Summary of the Spin-Off Distributing Company: Occidental Petroleum Corporation (OXY) Distributed Company: California Resources Corporation (CRC or the Company) OXY will distribute at least 80.1% of the outstanding common shares of CRC…
Separation Overview Creates industry leading California focused E&P Allows CRC to reinvest substantially all cash flow after debt service to grow its business Enables CRCs management team to focus on and accelerate the development and…
Management Presenters Todd Stevens President and Chief Executive Officer Mark Smith Senior EVP and Chief Financial Officer Shawn Kerns EVP Corporate Development Charlie Weiss EVP Public Affairs Scott Espenshade VP Investor…
California Resources Corporation Introduction 6
Key Investment Highlights World Class Resource Base Interests in 4 of the 12 largest fields in the lower 48 states 744 MMBoe proved reserves Largest producer in California on a gross operated basis with significant exploration and…
Focused Business Strategy Grow NAV per share through exploration and development of under-exploited resources Self-funding capital program eliminates reliance on external capital Disciplined Capital Allocation Rigorously review…
Overview of California Resources Corporation California Pure-Play Net Resource Overview Total proved reserves by basin Avg. net production by CRC will be an independent E&P company focused (12/31/2013) basin (1H14) on high-return…
California is a World Class Oil Province More than 35Bn Boe Produced in CA* Top California Producers in 2013* 200 188 180 166 160 147 Gross Operated MBoe/d 140 120 2 billion Boe 100 80 60 38 40 25 20 Sacramento - 19…
Substantial Opportunity and Resource Rich Asset Base Total California 2013 Reserves Net Proved Reserves (MMBoe) 744 Sacramento Basin % Liquids Net Proved 81% Pre-Tax Proved PV-10 ( millions)1 14,018 San Joaquin Basin Net 3P…
Robust Returns Across Multiple Drive Mechanisms Single Well/Pattern Economics by Drive Mechanism: Before Tax IRR 1 80%-100%+ per well 50%+ per pattern 50%+ 30%-50% per pattern per well Conventional Waterflood Steamflood…
Strong Returns Through the Commodity Cycle Oil Prices / Gas Prices Oil Prices / Gas Prices Invest in steam floods (above 5x Oil/Gas ratio) Gas price is a cost for steam floods. Invest in steam floods above 5x Oil/Gas ratio…
Application of Technology Driving High Margin Growth Oil NGLs Gas 250 200 155 1581 150 MBoe/d (Net) 100 50 - - 1H'14 2014 2015 2016 Longer term CRC has a significant portfolio of conventional and…
CRC Achieves Premium Pricing and Recycle Ratio 70.00 Cash Margins for FY 2013 (/Boe) Recycle ratio: 2.4x 1 60.00 49.66 50.00 40.00 30.00 20.00 10.00 0.00 A B C D CRC E F G H Source: Company 2013 SEC filings.…
Captive Infrastructure Integral to Operations The Elk Hills 200 MMScf/d Cryogenic gas plant is part of the largest gas processing complex in California, with a combined capacity of 540 MMScf/d Gas Processing CRC also owns and operates a…
San Joaquin Basin Overview Basin Map Oil and gas discovered in the late 1800s Currently accounts for 70% of CRC production 25 billion barrels OOIP in CRC fields1 Kettleman Cretaceous to Pleistocene sedimentary section (25,000…
Elk Hills Field Overview Overview Field Map CRCs flagship asset, a 103-year old field with exploration opportunities1 RR Gap Large fee property with multiple stacked reservoirs GS Light oil from conventional and unconventional…
Elk Hills Field Stacked Pay Zones Dry Shallow Deep Discovery Gas Oil Stevens Carneros Exploratory Wells Producing Well Zone Zone Zone Zone 2009 Age 1910 1919 954-4G 987-25R 934-29R Formations 1941 1941 1977 1978 1988 PLEISTOCENE…
Elk Hills Field Identified Projects Shallow Oil Zone Monterey and Carneros Formations Primary Waterflood Net Production C4D Shale 29R Waterflood 100.0 Asphalto, Railroad Gap, 31S Waterflood 90.0 & N. Midway-Sunset 80.0 Gas…
Waterflood Project Type Improving recovery from primary reservoirs Average Waterflood Pattern Production Response Redeveloping existing asset base 100 Wells already drilled 80 2012 2013 Average 2014 Expand waterflood…
Steamflood Projects Improving recovery from heavy oil reservoirs Example Kern Front Pattern Add steam to make oil flow better 140 Proven process 120 100 Good quality reservoirs; high oil saturation 80 Bopd Reliable…
Los Angeles Basin Overview Basin Map Large, world class basin with thick deposits Kitchen is the entire basin, hydrocarbons did not migrate laterally; basin depth (30,000 ft) 10.5 billion barrels OOIP in CRC fields1 Most significant…
Wilmington Field Overview Overview Field Map CRCs flagship coastal asset: acquired in 2000 Field discovered in 1932; 3rd largest field in the U.S. Over 7 billion barrels OOIP (34% recovered to date)1 Depths 2,000 10,000 (TVDSS)…
Wilmington Field Geology & Technology Stratigraphic Column Geosteering Technology Shallow Gas Upper Fan reservoirs Middle Fan Ranger reservoirs Terminal reservoirs Middle Fan Lower Fan UP-Ford reservoirs Deep marine 237 Zone…
Wilmington Field Project Successful Redevelopment Example Pattern Increasing waterflood performance 60 Over 8,000 wells drilled since inception 40 Continue to find new opportunities Boepd Inventory of over 1,000 wells…
Ventura Basin Overview Basin Map Estimated 3.5 billion barrels OOIP in CRC fields1 Operate 25 fields (about 40% of basin) 300,000 acres Multiple source rocks: Miocene (Monterey and Rincon Formations), Eocene (Anita and Cozy Dell…
Sacramento Basin Overview Basin Map Cretaceous Starkey, Winters, Forbes, Kione, and the Eocene Domengine sands Current production is almost exclusively limited to less than 10,000 feet Exploration started in 1918 and focused on…
Shale Geological Overview 0 GR 150 Successful in upper Monterey using precise development approach 3,000 Expanding efforts into lower Monterey and other shales Total Organic N Depth Thickness Porosity Permeability Carbon Play…
CRCs Regulatory Program Demonstrate CRCs strong commitment to safety and environmental responsibility Proactively engage in transparent and constructive dialogue with communities and regulators Serve as an active community partner…
Proven Track Record in Sensitive Environments Operator of choice in coastal environments Proven coexistence with sensitive environmental receptors Excellence in safety and mechanical integrity 33
CRCs Unique Regulatory Flexibility Long and distinguished regulatory track record Leading acreage position and diversity of opportunities Core operations in longstanding oil & gas fields Primary production, IOR and EOR All grades…
Financial Strength Provides Flexibility to Drive Growth Capital program: Invest within cash flow Capitalization as of 10/1/14 (MM) 1 Growth strategy based on re-investment in 2.0Bn Senior Unsecured R C F 65 Senior Unsecured T erm…
Self-Funded Capital Investment Program Commentary 2014 Total Capital Budget 2014 capital budget of 2.1 billion is an Other 1 Exploration 145 increase of 24% from 2013 95 7% 5% CRC plans to reinvest excess free cash flow Workover…
The CRC Opportunity World Class Resource Base Portfolio of Lower-Risk, High-Growth Opportunities Management Expertise California Heritage Shareholder Value Focus 37
Q&A 38
Appendix 39
CRCs Strong, Highly Experienced Management Team Name Position Prior Experience Todd Stevens President and Chief Executive Officer VP Corporate Development OXY; VP California Operations OXY President O&G Americas; President OXY Oil and…
CRCs Board of Directors (Effective 12/1/14) Name Position Experience Former President O&G Americas; President OXY Oil and Gas USA; Bill Albrecht Executive Chairman VP California Operations OXY Director, President and Chief Executive…
Non-GAAP Reconciliation for EBITDAX millions Last Twelve For the Year Ended December 31, 9 Months Ended, Months Ended, 2011 2012 2013 9/30/2013 9/30/2014 9/30/2014 Net Income 971 699 869 657 657 869 Interest Expense - - - - - -…
CRC Exploration Characteristics Conventional Complex California geology provides unique opportunities below existing fields and along trend 3D seismic is helpful, but may not clearly define traps In house regional experience and…
Largest CRC Fields Have World Class Oil-in-Place and Stacked Pay Potential Elk Hills Buena Vista Kettleman Wilmington Huntington Beach OOIP*: 8 billion Boe 7 billion Boe 4 billion Boe 7 billion Boe 2 billion Boe Proven pay zones: 6 4…
CRC Highlights Unconventional Opportunities Over the long-term, expect substantial production growth to come from unconventional reservoirs CRC has mineral interests in 1.1 million net acres Unconventional Potential with…
3D Seismic Coverage Experienced technical staff, leading acreage position and extensive 3D seismic library, covering over 2.7 million acres, including 47% of CRCs acreage, results in a strong competitive advantage Interpretation of…
Exploration Discoveries Conventional Discovery California New fault block in south San Joaquin Valley Running room on trend Sacramento Basin Unconventional Sand Overlooked thin sand near Buena 2013: Unconventional shale Vista…
Historical Costs Incurred CRC has increased capital expenditure efficiency In 2013, development costs decreased by nearly 500 million primarily related to a 20% decline from 2012 drilling costs As a result of recent investments in…
Stable Leasehold Position San Joaquin Los Angeles Ventura Sacramento Basin Basin Basin Basin Total CRC Held in fee acreage, net (000s) 943 13 212 195 1,363 % net acreage held in fee 63% 45% 83% 36% 60% Undeveloped acreage, net (000s)…
Wilmington Field Production Sharing Contracts Over 90% of CRCs Long Beach LBU PSC production is covered under Production 50,000 Base Incremental Sharing Contracts (PSCs) with the State 40,000 and City of Long Beach 30,000…
Endnotes 1) As of 12/31/13, CRCs probable reserves were 218 MMBoe (87% liquids) with a PV-10 of 4 billion and possible reserves were 136 MMBoe (83% liquids) with a PV-10 of 3 billion, each based on SEC pricing. 2) CRC's recycle ratio is…
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