Bank of America Merrill Lynch

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1 Bank of America Merrill Lynch 2018 Energy Credit Conference Mark Smith Sr. EVP & CFO June 6-7, 2018

2 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 business prospects transactions and projects operating costs Value Creation Index (VCI) metrics 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 thirdparty 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 debt limitations on our financial flexibility insufficient cash flow to fund planned investment inability to enter desirable transactions including asset sales and joint ventures legislative or regulatory changes, including those related to drilling, completion, well stimulation, operation, maintenance or abandonment of wells or facilities, managing energy, water, land, greenhouse gases or other emissions, protection of health, safety and the environment, or transportation, marketing and sale of our products unexpected geologic conditions changes in business strategy inability to replace reserves operations and operational results including production, hedging and capital investment budgets and maintenance capital requirements reserves type curves insufficient capital, including as a result of lender restrictions, unavailability of capital markets or inability to attract potential investors inability to enter efficient hedges equipment, service or labor price inflation or unavailability availability or timing of, or conditions imposed on, permits and approvals lower-than-expected production, reserves or resources from development projects or acquisitions or higher-than-expected decline rates disruptions due to accidents, mechanical failures, transportation or storage constraints, natural disasters, labor difficulties, cyber attacks or other catastrophic events factors discussed in Risk Factors in our Annual Report on Form 10-K available on our website at crc.com. 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 for important information about 3P reserves and other hydrocarbon resource quantities, finding and development costs, recycle ratio calculations, and drilling locations. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 2

3 Well-Positioned to Drive Value-Oriented Growth $MM Regaining Momentum Through Increased Investment Increasing CRC Investments and Deploying Rigs Disciplined Portfolio Management ,500 2,000 Adjusted EBITDAX Growth* Joint Ventures Opportunistic Deleveraging Significant Operating Leverage to Crude Oil 1,500 1, E 2019E 2020E 2021E 2021E *See Slide 18 for additional information regarding Adjusted EBITDAX Growth planning scenarios. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 3

4 Continued Forward Progress with Strong 1Q18 Results ACTIVITY 9 Rigs Maintained Sustainable Level of Activity PRODUCTION 123 Mboe/d ~2% Sequential Quarter Decline Capital Adj. EBITDAX* $139 Million Entirely Internally Funded $250 Million ~8% Sequential Quarter Growth * See the Investor Relations page at for a reconciliation to the closest GAAP measure and other important information. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 4

5 Large Resource Base with Production Diversity World-Class Resource Base Operate 4 of the largest fields in the continental U.S. Diversified, conventional portfolio with low base decline rate 618 MMBOE proved reserves 129 MBOE/d production, 64% oil 2.3 million net mineral acres Sacramento Basin 14 MMBOE Proved Reserves 6 MBOE/d production (100% dry gas) San Joaquin Basin 419 MMBOE Proved Reserves 90 MBOE/d production (58% oil) Positioned to Grow Internally funded capital program designed to live within cash flow and drive growth Development investment augmented by JV capital and increases flexibility Operating flexibility across basins and drive mechanisms to optimize growth through commodity price cycles Increasing crude oil mix improves margins Deep inventory of high-return projects Ventura Basin 40 MMBOE Proved Reserves 6 MBOE/d production (67% oil) Los Angeles Basin 145 MMBOE Proved Reserves 27 MBOE/d production (100% oil) Reserves as of 12/31/17; Production figures reflect average FY 2017 rates. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 5

6 MMBoe Value Additive Inventory Growth Comprehensive technical review of 40% of CRC s fields proved reserves of 618 million BOE and 450 million BOE of probable reserves. 119% organic reserve replacement, excluding the effect of price adjustments. We added 34 million BOE of proved reserves from extensions and discoveries and 22 million BOE from performance. We were also able to rebook 49 million BOE due to the increase in prices compared to prior years. Organic F&D costs excluding price related revisions were $6.82 per BOE and produced a recycle ratio of 2.1x. Over 95% of our total proved reserves have been audited by Ryder Scott in the last three years. 2,250 2,000 1,750 1,500 1,250 1, P Reserves Growth Since Spin 321 >350% Growth , Spin-off See the Investor Relations page at for important information about 3P reserves and other hydrocarbon quantities. Unproven Revisions Due to Price Since 2014 Proven Cumulative Production Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 6

7 DEEP 15,000 1,000 PAY Production Mix OPEX $/Boe** Gross Operated MBoe/d SHALLOW <5,000 Leading Market Position with Deep Regional Insight Top California Producers in 2017* TULARE SANDS ETCHEGOIN SANDS Largest 3-D Seismic Position in California MONTEREY SANDS AND SHALES - CRC Chevron USA Aera Energy Sentinel Peak Berry 100% 75% 50% 25% 0% Majority of CA Production is Shallow* $29 $29 $24 $21 $19 CRC Chevron USA Aera Energy Sentinel Peak Berry Shallow Deeper (>5,000') FY OPEX $/BOE** $35 $30 $25 $20 $15 $10 $5 $0 TEMBLOR SANDS EOCENE SANDS AND SHALES UPPER CRETACEOUS SANDS AND SHALES *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 Source: Wood Mackenzie, Company Estimates. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 7

8 ($Billion) Elk Hills Acquisition Enhances NAV Above EV $20 $16 $12 Infrastructure 2 Surface & Minerals 3 $8 Unproved 4 Current EV of $7.5 Bn 5 $4 Proved Value PDP Value $0 $55 Brent $65 Brent $75 Brent 1-5 See endnotes in the Appendix. See the Investor Relations page at for important information about 3P reserves and other hydrocarbon quantities. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 8

9 Strategic Consolidation of Elk Hills Assets Total Consideration $460MM Cash MM Shares 2017 Net Production 13 Mboepd 46% Oil 9% NGL 2017E Operating Cash Flow $65 Brent 2017 Proved Reserves 64 Mmboe CRC SEC 2017 Pricing CRC acquired Chevron s non-operated working interest ranging between 20% to 22% in different producing horizons within the Elk Hills field for total consideration of $460MM in cash and 2.85 MM CRC shares, effective April 1, 2018 CRC now owns Elk Hills in fee simple, holding 100% WI, NRI, and surface lands Acquired ~10,000 surface fee acres Elk Hills Unit 47,000 acres Existing CRC Surface Acreage Acquired Surface Acreage Elk Hills Unit CRC now owns 100% WI & NRI in its largest field Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 9

10 $MM Accelerating Value with Midstream JV $150 $100 Cost Synergies Avoided Interest Acquired assets will add an incremental $40MM- $50MM of cash flow/ saving per year for the first 36 months 1 Expect to achieve $5MM of annualized operational savings within 6 months of closing and ~$15MM of additional synergies within the next 18 months Consolidate Operations Streamline business processes Increased revenue opportunities Improve CRC capital efficiency $50 ARES Cash Distributions 1 Cash Flow from Acquired Assets Maximizes NGL yields and revenue through increased utilization of CRC s best-in-class cryogenic plant Transaction reduces CRC s per unit production costs by ~$0.55/boe and SG&A by ~$0.20/boe $- ARES TRANSACTION INCREMENTAL CASH FLOW Elk Hills Transaction delivers incremental cash flow for investment in 1.7+ VCI inventory Elk Hills produces light oil with an avg API of ~36, which has received a premium over Brent in recent months 1 Assumes the PIK portion of the Ares distributions are deferred for the first 36 months. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 10

11 Significant Reduction in Total Debt from Post-Spin Peak Total Debt ($ MM) Chose options to maximize deleveraging and minimize recurring cost to the income statement on a per share basis. Continue to seek opportunistic transactions that reduce overall debt. 7,000 6,000 5,000 6, Debt Repurchases $97MM 4,000 Closed 2 transactions 4,891-3,000 2Q15 Debt Exchange for 2L Open Market Repurchases Equity for Debt Exchange Cash Tender for Unsecureds Cash Flow Ares & Elk Hills Transactions 3/31/2018 Pro Forma 2 Total Total Debt Reduction $535 million $205 million $102 million $625 million $110 million $297 million $1,874 million 1 Represents mid-second quarter 2015 peak debt. 2 Please see end notes for further information regarding the presentation of pro forma financial information. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 11

12 Recent Transactions Result in Improving Debt Metrics Pro Forma Capitalization 1 ($MM) 3/31/2018 Actual Elk Hills (EH) Transaction April Debt Repurchases 3/31/2018 Pro Forma 1 1st Lien 2014 Revolving Credit Facility (RCF) $ - $ - $ 45 $ 45 1st Lien 2017 Term Loan 1,300 1,300 1st Lien 2016 Term Loan 1,000 1,000 2nd Lien Notes 2,248 (95) 2,153 Senior Unsecured Notes Total Debt 4,941 - (50) 4,891 Less cash (494) Total Net Debt 4, (16) 4,891 Mezzanine Equity Equity 2 3 (654) 51 (603) Total Net Capitalization $ 4,517 $ 511 $ (16) $ 5,012 $4,000 $3,000 $2,000 Pro Forma Total Debt $4.89B Pro Forma 1 Debt Maturities ($MM) 2nd Lien Notes 2014 RCF Unsecured Notes 2016 Term Loan 2017 Term Loan Total Debt / Total Net Capitalization 109% 98% Total Debt / LTM Adjusted EBITDAX 4 6.0x 5.4x LTM Adjusted EBITDAX 4 / LTM Interest Expense 2.4x 2.6x PV-10 5 / Total Debt 0.9x 1.1x Total Debt / Proved Reserves 6 ($/Boe) $8.00 $7.17 Total Debt / Proved Developed Reserves 6 ($/Boe) $11.23 $10.05 Total Debt / 1Q18 Production ($/Boepd) $40,171 $36,230 $1,000 $ Please see end notes for further information regarding the presentation of pro forma financial information. 2 Includes $109 million of noncontrolling interest equity for BSP and Ares. 3 Calculated using 2.85 million shares of CRC common stock at closing share price of $18.06 on 4/9/ Please see end notes for further information regarding Adjusted EBITDAX. 5 PV-10 as of 12/31/2017. PV-10 on a pro forma basis includes an estimate of the Elk Hills reserves acquired at SEC 2017 pricing. See the Investor Relations page at for details on this calculation. 6 Reserves as of 12/31/2017. Reserves on a pro forma basis include an estimate of the Elk Hills reserves acquired. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 12

13 Development Capital ($B) Full Cycle Cost 2 ($/Boe) Deep Inventory of Actionable Projects at $65 Portfolio Spectrum Growth portfolio focus, fully burdened All projects meet a Value Creation Index (VCI) 1 threshold of 1.3 at $65 Brent and $3.00 NYMEX, and deliver robust cash flow Portfolio has large contributions from all recovery mechanisms and reserves types Many projects take advantage of existing infrastructure, while other newer projects may require infrastructure investment in facilities and sales points Steamflood Waterflood Primary Shale Gas Net Resources 3 (MMBoe) Net Resources 3 (MMBoe) 1 VCI is calculated by dividing the net present value of the project s expected pre-tax cash flow over its life by the net present value of the investments, each using a 10% discount rate. 2 Full cycle costs = operating costs + development costs + facility costs + field-level G&A + taxes other than on income. 3 See the Investor Relations page at for details regarding net resources. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 13

14 Oil Price $/BBL Dynamic Investment Allocation through the Commodity Cycle Bull Market Invest to accelerate production growth and explore/pilot new resources Add facilities (steam and water handling) to support pace of growth Cash generation is high VCI 1.3 floor to reinvest for value Mid-Cycle Market Invest to grow cash flow Drill in high-graded portfolio (>1.5 VCI) Oil to gas ratio for steamfloods (>5:1). Selectively add steam generation EOR and IOR for long-term cash flow. Primary and shale for high IP impact Delineate future growth areas to unlock upside Bear Market Invest to protect base production Take advantage of existing facilities and prior capacity investments Steamfloods and waterfloods: drill to fill Workovers on existing wellbores is best investment Utilize excess equipment to reduce capital costs Engineering efforts focused on field surveillance to protect existing production Gas Price $/MCF Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 14

15 2018 Capital Investment Program Aligned to Mid-Cycle Commodity Pricing Production Enhancement Plans for 2018 CRC 2018 capital plan will be directed to oil-weighted projects in our core fields: Elk Hills, Wilmington, Kern Front, Huntington Beach, and continued delineation of the Buena Vista, Ventura and Southern San Joaquin Areas JV capital will be focused in the San Joaquin Basin and Huntington Beach We have a dynamic plan that can be scaled up or down depending on the price environment and efficient deployment of joint venture proceeds Increased 2018 capital plan due to recent Elk Hills transaction and cash flow outlook Development Facilities 2018E Total Capital Plan Approx. $550 to $600 million Exploration 21% 3% 42% Drilling 2018E Development Capital By Drive Steamfloods Approx. $375 million Unconventional 13% 10% 44% Conventional At $55 flat Brent and $3 NYMEX, the fully-burdened CRC Development Program delivered a 1.7 VCI or 30% IRR E Development Capital By Basin Approx. $375 million Ventura 6% 27% Los Angeles Workover 16% 18% JV - Capital Waterfloods 29% 4% Exploration San Joaquin 67% 1 Facility Costs and other non-return capital are apportioned to producing wells in the year they are drilled. 2 IRR estimate for the 2017 development program. VCI is calculated by dividing the net present value of the project s expected pre-tax cash flow over its life by the net present value of the investments, each using a 10% discount rate. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 15

16 Development and Midstream Joint Ventures: A Force Multiplier $550 Million Total Potential JV Development Capital Portfolio Flexibility and Optionality Kettleman North Dome $154 Million $260 MM Committed Enables High Margin Production Growth Lost Hills ~ MBoe/d Kern Front Mt Poso Gross Peak Production per $100 MM of development capital Accelerate Value Elk Hills Buena Vista >12 MMBoe Potential Targeted Reserves per $100 MM of development capital Derisk Inventory -Legend- CRC Oxy Land Oil Fields Gas Fields Pleito Ranch $750 Million Midstream JV Reduce Debt Acquire Elk Hills Sole Ownership JVs are generally focused in the San Joaquin Basin JVs add production and cash flow, and help de-risk inventory to increase CRC s reserve base Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 16

17 Mid-Cycle Capital Investment Plan Delivers Production Growth MBoe/d Capital ($MM) 160 Net Production By Stream (Mboe/d) Oil NGL Gas Total Capital* CRC Capital (Internally Funded) Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18E** 0 *Total Capital reflected in the graph includes the capital investment of internal CRC capital as well as all JV partners which include BSP and MIRA. Please note our consolidated financial statements include BSP s investment and exclude MIRA s investments based on the accounting treatment of each venture. ** Q2 Capital guidance includes CRC, BSP, and MIRA capital Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 17

18 Portfolio Flexibility Provides Range of Crude Oil Scenarios Oil Production (MB/d) Capital ($MM) Adjusted EBITDAX ($MM) 130 Estimated Crude Oil Production Outcomes Combined with mid-cycle commodity prices, we are positioned for growth in: Cash flow Production Reserves in total and on a debt-adjusted per share basis* Capital focused on oil projects that provide Increasing Margins Low Decline Rates + = Compounding Cash Flow ,400 2,000 1,600 1, ,800 1,500 1, E 2019E 2020E 2021E Estimated Range of Adjusted EBITDAX Outcomes Portfolio Planning Scenarios Portfolio Planning Scenarios E 2019E 2020E 2021E Estimated Ranges of Capital Investments E 2019E 2020E 2021E Note: Scenarios assume flat pricing from $55 to $75 Brent and $3.00 to $3.10 NYMEX gas, respectively. Assumes varying lease operating costs within historical ranges depending on the commodity prices of the planning scenario outcomes. Ranges of portfolio planning scenario outcomes assume development of a variety of combinations of steamflood, waterflood, conventional and unconventional projects in our inventory and reflect estimates of geologic, development and permitting risk. All discretionary cash flow is reinvested in business in 2019 and beyond for each scenario. Please see end notes for further information regarding Adjusted EBITDAX. * See the Investor Relations page at for a description of the calculation of debt-adjusted per share and other important information. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 18

19 Project Inventory and Operational Execution Drives Organic Deleveraging Total Debt/LTM Adjusted EBITDAX Estimated Leverage Ratios 10.0x 8.0x 6.0x 4.0x 2.0x 0.0x E 2019E 2020E 2021E $55 $65 $75 Note: All cases are self-funding. Capital program in all cases assumes discretionary cash flow is reinvested. Assumes varying lease operating costs within historical ranges depending on the commodity prices of the planning scenario outcomes. Please see end notes for further information regarding Adjusted EBITDAX. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 19

20 Enduring Strategy Short-Term Long-Term Value Directed Investments Enhancing Production Margin Expansion Through managing cost and increasing oil weighting of commodity mix Live within Cash Flow Value Focus Smart Growth (per share) Live within Cash Flow Targeting Balance Sheet Leverage 2x-3x (mid-cycle) Value Creation Index* VCI = PV10 pre-tax cash flows PV10 of investments *Please see end notes for further information on how we calculate VCI. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 20

21 The Case for CRC: Investment Thesis Overview $MM Investment Case for CRC Competitive Advantages World-class assets with significant inventory Resilient model that preserves optionality and protects downside Focused on value and poised for growth Grow within cash flow Clear runway and available cash Industry leading decline rate Integrated and complementary infrastructure Why Own CRC Now Moved from defense to offense Disciplined portfolio management 2,500 Potential for Adj. EBITDAX growth* Maintain Production Production and Cash Flow Growth 2,000 1,500 1, E 2019E 2020E 2021E 2021E Production Innovation Deep Inventory *See Slide 18 for additional information regarding Adjusted EBITDAX Growth planning scenarios. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 21

22 APPENDIX

23 San Joaquin Basin An American Super Basin Gross Wells Drilled Avg. Rig Count Overview Oil and gas discovered in the late 1800s San Joaquin Basin contributed 70% of CRC s total FY 2017 production, 73% of pro forma FY 2017 production* Cretaceous to Pleistocene sedimentary section (>25,000 feet) Thermal recovery applied since early 1960s Currently running 7 drilling rigs Key Assets 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, ~65% of pro forma 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 Basin Map Legend CRC Land Oil Field Gas Field CRC Operated * Pro forma production includes 13 MBoepd 2017 production acquired in the Elk Hills transaction. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 23

24 Elk Hills Area CRC s Flagship Asset Net MBOE/d Rig Count Overview CRC s flagship, a 100 year-old field with exploration opportunities Field Map 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. 1, >3,000 producing wells 11 billion OOIP (BOE) and cumulative production of over 2.7 billion BOE 2017 average net production of 53 MBOE/d (~40% of total CRC production), 66 MBOE/d (~46% of total CRC production on a pro forma 2 basis) Integrated Infrastructure 610 MMcf/d processing capacity through 4 gas plants Including California s largest 3 CO 2 removal plants Over 4,500 miles of gathering lines 45 MW cogeneration plant 550 MW power plant Production History Net MBOEPD Rig Count Large fee property position with integrated infrastructure 1 DOGGR data and U.S. Energy Information Administration. 2 Pro forma production includes 13 MBoepd 2017 production acquired in the Elk Hills transaction Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 24

25 Los Angeles Basin Kitchen is the Entire Basin Gross Wells Drilled Avg. Rig Count Overview World-class hydrocarbon-rich sedimentary basin with large quantities of stacked pay ~10 billion barrels OOIP in CRC fields 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 Major properties are premier coastal development assets of Wilmington and Huntington Beach Wilmington Basin Map Legend CRC Land Oil Field Gas Field CRC Operated The Wilmington field is subject to contractual agreements similar to production-sharing contracts (PSCs). The contracts represented slightly more than 25% of our total 2017 oil production. Huntington Beach 50 Waterflood Avg. Rig Count Performed 26 Capital Workover projects in *Organic reserves replacement excludes the effect of price change on reserves volumes Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 25

26 Ventura Basin High Growth Area with Large OOIP Overview Prolific basin with a long history, including the first commercial oil well in California Field Map ~8 billion barrels OOIP in CRC fields Operate more than 20 fields (over half the fields in the basin) ~250,000 net mineral acres (75% undeveloped) 2017 average net production of 6 MBOE/d (67% oil) Portfolio of drive mechanisms: Primary, New & Redevelopment Waterfloods and Steamfloods Building off exploration success: recent exploration wells have flowed in excess and 1,000 BOE/d (80% oil) along Oak Ridge trend Incorporating 10 square miles of 3D seismic into drillable locations Legend Active CRC Field Idle CRC Field Significant upside: movable oil, low recovery factor, controlling acreage position and existing infrastructure California wildfires in Ventura County impacted December 2017 production by approximately 2,000 BOE/d and production remained affected by approximately 1,000 BOE/d in January 2018 OOIP (MMBO) CUM PROD (MMBO) RF 7, % High Growth Area: large OOIP, low recovery factor and potential for high-ip wells Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 26

27 Sacramento Basin Significant Gas Optionality Overview Exploration started in 1918 and focused on seeps and topographic highs. In the 1970s the use of multifold 2D seismic led to largest discoveries Cretaceous Starkey, Winters, Forbes, Kione, and the Eocene Domengine sands Most current production less than 6,000 feet deep, deeper targets remain at less than 10,000 feet 3D seismic surveys in mid-1990s helped define trapping mechanisms and reservoir geometries 2017 average net production of 33 MMcf/d (100% dry gas) CRC produces 85% of basin gas with synergies from scale Includes the Rio Vista field, which has produced over 3.7 TCF of natural gas over its lifetime CRC has an active exploration program in the basin Legend CRC Land Oil Field Gas Field CRC Operated Basin Map California imports >90% of its natural gas requirements 0 20 Miles Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 27

28 CRC Price Realizations $/Bbl % of WTI & Brent $/Mcf Oil Price Realization (with Hedges) Gas Price Realization 80 Realization % of WTI WTI Realizations Brent 70 $67.18 $ $54.66 $62.87 $51.91 $50.92 $62.77 $48.29 $52.18 $56.92 $53.64 $54.82 $55.40 $49.19 $ $45.04 $50.02 $50.24 $50.95 $47.98 $48.21 $48.80 $ $ Q Q Q Q Q % 99% 104% 103% 100% 101% 99% 101% Realization % of NYMEX NYMEX Realizations $3.26 $3.14 $3.09 $2.95 $3.00 $2.87 $2.75 $2.42 $2.90 $2.56 $2.77 $2.81 * $2.66 $2.47 $2.28 $2.67 1Q Q Q Q Q % 79% 87% 92% 98% 97% 94% 86% NGL Price Realization - % of WTI & Brent 100% WTI Brent 80% 66% 79% 72% 62% 69% 60% 63% 72% 66% 59% 64% 40% 20% 40% 37% 52% 50% 70% 65% California refinery demand for native crude continues to be strong and reduction in heavy waterborne crude has positively influenced differentials. NGL prices have been supported by lower inventories and export markets. CRC believes near-term differentials will remain strong 0% 1Q Q Q Q Q *See attachment 6 of the Q Earnings Release for information regarding the effects of an accounting change on realized natural gas prices. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 28

29 Wilmington Production Sharing Contracts Over 25% of CRC s oil production is subject to Production Sharing Contracts PSC Mechanics Gross Production Effect of Oil Price on Net Production CRC pays our partners share of the Operating and Capital Cost CRC recovers our partners portion of the cost in barrels CRC receives 45-49% of the gross production as Profit Barrels Cost Recovery Bbls As prices rise, fewer barrels are required to recover our partners portion of the cost Higher oil prices result in higher cash flow, but lower net production Net Profit Bbls 45-49% of Gross Production Realized Price ($/Boe) Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 29

30 Wilmington Field Production Sharing Contract Boe/d Boe/d Over 90% of CRC s Long Beach production is covered under Production Sharing Contracts (PSCs) with the State and the City of Long Beach CRC s net production decreases when prices rise and increases when prices decline Base rate/profit are defined in contracts State/City receive most of base profit 50,000 40,000 30,000 20,000 10,000 - Base Profit Split: 4% CRC / 96% State* LBU PSC Base Incremental Profit Split: 49% CRC / 51% State* Incremental End of LBU Base CRC receives remainder Incremental rate/profit is everything greater than the Base Per the provisions of the contract, the Base of the LBU PSC ended in 4Q ,000 10,000 8,000 6,000 4,000 2,000 Tidelands PSC First of 3 new PSC s executed Base Profit Split: 4% CRC / 96% State* Base Incremental Incremental Profit Split 49% CRC / 51% State & City* *Average profit split % Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 30

31 History of Proactive Strategic Decisions Brent Crude Oil Price ($/Bbl)* CRC Drilling Rig Count Swift, decisive actions through the commodity downturn have positioned CRC for growth. Proactive discussions with lenders and solid asset base provide a path to recovery and an actionable inventory. $120 $100 1 Oil Price CRC Rig Count $80 $60 $40 $20 Under OXY SPIN-OFF $0 07/20/14 11/20/14 03/20/15 07/20/15 11/20/15 03/20/16 07/20/16 11/20/16 03/20/17 07/20/17 11/20/17 03/20/18 07/20/ Cut rig count/began hedging 4. Deleveraging Transactions 2. Cut 2015 Capital Budget 5. Increasing activity, invest within Cash Flow 3. Bank Amendments 6. JV Transactions Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 31

32 Margin Expansion Driven by Liquid-Rich Resource Base % Oil Mix As we develop our reserves we anticipate the oil weight of production to trend from 64% produced in 2017 toward the 72% reflected in our 2017 Proved Reserves 75% The 2017 average blended realized price of $41 per BOE was 75% of the average Brent Crude index We have significant operating control of our properties which allows us to adjust our activity based on commodity price and market conditions 50% Oil NGL Gas Blended Realized Price* 25% 2017 Production Mix 64% 12% 24% $ Proved Reserves Mix *Includes effects of settled hedges 72% 9% 19% 0% FY 2015 FY 2016 FY Reserves Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 32

33 Opportunistically Built Oil Hedge Portfolio Strategy Protect cash flow for capital investments and covenant compliance 2Q Q Q Q Q Q Q 2019 Sold Calls Barrels per Day 6,200 6,100 16,100 16,100 6,000 1,000 1,000 Weighted Average Ceiling Price per Barrel $60.24 $60.24 $58.91 $65.75 $67.01 $60.00 $60.00 Purchased Calls Barrels per Day , Weighted Average Ceiling Price per Barrel $ Purchased Puts Barrels per Day 1,200 6,100 1,100 29,100 21,000 11,000 1,000 Weighted Average Floor Price per Barrel $ $60.86 $62.40 $63.27 $45.85 Sold Puts Barrels per Day 29,000 24,000 19,000 30,000 15,000 10,000 - Weighted Average Floor Price per Barrel $45.00 $46.04 $45.00 $49.17 $50.00 $ Swaps Barrels per Day 44,400 19,000 19,000 7, Weighted Average Price per Barrel $60.00 $60.13 $60.13 $ We target hedges on 50% of crude oil production Percentage of 2Q 2018 Oil Production Hedged* 55-57% 30-31% 24-25% 43-45% 25-26% 13-14% 1% As of 4/10/2018. Certain of our counterparties have options to increase swap volumes at weighted average costs between $60 and $70 Brent. * Assumes future counterparty options are not exercised. Refers to guidance at $74 Brent. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 33

34 Buena Vista Area Highly Prospective Area Drilling Cost $MM/well Drilling Cost $/Ft Drilling Time Days/well Overview Includes Buena Vista (BV) Hills and BV Nose JV capital applied to infill development program that led to improved operational efficiencies Organic capital deployed to expand the extent of the play BV Nose was discovered in 2012 as a step-out to BV Hills 10,000 average True Vertical Depth 32 API, 600 GOR Reduced capital costs with a new well design (two strings) LDMAP Conventional BV Nose Development Drilling Cost Average Drilling Days/Well BV Area development program delivers a 1.8 VCI at a $55 Brent price deck Drilling Cost/Well Drilling Cost $/Ft Growth potential near existing infrastructure Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 34

35 Core Principle of Living within Cash Flow Unlevered Free Cash Flow ($MM) CRC 1, Unlevered Free Cash Flow (500) Average: $(341.5)MM (1,000) (1,500) (2,000) (2,500) (3,000) Peers included: APA, APC, AR, BBG, CHK, CLR, COG, CPE, CRK, CRZO, CXO, DNR, DVN, ECR, EGN, EOG, EPE, EQT, FANG, GPOR, GST, HK, JONE, LPI, MRO, MTDR, MUR, NBL, NFX, OAS, PDCE, PE, PXD, QEP, REI, RICE, RRC, RSPP, SD, SGY, SM, SN, SWN, UNT, UPL, VNR, WLL, WPX, and XEC. Source: FactSet. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 35

36 Accelerating Value and Derisking Inventory through JVs Highlights: Up to $250MM over ~2 years o Two tranches of $50MM o o Total of $100MM funded Third tranche expected in Q2 Investor funds 100% of project capital in exchange for a net profits interest (NPI) o Investor NPI interest reverts to CRC after low teens target IRR o CRC retains early termination options Current focus is in the San Joaquin Basin CRC operates all wells Highlights: Up to $300MM o Initial commitment of $160MM DrillCo type structure where Investor funds 100% of project capital for 90% WI, with CRC carried on its 10% WI o CRC interest reverts to 75% after target IRR is achieved o CRC retains early termination options Focus on four fields within the San Joaquin Basin o Kern Front, Mt. Poso, Pleito Ranch, Wheeler Ridge CRC operates all wells Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 36

37 Typical Industry JV Structure Production Based on recent industry JV deals, a typical deal structure is o Partner pays % Capital o Receives % Working Interest o Typical hurdle rate: o 10% - 20% IRR o Partner s working interest once hurdle rate is achieved: o 5% - 25% 7, , , , , Hurdle Rate Reached 2, , Time JV 46Share Typical E&P Share Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 37

38 Strategic Partner Alignment Partner Affiliate of Ares Management (Ares) Summary of Deal Contributed Assets Elk Hills power plant, gas processing assets and related non-borrowing base infrastructure currently owned by CRC Midstream JV Capitalization Distribution to Partners Exit Provisions Class A common interests (voting) owned 50% by Ares and 50% by California Resources Elk Hills (CREH) Class B preferred interests ( Preferred ) owned 100% by Ares Class C common interests (distributing) owned 95.25% by CREH and 4.75% by Ares Preferred interests to receive distributions of 13.5% per annum on the $750 MM contributed amount 9.5% cash pay and 4.0% PIK to be deferred for the first three years Deferred distributions are interest bearing and repaid over two years following the deferral period Remaining cash after preferred distributions to be distributed pro rata to Class C interests Prior to end of 5 or 7.5 years, CRC may redeem Preferred at variable amounts that include make whole premiums At end of 5 years, CRC may elect to either redeem or extend to 7.5 years At 7.5 years, if not redeemed by CRC, Preferred can monetize the JV Board Board of Managers to consist of three CRC representatives and three representatives from Ares Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 38

39 CRC Midstream JV Structure with Ares Benefits Strategic alignment with Ares Provides CRC paths for opportunistic deleveraging through cash flow growth or debt reduction Greatly enhances liquidity California Resources Elk Hills, LLC Retain ownership and operational control Defined exit criteria Power and Gas Processing Services Contributed Assets $750 MM gross proceeds Class A (50%) and Class C (95.25%) Common Interests Commercial Agreement Capacity Charges Elk Hills Power, LLC $750 MM gross proceeds Ares Management, L.P. Class B Preferred Interests, Class A and Class C Common Interests Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 39

40 BOEPD BOEPD BOEPD Portfolio Mix Dynamic Portfolio Provides Flexibility Higher Oil to Gas Price Ratio Lower Oil to Gas Price Ratio 100% Gas 75% Unconventional 50% 25% 0% Primary Waterflood Steamflood Workover Gas Oil YEAR Gas Oil YEAR Gas Oil YEAR 5 EUR (MBOE per $10MM) 1,385 1,265 1,060 % Oil 81% 70% 53% Development Cost/BOE $7.20 $7.90 $9.40 Recycle Ratio 3.4x 2.9x 2.2x For illustration of portfolio optionality based on normalized results per $10MM of investment and not guidance. See endnote for details on type curves. Prices for recycle ratio are $65 Brent and $3.50 NYMEX. Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 40

41 A Net Water Supplier 4% 2% WATER MANAGED IN CRC s OPERATIONS Produced Water CRC set a new company record for water deliveries to agriculture in 2017, an 85% increase since 2015, preserving farmland and jobs. Fresh Water Non-Fresh Water CRC s operations in Long Beach use recycled or non-fresh water for 99.5% of their total water use. 94% In 2017, CRC supplied 4.9 billion gallons over 15,000 acre-feet of treated, reclaimed water for irrigation or recharge. For every gallon of fresh water CRC purchased in 2017, we delivered nearly 3 gallons of treated water to agriculture Recycled or reclaimed over 89% of our produced water in 2017, almost a 10% increase since 2015 Reduced our produced water disposal by over 40% since 2015 Reduced our potable water use by nearly 30% since 2015 Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 41

42 End Notes From Slide 8 1 Current CRC estimate of reserves value as of December 31, 2017, including reserves acquired in the Elk Hills transaction. Includes field-level operating expenses and G&A. Assumes $3.00/MMBTU NYMEX. 2 Reflects the value of facilities and midstream assets at 50% of estimated replacement value. This discount is estimated to exceed the burden on reserves that would be incurred if assets were monetized. Excludes the value of the assets monetized in the Ares transaction. 3 Surface & Minerals reflect the estimated value of undeveloped surface and minerals held in fee. 4 Unproved inventory comprises risked probable and possible reserves and contingent and prospective resources. Contingent and prospective resources consist of volumes identified through life-of-field planning efforts to date. 5 Calculated using a market cap as of 5/31/2018 and the 3/31/2018 Pro Forma debt adjusted for the Elk Hills transaction and the April debt repurchases. Includes Mezzanine Equity and Non-Controlling interest. Type Curve Note: Each field-specific type well curve represents an average of the historical results of multiple projects over the prior four-year time period. Drive mechanism type curves are the weighted average of the field-specific curves related to the projects chosen for our near-term growth plan. Type curves represent management s estimates of future results and are subject to project selection and other variables. Our type well curves are prepared for purposes of modeling overall results of our near-term growth program and are not useful for purpose of benchmarking any individual well or pattern performance. Actual results are expected to vary depending on which projects are specifically developed. Value Creation Index (VCI) Note: VCI is calculated by dividing the net present value of the project s expected pre-tax cash flow over its life by the net present value of project investments, each using a 10% discount rate. Adjusted EBITDAX Note: The 3/31/2018 Pro Forma Adjusted EBITDAX includes a +$20 million adjustment as a result of the Elk Hills transaction and no adjustment as a result of the April debt repurchases. See the table to the right for a reconciliation to the closest GAAP measure. See the Investor Relations page at for other important information. Pro Forma Financial Information and Elk Hills Transaction Note: The actual amount of drawings under our revolver necessary to complete the Elk Hills transaction and the April debt repurchases will depend on the actual amount of cash available at the closing date. The pro forma information in this presentation does not take into account capital expenditures or changes in our business since 3/31/2018 other than the Elk Hills transaction and April debt repurchases. The following table presents a reconciliation of the GAAP financial measure of net income (loss) to the non-gaap financial measure of Adjusted EBITDAX. (in millions) 3/31/2018 Elk Hills Transaction 3/31/2018 Pro Forma Net income (loss) $ 9 $ 20 $ 29 Interest and debt expense, net Depreciation, depletion and amortization Exploration expense 8 8 Unusual, infrequent, and other items Other non-cash items Adjusted EBITDAX $ 250 $ 20 $ 270 Bank of America Merrill Lynch 2018 Energy Credit Conference New York, NY 42