Raymond James & Associates 39 th Annual Institutional Investors Conference Mark Smith | Senior Executive Vice President & CFO | Orlando, FL | March 5, 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 metrics (VCIs), which 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 www.crc.com Investor Relations for important information about 3P reserves and other hydrocarbon resource quantities, finding and development costs, recycle ratio calculations, and drilling locations. Raymond James and Associates 39 th Annual Institutional Investors Conference | 2
Value Proposition – Multiple Ways to Increase Valuation Disciplined Portfolio Positioned to Move EBITDAX Growth* Management from Defense to Offense • Increasing 2,500 Investments and Deploying Rigs 2,000 • Joint Ventures 1,500 $MM • Opportunistic 1,000 Deleveraging 500 • Operating Leverage to 0 Crude Oil 2017 2018E 2019E 2020E 2021E *See Slide 22 for additional information regarding EBITDAX Growth planning scenarios. Raymond James and Associates 39 th Annual Institutional Investors Conference | 3
CRC’s Large Resource Base with Advantaged Infrastructure World rld-Class ss Resou ource ce Base Sacram amento ento Basin in • Operate 4 of the largest fields in the continental U.S. 14 MMBOE Proved Reserves 6 MBOE/d production (100% dry gas) Diversified, conventional portfolio with low base decline rate • • 618 MMBOE proved reserves • 129 MBOE/d production, 64% oil San Joaquin uin Basin in • 2.3 million net mineral acres 419 MMBOE Proved Reserves 90 MBOE/d production (58% oil) Position itioned ed to Grow ow • Internally funded capital program designed to live within cash flow and drive growth Ventur ura a Basin in 40 MMBOE Proved Reserves • Development investment augmented by JV capital and 6 MBOE/d production (63% oil) increases flexibility • Operating flexibility across basins and drive mechanisms to optimize growth through commodity price cycles • Increasing crude oil mix improves margins Los Angel eles Basin in • Deep inventory of high-return projects 145 MMBOE Proved Reserves 27 MBOE/d production (100% oil) Reserves as of 12/31/17; Production figures reflect average FY 2017 rates. Raymond James and Associates 39 th Annual Institutional Investors Conference | 4
Resilient Resource Base ) Producti roduction on By St Strea eam m (Mboe/d) boe/d) 180 200 160 175 140 150 120 /d MBoe/d 125 l ($MM) 100 100 ital Capita 80 75 60 50 40 25 20 0 0 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 FY FY FY 2015 2016 2017 $75MM Total Capital: $401MM $371MM* Internally Funded Capital: $275MM Oil NGL Gas Total Capital Internally Funded Capital Note: Capital and production for 2017 include BSP’s investment and exclude MIRA’s investment. Raymond James and Associates 39 th Annual Institutional Investors Conference | 5
2017 Capital Investment Program Summary Moved ed from rom Defe fense se to Of Offen ense se – 2017 7 Revie view • CRC 2017 capital plan was directed to oil-weighted projects in our core fields: Elk Hills, Wilmington, Kern Front, Buena Vista, Mt. Poso, Pleito Ranch, Wheeler Ridge and the delineation of Kettleman North Dome • JV capital was primarily focused in the San Joaquin Basin Results lts of Full lly-Burde urdened ed 2 2017 CRC Deve velopm lopment ent Pro rogr gram am 2017 Total al Capital tal In Inve vest sted ed Total: $429 million 3 Total: ~$240 million 2.50 50% 45% 2.00 2.00 40% Development 1.70 Facilities Exploration Other1 14% Other 1 30% 2% 6% 1.50 30% Drilling 24% IRR VCI MIRA JV 1.00 20% Capital 14% Workover 0.50 10% 18% BSP JV Capital 22% 0.00 0% $55 Brent Flat $55 Brent 2017, $65 Brent $3 NYMEX in 2018+ & $3 NYMEX VCI IRR 1 Other includes maintenance and occupational health, safety and environmental projects, seismic and other investments. 2 Facility Costs and other non-return capital are apportioned to producing wells in the year they are drilled. 3 Includes capital funded by MIRA, which is not included in our consolidated results. Raymond James and Associates 39 th Annual Institutional Investors Conference | 6
Development Joint Ventures: A Force Multiplier $550 Million Portfolio Flexibility Kettleman North Dome and Optionality Total Potential JV Capital Lost Hills Enables High Margin $154 Million Production Growth $260 MM Committed Mt Poso Kern Front Elk Hills ~3.5-4.0 MBoe/d Buena Vista Accelerate Value Gross Peak Production per Pleito Ranch $100 MM of development capital -Legend- CRC Land Oxy Land Oil Fields >12 MMBoe Gas Fields JVs are generally focused in the San Joaquin Basin Derisk Inventory Potential Targeted Reserves per JVs add production and cashflow, $100 MM of development capital and help de-risk inventory to increase CRC’s reserve base Raymond James and Associates 39 th Annual Institutional Investors Conference | 7
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