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 August 5, 2015 - 4:15 PM EDT
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Callon Petroleum Company Announces Second Quarter 2015 Results and Increases Annual Production Guidance

NATCHEZ, Miss., Aug. 5, 2015 /PRNewswire/ -- Callon Petroleum Company (NYSE: CPE) ("Callon" or the "Company") today reported results of operations for the three and six month periods ended June 30, 2015. Presentation slides accompanying this earnings release are available on the Company's website at www.callon.com located within the Investors (Events and Presentations) section of the site.

Key highlights for the second quarter of 2015 include:

  • Net daily production of 9,516 barrels of oil equivalent per day ("BOE/d"), an increase of 11% compared to the first quarter of 2015, comprised of 79% oil volume
  • Lease operating costs, including workovers, of $7.59 per barrel of oil equivalent ("BOE"), a decrease of 16% compared to the first quarter of 2015
  • Adjusted EBITDA, a non-GAAP financial measure(i), of $31.7 million, an increase of 14% compared to the first quarter of 2015
  • Adjusted income available to common shareholders, a non-GAAP financial measure(i), of $0.04 per diluted share based on total average diluted shares outstanding of 66.0 million shares
  • Increased annual production guidance midpoint by 6% to 9,600 BOE/d and established third quarter 2015 production guidance midpoint at 9,800 BOE/d

"Our results for the quarter reflected improvements across all aspects of the business," commented Fred Callon, Chairman and Chief Executive Officer. "We delivered double-digit production growth, while posting meaningful decreases in both our operating cost structure and level of capital expenditures. In addition to these important contributors to capital efficiency, the productivity of our drilling program has benefitted from ongoing completion enhancements and increasing capital allocation to the Lower Spraberry. We believe that the strength of our asset base, combined with our liquidity position and financial discipline, position us to generate continued production and reserve gains while progressing to a free cash flow neutral position in 2016."

Recent Well Performance

Callon currently has 70 gross (61.9 net) horizontal wells located in the Central and Southern Midland Basin, producing from four established zones including the Lower Spraberry, the Wolfcamp A, and the Upper and Lower Wolfcamp B. The Company's 2015 production has exceeded expectations primarily due to the extended time performance of its Lower Spraberry drilling program, and sustained improvement of Wolfcamp B wells in the Garrison Draw field.







24-Hour Peak Rate
(BOE/d; Two-stream)


180-Day
Cumulative Production
(BOE; Two-stream)

Well


County


Completed
Lateral (ft)


Production 
(% oil)


Per
1,000' 
Lateral Feet


Production
(% oil)


Per 
1,000'
Lateral Feet

Lower Spraberry













Pecan Acres 22A1 4SH


Midland


4,646


1,114 (89%)


240


T.B.D.


T.B.D.

Casselman 40 4 LS


Midland


4,398


1,035 (89%)


235


84,233 (81%)


19,153

Kendra Annie 15SH


Midland


4,966


746 (88%)


150


92,332 (83%)


18,593

ST W 701LS


Midland


7,102


1,564 (86%)


220


145,507 (88%)


20,488

Neal 6522SH


Upton


6,632


788 (88%)


119


T.B.D.


T.B.D.














Garrison Draw Wolfcamp B













University 27-34 1LH


Reagan


7,482


1,131 (88%)


151


80,107 (89%)


10,707

University 27-34 2LH


Reagan


7,366


795 (82%)


108


70,604 (88%)


9,585

University 27-34 3LH


Reagan


7,602


722 (82%)


95


73,852 (87%)


9,715

Operating and Financial Results

The following table presents summary information for the periods indicated, and are followed by the Company's financial statements.



Three Months Ended



June 30, 2015


March 31, 2015


June 30, 2014

Net production:










   Oil (MBbls)



685



638



405

   Natural gas (MMcf)



1,084



801



452

   Total production (MBOE)



866



771



480

   Average daily production (BOE/d)



9,516



8,567



5,275

   % oil (BOE basis)



79%



83%



84%

Oil and natural gas revenues (in thousands):










   Oil revenue


$

36,093


$

27,909


$

37,710

   Natural gas revenue



3,149



2,482



2,792

      Total, excluding impact of cash-settled derivatives


$

39,242


$

30,391


$

40,502

   Impact of cash-settled derivatives



4,965



10,343



(1,646)

      Total, including impact of cash-settled derivatives


$

44,207


$

40,734


$

38,856













Three Months Ended

Additional per BOE data:


June 30, 2015


March 31, 2015


June 30, 2014

   Sales price, excluding impact of cash-settled derivatives


$

45.31


$

39.42


$

84.38

   Sales price, including impact of cash-settled derivatives



51.05



52.83



80.95











   Lease operating expense


$

7.59


$

9.03


$

9.09

   Production taxes



3.41



2.94



4.72

   Depletion, depreciation and amortization



20.31



23.48



24.96

   Adjusted G&A - total (a)



4.53



6.15



10.25

   Adjusted G&A - cash component (b)



3.85



5.37



8.19



(a)   

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.

(b)  

Excludes the amortization of equity-settled share-based incentive awards and corporate depreciation and amortization.

Total Revenue. For the quarter ended June 30, 2015, Callon reported total revenues of $39.2 million, excluding the $5.0 million impact of settled derivative contracts, comprised of oil revenues of $36.1 million and natural gas revenues of $3.1 million. Average daily production for the quarter was 9,516 BOE/d compared to average daily production of 8,567 BOE/d in the first quarter of 2015. Average realized prices, including and excluding the effects of hedging, are detailed below.

Hedging impacts. For the quarter ended June 30, 2015, Callon recognized the following hedging-related items:



In Thousands


Per Unit

Oil derivatives







Net gain on settlements


$

4,511


$

6.59

Net loss on fair value adjustments



(12,755)




   Total loss


$

(8,244)











Natural gas derivatives







Net gain on settlements


$

454


$

0.42

Net loss on fair value adjustments



(459)




   Total loss


$

(5)











Total derivatives







Net gain on settlements


$

4,965


$

5.74

Net loss on fair value adjustments



(13,214)




   Total loss on derivative contracts


$

(8,249)




Average realized prices, including and excluding the impact of cash settled derivatives during the second quarter, were as follows:



Three Months Ended



June 30, 2015

Average realized sales price:




   Oil (per Bbl) (excluding impact of cash-settled derivatives)


$

52.69

      Impact of cash-settled derivatives



6.59

   Oil (per Bbl) (including impact of cash-settled derivatives)


$

59.28





   Natural gas (perMcf) (excluding impact of cash-settled derivatives)


$

2.90

      Impact of cash-settled derivatives



0.42

   Natural gas (per Mcf) (including impact of cash-settled derivatives)


$

3.32





   Total (per BOE) (excluding impact of cash-settled derivatives)


$

45.31

      Impact of cash-settled derivatives



5.74

   Total (per BOE) (including impact of cash-settled derivatives)


$

51.05

Lease Operating Expenses, including workover expense ("LOE"). LOE for the three months ended June 30, 2015 was $7.59 per BOE, compared to LOE of $9.03 per BOE in the first quarter of 2015. Higher production volumes and lower workover expenses contributed to the 16% per BOE decrease in the second quarter.

Production Taxes, including ad valorem taxes. Production taxes were $3.41 per BOE in the second quarter of 2015, representing approximately 7.5% of total revenue before the impact of derivative settlements.

Depreciation, Depletion and Amortization ("DD&A"). DD&A for the three months ended June 30, 2015 was $20.31 per BOE compared to $23.48 per BOE in the first quarter of 2015, with the decrease in per unit DD&A being attributable to increases in proved reserves relative to our depreciable asset base and reductions in assumed future development costs related to undeveloped proved reserves.

General and Administrative, net of amounts capitalized ("G&A"). G&A excluding certain non-recurring items and non-cash incentive share-based compensation valuation adjustments ("Adjusted G&A", a non-GAAP measure(i)) was $3.9 million, or $4.53 per BOE, for the current period compared to $4.7 million, or $6.15 per BOE, for the first quarter of 2015. The cash component of Adjusted G&A, which excludes the amortization of equity-settled share-based incentive awards and corporate depreciation and amortization, was $3.3 million, or $3.85 per BOE, compared to $4.1 million or $5.37 per BOE for the first quarter of 2015. G&A and Adjusted G&A for the second quarter of 2015 are calculated as follows:



Recurring


Non-Recurring



G&A expenses:


Cash


Non-Cash


Cash


Non-Cash


Total

   Cash G&A


$

3,332


$


$


$


$

3,332

   Restricted stock share-based compensation





479







479

   Change in the fair value of liability share-based awards





1,607







1,607

   Corporate depreciation & amortization





115







115

   Threatened proxy contest







230





230

Total G&A expense:


$

3,332


$

2,201


$

230


$


$

5,763

Adjusted G&A:
















   Less: Change in the fair value of liability share-based awards














$

(1,607)

   Less: Threatened proxy contest expenses















(230)

Adjusted G&A - total















3,926

   Restricted stock share-based compensation















(479)

   Corporate depreciation & amortization















(115)

Adjusted G&A - cash component














$

3,332

Income (Loss) Available to Common Shareholders. The Company reported a net loss available to common shareholders of $6.9 million in the second quarter of 2015 and Adjusted income available to common shareholders ("Adjusted Income"), a non-GAAP measure(i), of $2.8 million, or $0.04 per diluted share.

The following tables reconcile to the related GAAP measure the Company's income (loss) available to common stockholders to Adjusted Income and the Company's net income (loss) to Adjusted EBITDA:



Three Months Ended



June 30, 2015


March 31, 2015


June 30, 2014

Income (loss) available to common stockholders


$

(6,940)


$

(12,171)


$

2,767

   Net loss on derivatives, net of settlements



8,590



5,144



1,975

   Rig termination fee





2,367



   Change in the fair value of share-based awards



1,045



1,676



2,982

   Early retirement expenses





3,034



   Withdrawn proxy contest expenses



150



72



85

   Gain on early redemption of debt







(2,083)

Adjusted income


$

2,844


$

122


$

5,726

Adjusted income per fully diluted common share


$

0.04


$

0.00


$

0.14














Three Months Ended



June 30, 2015


March 31, 2015


June 30, 2014

Net income (loss)


$

(4,967)


$

(10,197)


$

4,740

   Net loss on derivatives, net of settlements



13,214



7,914



3,039

   Change in the fair value of share-based awards



2,086



3,058



5,397

   Early retirement expenses





4,668



   Rig termination fee





3,641



   Gain on early redemption of debt







(3,205)

   Withdrawn proxy contest expenses



230



111



130

   Acquisition expense





3



   Income tax expense (benefit)



(2,116)



(5,077)



4,128

   Interest expense



5,106



4,858



1,825

   Depreciation, depletion and amortization



18,011



18,546



12,378

   Accretion expense



134



209



173

Adjusted EBITDA


$

31,698


$

27,734


$

28,605

Adjusted EBITDA per diluted share


$

0.48


$

0.48


$

0.69

Discretionary Cash Flow. Discretionary cash flow, a non-GAAP measure(i), for the second quarter of 2015 was $25.9 million or $0.39 per diluted share, and is reconciled to operating cash flow in the following table:



Three Months Ended



June 30, 2015


March 31, 2015


June 30, 2014

Cash flows from operating activities:










Net income (loss)


$

(4,967)


$

(10,197)


$

4,740

Adjustments to reconcile net income (loss) to cash provided by operating activities:










   Depreciation, depletion and amortization



18,011



18,546



12,378

   Accretion expense



134



209



173

   Amortization of non-cash debt related items



780



781



179

   Amortization of deferred credit







   Deferred income tax (benefit) expense



(2,116)



(5,077)



4,128

   Net loss on derivatives, net of settlements



13,214



7,914



3,038

   Gain on early debt extinguishment







(3,205)

   Rig termination fee





3,641



   Non-cash expense related to equity share-based awards



(754)



86



(1,032)

   Change in the fair value of liability share-based awards



1,607



3,088



4,587

Discretionary cash flow


$

25,909


$

18,991


$

24,986











Discretionary cash flow per diluted share


$

0.39


$

0.33


$

0.60

Weighted average dilutive shares outstanding



66,038



57,479



41,605











   Changes in working capital



438



(5,988)



(6,113)

   Payments to settle asset retirement obligations



(2,163)



258



(1,443)

   Payments to settle vested liability share-based awards










   related to early retirements





(3,538)



(1,417)

   Payments to settle vested liability share-based awards



(326)



(3,599)



(383)

Net cash provided by operating activities


$

23,858


$

6,124


$

15,630

Operations Update

The following table summarizes the Company's drilling activity for the three months ended June 30, 2015:



For the Three Months Ended June 30, 2015



Drilled


Completed (a)


Awaiting Completion



Gross


Net


Gross


Net


Gross


Net

Southern Midland Basin













Horizontal wells


5


5.0


5


5.0


2


2.0

   Total


5


5.0


5


5.0


2


2.0

Central Midland Basin













Vertical wells







Horizontal wells


4


2.6


3


2.0


2


1.3

   Total


4


2.6


3


2.0


2


1.3














Total vertical wells







Total horizontal wells


9


7.6


8


7.0


4


3.3

   Total


9


7.6


8


7.0


4


3.3



(a)    

  Completions include wells drilled prior to the second quarter of 2015.

For the three months ended June 30, 2015, the Company accrued $45.1 million in operational capital expenditures, including facilities, compared to $57.3 million in the first quarter of 2015. Total capital expenditures, inclusive of capitalized expenses, are detailed below on an accrual and cash basis:



Three Months Ended June 30, 2015



Operational Capital
Expenditures


Capitalized
Interest


Capitalized
G&A


Total Capital
Expenditures

Cash basis


$

54,738


$

2,803


$

2,525


$

60,066

Timing adjustments (a)



(9,623)



(89)





(9,712)

Non-cash items







1,523



1,523

Accrual (GAAP) basis


$

45,115


$

2,714


$

4,048


$

51,877



(a)   

Includes timing adjustments related to cash disbursements in the current period for capital expenditures incurred in the prior period.

Full-Year 2015 Updated Guidance:



Full-Year 2015



Previous


Updated

Total production (BOE/d)


8,800 - 9,300


9,450 - 9,750

% oil


79% - 81%


78% - 80%

% oil hedged (a)


66%


64%

Weighted average oil swap price


$69.04


$69.05

Expenses (per BOE)





LOE, including workovers


$8.50 - $9.50


$8.00 - $8.50

Production taxes, including ad valorem


$2.75 - $3.25


$2.75 - $3.25

Adjusted G&A (b)


$5.50 - $5.75


$4.75 - $5.25

   Adjusted G&A - cash component (c)


$4.00 - $4.75


$4.00 - $4.50

Third Quarter 2015 Guidance:



Second Quarter


Third Quarter



2015 Actual


2015 Guidance

Total production (BOE/d)


9,516


9,600 - 10,000

% oil


79%


76% - 80%

% oil hedged (a)


60%


76%

Weighted average oil swap price


$70.79


$67.22

Expenses (per BOE)





LOE, including workovers


$7.59


$8.00 - $8.75

Production taxes, including ad valorem


$3.41


$2.75 - $3.25

Adjusted G&A (b)


$4.53


$4.50 - $4.75

   Adjusted G&A - cash component (c)


$3.85


$3.75 - $4.00



(a)   

Based on the midpoint of guidance.

(b)   

Excludes certain non-recurring expenses and non-cash valuation adjustments. See the reconciliation provided within the Non-GAAP financial measures and reconciliations section of this press release for a reconciliation of G&A expense on a GAAP basis to Adjusted G&A expense.

(c)    

Excludes stock-based compensation and corporate depreciation and amortization.

Hedge Portfolio Summary:



For the Three Months Ended



September 30,


December 31,


March 31,


June 30,


September 30,


December 31,

Oil contracts


2015


2015


2016


2016


2016


2016

Swap contracts (NYMEX):



















   Total volume (MBbls)



520



442



91



91



92



92

   Weighted average price per Bbl


$

67.22


$

64.93


$

63.50


$

63.50


$

63.50


$

63.50

Swap contracts (Midland basis



















Differentials):



















   Volume (MBbls)



382



327









   Weighted average price per Bbl


$

(2.39)


$

(2.38)


$


$


$


$

Collar contracts combined with



















short puts (three-way collar):



















   Volume (MBbls)







91



91



92



92

    Weighted average price per Bbl



















      Ceiling (short call)


$


$


$

70.00


$

70.00


$

70.00


$

70.00

      Floor (long put)


$


$


$

60.00


$

60.00


$

60.00


$

60.00

      Short put


$


$


$

45.00


$

45.00


$

45.00


$

45.00






















For the Three Months Ended



September 30,


December 31,


March 31,


June 30,


September 30,


December 31,

Natural gas contracts


2015


2015


2016


2016


2016


2016

Collar contracts combined with



















short puts (three-way collar):



















   Volume (BBtu)



207



161









   Weighted average price per



















   MMBtu



















      Ceiling (short call)


$

4.32


$

4.32


$


$


$


$

      Floor (long put)


$

3.85


$

3.85


$


$


$


$

      Short put


$

3.25


$

3.25


$


$


$


$

Swap contracts:



















   Total volume (BBtu)



219



228









   Weighted average price per



















   MMBtu


$

3.98


$

3.96


$


$


$


$

Short call contracts:



















   Short call volume (BBtu)



110



111









   Short call price per MMBtu


$

5.00


$

5.00


$


$


$


$

 

i.    

See "Non-GAAP Financial Measures and Reconciliations" included within this release for related disclosures and calculations

Non-GAAP Financial Measures and Reconciliations

This news release refers to non-GAAP financial measures as "discretionary cash flow," "Adjusted Income," "Adjusted G&A" and "Adjusted EBITDA." 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 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 and discretionary cash flow per diluted share are 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), remaining asset retirement obligations related to our divested offshore properties, 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 below. Prior to being tax-effected and excluded, the amounts reflected in the determination of Adjusted Income and Adjusted Income per diluted share below 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 its 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.

 

Callon Petroleum Company

Consolidated Balance Sheets

(in thousands, except par and per share values and share data)








June 30, 2015


December 31, 2014

ASSETS






Current assets:






Cash and cash equivalents

$

2,028


$

968

Accounts receivable


34,499



30,198

Fair value of derivatives


6,889



27,850

Other current assets


1,525



1,441

Total current assets


44,941



60,457

Oil and natural gas properties, full cost accounting method:






   Evaluated properties


2,207,999



2,077,985

   Less accumulated depreciation, depletion and amortization


(1,514,036)



(1,478,355)

   Net oil and natural gas properties


693,963



599,630

   Unevaluated properties


131,121



142,525

Total oil and natural gas properties


825,084



742,155

Other property and equipment, net


7,874



7,118

Restricted investments


3,299



3,810

Deferred tax asset


46,497



44,688

Deferred financing costs


16,639



18,200

Other assets, net


658



342

Total assets

$

944,992


$

876,770

LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities:






Accounts payable and accrued liabilities

$

65,792


$

76,753

Accrued interest


5,974



5,993

Cash-settled restricted stock unit awards


8,172



3,856

Asset retirement obligations


872



4,747

Deferred tax liability


830



6,214

Fair value of derivatives


1,622



1,249

Total current liabilities


83,262



98,812

Senior secured revolving credit facility


75,000



35,000

Secured second lien term loan


300,000



300,000

Asset retirement obligations


3,249



1,927

Cash-settled restricted stock unit awards


3,086



7,175

Other long-term liabilities


219



121

Total liabilities


464,816



443,035

Stockholders' equity:






Preferred stock, series A cumulative, $0.01 par value and $50.00 liquidation preference, 2,500,000 shares authorized: 1,578,948 and 1,578,948 shares outstanding, respectively


16



16

Common stock, $0.01 par value, 110,000,000 shares authorized; 66,190,660 and 55,225,288 shares outstanding, respectively


662



552

Capital in excess of par value


591,604



526,162

Accumulated deficit


(112,106)



(92,995)

Total stockholders' equity


480,176



433,735

Total liabilities and stockholders' equity

$

944,992


$

876,770

 

Callon Petroleum Company

Consolidated Statements of Operations

(in thousands, except per share data)
















Three Months Ended June 30,


Six Months Ended June 30,



2015


2014


2015


2014

Operating revenues:













   Oil sales


$

36,093


$

37,710


$

64,002


$

68,619

   Natural gas sales



3,149



2,792



5,631



5,168

Total operating revenues



39,242



40,502



69,633



73,787

Operating expenses:













   Lease operating expenses



6,575



4,363



13,534



8,593

   Production taxes



2,952



2,265



5,217



4,182

   Depreciation, depletion and amortization



17,587



11,982



35,691



22,520

   General and administrative



5,763



9,639



17,865



20,446

   Accretion expense



134



173



343



401

   Rig termination fee







3,641



   Gain on sale of other property and equipment









(1,080)

Total operating expenses



33,011



28,422



76,291



55,062

   Income (loss) from operations



6,231



12,080



(6,658)



18,725

Other (income) expenses:













   Interest expense



5,106



1,825



9,964



2,802

   Gain on early extinguishment of debt





(3,205)





(3,205)

   Loss on derivative contracts



8,249



4,685



5,820



7,198

   Other income



(41)



(93)



(85)



(142)

Total other expenses



13,314



3,212



15,699



6,653

   Income (loss) before income taxes



(7,083)



8,868



(22,357)



12,072

      Income tax expense (benefit)



(2,116)



4,128



(7,193)



5,469

      Net income (loss)



(4,967)



4,740



(15,164)



6,603

      Preferred stock dividends



(1,973)



(1,973)



(3,947)



(3,947)

  Income (loss) available to common stockholders


$

(6,940)


$

2,767


$

(19,111)


$

2,656

  Income (loss) per common share:













   Basic


$

(0.11)


$

0.07


$

(0.31)


$

0.07

   Diluted


$

(0.11)


$

0.07


$

(0.31)


$

0.06

   Shares used in computing income (loss) per common share:













   Basic



66,038



40,606



61,759



40,467

   Diluted



66,038



41,605



61,759



41,652

 

Callon Petroleum Company

Consolidated Statements of Cash Flows

(in thousands)




Six Months Ended June 30,



2015


2014

Cash flows from operating activities:







Net income (loss)


$

(15,164)


$

6,603

Adjustments to reconcile net income (loss) to cash provided by operating activities:







   Depreciation, depletion and amortization



36,557



22,976

   Accretion expense



343



401

   Amortization of non-cash debt related items



1,561



298

   Amortization of deferred credit





(433)

   Deferred income tax (benefit) expense



(7,193)



5,469

   Net loss on derivatives, net of settlements



21,129



4,677

   Gain on sale of other property and equipment





(1,080)

   Non-cash gain for early debt extinguishment





(3,205)

   Non-cash expense related to equity share-based awards



(668)



(36)

   Change in the fair value of liability share-based awards



4,695



8,070

   Payments to settle asset retirement obligations



(1,905)



(1,469)

   Changes in current assets and liabilities:







      Accounts receivable



(6,946)



(5,268)

      Other current assets



(85)



265

      Current liabilities



5,549



2,014

   Payments to settle vested liability share-based awards related to early retirements



(3,538)



(1,417)

   Payments to settle vested liability share-based awards



(3,925)



(2,052)

   Change in other long-term liabilities



100



   Change in other assets, net



(528)



(216)

      Net cash provided by operating activities



29,982



35,597

Cash flows from investing activities:







Capital expenditures



(130,847)



(127,219)

Proceeds from sales of mineral interests and equipment



326



2,267

     Net cash used in investing activities



(130,521)



(124,952)

Cash flows from financing activities:







Borrowings on credit facility



103,000



150,000

Payments on credit facility



(63,000)



(55,610)

Payment of deferred financing costs





(2,928)

Issuance of common stock



65,546



Payment of preferred stock dividends



(3,947)



(3,947)

      Net cash provided by financing activities



101,599



87,515

Net change in cash and cash equivalents



1,060



(1,840)

   Balance, beginning of period



968



3,012

   Balance, end of period


$

2,028


$

1,172

Earnings Call Information

The Company will host a conference call on Thursday, August 6, 2015 to discuss second quarter 2015 financial and operating results.

Please join Callon Petroleum Company via the Internet for a webcast of the conference call:

Date/Time:

Thursday, August 6, 2015, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time)

Webcast:

Live webcast will be available at www.callon.com in the "Investors" section of the website.

Alternatively, you may join by telephone using the following numbers:

Toll Free:

1-888-349-0096

Canada Toll Free: 

1-855-669-9657

International:

1-412-902-0125

Request to join:

Callon Petroleum Company Earnings Call

An archive of the conference call webcast will also be available at www.callon.com in 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 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 projections and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include all statements, as well as statements including the words "believe," "expect," "plans" and words of similar meaning. These projections and 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 are 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.

For further information contact:
Joe Gatto
Chief Financial Officer, Senior Vice President and Treasurer
1-800-451-1294

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/callon-petroleum-company-announces-second-quarter-2015-results-and-increases-annual-production-guidance-300124432.html

SOURCE Callon Petroleum Company


Source: PR Newswire (August 5, 2015 - 4:15 PM EDT)

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