CRC Corporate Presentation April 2018
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 • business prospects investment • transactions and projects • budgets and maintenance capital requirements • operating costs • reserves • Value Creation Index (VCI) metrics are based on certain estimates • type curves 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 • debt limitations on our financial flexibility of capital markets or inability to attract potential investors • insufficient cash flow to fund planned investment • inability to enter efficient hedges • inability to enter desirable transactions including asset sales and joint • equipment, service or labor price inflation or unavailability ventures • availability or timing of, or conditions imposed on, permits and approvals • legislative or regulatory changes, including those related to drilling, • lower-than-expected production, reserves or resources from development completion, well stimulation, operation, maintenance or abandonment of projects or acquisitions or higher-than-expected decline rates wells or facilities, managing energy, water, land, greenhouse gases or • disruptions due to accidents, mechanical failures, transportation or storage other emissions, protection of health, safety and the environment, or constraints, natural disasters, labor difficulties, cyber attacks or other transportation, marketing and sale of our products catastrophic events • unexpected geologic conditions • factors discussed in “Risk Factors” in our Annual Report on Form 10 -K • changes in business strategy available on our website at crc.com. inability to replace reserves • 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. CRC Corporate Presentation – April 2018 | 2
Value Proposition – Multiple Ways to Increase Valuation Disciplined Portfolio EBITDAX Growth* Regaining Momentum Management 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 24 for additional information regarding EBITDAX Growth planning scenarios. CRC Corporate Presentation – April 2018 | 3
CRC’s Large Resource Base with Advantaged Infrastructure 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 6 MBOE/d production (100% dry gas) Diversified, conventional portfolio with low base decline rate • 618 MMBOE proved reserves • • 129 MBOE/d production, 64% oil San Joaquin uin Basin in • 2.3 million net mineral acres 419 MMBOE Proved Reserves 90 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 27 MBOE/d production (100% oil) Reserves as of 12/31/17; Production figures reflect average FY 2017 rates. CRC Corporate Presentation – April 2018 | 4
Largest California Producer 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 21 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 $29 $25 $24 $20 EOCENE 50% $21 SANDS AND $15 $19 SHALES $10 25% 1,000’ PAY $5 UPPER 0% $0 CRETACEOUS CRC Chevron USA Aera Energy Sentinel Peak Berry 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 2017, data for Berry and Sentinel Peak are from most recent available information which is 2016. Source: Wood Mackenzie, Company Estimates. CRC Corporate Presentation – April 2018 | 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 • 70% of CRC production is from San Joaquin Basin 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 2017 average net production of 90 MBOE/d (58% oil) with <8% YOY decline • Elk Hills is the flagship asset (~59% of FY 2017 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 6 Gross Wells Drilled Avg. Rig Count 200 4 100 2 0 0 2015 2016 2017 CRC Corporate Presentation – April 2018 | 6
Los Angeles Basin – Kitchen is the Entire Basin Ove Overvie view Basin in Map • World-class hydrocarbon-rich sedimentary basin with large quantities of Legend stacked pay CRC Land Oil Field • ~10 billion barrels OOIP in CRC fields Gas Field CRC Operated • Kitchen is the entire basin, hydrocarbons did not migrate laterally; basin depth (>30,000 ft) • Very few penetrations >10,000 ft, leaving deep horizons underexplored • Focus on mature waterfloods with generally low technical risk and proven repeatable technology across huge OOIP fields • 2017 average net production of 27 MBOE/d (100% liquids) with a 10% YOY decline and an organic reserves replacement ratio of 330%* • Over 30,000 net mineral acres Wilmington • Major properties are premier coastal development assets of Wilmington and Huntington Beach • The Wilmington field is subject to contractual agreements similar to production-sharing contracts (PSCs). The contracts represented slightly Huntington Beach less than 20% of our total 2017 production. Waterflood Avg. Rig Count 50 2 Gross Wells Drilled Avg. Rig Count 25 1 Performed 26 Capital Workover projects in 2017 0 0 *Organic reserves replacement excludes the effect of price change on reserves volumes 2015 2016 2017 CRC Corporate Presentation – April 2018 | 7
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