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Goldman Sachs Energy and Clean Technology Conference – California Resources Corp.

California Resources Corp. · Jan 5, 2023 · 36 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. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 1
    A Different Kind of Energy Company January 2023 Investor Presentation
  2. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 2
    Continuing to Define CRCs Transition to a Different Kind of Energy Company Delivering Consistent & Predictable Free Cash Flow Generated 644MM of Adj. EBITDAX1 and 272MM of Free Cash Flow1 through 3Q22 Monetized 79MM in divestitures…
  3. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 3
    3Q22 Operational & Financial Highlights
  4. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 4
    3Q22 Highlights 92 MBOE/D 235MM 286MM 3Q22 NET PRODUCTION 3Q22 OPERATING CASH FLOW TOTAL SHAREHOLDER RETURN 2 60% 13% 27% 107 128 39 247 1 Oil NGLs Gas Capex Free Cash Flow Dividend SRP Increased the RBL Commitment by 50MM in…
  5. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 5
    Strong Price Realizations in CAs Unique Market Dynamics CALIFORNIA IS AN ENERGY ISLAND AND THE LARGEST U.S. GDP CONTRIBUTOR Crude: CRCs 3Q22 physical crude realizations moved lower Q/Q in (amounts shown as % of U.S. domestic GDP)…
  6. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 6
    Focus on Maintaining Margin to Offset Rising Energy Costs and Inflation 4Q21 1Q22 2Q22 3Q22 Natural gas markets drove cost increases primarily in electricity generation and, to a lesser extent, steamflood operations, which Energy…
  7. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 7
    Disciplined Capital Allocation Underpins Robust Shareholder Return Strategy CRC FREE CASH FLOW1 GENERATION 150 Free Cash Flow1 (MM) 100 50% Reinvestment or Less 128 Large base of low decline assets provides stable base 50…
  8. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 8
    Prioritizing Shareholder Returns REPURCHASED 13% OF THE SHARES THAT CRC ISSUED AT EMERGENCE FROM BANKRUPTCY2 Previous SRP Program 31% Increase in SRP Updated SRP Program 148 276 426 Increased Share Repurchase Program to 850MM…
  9. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 9
    Trends We See for 2023 Preliminary 2023 Details Forecasting a higher facilities/CMB capital deployment to meet regulatory requirements in order to prepare reservoirs for Carbon TerraVault / CO2 Injection As legacy hedges1 roll…
  10. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 10
    Advancing & Accelerating Carbon Management Business
  11. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 11
    Defining the Energy Transition From the E&P Perspective California CCS Market Today CRC Evolution EPA Permitted (Class VI) pore space is a scarce Multi-basin portfolio with 1 BMT of identified CO2 resource in the value chain storage1…
  12. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 12
    CCS Technology Can Enable a Lower Carbon Future and CRC Is Well Positioned to Provide It Application Requirements Existing High concentration of emitters near CRC reservoirs eligible for Emissions LCFS credits Sources2 Strong…
  13. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 13
    Evolving with the Energy Transition Increased Incentives Driving Energy Transition Commercial CCS Facilities Worldwide Technology Operation Suspended Indications of further tightening of LCFS market.1 In December of 2022, CARB…
  14. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 14
    Expanding the Pie With the New Energy Economy Future Evolution of CAs Emissions2 Carbon TerraVault 150 - 210 Positioned to Be Californias Premier Carbon Management Provider MMTPA or more DAC and Others Californias Potential…
  15. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 15
    Ongoing Discussions With Multiple Emitter Types Project Type1 Tech Greenfield Existing Sources Refiners, Cement, Steam Renewable Generators and Natural Gas Existing Emissions Type of Emitter DAC Ammonia Hydrogen Ethanol Sources2…
  16. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 16
    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…
  17. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 17
    Summary Delivering Consistent & Predictable Free Cash Flow Disciplined Capital Allocation Underpins Robust Shareholder Return Strategy Advancing & Accelerating Carbon Management Business Strong ESG & Social Platform…
  18. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 18
    CTVs First Permanent Carbon Storage Project 20
  19. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 19
    Executing on Our Carbon Management Strategy Est. Californias Total CCS Market Opportunity1 Announced a CDMA for CTV Is 150 - 210 MMTPA First Storage Project Signed CDMA for 100,000 MTPA CO2 storage project2 In Advanced…
  20. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 20
    CTV JV Continues to Accelerate The Energy Transition in California With Its First CDMA CDMA DETAILS FOR CTV Is ILLUSTRATIVE EBITDA VS CAPEX REQUIREMENTS FIRST STORAGE PROJECT FOR VARIOUS CO2 PROJECTS3,4 Lone Cypress to construct a 30…
  21. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 21
    Lone Cypress Track Record ABOUT LONE CYPRESS 100+Years 5B 700+MM Combined Successful Leadership Worth of Assets Managed Worth of Assets in Lone Cypress has executed projects on behalf of some of the majors Execution Experience &…
  22. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 22
    Leveraging CRCs Flagship Elk Hills Asset to Create a Net Zero Industrial Park Elk Hills provides ideal conditions to attract greenfield projects, given Large 47,000 acres land position at Elk Hills for potential infrastructure By…
  23. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 23
    Advancing CRCs Leadership Position in Californias New Energy Economy
  24. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 24
    Advancing Leadership Position in Californias New Energy Economy Announcing a CDMA for a Blue Ammonia and Hydrogen Facility CO2 Storage Project Signed CDMA for 370,000 MTPA CO2 storage project with Grannus at CTV III in Northern…
  25. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 25
    Californias First Blue Ammonia and Hydrogen Project CDMA DETAILS FOR CTVs FIRST BLUE AMMONIA & H2 PROJECT Grannus to construct a 150,000 metric tons per annum (MTPA) blue ammonia & 10,000 MTPA hydrogen facility at the CTV III location…
  26. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 26
    Blue Ammonia Will Help Accelerate The Decarbonization of CAs Agricultural Sector BLUE AMMONIA ENERGY TRANSITION MIX IN CALIFORNIA U.S. is the worlds third largest producer of ammonia, consuming 19.5 MMTPA of ammonia which is mainly…
  27. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 27
    CTV Storage Vaults in Northern California 100 MMT of CO2 storage capacity vaults1, or 2.5 MMTPA expected injection rate, submitted by CRC to EPA for Class VI permits in Northern California Northern California has 34% of Californias…
  28. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 28
    Supplemental Materials 30
  29. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 29
    Exploring Technologies to Further Advance Net Zero Energy Pathways Est. 6MW of Geothermal Opportunities in SJB Partnering with ICE Thermal Harvesting (ICE), who was awarded a 2MM Wells of Opportunity grant from the DOE Provides an…
  30. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 30
    Strategic Partnership Strategic Partnership Carbon TerraVault Joint Venture (CTV JV) Details Global Transition Fund (BGTF) Initial Commitment1 Wholly Owned by CRC 500MM (With Potential for Follow-on Contribution of 10/MT on…
  31. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 31
    Strategic Partnership A Structural Capital Advantage Illustrative 2027 CO2 Storage/Injection Goal Capital Funding Needs1 JV (5MMTPA of CO2 Injection by 2027) Improves & Increases Flexibility of CRCs Est. Capital Required Est.…
  32. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 32
    CTV JV Dropdown Mechanism JV Carbon TerraVault JV (CTV JV) 26R1 Initial Payment Milestone 2 Milestone 3 Brookfield 49% Capital Call For Brookfield 46MM Brookfield 46MM Brookfield 46MM Project Development Reservoir Permit…
  33. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 33
    CTV Project Economic Type Curve Potential Economic Incentives1 Example Strategic Partnership Project Cash Flow Profile3 FEDERAL 45Q TAX CREDIT Terminal 85 (2026) Value (per MT of CO2) for Carbon Storage Target Year 1 Year 2 Year 3…
  34. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 34
    CTV JV Creates Value & De-risks Project Funding Requirements Illustrative Strategic Partnership Transaction Bridge Illustrative Assumptions: GROSS PROJECT VALUATION CRC PROJECT VALUATION 100% Ownership 51% Ownership (Mid-High…
  35. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 35
    Potential CTV JV Valuation Upside Targeting 465MM of EBITDA1 by 2028 CTV JV EBITDA1 Potential Assuming midpoint of the CTV Project Economic Type Curve on page 10 2026E 2028E Est. CO2 Injection Rate per Year 1MMTPA 5MMTPA 600 Est.…
  36. Goldman Sachs Energy and Clean Technology Conference – California Resources Corp. – slide 36
    Joanna Park (Investor Relations) Richard Venn (Media) 818-661-3731 818-661-6014 Joanna.Parkcrc.com Richard.Venncrc.com

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