(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
(Address of principal executive offices, including zip code) |
(Registrant’s telephone number, including area code) | ||
(Former name or former address, if changed since last report.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Exhibit Number | Title of Document | |
99.1 | ||
99.2 |
Callon Petroleum Company | |||
(Registrant) | |||
February 26, 2020 | /s/ James P. Ulm, II | ||
James P. Ulm, II | |||
Senior Vice President and Chief Financial Officer |
• | Full-year 2019 production of 41.3 Mboe/d (77% oil), an increase of 26% over 2018 volumes |
• | Year-end proved reserves of 540.0 MMboe (64% oil), a year-over-year increase of 126% |
• | Realized income available to common stockholders of $55.6 million, or $0.24 per diluted share, and adjusted net income(i) of $176.3 million or $0.76 per diluted share |
• | Generated an operating margin(i) of $35.60 per Boe reflecting our high level of oil volumes and lease operating expense reductions |
• | Generated Adjusted EBITDA(i) of $502.1 million |
• | Completed the acquisition of Carrizo Oil & Gas, creating an oil-weighted growth company with premier positions in the Permian Basin and Eagle Ford Shale |
• | Divested approximately $300 million in non-core assets as part of ongoing initiatives to enhance returns on capital employed and strengthen our financial position through absolute debt reduction |
• | Redeemed approximately $270 million in preferred securities, eliminating $25 million in annual future dividend payments |
• | Fourth quarter 2019 production of 46.6 Mboe/d (75% oil), an increase of 14% over fourth quarter 2018 volumes and a sequential increase of 23% |
• | Realized loss available to common stockholders of $23.5 million, or ($0.09) per diluted share, and adjusted net income(i) of $56.8 million or $0.23 per diluted share |
• | Generated $137.6 million of cash from operating activities, exceeding cash used in investing activities for operational capital additions of $105.8 million |
• | Sustained strong operating margins of $37.74 per Boe |
• | Built an inventory of drilled, uncompleted wells to support larger scale development in the Delaware Basin |
(i) Non-GAAP measure. See “Non-GAAP Financial Measures and Reconciliations” included within this release for related disclosures and calculations |
• | Initial 2020 full year production guidance (on a three-stream basis) is 115.0 to 120.0 MBoe/d with an oil cut of approximately 66% |
• | DC&E expenditures for the year are weighted approximately 60% to the first half of the year and 30% to the first quarter |
• | Average lateral lengths for the year are projected between ~7,900 feet and ~9,000 feet across all three asset areas |
• | Working interest will vary between 80% and 95% dependent upon project and asset area |
• | First quarter and second quarter completions activity will primarily be composed of Eagle Ford and Delaware wells |
• | First quarter production guidance is 95.0 to 100.0 MBoe/d with an oil cut of 66% |
• | Second quarter production growth is expected to be in excess of 15% |
• | Gross wells placed on production in the second quarter are expected to be the highest of any period during the year |
• | Projected oil volumes are more than 60% hedged for the entire year and more than 70% hedged for the first quarter |
• | The inventory of drilled uncompleted wells completed early in the year will be replenished throughout the year with an increased weighting to the Permian Basin providing ongoing flexibility within the larger development model in 2021 and is projected to be more than 60 wells by year-end 2020 |
(i) Non-GAAP measure. See “Non-GAAP Financial Measures and Reconciliations” included within this release for related disclosures and calculations |
Three Months Ended December 31, 2019 | ||||||||||||||||
Operational | Capitalized | Capitalized | Total Capital | |||||||||||||
Capital (a) | Interest | G&A | Expenditures | |||||||||||||
(In thousands) | ||||||||||||||||
Cash basis (b) | $105,846 | $23,614 | $7,655 | $137,115 | ||||||||||||
Timing adjustments (c) | 4,175 | (1,833 | ) | — | 2,342 | |||||||||||
Non-cash items | — | — | 1,125 | 1,125 | ||||||||||||
Accrual (GAAP) basis | $110,021 | $21,781 | $8,780 | $140,582 |
(a) | Includes seismic, land, technology, and other items. |
(b) | Cash basis is presented here to help users of financial information reconcile amounts from the cash flow statement to the balance sheet by accounting for timing related changes in working capital that align with 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. |
(d) | Accrual basis capital as shown includes the impact of legacy Carrizo expenditures after December 20th close date. |
(i) Non-GAAP measure. See “Non-GAAP Financial Measures and Reconciliations” included within this release for related disclosures and calculations |
Three Months Ended, | ||||||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | ||||||||||
Net production | ||||||||||||
Oil (MBbls) | 3,234 | 2,725 | 3,076 | |||||||||
Natural gas (MMcf) | 5,530 | 4,538 | 4,225 | |||||||||
NGLs (MBbls) | 135 | — | — | |||||||||
Total barrels of oil equivalent (MBoe) | 4,291 | 3,481 | 3,780 | |||||||||
Total daily production (Boe/d) | 46,641 | 37,837 | 41,087 | |||||||||
Oil as % of total daily production | 75 | % | 78 | % | 81 | % | ||||||
Average realized sales price (excluding impact of settled derivatives) | ||||||||||||
Oil (per Bbl) | $56.61 | $54.39 | $48.89 | |||||||||
Natural gas (per Mcf) | $1.98 | $1.58 | $2.72 | |||||||||
NGLs (per Bbl) | $15.37 | $— | $— | |||||||||
Total (per Boe) | $45.70 | $44.64 | $42.83 | |||||||||
Average realized sales price (including impact of settled derivatives) | ||||||||||||
Oil (per Bbl) | $55.33 | $54.01 | $48.52 | |||||||||
Natural gas (per Mcf) | $2.12 | $2.03 | $2.62 | |||||||||
NGLs (per Bbl) | $15.37 | $— | $— | |||||||||
Total (per Boe) | $44.92 | $44.93 | $42.41 | |||||||||
Revenues (in thousands) | ||||||||||||
Oil | $183,071 | $148,210 | $150,398 | |||||||||
Natural gas | 10,949 | 7,168 | 11,497 | |||||||||
NGLs | 2,075 | — | — | |||||||||
Total revenues | $196,095 | $155,378 | $161,895 | |||||||||
Additional per Boe data | ||||||||||||
Sales price (a) | $45.70 | $44.64 | $42.83 | |||||||||
Lease operating expense | 5.90 | 5.65 | 6.47 | |||||||||
Production taxes | 2.06 | 3.41 | 2.51 | |||||||||
Operating margin | $37.74 | $35.58 | $33.85 | |||||||||
Depletion, depreciation and amortization | $14.30 | $16.09 | $15.74 | |||||||||
Adjusted G&A (b) | ||||||||||||
Cash component (c) | $2.41 | $2.52 | $2.03 | |||||||||
Non-cash component | $0.53 | $0.44 | $0.50 |
(a) | Excludes the impact of settled derivatives. |
(b) | Excludes certain non-recurring expenses and non-cash valuation adjustments. Adjusted G&A is a non-GAAP financial measure; see the reconciliation provided within this press release for a reconciliation of G&A expense on a GAAP basis to Adjusted G&A expense. |
(c) | Excludes the amortization of equity-settled share-based incentive awards and corporate depreciation and amortization. |
(i) Non-GAAP measure. See “Non-GAAP Financial Measures and Reconciliations” included within this release for related disclosures and calculations |
Three Months Ended December 31, 2019 | ||||||||
In Thousands | Per Unit | |||||||
Oil derivatives | ||||||||
Net loss on settlements | ($4,140 | ) | ($1.28 | ) | ||||
Net loss on fair value adjustments | (34,375 | ) | ||||||
Total loss on oil derivatives | ($38,515 | ) | ||||||
Natural gas derivatives | ||||||||
Net gain on settlements | $787 | $0.14 | ||||||
Net gain on fair value adjustments | 3,796 | |||||||
Total gain on natural gas derivatives | $4,583 | |||||||
Total oil & natural gas derivatives | ||||||||
Net loss on settlements | ($3,353 | ) | ($0.78 | ) | ||||
Net loss on fair value adjustments | (30,579 | ) | ||||||
Total loss on oil & natural gas derivatives | ($33,932 | ) |
Three Months Ended December 31, 2019 | ||||
Total G&A expense | $13,626 | |||
Change in the fair value of liability share-based awards (non-cash) | (1,010 | ) | ||
Adjusted G&A – total | 12,616 | |||
Restricted stock share-based compensation (non-cash) | (1,855 | ) | ||
Corporate depreciation & amortization (non-cash) | (439 | ) | ||
Adjusted G&A – cash component | $10,322 |
(i) Non-GAAP measure. See “Non-GAAP Financial Measures and Reconciliations” included within this release for related disclosures and calculations |
Total (MBoe) | |||
Reserves at December 31, 2018 | 238,508 | ||
Extensions and discoveries | 59,424 | ||
Purchase of reserves in place | 326,838 | ||
Revisions to previous estimates | (37,216 | ) | |
Production | (15,086 | ) | |
Sales of reserves in place | (32,456 | ) | |
Reserves at December 31, 2019 | 540,012 |
Full Year | |
2019 Actual | |
Total production (Mboe/d) (a) | 41.3 |
% oil | 77% |
Income statement expenses (per Boe) | |
LOE, including workovers | $6.09 |
Production taxes, including ad valorem (% unhedged revenue) | 6% |
Adjusted G&A: cash component (b) | $2.41 |
Adjusted G&A: non-cash component (c) | $0.52 |
Cash interest expense (d) | $0.00 |
Effective income tax rate | 34.2% |
Capital expenditures (in millions, accrual basis) | |
Total operational (e) | $515 |
Capitalized interest and G&A expenses | $115 |
Net operated horizontal wells placed on production | 52 |
(a) | Full year 2019 production reflects the 11 day impact of Carrizo volumes included after closing and represents Callon volumes on a 2-stream basis and Carrizo volumes on a 3-stream basis. |
(b) | Excludes the amortization of equity-settled, share-based incentive awards, corporate depreciation and amortization, and pending merger-related expenses. Adjusted G&A is a non-GAAP financial measure; see the reconciliation provided within this press release for a reconciliation of G&A expense on a GAAP basis to Adjusted G&A expense. |
(c) | Excludes certain non-recurring expenses and non-cash valuation adjustments. Adjusted G&A is a non-GAAP financial measure; 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) | All cash interest expense was capitalized. |
(e) | Includes facilities, equipment, seismic, land and other items. Excludes capitalized expenses. |
(i) Non-GAAP measure. See “Non-GAAP Financial Measures and Reconciliations” included within this release for related disclosures and calculations |
Full Year | |
2020 Guidance | |
Total production (Mboe/d) (a) | 115.0 - 120.0 |
Oil production | 66% |
NGL production | 17% |
Gas production | 17% |
Income statement expenses | |
LOE, including workovers (in millions) | $195.0 - $235.0 |
Gathering, processing, and transportation ($/Boe) | $1.55 - $1.95 |
Production taxes, including ad valorem (% of unhedged revenue) | 6.5% |
Adjusted G&A: cash component (b) (in millions) | $55.0 - $65.0 |
Adjusted G&A: non-cash component (c) (in millions) | $10.0 - $15.0 |
Cash interest expense (in millions) | $55.0 - $65.0 |
Effective income tax rate | 23% |
Capital expenditures (in millions, accrual basis) | |
Total operational capital (d) | $975.0 |
Capitalized interest | $115.0 - $125.0 |
Capitalized G&A | $45.0 - $50.0 |
Gross operated wells drilled / completed | ~165 / ~160 |
(a) | Total Company presented on a 3-stream basis. |
(b) | Excludes the amortization of equity-settled, share-based incentive awards and merger-related expenses. Adjusted G&A is a non-GAAP financial measure; see the reconciliation provided within this press release for a reconciliation of G&A expense on a GAAP basis to Adjusted G&A expense. |
(c) | Excludes certain non-recurring expenses and non-cash valuation adjustments. Adjusted G&A is a non-GAAP financial measure; 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) | Includes facilities, equipment, seismic, land and other items. Excludes capitalized expenses. |
(i) Non-GAAP measure. 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) | 2020 | 2021 | ||||||
Collar contracts with short puts (three-way collars) | ||||||||
Total volume (Bbls) | 13,176,000 | — | ||||||
Weighted average price per Bbl | ||||||||
Ceiling (short call) | $65.28 | $— | ||||||
Floor (long put) | $55.38 | $— | ||||||
Floor (short put) | $45.08 | $— | ||||||
Short call contracts | ||||||||
Total volume (Bbls) | 1,674,450 | (a) | 4,825,300 | (a) | ||||
Weighted average price per Bbl | $75.98 | $63.62 | ||||||
Swap contracts | ||||||||
Total volume (Bbls) | 1,303,900 | — | ||||||
Weighted average price per Bbl | $55.19 | $— | ||||||
Swap contracts with short puts | ||||||||
Total volume (Bbls) | 2,196,000 | — | ||||||
Weighted average price per Bbl | ||||||||
Swap | $56.06 | $— | ||||||
Floor (short put) | $42.50 | $— | ||||||
Oil contracts (Brent ICE) | ||||||||
Collar contracts with short puts (three-way collars) | ||||||||
Total volume (Bbls) | 837,500 | — | ||||||
Weighted average price per Bbl | ||||||||
Ceiling (short call) | $70.00 | $— | ||||||
Floor (long put) | $58.24 | $— | ||||||
Floor (short put) | $50.00 | $— | ||||||
Oil contracts (Midland basis differential) | ||||||||
Swap contracts | ||||||||
Total volume (Bbls) | 8,476,700 | 4,015,100 | ||||||
Weighted average price per Bbl | ($1.47 | ) | $0.40 | |||||
Oil contracts (Argus Houston MEH basis differential) | ||||||||
Swap contracts | ||||||||
Total volume (Bbls) | 1,439,205 | — | ||||||
Weighted average price per Bbl | $2.40 | $— | ||||||
Oil contracts (Argus Houston MEH swaps) | ||||||||
Swap contracts | ||||||||
Total volume (Bbls) | 504,500 | — | ||||||
Weighted average price per Bbl | $58.22 | $— | ||||||
Natural gas contracts (Henry Hub) | ||||||||
Collar contracts (three-way collars) | ||||||||
Total volume (MMBtu) | 3,660,000 | — | ||||||
Weighted average price per MMBtu | ||||||||
Ceiling (short call) | $2.75 | $— | ||||||
Floor (long put) | $2.50 | $— | ||||||
Floor (short put) | $2.00 | $— | ||||||
Swap contracts | ||||||||
Total volume (MMBtu) | 3,660,000 | — | ||||||
Weighted average price per MMBtu | $2.48 | $— | ||||||
Short call contracts | ||||||||
Total volume (MMBtu) | 12,078,000 | 7,300,000 | ||||||
Weighted average price per MMBtu | $3.50 | $3.09 | ||||||
Natural gas contracts (Waha basis differential) | ||||||||
Swap contracts | ||||||||
Total volume (MMBtu) | 21,596,000 | — | ||||||
Weighted average price per MMBtu | ($1.04 | ) | $— |
(a) | Premiums from the sale of call options were used to increase the fixed price of certain simultaneously executed price swaps and three-way collars. |
(i) Non-GAAP measure. See “Non-GAAP Financial Measures and Reconciliations” included within this release for related disclosures and calculations |
Three Months Ended | ||||||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | ||||||||||
(In thousands except per share data) | ||||||||||||
Income (loss) available to common stockholders | ($23,543 | ) | $47,180 | $154,370 | ||||||||
(Gain) loss on derivatives contracts | 30,694 | (21,809 | ) | (103,918 | ) | |||||||
Cash (paid) received for commodity derivative settlements, net | (3,353 | ) | 1,011 | (1,594 | ) | |||||||
Change in the fair value of share-based awards | 1,010 | (925 | ) | (1,053 | ) | |||||||
Merger and integration expense | 68,420 | 5,943 | — | |||||||||
Other operating expense | — | (175 | ) | — | ||||||||
Loss on extinguishment of debt | 4,881 | — | — | |||||||||
Tax effect on adjustments above | (21,347 | ) | 3,351 | 22,379 | ||||||||
Loss on redemption of preferred stock | — | 8,304 | — | |||||||||
Change in valuation allowance | — | — | (30,281 | ) | ||||||||
Adjusted Income | $56,762 | $42,880 | $39,903 | |||||||||
Adjusted Income per fully diluted common share | $0.23 | $0.19 | $0.17 |
Three Months Ended | ||||||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | ||||||||||
(In thousands) | ||||||||||||
Net income (loss) | ($23,543 | ) | $55,834 | $156,194 | ||||||||
(Gain) loss on derivatives contracts | 30,694 | (21,809 | ) | (103,918 | ) | |||||||
Cash (paid) received for commodity derivative settlements, net | (3,353 | ) | 1,011 | (1,594 | ) | |||||||
Non-cash stock-based compensation expense | 3,390 | 644 | 770 | |||||||||
Merger and integration expense | 68,420 | 5,943 | — | |||||||||
Other operating expense | 145 | (161 | ) | 1,333 | ||||||||
Income tax expense | 5,857 | 17,902 | 5,647 | |||||||||
Interest expense | 689 | 739 | 735 | |||||||||
Depreciation, depletion and amortization | 63,198 | 57,235 | 60,549 | |||||||||
Loss on extinguishment of debt | 4,881 | — | — | |||||||||
Other income | — | — | — | |||||||||
Adjusted EBITDA | $150,378 | $117,338 | $119,716 |
(i) Non-GAAP measure. See “Non-GAAP Financial Measures and Reconciliations” included within this release for related disclosures and calculations |
Three Months Ended | ||||||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | ||||||||||
(In thousands) | ||||||||||||
Net income (loss) | ($23,543 | ) | $55,834 | $156,194 | ||||||||
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||||||||||||
Depreciation, depletion and amortization | 63,198 | 57,235 | 60,549 | |||||||||
Amortization of non-cash debt related items | 689 | 739 | 734 | |||||||||
Deferred income tax expense | 5,857 | 17,902 | 5,647 | |||||||||
(Gain) loss on derivative contracts | 30,694 | (21,809 | ) | (103,918 | ) | |||||||
Cash received (paid) for commodity derivative settlements, net | (3,353 | ) | 1,011 | (1,594 | ) | |||||||
Gain on sale of other property and equipment | (126 | ) | (13 | ) | (64 | ) | ||||||
Non-cash loss on early extinguishment of debt | 4,881 | — | — | |||||||||
Non-cash expense related to equity share-based awards | 1,899 | 1,569 | 1,823 | |||||||||
Change in the fair value of liability share-based awards | 1,518 | (925 | ) | (1,053 | ) | |||||||
Discretionary cash flow | $81,714 | $111,543 | $118,318 | |||||||||
Changes in working capital | 58,587 | 2,803 | 33,710 | |||||||||
Payments to settle asset retirement obligations | (2,723 | ) | (654 | ) | (389 | ) | ||||||
Net cash provided by operating activities | $137,578 | $113,692 | $151,639 |
Three Months Ended | ||||||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | ||||||||||
(In thousands) | ||||||||||||
Net cash provided by operating activities | $137,578 | $113,692 | $151,639 | |||||||||
Less: Changes in working capital | (58,587 | ) | (2,803 | ) | (33,710 | ) | ||||||
Plus: Payments to settle asset retirement obligations | 2,723 | 654 | 389 | |||||||||
Plus: Merger and integration expense | 68,420 | 5,943 | — | |||||||||
Plus: Other operating expense and non-recurring items | 244 | (148 | ) | 1,398 | ||||||||
Adjusted EBITDA | $150,378 | $117,338 | $119,716 | |||||||||
Less: Operational capex (accrual) | 110,021 | 116,413 | 141,177 | |||||||||
Less: Capitalized interest | 21,781 | 18,130 | 17,500 | |||||||||
Less: Interest expense | 689 | 739 | 735 | |||||||||
Less: Capitalized G&A | 8,780 | 8,239 | 8,192 | |||||||||
Free Cash Flow | $9,107 | ($26,183 | ) | ($47,888 | ) |
(i) Non-GAAP measure. See “Non-GAAP Financial Measures and Reconciliations” included within this release for related disclosures and calculations |
Three Months Ended | ||||||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | ||||||||||
(In thousands) | ||||||||||||
Operating Revenues | ||||||||||||
Oil | $183,071 | $148,210 | $150,398 | |||||||||
Natural gas | 10,949 | 7,168 | 11,497 | |||||||||
Natural gas liquids | 2,075 | — | — | |||||||||
Total operating revenues | $196,095 | $155,378 | $161,895 | |||||||||
Impact of settled derivatives | (3,353 | ) | 1,011 | (1,594 | ) | |||||||
Adjusted total revenue | $192,742 | $156,389 | $160,301 |
As of December 31, 2019 | ||||
(In thousands) | ||||
Standardized measure of discounted future net cash flows | $4,951,026 | |||
Add: present value of future income taxes discounted at 10% per annum | 418,555 | |||
Total Proved Reserves - PV-10 | 5,369,581 | |||
Total Proved Developed Reserves - PV-10 | 3,246,802 | |||
Total Proved Undeveloped Reserves - PV-10 | $2,122,779 |
(i) Non-GAAP measure. See “Non-GAAP Financial Measures and Reconciliations” included within this release for related disclosures and calculations |
December 31, | |||||||
2019 | 2018 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 13,341 | $ | 16,051 | |||
Accounts receivable, net | 209,463 | 131,720 | |||||
Fair value of derivatives | 26,056 | 65,114 | |||||
Other current assets | 19,814 | 9,740 | |||||
Total current assets | 268,674 | 222,625 | |||||
Oil and natural gas properties, full cost accounting method: | |||||||
Evaluated properties, net | 4,682,994 | 2,314,345 | |||||
Unevaluated properties | 1,986,124 | 1,404,513 | |||||
Total oil and natural gas properties, net | 6,669,118 | 3,718,858 | |||||
Operating lease right-of-use assets | 63,908 | — | |||||
Other property and equipment, net | 35,253 | 21,901 | |||||
Deferred tax asset | 115,720 | — | |||||
Deferred financing costs | 22,233 | 6,087 | |||||
Fair value of derivatives | 9,216 | — | |||||
Other assets, net | 10,716 | 9,702 | |||||
Total assets | $ | 7,194,838 | $ | 3,979,173 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 511,622 | $ | 285,849 | |||
Operating lease liabilities | 42,858 | — | |||||
Fair value of derivatives | 71,197 | 10,480 | |||||
Other current liabilities | 26,570 | 18,587 | |||||
Total current liabilities | 652,247 | 314,916 | |||||
Long-term debt | 3,186,109 | 1,189,473 | |||||
Operating lease liabilities | 37,088 | — | |||||
Asset retirement obligations | 48,860 | 10,405 | |||||
Deferred tax liability | — | 9,564 | |||||
Fair value of derivatives | 32,695 | 7,440 | |||||
Other long-term liabilities | 14,531 | 2,167 | |||||
Total liabilities | 3,971,530 | 1,533,965 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock, series A cumulative, $0.01 par value and $50.00 liquidation preference, 2,500,000 shares authorized: 0 and 1,458,948 shares outstanding, respectively | — | 15 | |||||
Common stock, $0.01 par value, 525,000,000 and 300,000,000 shares authorized, respective; 396,600,022 and 227,582,575 shares outstanding, respectively | 3,966 | 2,276 | |||||
Capital in excess of par | 3,198,076 | 2,477,278 | |||||
Retained earnings (Accumulated deficit) | 21,266 | (34,361 | ) | ||||
Total stockholders’ equity | 3,223,308 | 2,445,208 | |||||
Total liabilities and stockholders’ equity | $ | 7,194,838 | $ | 3,979,173 |
Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating Revenues: | |||||||||||||||
Oil | $ | 183,071 | $ | 150,398 | $ | 633,107 | $ | 530,898 | |||||||
Natural gas | 10,949 | 11,497 | 36,390 | 56,726 | |||||||||||
Natural gas liquids | 2,075 | — | 2,075 | — | |||||||||||
Total operating revenues | 196,095 | 161,895 | 671,572 | 587,624 | |||||||||||
Operating Expenses: | |||||||||||||||
Lease operating | 25,316 | 24,475 | 91,827 | 69,180 | |||||||||||
Production taxes | 8,841 | 9,490 | 42,651 | 35,755 | |||||||||||
Depreciation, depletion and amortization | 61,367 | 59,750 | 240,642 | 182,783 | |||||||||||
General and administrative | 13,626 | 8,514 | 45,331 | 35,293 | |||||||||||
Merger and integration expenses | 68,420 | — | 74,363 | — | |||||||||||
Settled share-based awards | — | — | 3,024 | — | |||||||||||
Other operating expense | 145 | 1,333 | 1,076 | 5,083 | |||||||||||
Total operating expenses | 177,715 | 103,562 | 498,914 | 328,094 | |||||||||||
Income From Operations | 18,380 | 58,333 | 172,658 | 259,530 | |||||||||||
Other (Income) Expenses: | |||||||||||||||
Interest expense, net of capitalized amounts | 689 | 735 | 2,907 | 2,500 | |||||||||||
(Gain) loss on derivative contracts | 30,694 | (103,918 | ) | 62,109 | (48,544 | ) | |||||||||
Loss on extinguishment of debt | 4,881 | — | 4,881 | — | |||||||||||
Other income | (198 | ) | (325 | ) | (468 | ) | (2,896 | ) | |||||||
Total other (income) expense | 36,066 | (103,508 | ) | 69,429 | (48,940 | ) | |||||||||
Income (Loss) Before Income Taxes | (17,686 | ) | 161,841 | 103,229 | 308,470 | ||||||||||
Income tax expense | 5,857 | 5,647 | 35,301 | 8,110 | |||||||||||
Net Income (Loss) | (23,543 | ) | 156,194 | 67,928 | 300,360 | ||||||||||
Preferred stock dividends | — | (1,824 | ) | (3,997 | ) | (7,295 | ) | ||||||||
Loss on redemption of preferred stock | — | — | (8,304 | ) | — | ||||||||||
Income (Loss) Available to Common Stockholders | $ | (23,543 | ) | $ | 154,370 | $ | 55,627 | $ | 293,065 | ||||||
Income (Loss) Available to Common Stockholders Per Common Share: | |||||||||||||||
Basic | $ | (0.09 | ) | $ | 0.68 | $ | 0.24 | $ | 1.35 | ||||||
Diluted | $ | (0.09 | ) | $ | 0.68 | $ | 0.24 | $ | 1.35 | ||||||
Weighted Average Common Shares Outstanding: | |||||||||||||||
Basic | 248,232 | 227,580 | 233,140 | 216,941 | |||||||||||
Diluted | 248,359 | 228,191 | 233,550 | 217,596 |
Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income (loss) | ($23,543 | ) | $156,194 | $67,928 | $300,360 | ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||
Depreciation, depletion and amortization | 63,198 | 60,549 | 245,936 | 185,605 | |||||||||||
Amortization of non-cash debt related items | 689 | 734 | 2,907 | 2,483 | |||||||||||
Deferred income tax (benefit) expense | 5,857 | 5,647 | 35,301 | 8,110 | |||||||||||
(Gain) loss on derivative contracts | 30,694 | (103,918 | ) | 62,109 | (48,544 | ) | |||||||||
Cash paid for commodity derivative settlements, net | (3,353 | ) | (1,594 | ) | (3,789 | ) | (27,272 | ) | |||||||
Gain on sale of other property and equipment | (126 | ) | (64 | ) | (90 | ) | (144 | ) | |||||||
Non-cash loss on early extinguishment of debt | 4,881 | — | 4,881 | — | |||||||||||
Non-cash expense related to equity share-based awards | 1,899 | 1,823 | 9,767 | 6,289 | |||||||||||
Change in the fair value of liability share-based awards | 1,518 | (1,053 | ) | 1,624 | 375 | ||||||||||
Payments to settle asset retirement obligations | (2,723 | ) | (389 | ) | (4,148 | ) | (1,469 | ) | |||||||
Payments for cash-settled restricted stock unit awards | — | — | (1,425 | ) | (4,990 | ) | |||||||||
Changes in current assets and liabilities: | |||||||||||||||
Accounts receivable | (52,671 | ) | 37,033 | (35,071 | ) | (17,351 | ) | ||||||||
Other current assets | 1,006 | (5,936 | ) | (4,166 | ) | (7,601 | ) | ||||||||
Current liabilities | 99,476 | 9,510 | 86,438 | 74,311 | |||||||||||
Other long-term liabilities | — | (6,065 | ) | — | — | ||||||||||
Other | 10,776 | (832 | ) | 8,114 | (2,508 | ) | |||||||||
Net cash provided by operating activities | 137,578 | 151,639 | 476,316 | 467,654 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Capital expenditures | (137,115 | ) | (155,821 | ) | (640,540 | ) | (611,173 | ) | |||||||
Acquisitions | (1,478 | ) | (122,809 | ) | (42,266 | ) | (718,793 | ) | |||||||
Additions to other assets | — | (3,100 | ) | — | (3,100 | ) | |||||||||
Proceeds from sales of assets | 14,465 | 683 | 294,417 | 9,009 | |||||||||||
Net cash used in investing activities | (124,128 | ) | (281,047 | ) | (388,389 | ) | (1,324,057 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Borrowings on senior secured revolving credit facility | 1,874,900 | 230,000 | 2,455,900 | 500,000 | |||||||||||
Payments on senior secured revolving credit facility | (314,500 | ) | (95,000 | ) | (895,500 | ) | (325,000 | ) | |||||||
Repayment of Prior Credit Facility | (475,400 | ) | — | (475,400 | ) | — | |||||||||
Repayment of Carrizo's senior secured revolving credit facility | (853,549 | ) | — | (853,549 | ) | — | |||||||||
Repayment of Carrizo's preferred stock | (220,399 | ) | — | (220,399 | ) | — | |||||||||
Issuance of 6.375% senior unsecured notes due 2026 | — | — | — | 400,000 | |||||||||||
Issuance of common stock | — | (376 | ) | — | 287,988 | ||||||||||
Payment of preferred stock dividends | — | (1,824 | ) | (3,997 | ) | (7,295 | ) | ||||||||
Payment of deferred financing costs | (22,449 | ) | 530 | (22,480 | ) | (9,430 | ) | ||||||||
Tax withholdings related to restricted stock units | (21 | ) | — | (2,195 | ) | (1,804 | ) | ||||||||
Redemption of preferred stock | — | — | (73,017 | ) | — | ||||||||||
Net cash provided by (used in) financing activities | (11,418 | ) | 133,330 | (90,637 | ) | 844,459 | |||||||||
Net change in cash and cash equivalents | 2,032 | 3,922 | (2,710 | ) | (11,944 | ) | |||||||||
Balance, beginning of period | 11,309 | 12,129 | 16,051 | 27,995 | |||||||||||
Balance, end of period | $13,341 | $16,051 | $13,341 | $16,051 |
• | Callon believes that the non-GAAP measure of discretionary cash flow is a comparable metric against other companies in the industry and is a widely accepted financial indicator of an oil and natural gas company’s ability to generate cash for the use of internally funding their capital development program and to service or incur debt. Discretionary cash flow is defined by Callon as net cash provided by operating activities before changes in working capital and payments to settle asset retirement obligations and vested liability share-based awards. Callon 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 the cash flow effect may not be reflected in the period in which the operating activities occurred. Discretionary cash flow is not a measure of a company’s financial performance under GAAP and should not be considered as an alternative to net cash provided by operating activities (as defined under GAAP), or as a measure of liquidity, or as an alternative to net income. |
• | Callon believes that the non-GAAP measure of free cash flow is a comparable metric against other companies in the industry and is a widely accepted financial indicator of an oil and natural gas company’s ability to generate cash after internally funding their capital development program and servicing their existing debt. Free cash flow is defined by Callon as Adjusted EBITDA (as defined below) less accrual-based capital expenditures and interest expense. Free cash flow is not a measure of a company’s financial performance under GAAP and should not be considered as an alternative to net cash provided by operating activities (as defined under GAAP), or as a measure of liquidity, or as an alternative to net income. |
• | Adjusted G&A is a supplemental non-GAAP financial measure that excludes certain non-recurring expenses and non-cash valuation adjustments related to incentive compensation plans, as well as non-cash corporate depreciation and amortization expense. Callon believes that the non-GAAP measure of Adjusted G&A is useful to investors because it provides a meaningful measure of our recurring G&A expense and provides for greater comparability period-over-period. The table contained within this release details all adjustments to G&A on a GAAP basis to arrive at Adjusted G&A. |
• | Callon believes that the non-GAAP measure of Adjusted Income available to common shareholders (“Adjusted Income”) and Adjusted Income per fully diluted common share are useful to investors because they provide a meaningful measure of our profitability that does not take into account 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. |
• | Callon calculates adjusted earnings before interest, income taxes, depreciation, depletion and amortization (“Adjusted EBITDA”) as net income (loss) before interest expense, income taxes, depreciation, depletion and amortization, asset retirement obligation accretion expense, (gains) losses on derivative instruments excluding net settled derivative instruments, impairment of oil and natural gas properties, non-cash equity based compensation, and other operating expenses. 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, the Company believes 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 presented may not be comparable to similarly titled measures of other companies. |
• | Callon believes 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 engage in price risk management activities through the use of commodity derivative instruments and reflects the results of derivative settlements with expected cash flow impacts within total revenues. |
• | We believe Drill-Bit F&D costs per Boe and Organic reserve replacement ratio are non-GAAP metrics commonly used by 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&D costs per Boe and Organic reserve replacement ratio 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. |
• | Callon believes that the presentation of pre-tax PV-10 value is relevant and useful to its investors because it presents the discounted future net cash flows attributable to reserves prior to taking into account future corporate income taxes and the Company’s current tax structure. The Company further believes investors and creditors use pre-tax PV-10 values as a basis for comparison of the relative size and value of its reserves as compared with other companies. The GAAP financial measure most directly comparable to pre-tax PV-10 is the standardized measure of discounted future net cash flows (“Standardized Measure”). Pre-tax PV-10 is calculated using the Standardized Measure before deducting future income taxes, discounted at 10 percent. The 12-month average benchmark |
Date/Time: | Thursday, February 27, 2020, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time) |
Webcast: | Select “News and Events” 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: | 8524953 |
WUO3W_ ,A= ]WTJW/9W_>7CWU(R/0^M71[>
M-U[6?]NL?1_Z-7OB9S,C8CTW78 *)ZO@'6/_ !79W_IUM_\ ;IR]_7@'6/\
MQ79W_IUM_P#;ER]_3>8VAY)Q;S_O/-?XQO\ Q%]3_J5_^?:EPW^*/_Q3Y/\
MX1L_\_8R[G_&-_XB^I_U*_\ S[4N&_Q1_P#BGR?_ C9_P"?L9''_,S\U3_G
M8^3Z\O(?\;G_ (J,;_PC7_Y^R5Z\O(?\;G_BHQO_ C7_P"?LE-Y?^<^B '!A8VME="!B
M96=I;CTB[[N_(B!I9#TB5S5-,$UP0V5H:4AZ D!\@'Z @,"
M# (4 AT")@(O C@"00)+ E0"70)G G$">@*$ HX"F *B JP"M@+! LL"U0+@
M NL"]0, PL#%@,A RT#. -# T\#6@-F W(#?@.* Y8#H@.N [H#QP/3 ^ #
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M'4<=:AZ4'KX>Z1\3'SX?:1^4'[\?ZB 5($$@;""8(,0@
M\"$<(4@A=2&A( &YXS'DJ>8EYYWI&>J5[!'MC
M>\)\(7R!?.%]07VA?@%^8G["?R-_A'_E@$> J($*@6N!S8(P@I*"](-7@[J$
M'82 A..%1X6KA@Z& ]^Z]U[W[KW7O?NO=>]^Z]U[W[KW1POY>7_9?OP;_ /%POC/_ ._I
MPGLEYD_Y5V__ .>:?_JTW1KL7_);L_\ FO%_U<7K[%GO"OK*GKWOW7NO>_=>
MZ][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>ZTB/^%DG_
M '3E_P#+O?\ YE_N=_9/_EI_]0__ %GZB#W6_P"('_-__K#UI$>YWZB#KWOW
M7NO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NGO;7_'Q[?_[7>*_]SX_=)?[-
MOL/^#J\?]HOVC_#U]M/W@IUEWU[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U
M[W[KW7O?NO=>]^Z]UK _\*T?^W9_7'_BX?5__OJM]>Y6]GO^5IE_YYI/^KD7
M4=^YO_*O1_\ -=/^.2=?./\ >3'4"]>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O
M?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=?6!_D9?)+_ &:#^5U\5MXU
MU?\ ?[IV)LG_ $'[T\DGFK(L[TU5-L6@GR4MR6J*[$4N+RLCDEF^Z#-ZB?>(
M7/VV?NKFR[@4421O%7TI+WFGR#%E_+K)?D[_=>Z][]U[KWOW7NO>_=>ZT-?^%AO_ #.WX3_^
M(K[:_P#>MQ/O(+V6_P!P;_\ YJ1_\=;J%_=3_ ]^Z]U[W[KW7O?NO=>]^Z]U[W[KW1P
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MZ]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW6L#_PK1_[=G]^+A]
M7_\ OJM]>Y6]GO\ E:9?^>:3_JY%U'?N;_RKT?\ S73_ (Y)U\X_WDQU O7O
M?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]
MU[W[KW6\%_PD ^2/DHOEI\0\K7\TU1M;Y%[%QQDN3'5)#UMVC4B-CP$:/:0&
MD ]^Z]U[W[KW7O?NO=>]^Z]U[W[KW1M?@+_V
M77\*_P#Q;3XX_P#OXL-[)^8O^5?OO^>>;_JVW1GLO_)9M/\ FM%_Q]>OL<^\
M*>LJ^O>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=
M>Z][]U[K1Z_X60?\7+^7A_U _*S_ *W]<>YY]E/AW+[;?_K-U#WNM\5C]DW_
M %BZTEO<2Z1[_2=Z=I9M=O9Z;_WMBW_ /&3:;/KIG \5,HK'P])EW_H
MY7?K7@>C]0_JK;'T6F?_ $(K^U?^BU/ \,<8_>_@Q3'%*9_=V>S_ ,676,[J
MOU=?]NM-]V)D.QVVO)+W,#*KJS:]WTWM];T]_P#(77+SC_$W<3C]6Q^S+:;!
M_;8]G_HA>CJKE%3D&>!N(/@^ ]8<[_G=G#<8_:MNDG_N2Y>_+P#K'_BNSO\
MTZV_^W3E[^I.8VAY+,6\_P"\\W_C&)'U+ZG&GLKX_P"-J7#?XHW./UGR9)/Z
MC9R9_P +C+N/\8W_ (B^I_U*_P#S[4N&_P 4?_BGR?\ PC9_Y^QD\ ,S\U
M3_G8^3Z\O+O\;?6.H-ZCC='JM=5AG'&1:QA+?4<]]E0;=M/OKK]#V5_R_P"H
MO45Y#_C<_P#%1C_^$:__ #]DIF Y!:O]:NL6\[;W,_[:8RC_P!%+MOK
M_B.I_P 7G1ZH_HC\0.\HHLQ_^J>O/>O/^U=;ZF]FOVC,R"W^W<\-7KW^,NEI
M^I6; _F74.:/"+J6_P#4.5J9HX@P1U]QY;_$Y>&]1ZIC_P"DIIL_[;=:S_T>
MO4UX_P#XI; SZTW,)CU,*P >);9CN_ZGKX!UC_P 5V=_Z
M=;?_ &ZB3=5;7R;[Z1R%;(1"CS[OH*:GR.%$S
MV;__(W
M>\-4\COB
W/*.Y UM1 Q_%"3'3[%'Z?[4/0CL>>.9;$
MBEP95'E* ]?]L>_]C#K9;^%7_"LKX^=E5>(V=\U^ILM\>L_5-!22=I]>29/L
M/J:6H<@25N:VYXCN+"PW.E4IDS-K:I)HUOIB[??9_
##T]&'X6!&<$Y)[%
MO=KOVWK?6V#P=?-&'%3_ (0?,$''#H]'L@Z.>O>_=>Z][]U[KWOW7NO>_=>Z
M][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW
M7NO>_=>Z][]U[KWOW7NO>_=>Z SY*?(WJ;XE=']A_(7N_
W.VC;>4
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MO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=:2'_ L#^053'3?#_P"*V-KF
M6DJ9=[]_[SQPD],LU(J]=]:U9B7_ % EW6EVX]0T_1O<[>R^W"M[N[#(TPJ?
MM[W'\H^HA]T[XTM=M4X.J5A_QE/^?^M(#W/'4/\ 7O?NO=>]^Z]U[W[KW7O?
MNO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U
M[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]TL^N=^[DZK["V)V?LVM;&[OZXWE
MM??NU]^Z]U[W[KW7O?NO=>]^Z]U[W[KW1M?@
M+_V77\*__%M/CC_[^+#>R?F+_E7[[_GGF_ZMMT9[+_R6;3_FM%_Q]>OL<^\*
M>LJ^O>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>
MZ][]U[K1Z_X60?\ %R_EX?\ 4#\K/^M_7'N>?93X=R^VW_ZS=0][K?%8_9-_
MUBZTEO
]^Z]U[W[KW7O?NO=>]^Z]U[W[KW1M?@+_V77\*_P#Q;3XX_P#OXL-[
M)^8O^5?OO^>>;_JVW1GLO_)9M/\ FM%_Q]>OL<^\*>LJ^O>_=>Z][]U[KWOW
M7NO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z][]U[K1Z_X60?\7+^7
MA_U _*S_ *W]<>YY]E/AW+[;?_K-U#WNM\5C]DW_ %BZTEO
]^Z]U[W[KW7O?NO=>]^Z]U[W[KW1M?@+
M_P!EU_"O_P 6T^./_OXL-[)^8O\ E7[[_GGF_P"K;=&>R_\ )9M/^:T7_'UZ
M^QS[PIZRKZ][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>
MZ][]U[KWOW7NM'C_ (6/NARO\O*,,#(F/^53LOY"25/72HQ_P)5@/];W//LH
M.S
_=>Z][]U[K0U_X6&_\ ,[?A/_XBOMK_ -ZW$^\@O9;_
M '!O_P#FI'_QUNH7]U/]S+/_ $C_ /'EZTV_
]^Z]U[W[KW7O?NO=>]^Z]U[W[KW1BOA__ -E:_%W_ ,6*
MZ2_]^7C/99O7_)'N_P#FC+_QQNE^U?\ )3MO^:L?_'QU]F3WA)UE?U[W[KW7
MO?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=:*/_
M L4_P"9D_!'_P ,?OO_ -WVUO<_^RO^XNX?Z>+_ 2=0U[J?[D67^ED_P *
M=:7_ +F_J)NO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z$7I__ )FU
MU=_XD79/_O2TWM+>_P"X]^Z]U[W[KW7O?NO=>]^Z]U[W[KW1BOA__ -E:_%W_
M ,6*Z2_]^7C/99O7_)'N_P#FC+_QQNE^U?\ )3MO^:L?_'QU]F3WA)UE?U[W
M[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=
M:*'_ L4(_TD_!$7%QL?OLD?FQSVUK&W^P]S_P"RO^XNX?Z>+_!)U#7NI_N1
M9?Z63_"G6F![F_J)NO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z$[I
M.))^YNHX)+Z)NSMA1/I-FT2;JI$:Q_K8^TM^:6,Q_H/_ ,=/2BS%;N(?TU_X
M\.OM0>\&^LMNO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWO
MW7NM8'_A6C_V[/ZX_P#%P^K_ /WU6^O