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2Q 2023 Earnings Presentation – California Resources Corp.

California Resources Corp. · Aug 8, 2023 · 48 slides

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Slides

  1. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 1
    CRC August 2023 Presentation
  2. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 2
    Table of Contents EXECUTIVE SUMMARY 2Q23 FINANCIAL & OPERATIONAL RESULTS BUSINESS TRANSFORMATION UPDATE CENTRAL CALIFORNIA CARBON MANAGEMENT BUSINESS NORTHERN CALIFORNIA DAC HUB 2023E CORPORATE GUIDANCE APPENDIX
  3. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 3
    Executive Summary
  4. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 4
    Our Strengths Are Clear CASHFLOW CARBON CALIFORNIA Strong operational execution on our low Premier carbon management platform Responsible operator with an extensive decline, low carbon intensity oil and gas focused on reducing…
  5. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 5
    Executive Summary Executing on Our Plan 86 MBOE/D 1 2Q23 NET PRODUCTION ACTIVE DRILLING RIGS 61% 13% 26% DELIVERED CONSISTENT OPERATIONAL PERFORMANCE Oil NGLs Gas LA Basin AND STRONG FINANCIAL RESULTS IN 2Q23 Strong operational…
  6. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 6
    2Q23 Financial & Operational Results
  7. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 7
    Delivered Consistent Operational & Financial Performance GROWING CASH FLOW PER SHARE Strong 2Q23 Results 500 85MM Average Common Shares Outstanding Operating Cash Flow (MM) 400 80MM 300 75MM 2Q23E1 2Q23 CRC GUIDANCE…
  8. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 8
    Strong Balance Sheet Position, Ample Liquidity and Financial Flexibility LIQUIDITY ROLL BACK1 6/30/23 NET DEBT3 SNAPSHOT 1,500 (MM) 25 (4) (40) 1,200 304 (123) Revolving Credit Facility (RCF)2 0 927 7.125% Senior Notes 600 900…
  9. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 9
    Proven Commitment to Shareholder Returns SINCE 4Q201: Returned nearly 1,500 Cumulative Amount Returned to Shareholders (MM) Generated 1.8B of operating cash flow, delivered 1.1B of free cash flow2. and realized 77MM of proceeds…
  10. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 10
    Executing on our Low Carbon Intensity O&G Operations KEPT NET OIL PRODUCTION FLAT ON SIGNIFICANTLY LOWER CAPITAL Key Operational Results: 86 MBOE/D 2Q23 NET PRODUCTION 60 Oil NGLs Gas 61% 13% 26% 38MM 40 2Q23 E&P, CORP, & OTHER…
  11. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 11
    Reservoirs are Performing As Expected Across the portfolio, CRCs assets performed in line with expectations 1H23 gross production decline rate remained flat 1H23 gross NGL production remained flat; began building NGL inventory for sale…
  12. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 12
    Business Transformation Update
  13. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 13
    Transforming the Way We Operate for a Long-Term Outlook Transforming the way we operate to improve margins and FOCUS AREAS: drive higher cash flows Utilizing Alvarez & Marsals industry experience and proprietary NON ENERGY OPERATING…
  14. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 14
    THE FOREFRONT OF CARBON MANAGEMENT
  15. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 15
    Carbon TerraVault Californias Leading Carbon Management Platform CALIFORNIA LEADING CARBON MANAGEMENT PLATFORM Positioned to Be Californias Premier Carbon Management Provider Identified up to 1BMT1 CO2 storage in California…
  16. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 16
    Strengthening The Expansion of Carbon Management Business Signed 1 additional storage only CDMA1 for an injection rate of 100KMTPA with Verde Clean Fuels and expanded Lone Cypress project to 205KMTPA from an initial 100KMTPA CO2…
  17. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 17
    Building on Our Momentum by Accelerating the Carbon Management Business WE HAVE ACHIEVED A LOT IN 2 YEARS: FORWARD OUTLOOK: Permitting: Announced 2045 Full Scope Net Zero & ESG Goals Targeting First Class VI EPA Draft Permit by…
  18. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 18
    CENTRAL CALIFORNIA NORTHERN CALIFORNIA DAC HUB THE FOREFRONT OF CARBON MANAGEMENT
  19. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 19
    Leveraging CRCs Flagship Elk Hills Asset with a Net Zero Industrial Park Elk Hills provides ideal conditions to attract greenfield projects, given By combining CRCs Elk Hills surface acreage and world class Large 47,000 acres land…
  20. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 20
    Lone Cypress Blue Hydrogen Facility CDMA DETAILS FOR LONE CYPRESS BLUE HYDROGEN FACILITY1 Lone Cypress to construct a 65 tons per day (TPD) blue hydrogen facility at the Net Zero Industrial Park at Elk Hills using its proprietary…
  21. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 21
    InEnTec Renewable Dimethyl Ether Facility CDMA DETAILS FOR INENTEC DIMETHYL ETHER (DME) FACILITY1 InEnTec to construct a facility that will use proprietary gasification technology to produce 80 to 100 tons per day (TPD) renewable…
  22. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 22
    Verde Renewable Gasoline Facility CDMA DETAILS FOR VERDE RENEWABLE GASOLINE FACILITY1 Verde to construct a facility at the Net Zero Industrial Park at Elk Hills that will use proprietary gasification technology targeted to produce…
  23. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 23
    CENTRAL CALIFORNIA NORTHERN CALIFORNIA DAC HUB THE FOREFRONT OF CARBON MANAGEMENT 23
  24. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 24
    CTV Storage Vaults in Northern California 145MMT of CO2 storage capacity vaults1, or 3.7MMTPA expected injection rate, submitted by CRC to EPA for Class VI permits in Northern California Northern California has 34% of Californias…
  25. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 25
    Grannus Blue Ammonia Facility CDMA DETAILS FOR GRANNUS BLUE AMMONIA FACILITY1 Grannus to construct a 150KMTPA blue ammonia & 10KMTPA hydrogen facility near the CTV III location using its patented process design with commercial…
  26. 2Q 2023 Earnings Presentation – 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 19.5MMTPA of ammonia which is mainly…
  27. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 27
    Yosemite Renewable Fuels Facility CDMA DETAILS FOR YOSEMITES RENEWABLE FUELS PROJECT1 Yosemite to build and operate a 24 tons per day (TPD) hydrogen facility in the city of Oroville, California, using dual bed gasification…
  28. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 28
    NORTHERN CALIFORNIA CENTRAL CALIFORNIA DAC HUB THE FOREFRONT OF CARBON MANAGEMENT
  29. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 29
    Accelerating Climate Leadership and Energy Transition Through Direct Air Capture (DAC) Carbon TerraVault has formed a DAC Hub consortium to accelerate a Direct Air Capture and storage solution (DAC+S) for California through its wholly…
  30. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 30
    Development Vision HOW WILL IT BE DEVELOPED The first DAC Hub is targeted for Kern County and is expected to store CO2 at the CTV I reservoir1. The hub is expected to expand to other locations across the state to store CO2 in non-EOR…
  31. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 31
    Together We Can Achieve Bigger and DAC Things INDUSTRY DAC TECHNOLOGY ACADEMIA NATIONAL LABS Lead DOE Applicant Represents a Public-Private Partnership of Leading CA Community, Academic, DAC, and Carbon Storage…
  32. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 32
    California Is Leading the Climate Charge This project is more than a shared DAC infrastructure project; it serves as a hub model that delivers community benefits and jobs for other parts of the U.S. that also face climate change…
  33. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 33
    2023E Corporate Guidance
  34. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 34
    Updated 2023E Corporate Guidance Narrowing Our 2023E FCF3 Guide (as of August 1st, 2023) FY 2023E 3Q23E FY23E 3Q23E CRC 2023E GUIDANCE1: E&P, Corp. & Other CMB E&P, Corp. & Other CMB Combined Combined Net Total Production1 (MBOE/D)…
  35. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 35
    Why California Resources Corporation LEADING CARBON MANAGEMENT BUSINESS PREMIER BALANCE SHEET WITH STRONG FREE CASH FLOW GENERATION STRONG SHAREHOLDER RETURNS STRATEGY DISCIPLINED CAPITAL ALLOCATION
  36. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 36
    Appendix
  37. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 37
    Sustainability Is In Our DNA Sustainable Commitment 2021 Sustainability Report Highlights Submitted 191MMT of CO2 Reservoirs to EPA for Class VI permits CRC's 2021 Sustainability Report references Sustainability Accounting Standards…
  38. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 38
    Long Durability, Low Decline & Low Carbon Intensity O&G Assets 13 years of low carbon 1H23 CI3 intensity multi year MMBoe % Oil Est. Annual Average Net R/P2 NRI (Scope 1+2) production runway2 LONG DURABILITY 1P ASSETS (80…
  39. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 39
    Wilmington Production Sharing Contracts (PSC) At Higher Commodity Prices EFFECT OF OIL PRICE ON NET PRODUCTION2 For every 1/BBL increase/decrease in Brent price, we expect a 90 BO/D decrease/increase in our Gross Production net oil…
  40. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 40
    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…
  41. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 41
    Solar Developments on Track SELF SUPPLY BEHIND THE METER UPDATE : Progressing our solar developments: BTM Development Capacity Est. Commercial Field (MW) Operation Mount Poso 12 2H24 38 MW Kern Front 22 2H24 of BTM projects in…
  42. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 42
    Decarbonizing California and Building a Diversified Portfolio of CO2 Emissions Expecting to Further Diversify CTVs Portfolio of Emitters Across The Energy Spectrum in California Positioned to Be Californias Premier Carbon Management…
  43. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 43
    Strategic Partnership A Structural Capital Advantage Illustrative 2027 CO2 Storage/Injection Goal Capital Funding Needs1 Improves & Increases Flexibility of CRCs assumes Brookfield fully participates in 5MMTPA of CTV JV projects…
  44. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 44
    Illustrative CTV JV Type Curve Demonstrates Potential Valuation Upside First Full Year of Est. Impact 2026E 2028E Example Strategic Partnership Economics An average Est. CO2 Injection Rate per Year 1MMTPA 5MMTPA CTV project could…
  45. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 45
    Large Opportunity Set With a Variety of Potential Emitters ILLUSTRATIVE EBITDA1 VS CAPEX REQUIREMENTS FOR STORAGE ONLY PROJECTS CTV JV is the off-taker of CO2 at storage site through Storage Co. VARIOUS CO2 PROJECTS Lower expected…
  46. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 46
    Strong Price Realizations in CAs Unique Market Dynamics CALIFORNIA IS AN OIL ISLAND AND THE LARGEST U.S. GDP CONTRIBUTOR (amounts shown as % of U.S. domestic GDP) Crude: California crude prices continued move in tandem with the…
  47. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 47
    Hedging Program OIL HEDGES1 Date as of June 30, 2023 3Q23 4Q23 1Q24 2Q24 2H 2024 2025 Barrels per 17,363 5,747 7,750 10,500 10,375 14,811 STRATEGY Day CRCs hedging strategy seeks to mitigate our exposure SOLD CALLS…
  48. 2Q 2023 Earnings Presentation – California Resources Corp. – slide 48
    Joanna Park (Investor Relations) Richard Venn (Media) 818-661-3731 818-661-6014 Joanna.Parkcrc.com Richard.Venncrc.com

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