November 6, 2013 - 5:42 PM EST
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Callon Petroleum Company Issues Guidance For Full Year 2013 (Pro Forma for the Divestiture of Gulf of Mexico Assets)

Natchez, MS (November 6, 2013) - Callon Petroleum Company (NYSE: CPE) is issuing guidance for the full year 2013. The guidance, found in the table below, is expressed in ranges for the detailed components.

The following guidance estimates contain assumptions, such as the expected closing date of our Gulf of Mexico asset divestiture, which we believe are reasonable. These estimates are based upon information that is available as of the date of this news release. We are not undertaking any obligation to update these estimates as conditions change or as additional information becomes available.

($ amounts in millions, except per production unit amounts)
Guidance for
Full Year 2013
Total production (Boe/d) 3,800 - 4,100
Permian (Boe/d) 2,200 - 2,400
% Oil 65%
Lease operating expenses $20 - $22
Severance tax $3 - $4
General and administrative expenses:
Cash $14 - $16
Non-cash $4 - $6
DD&A - per Boe $30.00 - $32.00
Accretion expense $1 - $2

Listed below are the outstanding hedges for crude oil and natural gas per quarter for 2013 and 2014. 

Crude Oil 4Q - 2013
Swap Volume (Mbo) 120
Price $ 101.30
Swap Volume (Mbo) 55
Price $ 102.08
1Q - 2014 2Q - 2014 3Q - 2014 4Q - 2014
Swap Volume (Mbo) 90 91 92 92
Price $ 93.35 $ 93.35 $ 93.35 $ 93.35
Put Volume (Mbo) 90 91 92 92
Price $ 70.00 $ 70.00 $ 70.00 $ 70.00
Swap Volume (Mbo) 27 27 28 28
Price $ 94.58 $ 94.58 $ 94.58 $ 94.58
Natural Gas 4Q - 2013
Swap Volume (Bbtu) 276
Price $ 3.52
Put Option Volume (Bbtu) 276
Price $ 3.00
1Q - 2014 2Q - 2014 3Q - 2014 4Q - 2014
Call Option Volume (Bbtu) 113 114 115 115
Price $ 4.75 $ 4.75 $ 4.75 $ 4.75

This news release is posted on the Company's website at and will be archived there for subsequent review. It can be accessed from the "News Releases" link at the top of the homepage. 

This news release contains projections and other forward-looking statements (including statements about 2013 financial and operating performance) within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 include:

  • general economic and industry conditions;
  • volatility of oil and natural gas prices;
  • uncertainty of estimates of oil and natural gas reserves;
  • impact of competition;
  • availability and cost of seismic, drilling and other equipment;
  • operating hazards inherent in the exploration for and production of oil and natural gas;
  • difficulties encountered during the exploration for and production of oil and natural gas;
  • difficulties encountered in delivering oil and natural gas to commercial markets;
  • changes in customer demand and producers' supply;
  • uncertainty of our ability to attract capital;
  • compliance with, or the effect of changes in, the extensive governmental regulations regarding the oil and natural gas business;
  • actions of operators of our oil and gas properties;
  • weather conditions; and
  • the risk factors discussed in our filings with the Securities and Exchange Commission, including but not limited to those in our Annual Report for the year ended December 31, 2012 on Form 10-K.

The preceding estimates reflect our review of continuing operations only. These estimates do not take into account any material transactions such as sales of debt and equity securities, acquisitions or divestitures of assets, and formations of joint ventures. We continually review these types of transactions and may engage in one or more of these types of transactions without prior notice.

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Callon Petroleum Company via Thomson Reuters ONE


Source: Thomson Reuters ONE (November 6, 2013 - 5:42 PM EST)

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