California Resources Corporation · NYSE:CRC
California Resources — Raymond James 36th Annual Institutional Investor Conference (March 2015)
22 slides from California Resources's conference presentation, Mar 4, 2015
Slide 1: Raymond James 36th Annual Institutional Investor Conference
36TH ANNUAL INSTITUTIONAL INVESTOR CONFERENCE Raymond James Mark Smith| Sr. EVP & CFO | Orlando, FL | March 4, 2015
Slide 2: Forward-Looking / Cautionary Statements
Forward-Looking / Cautionary Statements This presentation contains 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 statements of historical fact, included in this presentatio
Slide 3: CRC at a Glance
CRC at a Glance • World-Class Resource Base Sacramento Basin 19 MMBoe Proved Reserves In 4 of 12 largest fields in the 9 MBoe/d production continental U.S. 768 MMBoe proved reserves San Joaquin Basin • Capital Structure 525 MMBoe Proved Reserves 112 MBoe/d production No near-term debt maturiti
Slide 4: Overview of California Resources Corporation
Overview of California Resources Corporation California Pure-Play Net Resource Overview Total proved reserves by basin Avg. net production by • An independent E&P company spun off by (12/31/2014) basin (12/31/2014) Occidental Los Angeles Basin San Joaquin Basin 70% Los Angeles Basin 22% 57% Oil 18%
Slide 5: Production Expected to Be Essentially Flat in 2015
Production Expected to Be Essentially Flat in 2015 • Resource base enables predictable production profile Conventional assets have relatively low decline rates, long production life Steamflood and waterflood investments will deliver crude oil growth in 2015 with little new investment Large inv
Slide 6: Self-Funded Capital Investment Program
Self-Funded Capital Investment Program Commentary 2015 Total Capital Budget • 2015 capital budget of $440 million expected to Other Total: $440 million ~$95 1 be directed almost entirely towards oil-weighted ~22% Drilling production ~$150 ~34% Exploration • Expect to keep production essentially flat
Slide 7: Capital Allocation Priority: De-Leveraging Balance Sheet
Capital Allocation Priority: De-Leveraging Balance Sheet • Exploring adjustments to capital structure Total long-term debt: ~$6.4 billion at Year-end 2014 Have received a 24-month amendment to revolver and term loan Resource base enables a variety of alternatives that do not require us to acce
Slide 8: Capital Structure & Hedges
Capital Structure & Hedges • Deleveraging is a priority Capitalization as of 12/31/14 ($MM) 1 $2.0Bn Senior Unsecured RCF 360 • Corporate family and senior unsecured credit Senior Unsecured Term Loan 1,000 ratings of Ba1 and BB+ from Moody’s and S&P, Senior Unsecured Notes 5,000 Total Debt 6,360 res
Slide 9: Long Term Value Creation Driven by World Class Asset Base
Long Term Value Creation Driven by World Class Asset Base 9
Slide 10: CRC is the Leading Operator in California
CRC is the Leading Operator in California Top California Producers in 2013* 200 188 180 166 147 Gross Operated MBoe/d 160 140 120 100 80 60 38 40 25 20 - CRC Chevron Aera Energy Freeport LINN Energy USA McMoRan Growth of Top California Producers 300 250 Gross Operated MBoe/d 200 Chevron Aera 150 100
Slide 11: World Class Assets with Significant Development Opportunities
World Class Assets with Significant Development Opportunities Total California as of 12/31/2014 • Diversity of basins, drive mechanisms. Net Proved Reserves (MMBoe) 768 % Oil– Net Proved 72% • Predictable production, low decline rates. Pre-Tax Proved PV-10 ($ millions)1 $16,091 2014 Avg. Net Product
Slide 12: Large in Place Volumes with Significant Upside
Large in Place Volumes with Significant Upside Recovery Factors for Discovered Fields¹ • In place volumes of ~40 Bn Boe at low Billion Boe recovery factor (22%) to date 45 40 • Conventional “value chain” approach to life of field development 35 30 • Unconventional success with great upside positioni
Slide 13: CRC – Price Realizations
CRC – Price Realizations Oil Price Realization Gas Price Realization WTI Realizations Brent NYMEX Realizations $120 5.0 $4.31 $4.39 $110.90 $111.70 $108.76 $3.73 $110 4.0 $103.80 $104.02 $4.11 $4.34 $2.94 $99.51 3.0 $3.66 $/Mcf $100 $104.16 $2.81 $/Bbl $93.00 $97.97 2.0 $95.12 $94.21 $90 $92.30 1.0
Slide 14: Creating a Recovery Value Chain
Creating a Recovery Value Chain • Conventional fields in various stages of Typical Recoveries by Mechanism Type development 80 • Base assets in place – advancing recovery 70 with traditional means Moving recoveries from primary through 60 Recovery of Orig. in Place; RF% • EOR 50 • Primary (94 fields
Slide 15: Elk Hills Field - Overview
Elk Hills Field - Overview Overview Field Map • CRC’s flagship asset, a 104-year old field with exploration opportunities1 RR Gap • Large fee property with multiple stacked reservoirs GS • Light oil from conventional and unconventional production Elk Hills • Largest gas and NGL producing field in CA
Slide 16: Wilmington Field - Overview
Wilmington Field - Overview Overview Field Map • CRC’s 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) • 2014 avg. production of 36.0 MBoe/d (gross) • Over 8,00
Slide 17: Proven Track Record in Sensitive Environments
Proven Track Record in Sensitive Environments • Operator of choice in coastal environments • Proven coexistence with sensitive environmental receptors • Excellence in safety and mechanical integrity 17
Slide 18: Well Positioned for Growth in Recovery
Well Positioned for Growth in Recovery • World-class asset base with diverse and rich resources. • Capacity for significant production growth at higher prices as we develop high-return, lower-risk development opportunities. • Committed to capital budgets that live within our cash flows. • As we brin
Slide 19: Appendix
California Resources Corporation Appendix 19
Slide 20: Cautionary Statements Regarding Hydrocarbon Quantities
Cautionary Statements Regarding Hydrocarbon Quantities We have provided internally generated estimates for proved reserves and aggregated proved, probable and possible reserves (“3P Reserves”) as of December 31, 2014 in this presentation, with each category of reserves estimated in accordance with S
Slide 21: Cautionary Statements Regarding Hydrocarbon Calculations
Cautionary Statements Regarding Hydrocarbon Calculations Finding and Development costs for the capital program are calculated by dividing the costs incurred from the capital program (development and exploration costs) by the amount of proved reserves added in the same year from improved recovery and
Slide 22: Non-GAAP Reconciliation for Adjusted EBITDAX
Non-GAAP Reconciliation for Adjusted EBITDAX For the Year Ended December 31, ($ in millions) 2014 2013 Net Income ($1,434) $869 Interest Expense 72 - Provision (benefit) for income taxes (987) 578 Depreciation, depletion and amortization 1,198 1,144 Exploration expense 139 116 Asset Impairment 3,402