AUGUST CORPORATE PRESENTATION
Forward Looking / Cautionary Statements This presentation contains forward-looking statements that involve risks and uncertainties that could materially affect our expected results of operations, liquidity, cash flows and business prospects. Such statements include those regarding our expectations as to our future: • financial position, liquidity, cash flows and results of operations • operations and operational results including production, hedging and capital investment • business prospects • Capital budgets and maintenance capital requirements • transactions and projects • reserves • operating costs • type curves • Value Creation Index (VCI) metrics, which are based on certain estimates including future production rates, costs and commodity prices Actual results may differ from anticipated results, sometimes materially, and reported results should not be considered an indication of future performance. While we believe assumptions or bases underlying our expectations are reasonable and make them in good faith, they almost always vary from actual results, sometimes materially. We also believe third-party statements we cite are accurate but have not independently verified them and do not warrant their accuracy or completeness. Factors (but not necessarily all the factors) that could cause results to differ include: • commodity price changes • insufficient capital, including as a result of lender restrictions, unavailability of capital • debt limitations on our financial flexibility markets or inability to attract potential investors insufficient cash flow to fund planned investment or changes to our capital plan effects of hedging transactions and limitations on our ability to enter such transactions • • • inability to enter desirable transactions including asset sales and joint ventures • equipment, service or labor price inflation or unavailability • legislative or regulatory changes, including those related to drilling, completion, well • incorrect estimates of reserves and related future cash flows stimulation, operation, maintenance or abandonment of wells or facilities, managing • availability or timing of, or conditions imposed on, permits and approvals energy, water, land, greenhouse gases or other emissions, protection of health, safety • lower-than-expected production, reserves or resources from development projects or and the environment, or transportation, marketing and sale of our products acquisitions or higher-than-expected decline rates • risks of drilling • joint ventures and acquisition activities and our ability to achieve expected synergies • unexpected geologic conditions • disruptions due to accidents, mechanical failures, transportation or storage constraints, • tax law changes natural disasters, labor difficulties, cyber attacks or other catastrophic events • changes in business strategy • factors discussed in “Risk Factors” in our Annual Report on Form 10 -K available on our inability to replace reserves website at crc.com. • • effects of PSC-type contracts on production and unit production costs Words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "goal," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "target, "will" or "would" and similar words that reflect the prospective nature of events or outcomes typically identify forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made and we undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. See the Investor Relations page at www.crc.com for important information about 3P reserves and other hydrocarbon resource quantities, finding and development costs, recycle ratio calculations, and drilling locations. August Corporate Presentation | 2
Well-Positioned to Drive Value-Oriented Growth Disciplined Portfolio Adjusted EBITDAX Regaining Momentum Management Growth* Through Increased Investment 400+ • Increasing CRC 2,500 Investments and Deploying Rigs 2,000 • Joint Ventures 1,500 $MM • Opportunistic Deleveraging 1,000 • Significant Operating Leverage to Crude Oil 500 0 2017 2018E 2019E 2020E 2021E 2017 2018E 2019E 2020E 2021E *See Slide 23 for additional information regarding Adjusted EBITDAX Growth planning scenarios. August Corporate Presentation | 3
Large Resource Base with Production Diversity World rld-Cl Class ss Resou ource ce Base Sacram amento ento Basin in • Operate 4 of the largest fields in the continental U.S. 14 MMBOE Proved Reserves 5 MBOE/d production (100% dry gas) Diversified, conventional portfolio with low base decline rate • 682 MMBOE proved reserves • • 134 MBOE/d production, 62% oil San Joaquin uin Basin in • 2.3 million net mineral acres 483 MMBOE Proved Reserves 98 MBOE/d production (58% oil) Positioned itioned to Gro row • Internally funded capital program designed to live within cash flow and drive growth Ventur ura a Basin in 40 MMBOE Proved Reserves • Development investment augmented by JV capital and 6 MBOE/d production (67% oil) increases flexibility • Operating flexibility across basins and drive mechanisms to optimize growth through commodity price cycles • Increasing crude oil mix improves margins Los Angel eles Basin in • Deep inventory of high-return projects 145 MMBOE Proved Reserves 25 MBOE/d production (100% oil) Reserves as of 12/31/17, including estimate of reserves related to the Elk Hills acquisition Production figures reflect Q2 2018 rates August Corporate Presentation | 4
Leading Market Position with Deep Regional Insight Top California Producers in 2017* SHALLOW <5, 000’ TULARE Largest 3-D Seismic SANDS 200 Position in California ETCHEGOIN 163 Gross Operated MBoe/d SANDS 142 150 122 100 MONTEREY 50 30 SANDS AND 18 SHALES - CRC Chevron USA Aera Energy Sentinel Peak Berry Majority of CA Production is Shallow* TEMBLOR 100% $35 SANDS $30 OPEX $/Boe** Production Mix 75% $29 $25 $24 $20 EOCENE 50% $21 SANDS AND $20 $15 $19 SHALES $10 25% 1,000’ PAY $5 UPPER 0% $0 CRETACEOUS CRC Berry Chevron USA Aera Energy Sentinel Peak SANDS AND 15, 000’ DEEP SHALES Shallow Deeper (>5,000') FY OPEX $/BOE** *Source: DOGGR data (average production data for 2017) **Information for CRC, Chevron, and Aera is from FY 2017, information for Berry is from Q1 2018, and information for Sentinel Peak is from most recent available information which is 2016. Source: Wood Mackenzie, Company Estimates. August Corporate Presentation | 5
San Joaquin Basin – An American Super Basin Ove Overvie view Basin in Map • Oil and gas discovered in the late 1800s Legend CRC Land • San Joaquin Basin contributed 73% of CRC’s total Q2 2018 production Oil Field • Cretaceous to Pleistocene sedimentary section (>25,000 feet) Gas Field CRC Operated • Thermal recovery applied since early 1960s • Currently running 7 drilling rigs Key y Asse sets 2Q 2018 average net production of 98 MBOE/d (55% oil) • Elk Hills is the flagship asset (~61% of Q2 2018 CRC San Joaquin • production) Two core steamfloods - Kern Front and Lost Hills • • Early stage waterfloods at Buena Vista and Mount Poso • Substantial, integrated infrastructure that supports Elk Hills Steamflood Waterflood Primary Unconventional Avg. Rig Count 300 8 Gross Wells Drilled Avg. Rig Count 6 200 4 100 2 0 0 2015 2016 2017 1H 2018 August Corporate Presentation | 6
Elk Hills Area – CRC’s Flagship Asset Fie ield ld Map Overvie Ove view • CRC’s flagship, a 100 year -old field with exploration opportunities • Light oil from conventional and unconventional production • Largest gas and NGL producing field in California, one of the largest fields in the continental U.S.*, >3,000 producing wells • 11 billion OOIP (BOE) and cumulative production of over 2.7 billion BOE • Q2 2018 average net production of 60 MBOE/d (~45% of total CRC production) Integr ntegrated d Inf nfrast rastru ructure cture • 610 MMcf/d processing capacity through four gas plants • Including California’s largest Producti roduction on Histor ory • Three CO 2 removal plants 120 20 Net MBOEPD Rig Count • Over 4,500 miles of gathering lines 100 15 • 45 MW cogeneration plant Net MBOE/d 80 Rig Count • 550 MW power plant 60 10 40 5 20 CRC Land owned in fee with integrated infrastructure 0 - 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 1H 2018 *DOGGR data and U.S. Energy Information Administration. August Corporate Presentation | 7
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