The Oil & Gas Conference 18 Denver, CO August 12, 2013 1 NYSE: CPE Callon Petroleum Company
Overview YE2012 RESERVES PRODUCTION Upton County, TX 14.1MMBOE 4,250 BOEPD* Permian GoM/Other Oil Gas/NGLs TRADING INFORMATION Founded in 1950 Common Stock: CPE / Preferred Stock: CPE.A www.callon.com Market…
Investment Highlights Well-positioned for horizontal upside in Permian (Midland) Basin Increasing inventory as horizons de-risked Growth visibility with target Permian exit rate of 3,500 Boepd Balance sheet positioned to support…
Midland Basin Focus Proven oil resources 35,000 net acres (100% operated) 104 vertical wells / 6 horizontal wells Established infrastructure 3Q Permian guidance: 2,350 Boepd (mid) Expanding development horizons Consolidation…
Operational Strategy Horizontal development of Wolfcamp resource base Unlock Significant production and reserve growth visibility Permian 100%-operated position with horizontal infrastructure Asset Value Two horizontal rig program…
Near-Term Permian Asset Potential Production Rate PDP-Only Potential 65% 145% 120% Visible Growth Potential Driven By Horizontal Program Development Focus On Converting Acreage To Cash Flow Following Resource Capture 7 NYSE:…
Horizontal Execution Initial Upper Wolfcamp B focus in Southern Midland Established resource base with repeatable results Foundation for program development (and capital efficiency) Begin evaluation of additional zones Technical…
Attractive Returns On Capital Capital Improvements Wolfcamp Economics* Avg Drilling Lateral: 7,532 Time Drilling Efficiencies Realized In Manufacturing Mode Significant Opportunity For Repeatable And Profitable Growth *…
Development Focus: De-Risked Asset Base Identified Horizontal Locations (Southern/Central Only) % Acreage Remaining Est. EUR Target Prospective Locations Range (BOE)* Lower Spraberry/Jo Mill 49% 54 350 450 Wolfcamp A 68% 74 400 500…
Identified Horizontal Locations: Southern Midland E BLOXOM GARRISON DRAW TAYLOR DRAW Upton Co. Reagan Co. Reagan Co. 9,971 net acres (86% WI) Ongoing program development with 6 horizontal wells producing established…
Identified Horizontal Locations: Central Midland CARPE DIEM PECAN ACRES KAYLEIGH Martin Co. Martin Co. Ector Co. Deeper into basin with more formation 3,343 net acres (76% WI) pressure 102 remaining Hz locations Well-established…
Industry Activity Hz Wells Hz Permits RSP Parks Bell 3304H Lateral: 4,814 24-Hr: 594 boepd RSP Parks Bell 4003 Lateral: 3,968 2 Deep Vertical Wells 24-Hr: 226 boepd 30-Day: 123 boepd Pioneer Hutt C 2H RSP Headlee 3910H…
Ongoing Delineation Program: Northern Midland Mississippian Mississippian Lime Chat 21,617 net acres (89% WI) Two horizontal MSSP plays Offsetting success Large oil in place Other zones being evaluated Tight limestone High…
Industry Activity SM Energy 18 Hz Hz Wells Hz Permits Wells Lacey Newton SM Roy 1803H 3Q13 Vert MSSP Test Lateral: 7,091 24-Hr: 1,153 boepd Vertical Science 12-Day: 988 boepd Well SM Roy 2403H MSSP Lime Hz Test Lateral: 3,755…
Vertical Optimization Isolated Deep Test Uphole Completions Demonstrated Pecan Acres 23-3 contribution from deep zones (below Atoka) High oil content Testing concept at Initial Completion All Zones (IP 24 = 520 BOEPD) Carpe…
2013 Operations Budget 170MM Permian Wells Drill Complete Horizontal 125MM 1H13 9 6 2H13 13 11 TOTAL 22 17 Vertical 1H13 3 5 Execution pace exceeding expectations 2H13 6 6 Addition of 2nd horizontal rig in mid 3Q13 TOTAL 9…
Balance Sheet Strength Capitalization Positioned for acceleration Proactive preferred stock offering Undrawn bank facility Selective acquisitions with PDP and upside balance PV10 (YE12) / Net Debt = 3x coverage Hedged 55% of 2H13E…
Summary Demonstrated horizontal drilling execution Permian inventory firmly established Acceleration of projects with attractive returns on capital Infrastructure in place for improved cycle times Growth inflection point is…
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