California Resources Corporation · NYSE:CRC
California Resources — Corporate Update (August 2022)
18 slides from California Resources's corporate update, Aug 4, 2022
Slide 1: California Carbon Management Partnership
California Carbon Management Partnership August 4, 2022
Slide 2: Forward Looking / Cautionary Statements – Certain Terms
Forward Looking / Cautionary Statements – Certain Terms This document contains statements that we believe to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical fa
Slide 3: Glossary
Glossary Term Definition BMT Billion Metric Tons CARB California Air Resources Board CCS Carbon Capture and Storage CGP Cryogenic Gas Plant CI Carbon Intensity CMB Carbon Management Business CO2 Carbon Dioxide CTV Carbon TerraVault D&C Drilling and Completions E&P Exploration and Production EIR Envi
Slide 4: Defining the Energy Transition From the E&P Perspective
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 capacity provides significant optionality Integrated projects vali
Slide 5: Creating a California Carbon Management Partnership to Advance the Energy Transition
Creating a California Carbon Management Partnership to Advance the Energy Transition Solid Progress Initial commitment1 of On Our Carbon Management Strategy $500MM August Formation 2022 of Strategic Partnership Global Transition Fund (“BGTF”) Refocused efforts May on CalCapture 2022 Project April MR
Slide 6: Ownership and Carbon TerraVault Joint Venture Details
Strategic Partnership and Carbon TerraVault Joint Venture Details Global Transition Fund (“BGTF”) Joint Venture Initial commitment1 Wholly owned by CRC $500MM (with potential for follow-on Contribution of $10/MT on permitted investments of >$1B)2 capacity for 49% of CTVH JV Contributes Funded in 3 i
Slide 7: Ownership Provides a Structural Capital Advantage to CRC's Net Zero Strategy
Strategic Partnership Provides a Structural Capital Advantage to CRC’s Net Zero Strategy Assuming partnership is successful and partner funds its share of the 5MMTPA storage target, CRC can fund its portion of capital calls from the pore space contributions Illustrative 2027 CO2 Storage Goal Capital
Slide 8: Strategic Partnership - Rationale
Strategic Partnership - Rationale Secures CMB Level Investment From the Largest Global Transition Fund Aligns CRC’s 2045 Net Zero Goal, Paris-Aligned Business Plan, and Our Carbon Management Strategy Highlights Value of Our Expansive CO2 Pore Space Portfolio De-Risks Our CMB Funding Needs Substantia
Slide 9: Strategic Partnership - A Strong Combination
Strategic Partnership - A Strong Combination Global Transition Fund (“BGTF”) ✓ CRC is dedicated to being a significant part of the solution for reaching and ✓ With $725B AUM and over > $200B of AUM in energy and infrastructure maintaining carbon neutrality, and helping California meet its emissions
Slide 10: Creates Strong Development Capabilities Built on First Mover Advantage
Strategic Partnership Creates Strong Development Capabilities Built on First Mover Advantage Most CO2 Storage Permits Filed on the Record in the U.S. EPA CLASS VI PERMIT CALIFORNIA APPLICATIONS BY STATE1 CLASS VI PERMIT APPLICATIONS ▪ Permitting and California regulatory expertise 36% ▪ Multiple FEE
Slide 11: California Air Resources Board (CARB) 2022 Climate Change Scoping Plan
California Air Resources Board (CARB) 2022 Climate Change Scoping Plan Governor Newsom’s Response to CARB CCS Plays an Increasing Role in California’s Carbon Neutrality Goals as Part of CARB 2022 “Simply put, it will not be possible to eliminate all emissions across our economy, so achieving carbon
Slide 12: Proposed Inflation Reduction Act Significantly Enhances the Value of 45Q Credits
Proposed Inflation Reduction Act Significantly Enhances the Value of 45Q Credits Inflation Reduction Act of 2022 includes $369B in climate and Project developers will have the option energy spending to provide policy The deadline for beginning to access direct pay for the full value of construction
Slide 13: Strategic Partnership Develops Economic Carbon Management Opportunities in California
Strategic Partnership Develops Economic Carbon Management Opportunities in California Assumed Potential Economic Incentives1 Example Strategic Partnership Project Cash Flow Profile3 FEDERAL 45Q TAX CREDIT Terminal $50 (2026) Est. Value (per MT of CO2) for Carbon Capture or Target Year 1 Year 2 Year
Slide 14: Aligned with CRC's CMB Goals - On Track for 5MMTPA Target by YE2027
Strategic Partnership Aligned with CRC’s CMB Goals - On Track for 5MMTPA Target by YE2027 Aligned with CRC’s 2027 goal: The Strategic Partnership is targeting the injection of 5MMTPA and 200MMT of CO2 storage development As partnership gets expanded across current development opportunities, these pr
Slide 15: Supporting our Local Communities and Investing in the Energy Transition
CRC / Carbon TerraVault Supporting our Local Communities and Investing in the Energy Transition Kern County Energy Transition $2.5MM Pledge CRC Carbon Management Institute at Kern Community College District ▪ Research and Development ▪ Community Outreach and Education ▪ Workforce Training ▪ Carbon M
Slide 16: Supplemental Materials
Supplemental Materials mead
Slide 17: Assumptions
Assumptions: Information presented on slide 13 shows example project economics for a strategic partnership with Brookfield. This information is an example of project economics for the strategic partnership. The terms and availability of third-party sources of financing, if needed, could also affect
Slide 18: Investor Relations and Media Contacts
Joanna Park (Investor Relations) Richard Venn (Media) 818-661-3731 818-661-6014 [email protected] [email protected]
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