACT TO NET PRODUCTION GUIDANCE & NET CASH FLOW1 DUE TO PSC 2022 capital program of 215 to 225 million for…
  24. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 24
    Carbon TerraVault Example Economic Type Curve EXAMPLE PROJECT ECONOMICS EXAMPLE PROJECT CASH FLOW PROFILE (PER MT OF INJECTED CO2) EST. CASH FLOW POSITIVE IN YEAR 4 WITH PAYBACK IN 4 YEARS Unit Low High Notes/Incorporated Assumptions…
  25. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 25
    Variety of Go-to-Market Business Models at Hand Emission Capture Conditioning1 Transport Storage Business Models: More CRC Capital Integrated Solution CRC manages & operates capture & conditioning Transportation may or CRC…
  26. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 26
    Diverse & Experienced Board of Directors Tiffany (TJ) Thom Cepak Andrew B. Bremner Douglas E. Brooks James N. Chapman Mark A. (Mac) McFarland Chair of the Board Member of the Sustainability Member of the Nominating and Chair of the…
  27. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 27
    Hedging Program Protects Cash Flow OIL HEDGE PROTECTION1 as of December 31, 2021 1Q22 2Q22 3Q22 4Q22 FY23 Barrels per Day 35,347 35,343 34,380 25,167 14,790 STRATEGY SOLD CALLS Weighted- CRC hedging strategy typically utilizes…
  28. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 28
    Hedging Program Changes Since September 30, 2021 Downside Protection (Swaps) Barrels per Day 2,000 1Q 2023 Weighted Avg. Price per Barrel 73.72 Barrels per Day 2,000 2Q 2023 Weighted Avg. Price per Barrel 72.34 Barrels per Day…
  29. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 29
    Maintaining Balance Sheet Strength, Liquidity, and Financial Flexibility ESTIMATED LIQUIDITY ROLL FORWARD1 12/31/21 DEBT SNAPSHOT 1,200 370+ MM (250+) MM ( in millions) 780+ MM 900 Revolving Credit Facility (RCF) 0 672 MM 7.125%…
  30. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 30
    Example Project Economics Assumptions Used on Slide 26 Information presented on slide 26 shows example project economics for a CTV project. The structure of the project, financing and ownership of CTV project could take many forms and…
  31. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 31
    Adjusted EBITDAX Reconciliation We define adjusted EBITDAX as earnings before interest expense; income taxes; depreciation, depletion and amortization; exploration expense; other unusual, infrequent and out-of-period items; and other…
  32. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 32
    Leverage Ratio & Net Debt Reconciliations ( in millions) FY 2021 Face value of debt 600 Available cash (305) Net Debt as of December 31, 2021 295 Leverage Ratio and Net Debt 2021 Adjusted EBITDAX 860 We calculate the leverage ratio…
  33. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 33
    Free Cash Flow & Adjusted General & Administrative Expenses Reconciliations Free Cash Flow Management uses free cash flow, which is defined by us as net cash provided by operating activities after our internal capital investment, as a…
  34. 4Q 2021 Earnings Presentation – California Resources Corp. – slide 34
    Joanna Park (Investor Relations) Richard Venn (Media) 818-661-3731 818-661-6014 Joanna.Parkcrc.com Richard.Venncrc.com

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