Delaware | 001-14039 | 64-0844345 |
(State or other jurisdiction of | (Commission File Number) | (I.R.S. Employer |
incorporation or organization) | Identification Number) |
Exhibit Number | Title of Document | |
99.1 | Press release dated February 27, 2018, regarding Callon Petroleum Company's fourth quarter and full-year 2017 financial and operating results. |
Callon Petroleum Company | ||
(Registrant) | ||
February 27, 2018 | By: /s/ James P. Ulm, II | |
James P. Ulm, II | ||
Senior Vice President and Chief Financial Officer |
• | Full-year 2017 production of 22.9 MBOE/d (78% oil), an increase of 50% over 2016 volumes |
• | Fourth quarter 2017 production of 26.5 MBOE/d (79% oil), a sequential quarterly increase of 18% |
• | Year-end proved reserves of 137.0 MMBOE (78% oil), a year-over-year increase of 50% |
• | Organic reserve replacement(i) of 566% of 2017 production at a “Drill-Bit” finding and development cost concept(i) of $8.21 per BOE on a two-stream basis |
• | Reduced lease operating expense to $4.84 per BOE in the fourth quarter of 2017, a sequential quarterly decrease of 5%, contributing to a total reduction of 27% since the first quarter of 2017 |
• | Generated a fourth quarter operating margin of $40.51 per BOE |
• | Currently operating five horizontal rigs and two dedicated completion crews |
i) See “Non-GAAP Financial Measures and Reconciliations” included within this release for related disclosures and calculations |
Three Months Ended December 31, 2017 | ||||||||||||||||||||
Operational | Capitalized | Capitalized | Total Capital | |||||||||||||||||
Capital | Other (a) | Interest | G&A | Expenditures | ||||||||||||||||
Cash basis (b) | $ | 123,664 | $ | 5,006 | $ | 18,848 | $ | 5,103 | $ | 152,621 | ||||||||||
Timing adjustments (c) | (7,910 | ) | — | (9,140 | ) | — | (17,050 | ) | ||||||||||||
Non-cash items | — | — | — | 1,173 | 1,173 | |||||||||||||||
Accrual (GAAP) basis | $ | 115,754 | $ | 5,006 | $ | 9,708 | $ | 6,276 | $ | 136,744 |
(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. |
(c) | Includes timing adjustments related to cash disbursements in the current period for capital expenditures incurred in the prior period. |
i) See “Non-GAAP Financial Measures and Reconciliations” included within this release for related disclosures and calculations |
Three Months Ended | ||||||||||||
December 31, 2017 | September 30, 2017 | December 31, 2016 | ||||||||||
Net production | ||||||||||||
Oil (MBbls) | 1,936 | 1,591 | 1,287 | |||||||||
Natural gas (MMcf) | 3,018 | 2,900 | 2,412 | |||||||||
Total (MBOE) | 2,439 | 2,074 | 1,689 | |||||||||
Average daily production (BOE/d) | 26,511 | 22,543 | 18,359 | |||||||||
% oil (BOE basis) | 79 | % | 77 | % | 76 | % | ||||||
Oil and natural gas revenues (in thousands) | ||||||||||||
Oil revenue | $ | 104,132 | $ | 73,349 | $ | 60,559 | ||||||
Natural gas revenue | 14,081 | 11,265 | 8,522 | |||||||||
Total | 118,213 | 84,614 | 69,081 | |||||||||
Impact of cash-settled derivatives | (4,501 | ) | (1,214 | ) | 2,079 | |||||||
Adjusted Total Revenue (i) | $ | 113,712 | $ | 83,400 | $ | 71,160 | ||||||
Average realized sales price (excluding impact of cash settled derivatives) | ||||||||||||
Oil (Bbl) | $ | 53.79 | $ | 46.10 | $ | 47.05 | ||||||
Natural gas (Mcf) | 4.67 | 3.88 | 3.53 | |||||||||
Total (BOE) | 48.47 | 40.80 | 40.90 | |||||||||
Average realized sales price (including impact of cash settled derivatives) | ||||||||||||
Oil (Bbl) | $ | 51.28 | $ | 45.24 | $ | 48.87 | ||||||
Natural gas (Mcf) | 4.78 | 3.94 | 3.43 | |||||||||
Total (BOE) | 46.62 | 40.21 | 42.13 | |||||||||
Additional per BOE data | ||||||||||||
Sales price (a) | $ | 48.47 | $ | 40.80 | $ | 40.90 | ||||||
Lease operating expense (b) | 4.84 | 5.08 | 7.96 | |||||||||
Gathering and treating expense | 0.57 | 0.52 | 0.40 | |||||||||
Production taxes | 2.55 | 2.62 | 2.20 | |||||||||
Operating margin | $ | 40.51 | $ | 32.58 | $ | 30.34 | ||||||
Depletion, depreciation and amortization | $ | 14.98 | $ | 13.75 | $ | 13.06 | ||||||
Adjusted G&A (c) | ||||||||||||
Cash component (d) | $ | 2.46 | $ | 2.50 | $ | 2.84 | ||||||
Non-cash component | 0.54 | 0.65 | 0.54 |
(a) | Excludes the impact of cash settled derivatives. |
(b) | Excludes gathering and treating expense. |
(c) | 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. |
(d) | Excludes the amortization of equity-settled share-based incentive awards and corporate depreciation and amortization. |
i) See “Non-GAAP Financial Measures and Reconciliations” included within this release for related disclosures and calculations |
Three Months Ended December 31, 2017 | ||||||||
In Thousands | Per Unit | |||||||
Oil derivatives | ||||||||
Net loss on settlements | $ | (4,854 | ) | $ | (2.51 | ) | ||
Net loss on fair value adjustments | (26,010 | ) | ||||||
Total loss on oil derivatives | $ | (30,864 | ) | |||||
Natural gas derivatives | ||||||||
Net gain on settlements | $ | 353 | $ | 0.11 | ||||
Net loss on fair value adjustments | (26 | ) | ||||||
Total gain on natural gas derivatives | $ | 327 | ||||||
Total oil & natural gas derivatives | ||||||||
Net loss on settlements | $ | (4,501 | ) | $ | (1.85 | ) | ||
Net loss on fair value adjustments | (26,036 | ) | ||||||
Total loss on total oil & natural gas derivatives | $ | (30,537 | ) |
Three Months Ended December 31, 2017 | ||||
Total G&A expense | $ | 8,173 | ||
Less: Change in the fair value of liability share-based awards (non-cash) | (844 | ) | ||
Adjusted G&A – total | 7,329 | |||
Less: Restricted stock share-based compensation (non-cash) | (1,202 | ) | ||
Less: Corporate depreciation & amortization (non-cash) | (125 | ) | ||
Adjusted G&A – cash component | $ | 6,002 |
i) See “Non-GAAP Financial Measures and Reconciliations” included within this release for related disclosures and calculations |
Proved developed and undeveloped reserves | Oil (MBbls) | Natural Gas (MMcf) | Total (MBOE) | ||||||
As of December 31, 2016 | 71,145 | 122,611 | 91,580 | ||||||
Revisions to previous estimates | (5,171 | ) | 6,336 | (4,115 | ) | ||||
Extensions and discoveries | 39,267 | 48,648 | 47,375 | ||||||
Purchases, net of sales, of reserves in place | 8,388 | 12,711 | 10,507 | ||||||
Production | (6,557 | ) | (10,896 | ) | (8,373 | ) | |||
As of December 31, 2017 | 107,072 | 179,410 | 136,974 |
2017 Actual | 2018 Forecast | |||
Total production (MBOE/d) | 22.9 | 29.5 - 32.0 | ||
% oil | 78% | 77% | ||
Income statement expenses (per BOE) | ||||
LOE, including workovers | $5.46 | $5.25 - $6.25 | ||
Production taxes, including ad valorem (% unhedged revenue) | 6% | 6% | ||
Adjusted G&A: cash component (a) | $2.51 | $1.75 - $2.50 | ||
Adjusted G&A: non-cash component (b) | $0.57 | $0.50 - $1.00 | ||
Interest expense (c) | $0.00 | $0.00 | ||
Statutory income tax rate | 36% | 22% | ||
Capital expenditures ($MM, accrual basis) | ||||
Operational (net of monetizations) (d) | $389 | $500 - $540 | ||
Capitalized expenses | $48 | $60 - $70 | ||
Net operated horizontal wells placed on production | 37 | 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. |
i) See “Non-GAAP Financial Measures and Reconciliations” included within this release for related disclosures and calculations |
For the Full Year of | For the Full Year of | |||||||
Oil contracts (WTI) | 2018 | 2019 | ||||||
Swap contracts | ||||||||
Total volume (MBbls) | 2,009 | — | ||||||
Weighted average price per Bbl | $ | 51.78 | $ | — | ||||
Collar contracts (two-way collars) | ||||||||
Total volume (MBbls) | 365 | — | ||||||
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) | 3,468 | 1,825 | ||||||
Weighted average price per Bbl | ||||||||
Ceiling (short call option) | $ | 60.86 | $ | 62.40 | ||||
Floor (long put option) | $ | 48.95 | $ | 53.00 | ||||
Short put option | $ | 39.21 | $ | 43.00 | ||||
For the Full Year of | For the Full Year of | |||||||
Oil contracts (Midland basis differential) | 2018 | 2019 | ||||||
Swap contracts | ||||||||
Volume (MBbls) | 5,289 | — | ||||||
Weighted average price per Bbl | $ | (0.86 | ) | $ | — | |||
| For the Full Year of | For the Full Year of | ||||||
Natural gas contracts | 2018 | 2019 | ||||||
Collar contracts (Henry Hub, two-way collars) | ||||||||
Total volume (BBtu) | 720 | — | ||||||
Weighted average price per MMBtu | ||||||||
Ceiling (short call option) | $ | 3.84 | $ | — | ||||
Floor (long put option) | $ | 3.40 | $ | — | ||||
Swap contracts (Henry Hub) | ||||||||
Total volume (BBtu) | 3,366 | — | ||||||
Weighted average price per MMBtu | $ | 2.95 | $ | — |
Three Months Ended | ||||||||||||
December 31, 2017 | September 30, 2017 | December 31, 2016 | ||||||||||
Income (loss) available to common stockholders | $ | 21,001 | $ | 15,257 | $ | (3,570 | ) | |||||
Change in valuation allowance | (8,285 | ) | (6,064 | ) | 559 | |||||||
Net loss on derivatives, net of settlements | 16,924 | 8,416 | 7,170 | |||||||||
Change in the fair value of share-based awards | 562 | 475 | 590 | |||||||||
Loss on early extinguishment of debt | — | — | 8,374 | |||||||||
Adjusted Income | $ | 30,202 | $ | 18,084 | $ | 13,123 | ||||||
Adjusted Income per fully diluted common share | $ | 0.15 | $ | 0.09 | $ | 0.08 |
i) See “Non-GAAP Financial Measures and Reconciliations” included within this release for related disclosures and calculations |
Three Months Ended | ||||||||||||
December 31, 2017 | September 30, 2017 | December 31, 2016 | ||||||||||
Net income (loss) | $ | 22,824 | $ | 17,081 | $ | (1,746 | ) | |||||
Net loss on derivatives, net of settlements | 26,037 | 12,947 | 11,030 | |||||||||
Non-cash stock-based compensation expense | 2,101 | 1,952 | 1,718 | |||||||||
Loss on early extinguishment of debt | — | — | 12,883 | |||||||||
Acquisition expense | (112 | ) | 205 | 1,263 | ||||||||
Income tax expense | 248 | 237 | 48 | |||||||||
Interest expense | 461 | 444 | 1,369 | |||||||||
Depreciation, depletion and amortization | 37,222 | 29,132 | 22,512 | |||||||||
Accretion expense | 154 | 131 | 196 | |||||||||
Adjusted EBITDA | $ | 88,935 | $ | 62,129 | $ | 49,273 |
Three Months Ended | ||||||||||||
December 31, 2017 | September 30, 2017 | December 31, 2016 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | $ | 22,824 | $ | 17,081 | $ | (1,746 | ) | |||||
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||||||||||||
Depreciation, depletion and amortization | 37,222 | 29,132 | 22,512 | |||||||||
Accretion expense | 154 | 131 | 196 | |||||||||
Amortization of non-cash debt related items | 455 | 441 | 744 | |||||||||
Deferred income tax expense | 247 | 237 | 48 | |||||||||
Net loss on derivatives, net of settlements | 26,037 | 12,947 | 11,030 | |||||||||
Loss on early extinguishment of debt | — | — | 9,883 | |||||||||
Non-cash expense related to equity share-based awards | 1,240 | 1,219 | 811 | |||||||||
Change in the fair value of liability share-based awards | 865 | 732 | 908 | |||||||||
Discretionary cash flow | $ | 89,044 | $ | 61,920 | $ | 44,386 | ||||||
Changes in working capital | (8,642 | ) | (7,777 | ) | $ | (7,832 | ) | |||||
Payments to settle asset retirement obligations | (216 | ) | (250 | ) | (576 | ) | ||||||
Net cash provided by operating activities | $ | 80,186 | $ | 53,893 | $ | 35,978 |
i) See “Non-GAAP Financial Measures and Reconciliations” included within this release for related disclosures and calculations |
Calculation | 2017 | |||||
Parameters | Metrics | |||||
Production (MBOE) | (A) | 8,373 | ||||
Proved reserve data | ||||||
Proved reserves (MBOE) | ||||||
Total (MBOE) extensions and discoveries | (B) | 47,375 | ||||
PUD additions | (C) | 24,322 | ||||
PUDs transferred to PDP | (D) | 8,281 | ||||
Total annual reserve additions, net of revisions | (E) | 53,767 | ||||
Capital costs (in thousands) | ||||||
Property acquisition costs | ||||||
Exploration costs | $ | 239,453 | ||||
Development costs | 279,424 | |||||
Unevaluated properties | ||||||
Exploration costs | (F) | 6,374 | ||||
Transfers to evaluated properties | (131,170 | ) | ||||
Leasehold and seismic | 5,006 | |||||
Total capital costs incurred | (G) | $ | 389,075 | |||
Drill-Bit F&D costs per BOE (two-stream) | (G) / (B) | $ | 8.21 | |||
PD F&D per BOE (two-stream) | (G - F) / (B - C + D) | $ | 12.21 | |||
Organic reserve replacement ratio | (B) / (A) | 566 | % | |||
All-sources reserve replacement ratio | (E) / (A) | 642 | % |
i) See “Non-GAAP Financial Measures and Reconciliations” included within this release for related disclosures and calculations |
December 31, 2017 | December 31, 2016 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 27,995 | $ | 652,993 | ||||
Accounts receivable | 114,320 | 69,783 | ||||||
Fair value of derivatives | 406 | 103 | ||||||
Other current assets | 2,139 | 2,247 | ||||||
Total current assets | 144,860 | 725,126 | ||||||
Oil and natural gas properties, full cost accounting method: | ||||||||
Evaluated properties | 3,429,570 | 2,754,353 | ||||||
Less accumulated depreciation, depletion, amortization and impairment | (2,084,095 | ) | (1,947,673 | ) | ||||
Net evaluated oil and natural gas properties | 1,345,475 | 806,680 | ||||||
Unevaluated properties | 1,168,016 | 668,721 | ||||||
Total oil and natural gas properties, net | 2,513,491 | 1,475,401 | ||||||
Other property and equipment, net | 20,361 | 14,114 | ||||||
Restricted investments | 3,372 | 3,332 | ||||||
Deferred tax asset | 52 | — | ||||||
Deferred financing costs | 4,863 | 3,092 | ||||||
Acquisition deposit | 900 | 46,138 | ||||||
Other assets, net | 5,397 | 384 | ||||||
Total assets | $ | 2,693,296 | $ | 2,267,587 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 162,878 | $ | 95,577 | ||||
Accrued interest | 9,235 | 6,057 | ||||||
Cash-settleable restricted stock unit awards | 4,621 | 8,919 | ||||||
Asset retirement obligations | 1,295 | 2,729 | ||||||
Fair value of derivatives | 27,744 | 18,268 | ||||||
Total current liabilities | 205,773 | 131,550 | ||||||
Senior secured revolving credit facility | 25,000 | — | ||||||
6.125% senior unsecured notes due 2024, net of unamortized deferred financing costs | 595,196 | 390,219 | ||||||
Asset retirement obligations | 4,725 | 3,932 | ||||||
Cash-settleable restricted stock unit awards | 3,490 | 8,071 | ||||||
Deferred tax liability | 1,457 | 90 | ||||||
Fair value of derivatives | 1,284 | 28 | ||||||
Other long-term liabilities | 405 | 295 | ||||||
Total liabilities | 837,330 | 534,185 | ||||||
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; 201,836,172 and 201,041,320 shares outstanding, respectively | 2,018 | 2,010 | ||||||
Capital in excess of par value | 2,181,359 | 2,171,514 | ||||||
Accumulated deficit | (327,426 | ) | (440,137 | ) | ||||
Total stockholders’ equity | 1,855,966 | 1,733,402 | ||||||
Total liabilities and stockholders’ equity | $ | 2,693,296 | $ | 2,267,587 |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Operating revenues: | ||||||||||||||||
Oil sales | $ | 104,132 | $ | 60,559 | $ | 322,374 | $ | 177,652 | ||||||||
Natural gas sales | 14,082 | 8,522 | 44,100 | 23,199 | ||||||||||||
Total operating revenues | 118,214 | 69,081 | 366,474 | 200,851 | ||||||||||||
Operating expenses: | ||||||||||||||||
Lease operating expenses | 13,201 | 14,124 | 49,907 | 38,353 | ||||||||||||
Production taxes | 6,228 | 3,717 | 22,396 | 11,870 | ||||||||||||
Depreciation, depletion and amortization | 36,543 | 22,051 | 115,714 | 71,369 | ||||||||||||
General and administrative | 8,172 | 6,562 | 27,067 | 26,317 | ||||||||||||
Settled share-based awards | — | — | 6,351 | — | ||||||||||||
Accretion expense | 154 | 196 | 677 | 958 | ||||||||||||
Write-down of oil and natural gas properties | — | — | — | 95,788 | ||||||||||||
Acquisition expense | (112 | ) | 1,263 | 2,916 | 3,673 | |||||||||||
Total operating expenses | 64,186 | 47,913 | 225,028 | 248,328 | ||||||||||||
Income (loss) from operations | 54,028 | 21,168 | 141,446 | (47,477 | ) | |||||||||||
Other (income) expenses: | ||||||||||||||||
Interest expense, net of capitalized amounts | 461 | 1,369 | 2,159 | 11,871 | ||||||||||||
Loss on early extinguishment of debt | — | 12,883 | — | 12,883 | ||||||||||||
Loss on derivative contracts | 30,536 | 8,952 | 18,901 | 20,233 | ||||||||||||
Other income | (41 | ) | (338 | ) | (1,311 | ) | (637 | ) | ||||||||
Total other (income) expense | 30,956 | 22,866 | 19,749 | 44,350 | ||||||||||||
Income (loss) before income taxes | 23,072 | (1,698 | ) | 121,697 | (91,827 | ) | ||||||||||
Income tax (benefit) expense | 248 | 48 | 1,273 | (14 | ) | |||||||||||
Net income (loss) | 22,824 | (1,746 | ) | 120,424 | (91,813 | ) | ||||||||||
Preferred stock dividends | (1,823 | ) | (1,824 | ) | (7,295 | ) | (7,295 | ) | ||||||||
Income (loss) available to common stockholders | $ | 21,001 | $ | (3,570 | ) | $ | 113,129 | $ | (99,108 | ) | ||||||
Income (loss) per common share: | ||||||||||||||||
Basic | $ | 0.10 | $ | (0.02 | ) | $ | 0.56 | $ | (0.78 | ) | ||||||
Diluted | $ | 0.10 | $ | (0.02 | ) | $ | 0.56 | $ | (0.78 | ) | ||||||
Shares used in computing income (loss) per common share: | ||||||||||||||||
Basic | 201,835 | 166,258 | 201,526 | 126,258 | ||||||||||||
Diluted | 202,426 | 166,258 | 202,102 | 126,258 |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) | $ | 22,824 | $ | (1,746 | ) | $ | 120,424 | $ | (91,813 | ) | ||||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||||||
Depreciation, depletion and amortization | 37,222 | 22,512 | 118,051 | 73,072 | ||||||||||||
Write-down of oil and natural gas properties | — | — | — | 95,788 | ||||||||||||
Accretion expense | 154 | 196 | 677 | 958 | ||||||||||||
Amortization of non-cash debt related items | 455 | 744 | 2,150 | 3,115 | ||||||||||||
Deferred income tax (benefit) expense | 247 | 48 | 1,273 | (14 | ) | |||||||||||
Loss on derivatives, net of settlements | 26,037 | 11,030 | 10,429 | 38,135 | ||||||||||||
Loss on sale of other property and equipment | — | — | 62 | — | ||||||||||||
Non-cash loss on early extinguishment of debt | — | 9,883 | — | 9,883 | ||||||||||||
Non-cash expense related to equity share-based awards | 1,240 | 811 | 8,254 | 2,765 | ||||||||||||
Change in the fair value of liability share-based awards | 865 | 908 | 3,288 | 6,953 | ||||||||||||
Payments to settle asset retirement obligations | (216 | ) | (576 | ) | (2,047 | ) | (1,471 | ) | ||||||||
Changes in current assets and liabilities: | ||||||||||||||||
Accounts receivable | (32,347 | ) | (13,611 | ) | (44,495 | ) | (30,055 | ) | ||||||||
Other current assets | 444 | (535 | ) | 108 | (786 | ) | ||||||||||
Current liabilities | 23,413 | 5,473 | 30,947 | 25,288 | ||||||||||||
Other long-term liabilities | — | 10 | 121 | 96 | ||||||||||||
Long-term prepaid | — | — | (4,650 | ) | — | |||||||||||
Other assets, net | (152 | ) | 831 | (1,528 | ) | (840 | ) | |||||||||
Payments for cash-settled restricted stock unit awards | — | — | (13,173 | ) | (10,300 | ) | ||||||||||
Net cash provided by operating activities | 80,186 | 35,978 | 229,891 | 120,774 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Capital expenditures | (152,621 | ) | (67,334 | ) | (419,839 | ) | (190,032 | ) | ||||||||
Acquisitions | (3,952 | ) | (352,622 | ) | (718,456 | ) | (654,679 | ) | ||||||||
Acquisition deposit | (900 | ) | (13,438 | ) | 45,238 | (46,138 | ) | |||||||||
Proceeds from sales of mineral interest and equipment | 20,525 | 1,639 | 20,525 | 24,562 | ||||||||||||
Net cash used in investing activities | (136,948 | ) | (431,755 | ) | (1,072,532 | ) | (866,287 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Borrowings on senior secured revolving credit facility | 25,000 | — | 25,000 | 217,000 | ||||||||||||
Payments on senior secured revolving credit facility | — | — | — | (257,000 | ) | |||||||||||
Payments on term loans | — | (300,000 | ) | — | (300,000 | ) | ||||||||||
Issuance of 6.125% senior unsecured notes due 2024 | — | 400,000 | 200,000 | 400,000 | ||||||||||||
Premium on the issuance of 6.125% senior unsecured notes due 2024 | — | — | 8,250 | — | ||||||||||||
Payment of deferred financing costs | (28 | ) | (10,153 | ) | (7,194 | ) | (10,793 | ) | ||||||||
Issuance of common stock | — | 634,862 | — | 1,357,577 | ||||||||||||
Payment of preferred stock dividends | (1,824 | ) | (1,824 | ) | (7,295 | ) | (7,295 | ) | ||||||||
Tax withholdings related to restricted stock units | — | — | (1,118 | ) | (2,207 | ) | ||||||||||
Net cash provided by financing activities | 23,148 | 722,885 | 217,643 | 1,397,282 | ||||||||||||
Net change in cash and cash equivalents | (33,614 | ) | 327,108 | (624,998 | ) | 651,769 | ||||||||||
Balance, beginning of period | 61,609 | 325,885 | 652,993 | 1,224 | ||||||||||||
Balance, end of period | $ | 27,995 | $ | 652,993 | $ | 27,995 | $ | 652,993 |
• | 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. |
• | We believe “Drill-Bit F&D costs,” “PD F&D costs” and “Organic reserve replacement” ratios are non-GAAP metrics commonly used by Callon and other companies in our industry, as well as analysts and investors, to measure and evaluate the cost of replenishing annual production and adding proved reserves. The Company’s definitions of “Drill-Bit F&A costs,” “PD F&D costs” and “Organic reserve replacement” may differ significantly from definitions used by other companies to compute similar measures and as a result may not be comparable to similar measures provided by other companies. Consequently, we provided the detail of our calculation within the included tables. |
Date/Time: | Wednesday, February 28, 2018, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time) |
Webcast: | Select “IR Calendar” under the “Investors” section of the Company’s website: www.callon.com. |
Presentation Slides: | Select “Presentations” under the “Investors” section of the Company’s website: www.callon.com. |
Domestic: | 1-888-317-6003 |
Canada: | 1-866-284-3684 |
International: | 1-412-317-6061 |
Access code: | 2180929 |
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