Callon Petroleum Company Announces First Quarter 2018 Results
Callon Petroleum Company Announces First Quarter 2018 Results
NATCHEZ, Miss., May 2, 2018 /PRNewswire/ -- Callon Petroleum Company (NYSE: CPE) ("Callon" or the "Company") today reported results of operations for the three months ended March 31, 2018.
Presentation slides accompanying this earnings release are available on the Company's website at www.callon.com located on the "Presentations" page within the Investors section of the site.
Financial and operational highlights for the first quarter of 2018 and other recent data points include:
-- Increased production to 26.6 MBoepd (77% oil), an increase of 30%
year-over-year
-- Reduced lease operating expense by 18% year-over-year to $5.45 per BOE
-- Generated a first quarter operating margin of $44.31 per BOE, an
increase of 30% year-over-year
-- Successful early results from Wolfcamp A down-spacing test in Howard
County with 10-well spacing exceeding the performance of offsetting
eight-well spacing pads
-- Initial production rates from the first two-well pad targeting the upper
and lower Wolfcamp A intervals in Ward County have reached approximately
1,700 Boepd (85% oil) to date from each of the wells within the first 20
days of production
-- Improved drilling efficiency in the Delaware Basin has resulted in a
greater than 25% increase in footage per day through the first six
operated wells
Joe Gatto, President and Chief Executive Officer, commented, "We are pleased to deliver another solid quarter of execution while positioning ourselves for an increased level of baseline activity. During the first quarter, we added a fifth horizontal drilling rig and made substantial progress completing our Delaware Basin infrastructure initiatives to support the next phase of program development on our Permian footprint. Similar to our proactive past investments in the Midland Basin, our established facilities and takeaway investments in the Spur area will help preserve our leading cash margins for the long-term." He continued, "The first quarter also produced drilling and completion efficiency gains that were ahead of expectations. Combined with strong well productivity across the portfolio and a low-cost operating structure, the stage is set for robust production growth and cash flow generation in the coming quarters."
Operations Update
At March 31, 2018, we had 247 gross (184.5 net) horizontal wells producing from eight established flow units in the Permian Basin. Net daily production for the three months ended March 31, 2018 grew approximately 30% to 26.6 thousand barrels of oil equivalent per day (77% oil) as compared to the same period of 2017.
For the three months ended March 31, 2018, we drilled 16 gross (13.2 net) horizontal wells in the Spur, WildHorse, and Monarch areas. We placed a combined 15 gross (9.0 net) horizontal wells on production in the quarter.
Midland Basin
During the first quarter, nearly all wells placed on production were located in the Midland Basin, with the majority of this activity split between our Ranger area in Reagan County and our Monarch area in Midland County. Wells placed on production in Reagan County averaged approximately 7,300 feet of completed lateral. At Monarch, new wells averaged just under 6,000 feet. During the last week of the quarter, two wells were placed on production in Howard County.
Our initial Wolfcamp A down-spacing test in the Fairway area of WildHorse has yielded encouraging results through the first 120 days of production. Compared to offset two-well pads completed with a similar design, the test wells, the Open A2 #1AH and Open A3 #3AH, have both eclipsed the cumulative oil production of each of the four offset wells. The Company will continue monitoring production from the test wells over the next few months prior to initiating any additional testing of reduced spacing at WildHorse.
Delaware Basin
Our first two-well pad in the Spur area targeting two flow units in the Wolfcamp A was completed and placed on production in April. Each of the wells, the Rendezvous A1 #01LA and A2 #09UA, has achieved a production rate of approximately 1,700 Boepd (85% oil) per well during the first 20 days of production and continue to be optimized.
Callon continues to progress efficiency gains as our activity levels increase in the Delaware Basin. Through our first six operated wells, the Company has continued to improve drilling day cycle times, with our most recent well reflecting an improvement of greater than 25% in daily footage compared to our first well drilled in Spur. Additionally, we have been proactive in our infrastructure build-out to support long-term development efficiency and sustained cash margins, similar to our past efforts in the Midland Basin. We have recently progressed or completed a number of infrastructure projects including: multiple saltwater disposal upgrades, installation of water transfer lines, installation of recycling facilities, build-out of two separate one million barrel recycle pits and installation of numerous tank batteries to accommodate future drilling activity. Additionally, we expect to have new tank batteries tied into Medallion pipeline during the second quarter, increasing our longer-term take-away capacities and providing additional delivery point optionality under our current gathering agreement.
Capital Expenditures
For the three months ended March 31, 2018, we incurred $105.3 million in cash operational capital expenditures (including other items) compared to $128.7 million in the fourth quarter of 2017. Total capital expenditures, inclusive of capitalized expenses, are detailed below on an accrual and cash basis (in thousands):
Three Months Ended March 31, 2018
Operational Capitalized Capitalized Total Capital
Capital (a) Interest G&A Expenditures
---------- -------- --- ------------
Cash basis (b) $105,330 $813 $5,187 $111,330
Timing
adjustments (c) 11,472 9,255 - 20,727
Non-cash items - - 1,110 1,110
---
Accrual (GAAP)
basis $116,802 $10,068 $6,297 $133,167
======== ======= ====== ========
(a) Includes seismic, land and other
items.
(b) Cash basis is a non-GAAP measure
that we believe helps users of the
financial information reconcile
amounts to the cash flow statement
and to account for timing related
operational changes such as our
development pace and rig count.
Includes timing adjustments related
to cash disbursements in the
current period for capital
expenditures incurred in the prior
(c) period.
Operating and Financial Results
The following table presents summary information for the periods indicated:
Three Months Ended
March 31, 2018 December 31, 2017 March 31, 2017
-------------- ----------------- --------------
Net production
Oil (MBbls) 1,851 1,936 1,434
Natural gas
(MMcf) 3,240 3,018 2,422
Total (MBOE) 2,391 2,439 1,838
Average daily
production
(BOE/d) 26,567 26,511 20,422
% oil (BOE
basis) 77% 79% 78%
Oil and natural
gas revenues
(in thousands)
Oil revenue $115,286 $104,132 $72,008
Natural gas
revenue (a) 12,154 14,081 9,355
Total revenue 127,440 118,213 81,363
Impact of cash-
settled
derivatives (8,459) (4,501) (2,491)
Adjusted Total
Revenue (i) $118,981 $113,712 $78,872
======== ======== =======
Average realized
sales price
(excluding
impact of cash
settled
derivatives)
Oil (Bbl) $62.28 $53.79 $50.21
Natural gas
(Mcf) 3.75 4.67 3.86
Total (BOE) 53.30 48.47 44.27
Average realized
sales price
(including
impact of cash
settled
derivatives)
Oil (Bbl) $57.47 $51.28 $48.45
Natural gas
(Mcf) 3.89 4.78 3.88
Total (BOE) 49.76 46.62 42.91
Additional per
BOE data
Sales price (b) $53.30 $48.47 $44.27
Lease operating
expense (c) 5.45 4.84 6.61
Gathering and
treating
expense (a) - 0.57 0.43
Production taxes 3.54 2.55 3.21
Operating margin $44.31 $40.51 $34.02
====== ====== ======
Depletion,
depreciation
and
amortization $14.81 $14.98 $13.29
Adjusted G&A (d)
Cash component
(e) $2.74 $2.46 $2.43
Non-cash
component 0.51 0.54 0.57
(a) On January 1, 2018, the Company
adopted the revenue recognition
accounting standard. Consequently,
natural gas gathering and treating
expenses for the three months
ended March 31, 2018 were
accounted for as a reduction to
revenue.
(b) Excludes the impact of cash-
settled derivatives.
(c) Excludes gathering and treating
expense.
(d) Excludes certain non-recurring
expenses and non-cash valuation
adjustments. See the
reconciliation provided within
this press release for a
reconciliation of G&A expense on a
GAAP basis to Adjusted G&A
expense.
(e) Excludes the amortization of
equity-settled share-based
incentive awards and corporate
depreciation and amortization.
Total Revenue. For the quarter ended March 31, 2018, Callon reported total revenue of $127.4 million and total revenue including cash-settled derivatives ("Adjusted Total Revenue," a non-GAAP financial measure((i))) of $118.9 million, including the impact of an $8.5 million loss from the settlement of derivative contracts. The table above reconciles Adjusted Total Revenue to the related GAAP measure of the Company's revenue. Average daily production for the quarter was 26.6 MBOE/d compared to average daily production of 26.5 MBOE/d in the fourth quarter of 2017. Average realized prices, including and excluding the effects of hedging, are detailed above.
Hedging impacts. For the quarter ended March 31, 2018, Callon recognized the following hedging-related items (in thousands, except per unit data):
In Thousands Per Unit
------------ --------
Oil derivatives
Net loss on settlements $(8,916) $(4.81)
Net gain on fair value
adjustments 4,067
Total loss on oil derivatives $(4,849)
=======
Natural gas derivatives
Net gain on settlements $457 $0.14
Net loss on fair value
adjustments (89)
Total gain on natural gas
derivatives $368
====
Total oil & natural gas
derivatives
Net loss on settlements $(8,459) $(3.54)
Net gain on fair value
adjustments 3,978
Total loss on total oil &
natural gas derivatives $(4,481)
=======
Lease Operating Expenses, including workover ("LOE"). LOE per BOE for the three months ended March 31, 2018 was $5.45 per BOE, compared to LOE of $4.84 per BOE in the fourth quarter of 2017. The increase in this metric was primarily related to interim water hauling in Reagan County and certain equipment rental expenses.
Production Taxes, including ad valorem taxes. Production taxes were $3.54 per BOE for the three months ended March 31, 2018, representing approximately 6.6% of total revenue before the impact of derivative settlements.
Depreciation, Depletion and Amortization ("DD&A"). DD&A for the three months ended March 31, 2018 was $14.81 per BOE compared to $14.98 per BOE in the fourth quarter of 2017. The decrease is attributable to our increased estimated proved reserves relative to our depreciable base and assumed future development costs related to undeveloped proved reserves as a result of additions made through our horizontal drilling efforts and acquisitions.
General and Administrative ("G&A"). G&A, excluding certain non-cash incentive share-based compensation valuation adjustments, ("Adjusted G&A", a non-GAAP measure((i))) was $7.8 million, or $3.25 per BOE, for the three months ended March 31, 2018 compared to $7.3 million, or $3.00 per BOE, for the fourth quarter of 2017. The cash component of Adjusted G&A was $6.5 million, or $2.74 per BOE, for the three months ended March 31, 2018 compared to $6.0 million, or $2.46 per BOE, for the fourth quarter of 2017.
For the three months ended March 31, 2018, G&A and Adjusted G&A, which excludes the amortization of equity-settled, share-based incentive awards and corporate depreciation and amortization, are calculated as follows (in thousands):
Three Months Ended
March 31, 2018
--------------
Total G&A expense $8,769
Less: Change in the fair value of
liability share-based awards
(non-cash) (991)
----
Adjusted G&A - total 7,778
Less: Restricted stock share-based
compensation (non-cash) (1,105)
Less: Corporate depreciation &
amortization (non-cash) (124)
Adjusted G&A - cash component $6,549
======
Income tax expense. Callon provides for income taxes at a statutory rate of 21% adjusted for permanent differences expected to be realized, which primarily relate to non-deductible executive compensation expenses, restricted stock windfalls and shortfalls, and state income taxes. We recorded an income tax expense of $0.5 million for the three months ended March 31, 2018 which relates to deferred State of Texas gross margin tax. At March 31, 2018 we had a valuation allowance of $49.2 million. Adjusted Income per fully diluted common share, a non-GAAP financial measure((i)), adjusts our income (loss) available to common stockholders to reflect our theoretical tax provision of $11.8 million (or $0.06 per diluted share) for the quarter as if the valuation allowance did not exist.
2018 Guidance Update
The Company adopted the Revenue from Contracts with Customers accounting standard on January 1, 2018. Starting with the first quarter of 2018, certain natural gas gathering and treating expenses were accounted for as a reduction to revenue.
First Quarter Full Year
2018 Actual 2018 Guidance
----------- -------------
Total production
(MBOE/d) 26.6 29.5 - 32.0
% oil 77% 77%
Income statement
expenses (per BOE)
LOE, including
workovers $5.45 $5.25 - $6.25
Production taxes,
including ad valorem
(% unhedged revenue) 7% 6%
Adjusted G&A: cash
component (a) $2.74 $1.75 - $2.50
Adjusted G&A: non-
cash component (b) $0.51 $0.50 - $1.00
Interest expense (c) $0.00 $0.00
Effective income tax
rate 22% 22%
Capital expenditures
($MM, accrual basis)
Operational (d) $117 $500 - $540
Capitalized expenses $16 $60 - $70
Net operated
horizontal wells
placed on production 9 43 - 46
(a) Excludes stock-based compensation
and corporate depreciation and
amortization.
(b) Excludes certain non-recurring
expenses and non-cash valuation
adjustments.
(c) All interest expense anticipated to
be capitalized.
(d) Includes seismic, land and other
items. Excludes capitalized
expenses.
Hedge Portfolio Summary
The following tables summarize our open derivative positions for the periods indicated:
For the Remainder of For the Full Year
of
Oil
contracts
(WTI) 2018 2019
---------- ---- ----
Swap
contracts
Total
volume
(MBbls) 1,559 -
Weighted
average
price
per
Bbl $51.88 $ -
Collar
contracts
(two-
way
collars)
Total
volume
(MBbls) 275 -
Weighted
average
price
per
Bbl
Ceiling
(short
call) $60.50 $ -
Floor
(long
put) 50.00 -
Collar
contracts
combined
with
short
puts
(three-
way
collars)
Total
volume
(MBbls) 2,612 3,469
Weighted
average
price
per
Bbl
Ceiling
(short
call
option) $60.86 $63.71
Floor
(long
put
option) 48.95 53.95
Short
put
option 39.21 43.95
For the Remainder of For the Full Year
of
Oil
contracts
(Midland
basis
differential) 2018 2019
-------------- ---- ----
Swap
contracts
Volume
(MBbls) 3,895 -
Weighted
average
price
per
Bbl $(0.86) $ -
For the Remainder of For the Full Year
of
Natural
gas
contracts
(Henry
Hub) 2018 2019
--------- ---- ----
Swap
contracts
Total
volume
(BBtu) 4,125 -
Weighted
average
price
per
MMBtu $2.91 $ -
Income Available to Common Shareholders. The Company reported net income available to common shareholders of $53.9 million for the three months ended March 31, 2018 and Adjusted Income available to common shareholders of $39.8 million, or $0.20 per fully diluted share. Adjusted Income per fully diluted common share, a non-GAAP financial measure((i)), adjusts our income available to common stockholders to reflect our theoretical tax provision for the quarter as if the valuation allowance did not exist. The following tables reconcile to the related GAAP measure the Company's income available to common stockholders to Adjusted Income and the Company's net income to Adjusted EBITDA (in thousands):
Three Months Ended
March 31, 2018 December 31, 2017 March 31, 2017
-------------- ----------------- --------------
Income available
to common
stockholders $53,937 $21,001 $45,305
Change in
valuation
allowance (11,753) (8,285) (13,119)
Net (gain) loss
on derivatives,
net of
settlements (3,143) 16,924 (11,566)
Change in the
fair value of
share-based
awards 799 562 (189)
Adjusted Income $39,840 $30,202 $20,431
======= ======= =======
Adjusted Income
per fully
diluted common
share $0.20 $0.15 $0.10
===== ===== =====
Three Months Ended
March 31, 2018 December 31, 2017 March 31, 2017
-------------- ----------------- --------------
Net income $55,761 $22,824 $47,129
Net gain on
derivatives, net of
settlements (3,978) 26,037 (17,794)
Non-cash stock-
based compensation
expense 2,143 2,101 639
Acquisition expense 548 (112) 450
Income tax expense 495 248 466
Interest expense 460 461 665
Depreciation,
depletion and
amortization 36,066 37,222 24,932
Accretion expense 218 154 184
Adjusted EBITDA $91,713 $88,935 $56,671
======= ======= =======
Discretionary Cash Flow. Discretionary cash flow, a non-GAAP measure((i)), for the three months ended March 31, 2018 was $91.2 million and is reconciled to operating cash flow in the following table (in thousands):
Three Months Ended
March 31, 2018 December 31, 2017 March 31, 2017
-------------- ----------------- --------------
Cash flows from
operating
activities:
Net income $55,761 $22,824 $47,129
Adjustments to
reconcile net
income to cash
provided by
operating
activities:
Depreciation,
depletion and
amortization 36,066 37,222 24,932
Accretion expense 218 154 184
Amortization of
non-cash debt
related items 453 455 665
Deferred income
tax expense 495 247 466
Net (gain) loss on
derivatives, net
of settlements (3,978) 26,037 (17,794)
Non-cash expense
related to equity
share-based
awards 1,131 1,240 930
Change in the fair
value of
liability share-
based awards 1,012 865 (291)
----
Discretionary cash
flow $91,158 $89,044 $56,221
======= ======= =======
Changes in working
capital 4,512 (8,642) 5,890
Payments to settle
asset retirement
obligations (366) (216) (765)
Payments to settle
vested liability
share-based
awards (3,089) - (8,662)
Net cash provided
by operating
activities $92,215 $80,186 $52,684
======= ======= =======
Callon Petroleum Company
Consolidated Balance Sheets
(in thousands, except par and per share values and share data)
March 31, 2018 December 31, 2017
-------------- -----------------
ASSETS Unaudited
Current assets:
Cash and cash equivalents $18,473 $27,995
Accounts receivable 122,411 114,320
Fair value of derivatives 4,210 406
Other current assets 2,078 2,139
----- -----
Total current assets 147,172 144,860
------- -------
Oil and natural gas properties, full
cost accounting method:
Evaluated properties 3,598,868 3,429,570
Less accumulated depreciation,
depletion, amortization and impairment (2,119,599) (2,084,095)
---------- ----------
Net evaluated oil and natural gas
properties 1,479,269 1,345,475
Unevaluated properties 1,174,385 1,168,016
--------- ---------
Total oil and natural gas properties 2,653,654 2,513,491
--------- ---------
Other property and equipment, net 21,173 20,361
Restricted investments 3,382 3,372
Deferred tax asset 26 52
Deferred financing costs 4,588 4,863
Acquisition deposit - 900
Other assets, net 5,524 5,397
----- -----
Total assets $2,835,519 $2,693,296
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $187,267 $162,878
Accrued interest 18,491 9,235
Cash-settleable restricted stock unit
awards 4,081 4,621
Asset retirement obligations 2,784 1,295
Fair value of derivatives 25,912 27,744
------ ------
Total current liabilities 238,535 205,773
------- -------
Senior secured revolving credit facility 75,000 25,000
6.125% senior unsecured notes due 2024,
net of unamortized deferred financing
costs 595,374 595,196
Asset retirement obligations 7,717 4,725
Cash-settleable restricted stock unit
awards 2,392 3,490
Deferred tax liability 1,950 1,457
Fair value of derivatives 2,942 1,284
Other long-term liabilities 465 405
--- ---
Total liabilities 924,375 837,330
------- -------
Commitments and contingencies
Stockholders' equity:
Preferred stock, series A cumulative,
$0.01 par value and $50.00 liquidation
preference, 2,500,000 shares
authorized; 1,458,948 shares
outstanding 15 15
Common stock, $0.01 par value,
300,000,000 shares authorized;
201,947,883 and 201,836,172 shares
outstanding, respectively 2,019 2,018
Capital in excess of par value 2,182,599 2,181,359
Accumulated deficit (273,489) (327,426)
-------- --------
Total stockholders' equity 1,911,144 1,855,966
--------- ---------
Total liabilities and stockholders'
equity $2,835,519 $2,693,296
========== ==========
Callon Petroleum Company
Consolidated Statements of Operations
(Unaudited; in thousands, except per share data)
Three Months Ended March 31,
----------------------------
2018 2017
---- ----
Operating revenues:
Oil sales $115,286 $72,008
Natural gas sales 12,154 9,355
------ -----
Total operating revenues 127,440 81,363
Operating expenses:
Lease operating expenses 13,039 12,937
Production taxes 8,463 5,904
Depreciation, depletion and
amortization 35,417 24,433
General and administrative 8,769 5,206
Accretion expense 218 184
Acquisition expense 548 450
Total operating expenses 66,454 49,114
------ ------
Income from operations 60,986 32,249
------ ------
Other (income) expenses:
Interest expense, net of
capitalized amounts 460 665
(Gain) loss on derivative
contracts 4,481 (15,303)
Other income (211) (708)
---- ----
Total other (income) expense 4,730 (15,346)
----- -------
Income before income taxes 56,256 47,595
Income tax expense 495 466
--- ---
Net income 55,761 47,129
Preferred stock dividends (1,824) (1,824)
------ ------
Income available to common
stockholders $53,937 $45,305
======= =======
Income per common share:
Basic $0.27 $0.23
Diluted $0.27 $0.22
Shares used in computing income
per common share:
Basic 201,921 201,054
Diluted 202,588 201,740
Callon Petroleum Company
Consolidated Statements of Cash Flows
(Unaudited; in thousands)
Three Months Ended March 31,
----------------------------
2018 2017
---- ----
Cash flows from operating activities:
Net income $55,761 $47,129
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation, depletion and amortization 36,066 24,932
Accretion expense 218 184
Amortization of non-cash debt related
items 453 665
Deferred income tax expense 495 466
Net gain on derivatives, net of
settlements (3,978) (17,794)
Non-cash expense related to equity
share-based awards 1,131 930
Change in the fair value of liability
share-based awards 1,012 (291)
Payments to settle asset retirement
obligations (366) (765)
Changes in current assets and
liabilities:
Accounts receivable (8,067) (4,066)
Other current assets 61 576
Current liabilities 12,938 9,903
Other long-term liabilities 87 -
Other assets, net (507) (523)
Payments to settle vested liability
share-based awards (3,089) (8,662)
Net cash provided by operating
activities 92,215 52,684
------ ------
Cash flows from investing activities:
Capital expenditures (111,330) (66,154)
Acquisitions (38,923) (648,485)
Acquisition deposit 900 46,138
Net cash used in investing activities (149,353) (668,501)
-------- --------
Cash flows from financing activities:
Borrowings on senior secured revolving
credit facility 80,000 -
Payments on senior secured revolving
credit facility (30,000) -
Payment of preferred stock dividends (1,824) (1,824)
Tax withholdings related to restricted
stock units (560) (79)
Net cash provided by (used in) financing
activities 47,616 (1,903)
------ ------
Net change in cash and cash equivalents (9,522) (617,720)
Balance, beginning of period 27,995 652,993
------
Balance, end of period $18,473 $35,273
======= =======
Non-GAAP Financial Measures and Reconciliations
This news release refers to non-GAAP financial measures such as "Discretionary Cash Flow," "Adjusted G&A," "Adjusted Income," "Adjusted EBITDA" and "Adjusted Total Revenue." These measures, detailed below, are provided in addition to, and not as an alternative for, and should be read in conjunction with, the information contained in our financial statements prepared in accordance with GAAP (including the notes), included in our SEC filings and posted on our website.
-- Callon believes that the non-GAAP measure of discretionary cash flow is
useful as an indicator of an oil and natural gas exploration and
production company's ability to internally fund exploration and
development activities and to service or incur additional debt. The
Company also has included this information because changes in operating
assets and liabilities relate to the timing of cash receipts and
disbursements, which the company may not control and may not relate to
the period in which the operating activities occurred. Discretionary
cash flow is calculated using net income (loss) adjusted for certain
items including depreciation, depletion and amortization, the impact of
financial derivatives (including the mark-to-market effects, net of cash
settlements and premiums paid or received related to our financial
derivatives), accretion expense, restructuring and other non-recurring
costs, deferred income taxes and other non-cash income items.
-- Callon believes that the non-GAAP measure of Adjusted G&A is useful to
investors because it provides readers with a meaningful measure of our
recurring G&A expense and provides for greater comparability
period-over-period. The table above details all adjustments to G&A on a
GAAP basis to arrive at Adjusted G&A.
-- We believe that the non-GAAP measure of Adjusted Income available to
common shareholders ("Adjusted Income") and Adjusted Income per diluted
share are useful to investors because they provide readers with a
meaningful measure of our profitability before recording certain items
whose timing or amount cannot be reasonably determined. These measures
exclude the net of tax effects of certain non-recurring items and
non-cash valuation adjustments, which are detailed in the reconciliation
provided above. Prior to being tax-effected and excluded, the amounts
reflected in the determination of Adjusted Income and Adjusted Income
per diluted share above were computed in accordance with GAAP.
-- We calculate Adjusted Earnings before Interest, Income Taxes,
Depreciation, Depletion and Amortization ("Adjusted EBITDA") as Adjusted
Income plus interest expense, income tax expense (benefit) and
depreciation, depletion and amortization expense. Adjusted EBITDA is not
a measure of financial performance under GAAP. Accordingly, it should
not be considered as a substitute for net income (loss), operating
income (loss), cash flow provided by operating activities or other
income or cash flow data prepared in accordance with GAAP. However, we
believe that Adjusted EBITDA provides additional information with
respect to our performance or ability to meet our future debt service,
capital expenditures and working capital requirements. Because Adjusted
EBITDA excludes some, but not all, items that affect net income (loss)
and may vary among companies, the Adjusted EBITDA we present may not be
comparable to similarly titled measures of other companies.
-- We believe that the non-GAAP measure of Adjusted Total Revenue is useful
to investors because it provides readers with a revenue value more
comparable to other companies who account for derivative contracts and
hedges and include their effects in revenue. We believe Adjusted Total
Revenue is also useful to investors as a measure of the actual cash
inflows generated during the period.
Earnings Call Information
The Company will host a conference call on Thursday, May 3, 2018, to discuss first quarter 2018 financial and operating results.
Please join Callon Petroleum Company via the Internet for a webcast of the conference call:
Date/Time: Thursday, May 3, 2018, at 8:00 a.m.
Central Time (9:00 a.m. Eastern Time)
Webcast: Select "IR Calendar" under the
"Investors" section of the website:
www.callon.com.
Presentation Slides: Select "Presentations" under the
"Investors" section of the website:
www.callon.com.
Alternatively, you may join by telephone using the following numbers:
Toll Free: 1-888-317-6003
Canada Toll Free: 1-866-284-3684
International: 1-412-317-6061
Access code: 4895442
An archive of the conference call webcast will be available at www.callon.com under the "Investors" section of the website.
About Callon Petroleum
Callon Petroleum Company is an independent energy company focused on the acquisition, development, exploration, and operation of oil and natural gas properties in the Permian Basin in West Texas.
This news release is posted on the Company's website at www.callon.com and will be archived there for subsequent review under the "News" link on the top of the homepage.
Cautionary Statement Regarding Forward Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include all statements regarding wells anticipated to be drilled and placed on production; future levels of drilling activity and associated production and cash flow expectations; the Company's 2018 guidance and capital expenditure forecast; estimated reserve quantities and the present value thereof; and the implementation of the Company's business plans and strategy, as well as statements including the words "believe," "expect," "plans" and words of similar meaning. These statements reflect the Company's current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that these projections will be achieved, and actual results could differ materially from those projected as a result of certain factors. Some of the factors which could affect our future results and could cause results to differ materially from those expressed in our forward-looking statements include the volatility of oil and natural gas prices, ability to drill and complete wells, operational, regulatory and environment risks, our ability to finance our activities and other risks more fully discussed in our filings with the Securities and Exchange Commission, including our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, available on our website or the SEC's website at www.sec.gov.
Contact Information
Mark Brewer
Director of Investor Relations
Callon Petroleum Company
ir@callon.com
1-281-589-5279
i) See "Non-GAAP Financial Measures and
Reconciliations" included within this
release for related disclosures and
calculations
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SOURCE Callon Petroleum Company
