Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - California Resources Corp | trojantenderlaunchpr2.htm |
| 8-K/A - 8-K/A - California Resources Corp | form8acrctenderlaunch.htm |
PV-10 Collateral Coverage through the
New Term Loan Debt
1
$ 2,220
through
the New
Term Loan2
Source: CRC Management
Note: In addition, non-Borrowing Base Collateral is also pledged to the new First Lien Second Out Term Loan.
1 YE2015 reserves adjusted to reflect February LOE levels less production YTD July 1, 2016, run at June 27, 2016 strip pricing.
2 Includes pro forma debt amounts: $720 million Revolver drawn, $800 million Term Loan Facility and $700 million New Term Loan.
1 1
$ 5,059
$ 5,758
$ 4,025
$ 0
$ 1,000
$ 2,000
$ 3,000
$ 4,000
$ 5,000
$ 6,000
$ 7,000
2015 Year-End SEC 1P PV-10 2015 1P PV-10 at 6/27/16 Pricing 2015 PDP PV-10 at 6/27/16 Pricing
(U
S$
in
m
illi
on
s)
(2.3x Coverage)
(2.6x Coverage)
(1.8x Coverage)
Exhibit 99.2
Active Hedging Program Further Protects Cash Flow¹
¹ As of July 6, 2016.
• Current hedge program targeting 50% of production
• Strategy focuses on protecting cash flow for capital investments and covenant compliance
2
Q2 2016 Q3 2016 Q4 2016 2017 2018
Calls
Barrels per Day 40,500 19,000 25,000 11,250 23,287
Wtd Avg Ceiling Price per Barrel $64.25 $55.08 $53.62 $56.01 $57.99
Puts
Barrels per Day 55,500 28,000 3,000 4,275 –
Wtd Avg Floor Price per Barrel $50.14 $50.65 $50.00 $50.00 –
Swap
Barrels per Day – 1,000 29,000 – –
Wtd Avg Price per Barrel – $61.25 $49.43 – –
Summary of Key Operating Metrics1
3
Operating Metrics1
Source: CRC Management
1 YE2015 reserves adjusted to reflect February LOE levels less production YTD July 1, 2016, run at June 27, 2016 strip pricing.
Metric Value
1Q16 Production (Mboe/ d) 148
2015 1P Reserves at 6/27/16 Pricing (MMBoe) 691
2015 1P PV-10 at 6/27/16 Pricing ($mm) $5,758
Summary of 5th Proposed Amendment to the Credit Agreement
4
Description
New Second Out
Indebtedness
• Permit $1bn of first lien, 2nd / 3rd out debt, subject to acceptable intercreditor agreement
— To be documented under separate Credit Agreements
Use of Proceeds
• 25% of gross proceeds required to immediately prepay the Term Loan (not less than $106.25mm)
• Remaining 75% of proceeds to pay-down outstanding Revolver borrowings
— Minimum reduction of Senior Notes: $500mm
Additional Collateral
Requirement
• Provide additional collateral on a first lien basis on all other unencumbered, non-borrowing base assets of the Company including the Elk
Hills power plant
— New Second Out Indebtedness would be secured by the same collateral on a first lien second out basis
Non-Borrowing Base
Asset Sale Proceeds
• To be treated similar to the existing credit facility, subject to the following:
— Total Debt / EBITDAX > 4.0x: 40% of net cash proceeds may be used to repurchase Senior Notes or receive up to 40% of total proceeds
in the form of Senior Notes
— Total Debt / EBITDAX ≤ 4.0x: 60% of net proceeds may be used to repurchase Senior Notes or receive up to 60% of total proceeds in
the form of Senior Notes
Revolver Commitment
Reduction
• $200mm (can increase commitments later with new or existing lenders up to the lesser of $250mm or excess of Borrowing Base over total
term loan and revolving commitments, if they agree to participate in the increased commitment)
Financial Covenants
• First Lien First Out Leverage Ratio1:
— 6/30/16 – 6/30/17: 3.5x
— 6/30/2017 – 12/31/2017: 3.25x
• First Lien Senior Secured Leverage Ratio beginning Q1 2018: 2.25x
• Minimum Interest Coverage Ratio through year-end 2017: 1.20x (and thereafter, 2.0x)
• PV-10 Ratio (PV-10 to 1.0 and Second Out Indebtedness): 1.20x
• Maximum capital expenditures: $125mm in 2016 / $200mm in 2017 (may carry-over unused amounts) subject to maximum $50mm
increase in certain circumstances
Maximum Increase in
PF Cash Interest
• $40mm multiplied by the ratio of New Second Out Indebtedness incurred to $1bn
1 Defined as First Lien First Out Debt to LTM Consolidated EBTIDAX.