-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OP4cPXAPko+qFHS/5/qy68dH9FL1YRwqbuZOViGUOiYYBmM+I+ANDa39I8d4wL9G abqWuTlI9PgS/r2JVJMqOA== 0000950134-05-004633.txt : 20050310 0000950134-05-004633.hdr.sgml : 20050310 20050310172118 ACCESSION NUMBER: 0000950134-05-004633 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20050309 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050310 DATE AS OF CHANGE: 20050310 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CALLON PETROLEUM CO CENTRAL INDEX KEY: 0000928022 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 640844345 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14039 FILM NUMBER: 05673225 BUSINESS ADDRESS: STREET 1: 200 N CANAL ST CITY: NATCHEZ STATE: MS ZIP: 39120 BUSINESS PHONE: 6014421601 MAIL ADDRESS: STREET 1: 200 N CANAL ST CITY: NATCHEZ STATE: MS ZIP: 39120 FORMER COMPANY: FORMER CONFORMED NAME: CALLON PETROLEUM HOLDING CO DATE OF NAME CHANGE: 19940805 8-K 1 d23316e8vk.htm FORM 8-K e8vk
 

 
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report
March 9, 2005
(Date of earliest event reported)

Callon Petroleum Company

(Exact name of registrant as specified in its charter)
         
Delaware
(State or other jurisdiction of
incorporation or organization) 		  001-14039
(Commission File Number) 		  64-0844345
(I.R.S. Employer
Identification Number)

200 North Canal St.
Natchez, Mississippi 39120
(Address of principal executive offices, including zip code)

(601) 442-1601
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

      o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

      o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

      o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

      o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 

 

 

Section 2 — Financial Information

Item 2.02. Results of Operations and Financial Condition

      The following information, including the press releases attached as exhibits 99.1 and 99.2, is being furnished pursuant to Item 2.02 “Results of Operations and Financial Condition,” not filed, for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). This information shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

      On March 9, 2005, Callon Petroleum Company issued the press release attached as Exhibit 99.1 providing information regarding the company’s operating results for the three-month period and the year ended December 31, 2004.

      As disclosed in a press release dated March 7, 2005 attached as Exhibit 99.2, the company announced that its conference call reporting fourth quarter and full year 2004 results would be held on Thursday, March 10, 2005 beginning at 10:00 a.m. Central Standard Time.

Section 7 — Regulation FD

Item 7.01. Regulation FD Disclosure

      The following information, including the press releases attached as exhibits 99.3 and 99.4, is being furnished pursuant to Item 7.01 “Regulation FD Disclosure,” not filed, for purposes of Section 18 of the Exchange Act. This information shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

      On March 9, 2005, Callon Petroleum Company issued the press release attached as Exhibit 99.3 announcing guidance for the first quarter and full year 2005.

      On March 9, 2005, Callon Petroleum Company issued a press release attached as Exhibit 99.4 announcing corrected guidance for the first quarter and full year 2005.

Section 9 — Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits

  (c) Exhibits

     
Exhibit Number   Title of Document
99.1
  Press release dated March 9, 2005 providing information regarding Callon Petroleum Company’s operating results the three-month period and the year ended December 31, 2004.
99.2
  Press release dated March 7, 2005 announcing Callon Petroleum Company’s conference call reporting fourth quarter and full year 2004 results.
99.3
  Press release dated March 9, 2005 announcing guidance for the first quarter and full year 2005.
99.4
  Press release dated March 9, 2005 announcing corrected guidance for the first quarter and full year 2005.

1

 

SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  Callon Petroleum Company
 		  
March 10, 2005  By:   /s/ John S. Weatherly    
    John S. Weatherly   
    Senior Vice President and Chief Financial Officer   
 

2

 

Exhibit Index

     
Exhibit Number   Title of Document
99.1
  Press release dated March 9, 2005 providing information regarding Callon Petroleum Company’s operating results for the three-month period and the year ended December 31, 2004.
99.2
  Press release dated March 7, 2005 announcing Callon Petroleum Company’s conference call reporting fourth quarter and full year 2004 results.
99.3
  Press release dated March 9, 2005 announcing guidance for the first quarter and full year 2005.
99.4
  Press release dated March 9, 2005 announcing corrected guidance for the first quarter and full year 2005.

3

 EX-99.1 2 d23316exv99w1.htm PRESS RELEASE DATED MARCH 9, 2005 exv99w1
 

EXHIBIT 99.1

For further information contact
John S. Weatherly, CFO 1-800-451-1294

FOR IMMEDIATE RELEASE

Callon Petroleum Company Reports
Fourth Quarter, Year-End Results for 2004

      Natchez, MS (March 9, 2005)—Callon Petroleum Company (NYSE: CPE/CPE.PrA) today reported its results of operations for both the three-month period and year ended December 31, 2004.

      Fourth Quarter 2004 Net Income. For the three-month period ended December 31, 2004, Callon reported net income of $9.1 million, or $0.45 per diluted share. The company had an income tax benefit of $6.7 million or $0.33 per diluted share, which resulted from the reversal of the valuation allowance that was established in the fourth quarter of 2003. (See “SFAS 109 Accounting for Income Taxes” section for more details.) For the fourth quarter of 2003, the company reported a net loss of $16.7 million, or $1.24 per share on a diluted basis, which included charges of $11.5 million to income tax expense as the result of establishing a valuation allowance against its net deferred tax asset in accordance with SFAS 109, and $5.6 million to expense for the write-off of deferred financing costs, pre-payment premiums and bond discounts associated with early extinguishment of debt.

      Fourth Quarter 2004 Operating Results. Oil and gas sales totaled $25.1 million from average production of 51.6 million cubic feet of natural gas equivalent per day (MMcfe/d). This corresponds to sales of $18.9 million from average daily production of 40.4 MMcfe/d during the same period in 2003. During the fourth quarter of 2004, natural gas represented approximately 52 percent of the company’s total production. The average price received per thousand cubic feet of natural gas in the fourth quarter of 2004 increased by 22 percent to $6.27 compared to $5.15 during the fourth quarter of 2003, while the average price received per barrel of oil in the fourth quarter of 2004 decreased by 13 percent to $25.44 compared to $29.28 during the same period a year earlier.

      2004 Net Income. For the 12 months ended December 31, 2004, the company reported net income of $21.5 million, or $1.22 per diluted share after an income tax benefit of $6.7 million or $0.38 per diluted share. The income tax benefit resulted from the reversal of the valuation allowance that was established in 2003. Charges to expense of $3.0 million for the early extinguishment of debt during 2004 had an impact on net income per diluted share of $0.17. For the 12 months ended December 31, 2003, the company reported a net loss of $18.0 million, or $1.41 per share on a diluted basis. During this period, Callon charged $11.5 million to income tax expense after establishing a valuation allowance against its net deferred tax asset, and $5.6 million to expense for the write-off of deferred financing costs, pre-payment premiums and bond discounts associated with the early extinguishment of debt.

 

 

      2004 Operating Results. For the year ended December 31, 2004, oil and gas sales totaled $119.8 million from average production of 59.6 MMcfe/d. This corresponds to sales of $73.7 million from average daily production of 38.1 MMcfe/d during the same period in 2003. The average price received per thousand cubic feet of natural gas for the year ended December 31, 2004 increased by 15 percent to $6.15 compared to $5.36 during the same period in 2003, while the average price received per barrel of oil remained constant at $28.71 compared to $28.72 for the same period a year earlier.

      2004 Discretionary Cash Flow. For the year ended December 31, 2004, discretionary cash flow totaled $71.2 million compared to $34.7 million during the 12 months of the previous year. Net cash flow provided by operating activities, as defined by GAAP, totaled $70.9 million and $34.6 million during the year ended December 31, 2004 and 2003, respectively. (See “Non-GAAP Financial Measure” that follows and the accompanying financial information for a reconciliation of discretionary cash flow, a non-GAAP measure, to net cash flow provided by operating activities.)

      SFAS 109 “Accounting for Income Taxes.” SFAS 109 provides for the weighing of positive and negative evidence in determining whether it is more likely than not that a deferred tax asset is recoverable. The company incurred losses in 2002 and 2003 and had losses on an aggregate basis for the three-year period ended December 31, 2003. Because of these cumulative losses the company established a full valuation allowance of $11.5 million as of December 31, 2003. As a result of production from the company’s first two deepwater projects starting in November 2003, as well as refinancing its highest cost debt in 2004, the company achieved profitable operations and has income on an aggregate basis for the three-year period ended December 31, 2004. Callon also expects 2005 production levels to exceed 2004 levels and expects to utilize most if not all of the deferred tax asset in 2005. As a result, the company reversed the valuation allowance which had a balance of $7.0 million as of December 31, 2004.

      Non-GAAP Financial Measure — This news release refers to a non-GAAP financial measure as “discretionary cash flow.” Callon believes this measure is a financial indicator of the company’s ability to fund capital expenditures and service debt. Callon also believes this non-GAAP financial measure of cash flow is useful information to investors because it is widely used by professional research analysts in the valuation, comparison, rating and investment recommendations of companies within the oil and gas exploration and production industry. Many investors use the published research of these analysts in making their investment decisions. Discretionary cash flow should not be considered an alternative to net cash provided by operating activities or net income as defined by GAAP.

 

 

                                 
Reconciliation Non-GAAP Financial Measure:   Three Months Ended     Twelve Months Ended  
(In thousands)   December 31,     December 31,  
    2004     2003     2004     2003  
Discretionary cash flow
   $ 14,290     $ 7,466     $ 71,221     $ 34,744  
Net working capital changes and other changes
     1,949       (4,034 )     (313 )     (115 )
 
                        
Net cash flow provided by operating activities
   $ 16,239     $ 3,432     $ 70,908     $ 34,629  
 
                        
                 
Consolidated Condensed Balance Sheets:   December 31,     December 31,  
(In thousands)   2004     2003  
                 
Cash and cash equivalents
   $ 3,266     $ 8,700  
Restricted cash*
     —       63,345  
Oil and gas properties, net
     406,690       390,163  
All other assets
     47,567       33,824  
 
            
Total assets
   $ 457,523     $ 496,032  
 
            
Long-term debt including current maturities*
   $ 192,927     $ 308,108  
All other liabilities
     66,284       54,663  
Stockholders’ equity
     198,312       133,261  
 
            
Total liabilities and stockholders’ equity
   $ 457,523     $ 496,032  
 
            

*Restricted cash was used to pay off 2004 Senior Subordinated Notes on January 8, 2004 which are
included in long-term debt including current maturities above.

                                 
Production and Price Information:   Three Months Ended     Twelve Months Ended  
    December 31,     December 31,  
    2004     2003     2004     2003  
Production:
                                
Oil (MBbls)
     381       128       1,736       268  
Gas (MMcf)
     2,462       2,950       11,387       12,315  
Total Production (MMcfe)
     4,751       3,718       21,801       13,923  
Average daily (MMcfe)
     51.6       40.4       59.6       38.1  
 
                                
Average prices:
                                
Oil ($/Bbl)
   $ 25.44     $ 29.28     $ 28.71     $ 28.72  
Gas ($/Mcf)
   $ 6.27     $ 5.15     $ 6.15     $ 5.36  
Gas equivalent ($/Mcfe)
   $ 5.29     $ 5.09     $ 5.50     $ 5.29  

 

 

Callon Petroleum Company
Consolidated Statements of Operations
(Unaudited)
(In thousands, except share amounts)

                                 
    Three Months Ended     Twelve Months Ended  
    December 31,     December 31,  
    2004     2003     2004     2003  
Operating revenues:
                                
Oil and gas sales
   $ 25,139     $ 18,938     $ 119,802     $ 73,697  
 
                        
 
                                
Operating expenses:
                                
Lease operating expenses
     5,246       3,298       22,308       11,301  
Depreciation, depletion and amortization
     10,995       7,484       47,453       28,253  
General and administrative
     1,919       1,009       8,758       4,713  
Accretion expense
     845       670       3,400       2,884  
Loss on mark-to-market commodity derivative contracts
     (237 )     200       1,371       535  
 
                        
Total operating expenses
     18,768       12,661       83,290       47,686  
 
                        
 
                                
Income from operations
     6,371       6,277       36,512       26,011  
 
                        
Other (income) expenses:
                                
Interest expense
     4,299       8,389       20,137       30,614  
Other income
     (46 )     (218 )     (357 )     (444 )
Loss on early extinguishment of debt
     —       5,573       3,004       5,573  
 
                        
Total other (income) expenses
     4,253       13,744       22,784       35,743  
 
                        
 
                                
Income (loss) before income taxes
     2,118       (7,467 )     13,728       (9,732 )
Income tax expense (benefit)
     (6,697 )     9,225       (6,697 )     8,432  
 
                        
Net income (loss) before Medusa Spar LLC and cumulative effect of change in accounting principle
     8,815       (16,692 )     20,425       (18,164 )
Income (loss) from Medusa Spar LLC, net of tax
     308       (8 )     1,076       (8 )
 
                        
Income (loss) before cumulative effect of change in accounting principle
     9,123       (16,700 )     21,501       (18,172 )
Cumulative effect of change in accounting principle, net of tax
     —       —       —       181  
 
                        
 
                                
Net income (loss)
     9,123       (16,700 )     21,501       (17,991 )
Preferred stock dividends
     317       319       1,272       1,277  
 
                        
Net income (loss) available to common shares
   $ 8,806     $ (17,019 )   $ 20,229     $ (19,268 )
 
                        
 
                                
Net income (loss) per common share:
                                
Basic
                                
Net income (loss) available to common before cumulative effect of change in accounting principle
   $ 0.50     $ (1.24 )   $ 1.28     $ (1.42 )
Cumulative effect of change in accounting principle, net of tax
     —       —       —       0.01  
 
                        
Net income (loss) available to common
   $ 0.50     $ (1.24 )   $ 1.28     $ (1.41 )
 
                        
 
                                
Diluted
                                
Net income (loss) available to common before cumulative effect of change in accounting principle
   $ 0.45     $ (1.24 )   $ 1.22     $ (1.42 )
Cumulative effect of change in accounting principle, net of tax
     —       —       —       0.01  
 
                        
Net income (loss) available to common
   $ 0.45     $ (1.24 )   $ 1.22     $ (1.41 )
 
                        
 
                                
Shares used in computing net income (loss):
                                
Basic
     17,561       13,729       15,796       13,662  
 
                        
Diluted
     20,375       13,729       17,678       13,662  
 
                        

 

 

Year-End 2004 Proved Reserves. The company also announced that it ended 2004 with proved reserves of 72.6 billion cubic feet of natural gas and 19.7 million barrels of oil, or 191 billion cubic feet of natural gas equivalent (Bcfe).

      At December 31, 2004, the company’s independent petroleum engineers estimated the present value of these reserves, excluding income taxes, using Securities and Exchange Commission (SEC) pricing guidelines for year-end 2004 and discounted at 10%, to be $613 million. Using the SEC guidelines, realized prices averaged $6.51 per thousand cubic feet of natural gas and $36.72 per barrel of oil.

      Callon Petroleum Company is engaged in the exploration, development, acquisition and operation of oil and gas properties primarily in the Gulf Coast region.

      This news release contains projections and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 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 those in our Annual Report for the year ended December 31, 2003 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.

 # 

 

 EX-99.2 3 d23316exv99w2.htm PRESS RELEASE DATED MARCH 7, 2005 exv99w2
 

EXHIBIT 99.2

For further information contact
John S. Weatherly, CFO 1-800-451-1294

FOR IMMEDIATE RELEASE

Callon Petroleum Company to Webcast
Fourth Quarter, Full Year 2004 Conference Call

      Natchez, MS (March 7, 2005)-Callon Petroleum Company (NYSE: CPE/CPE.PrA) today announced that its conference call reporting fourth quarter and full year 2004 results will be accessible live on the Internet. The call is scheduled for Thursday, March 10, 2005 at 10 a.m. Central Standard Time. Fourth quarter and full year 2004 results will be released the previous afternoon.

      To access the call log onto www.callon.com, click on the “Presentations” button on the left side of the homepage. Then click on the icon for “Webcast powered by CCBN.” Windows Media Player software is required to hear the call. It may be downloaded free by clicking on the icon “Get Windows Media Player.”

      Those unable to listen to the actual teleconference may access a recording of it at any time between Noon Thursday and Noon Friday Central Standard Time. Dial 1-800-633-8284 and enter Reservation Number 21234707.

      Callon Petroleum Company has been engaged in the exploration, development, acquisition and operation of oil and gas properties in the Gulf Coast region since 1950.

      This news release contains projections and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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.

 # 

 

 EX-99.3 4 d23316exv99w3.htm PRESS RELEASE DATED MARCH 9, 2005 exv99w3
 

EXHIBIT 99.3

For further information contact
John S. Weatherly, CFO 1-800-451-1294

FOR IMMEDIATE RELEASE

Callon Petroleum Company Issues Guidance
For First Quarter, Full Year 2005

      Natchez, MS (March 9, 2005)—Callon Petroleum Company (NYSE: CPE/CPE.PrA) is issuing guidance for the first quarter and full year 2005. The guidance, found in the table below, is expressed in ranges for the detailed components.

First Quarter and Full Year 2005
Guidance Estimates
(In thousands, except per production unit amounts)

         
    Guidance for   Guidance for
    1st Quarter 2005   Full Year 2005
Estimated production volumes:
        
Natural gas (Bcf)
   2.7 - 3.0   10.5 - 12.0
Crude oil (Mbo)
   580 - 640   2,200 - 2,550
MMcfe/d
   69 - 76   65 - 75
 
        
Lease operating expenses:
        
Cash
   $5,500 - $6,100   $27,000 - $30,500
Non-cash
   —   —
 
    
Total
   $5,500 - $6,100   $27,000 - $30,500
 
        
General and administrative expenses:
        
Cash
   $1,300 - $1,500   $6,900 - $7,600
Non-cash
   400 - 450   400 - 500
 
    
Total
   $1,700 - $1,950   $7,300 - $8,100
 
        
Interest expense:
        
Cash
   $3,700 - $4,100   $14,300 - $15,800
Non-cash
   400 - 500   1,900 - 2,100
 
    
Total
   $4,100 - $4,600   $16,200 - $17,900
Medusa Spar LLC, net of tax
   $400 - $500   $1,700 - $1,900
DD & A — Oil and gas properties
   $14,200 - $15,700   $55,000 - $63,000
Accretion expense
   $800 - $900   $2,900 - $3,300
Amortization of premiums on derivative contracts
   $350 - $400   $1,500 - $1,650
Accrual income tax rate
   35%   35%
Cash income tax rate
   0%   0%

      The preceding guidance estimates contain assumptions that we believe are reasonable. These estimates are based on 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.

 

 

Listed below are the outstanding hedges for natural gas and crude oil by quarter for 2005.

                                     
        For the Quarter Ended  
        3/31/05     6/30/05     9/30/05     12/31/05  
Natural Gas                                
                                 
 
                                    
Collars  
Volume (Mmcf)
     900       —       —       —  
   
Ceiling
   $ 6.91       —       —       —  
   
Floor
   $ 5.00       —       —       —  
 
                                    
Collars  
Volume (Mmcf)
     570       —       —       —  
   
Ceiling
   $ 12.80       —       —       —  
   
Floor
   $ 5.00       —       —       —  
 
                                    
Collars  
Volume (Mmcf)
     —       900       900       300  
   
Ceiling
     —     $ 7.75     $ 7.75     $ 7.75  
   
Floor
     —     $ 5.50     $ 5.50     $ 5.50  
 
                                    
Floors  
Volume (Mmcf)
     1,260       1,470       1,470       690  
   
Put Price
   $ 6.10     $ 5.00     $ 5.00     $ 5.00  
 
                                    
Crude Oil                                
                                 
Swaps  
Volume (Mbo)
     60       —       —       —  
   
Put Price
   $ 30.65       —       —       —  
 
                                    
Collars  
Volume (Mbo)
     135       135       135       135  
   
Ceiling
   $ 37.78     $ 41.17     $ 41.17     $ 41.17  
   
Floor
   $ 31.72     $ 33.00     $ 33.00     $ 33.00  
 
                                    
Collars  
Volume (Mbo)
     45       45       91       91  
   
Ceiling
   $ 50.00     $ 50.00     $ 51.98     $ 51.98  
   
Floor
   $ 40.00     $ 40.00     $ 40.00     $ 40.00  
 
                                    
Floors  
Volume (Mbo)
     121       171       21       21  
   
Put Price
   $ 35.00     $ 35.00     $ 35.00     $ 35.00  

      Callon Petroleum Company has been engaged in the exploration, development, acquisition and operation of oil and gas properties in the Gulf Coast region since 1950.

      This news release contains projections and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 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, 2003 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.

 # 

 

EX-99.4 5 d23316exv99w4.htm PRESS RELEASE DATED MARCH 9, 2005 exv99w4
 

Exhibit 99.4

For further information contact
John S. Weatherly, CFO 1-800-451-1294

FOR IMMEDIATE RELEASE

Correcting and Replacing Callon Petroleum Company Issues Guidance
For First Quarter, Full Year 2005

      Natchez, MS (March 9, 2005)—Callon Petroleum Company (NYSE: CPE/CPE.PrA) is correcting previously issued guidance for the first quarter and full year 2005. In the first table, First Quarter and Full Year 2005 Guidance Estimates, under Guidance for Full Year 2005, changes are as follows: Lease Operating Expenses: Cash should be $20,500 — $23,000 (sted $27,000 — $30,500), Total should be $20,500 — $23,000 (sted $27,000 — $30,500). General and Administrative Expenses: Cash should be $5,600 — $6,200 (sted $6,900 — $7,600); Non-cash should be 1,700 — 1,900 (sted 400-500).

The corrected release reads:

 

 

Callon Petroleum Company Issues Guidance
For First Quarter, Full Year 2005

      Natchez, MS (March 9, 2005)—Callon Petroleum Company (NYSE: CPE/CPE.PrA) is issuing guidance for the first quarter and full year 2005. The guidance, found in the table below, is expressed in ranges for the detailed components.

First Quarter and Full Year 2005
Guidance Estimates
(In thousands, except per production unit amounts)

         
    Guidance for   Guidance for
    1st Quarter 2005   Full Year 2005
Estimated production volumes:
        
Natural gas (Bcf)
   2.7 - 3.0   10.5 - 12.0
Crude oil (Mbo)
   580 - 640   2,200 - 2,550
MMcfe/d
   69 - 76   65 - 75
 
        
Lease operating expenses:
        
Cash
   $5,500 - $6,100   $20,500 - $23,000
Non-cash
   —   —
 
    
Total
   $5,500 - $6,100   $20,500 - $23,000
 
        
General and administrative expenses:
        
Cash
   $1,300 - $1,500   $5,600 - $6,200
Non-cash
   400 - 450   1,700 - 1,900
 
    
Total
   $1,700 - $1,950   $7,300 - $8,100
 
        
Interest expense:
        
Cash
   $3,700 - $4,100   $14,300 - $15,800
Non-cash
   400 - 500   1,900 - 2,100
 
    
Total
   $4,100 - $4,600   $16,200 - $17,900
Medusa Spar LLC, net of tax
   $400 - $500   $1,700 - $1,900
DD & A — Oil and gas properties
   $14,200 - $15,700   $55,000 - $63,000
Accretion expense
   $800 - $900   $2,900 - $3,300
Amortization of premiums on derivative contracts
   $350 - $400   $1,500 - $1,650
Accrual income tax rate
   35%   35%
Cash income tax rate
   0%   0%

      The preceding guidance estimates contain assumptions that we believe are reasonable. These estimates are based on 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.

 

 

Listed below are the outstanding hedges for natural gas and crude oil by quarter for 2005.

                                     
        For the Quarter Ended  
        3/31/05     6/30/05     9/30/05     12/31/05  
Natural Gas                                
                                 
 
                                    
Collars  
Volume (Mmcf)
     900       —       —       —  
   
Ceiling
   $ 6.91       —       —       —  
   
Floor
   $ 5.00       —       —       —  
 
                                    
Collars  
Volume (Mmcf)
     570       —       —       —  
   
Ceiling
   $ 12.80       —       —       —  
   
Floor
   $ 5.00       —       —       —  
 
                                    
Collars  
Volume (Mmcf)
     —       900       900       300  
   
Ceiling
     —     $ 7.75     $ 7.75     $ 7.75  
   
Floor
     —     $ 5.50     $ 5.50     $ 5.50  
 
                                    
Floors  
Volume (Mmcf)
     1,260       1,470       1,470       690  
   
Put Price
   $ 6.10     $ 5.00     $ 5.00     $ 5.00  
 
                                    
Crude Oil                                
                                 
Swaps  
Volume (Mbo)
     60       —       —       —  
   
Put Price
   $ 30.65       —       —       —  
 
                                    
Collars  
Volume (Mbo)
     135       135       135       135  
   
Ceiling
   $ 37.78     $ 41.17     $ 41.17     $ 41.17  
   
Floor
   $ 31.72     $ 33.00     $ 33.00     $ 33.00  
 
                                    
Collars  
Volume (Mbo)
     45       45       91       91  
   
Ceiling
   $ 50.00     $ 50.00     $ 51.98     $ 51.98  
   
Floor
   $ 40.00     $ 40.00     $ 40.00     $ 40.00  
 
                                    
Floors  
Volume (Mbo)
     121       171       21       21  
   
Put Price
   $ 35.00     $ 35.00     $ 35.00     $ 35.00  

      Callon Petroleum Company has been engaged in the exploration, development, acquisition and operation of oil and gas properties in the Gulf Coast region since 1950.

      This news release contains projections and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 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, 2003 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.

 # 

 

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