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2016 Annual Earnings – Callon Petroleum Co.

Callon Petroleum Co. · Feb 27, 2017 · 26 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 2016 Annual Earnings – Callon Petroleum Co. – slide 1
    2016 Annual Earnings February 27, 2017
  2. 2016 Annual Earnings – Callon Petroleum Co. – slide 2
    Callon Petroleum Significant core footprint with over 56,000 net acres in Midland & Delaware Basins Four core operating areas with established horizontal production from six flow units in the Wolfcamp, Spraberry and Bone Spring…
  3. 2016 Annual Earnings – Callon Petroleum Co. – slide 3
    2016 Accomplishments Expanded Breadth and Depth (1) Improved Cost of Capital Midland Delaware 10% 60,000 8% Interest Rate (%) 50,000 16,688 Net Surface Acres 6% 40,000 30,000 4% 8.5% 20,000 39,570 6.125% 2% 10,000…
  4. 2016 Annual Earnings – Callon Petroleum Co. – slide 4
    Capital Efficient Reserve Growth Proved Reserve Progression (1) 120 2016 Growth PDP 55% Total 69% 100 Proved Reserves (MMBoe) 80 60 106 92 40 Drill-Bit F&D: 8.77/Boe (3-stream 7.72/Boe(2)) PD F&D: 11.83/Boe (3-stream…
  5. 2016 Annual Earnings – Callon Petroleum Co. – slide 5
    Activity Update 4Q16 wells turned to production at Monarch as Recent Operational Activity WildHorse program advanced December 2016 net production rate of 4Q16 drill wells online in early 2017 approximately 19,300 Boepd despite…
  6. 2016 Annual Earnings – Callon Petroleum Co. – slide 6
    Monarch: Value Enhancing Initiatives Completion optimization Recent Casselman LS wells completed with 2,000 lbs/ft and tighter stage spacing have shown a substantial uptick in early time cumulative production Increasing value…
  7. 2016 Annual Earnings – Callon Petroleum Co. – slide 7
    Recent Acquisitions: Value Enhancing Initiatives Spur: Lower Wolfcamp A vs. Type Curve (First 30 Days Since Initial Oil) 100 90 80 70 Cumulative MBo Shallow early time type curve 60 Extended lateral length 50 Larger proppant…
  8. 2016 Annual Earnings – Callon Petroleum Co. – slide 8
    Integrating Assets LOE Breakdown (/Boe) Underlying Drivers 10.00 4Q16 8.00 WildHorse program to bring facilities/tank batteries up to CPE standard drove higher R&M 6.00 Fuel & Power moved higher due to generator usage to run 4.00…
  9. 2016 Annual Earnings – Callon Petroleum Co. – slide 9
    2017 Operational Plans Key Elements Area Breakdown: Operated Completions WildHorse: commenced area development program Monarch Ranger WildHorse Spur Currently running two rigs 18 16 Infrastructure initiatives in WildHorse poised to…
  10. 2016 Annual Earnings – Callon Petroleum Co. – slide 10
    2017 Capital Drivers Midland Drilling and Completion Costs (/Foot) Facilities and Infrastructure (1) 800 700 2017E 2018E 600 500 400 85MM 300 Future 50MM Monarch Benefit 200 Ranger Wildhorse 100 Spur 0 4Q15 1Q16 2Q16 3Q16 4Q16…
  11. 2016 Annual Earnings – Callon Petroleum Co. – slide 11
    Financial
  12. 2016 Annual Earnings – Callon Petroleum Co. – slide 12
    Financial Performance Daily Production (Boe/d) Net Debt / Adjusted EBITDA (1) 25,000 24,000 3.0x Oil Gas 20,000 2.5x 15,227 2.0x 15,000 1.5x 9,610 2.8x 10,000 1.0x 1.9x 1.7x 5,000 0.5x 0 0.0x FY2015 FY2016 2017E (Midpoint)…
  13. 2016 Annual Earnings – Callon Petroleum Co. – slide 13
    Financial Profile 4Q16 Adjusted Capitalization (MM) (1) Solid Financial Position for Growth Initiatives Stockholders' Equity Senior Notes Pro forma 4Q16 leverage 1.7x EBITDA(2) with 66MM Revolving Credit Facility Bank Availability +…
  14. 2016 Annual Earnings – Callon Petroleum Co. – slide 14
    2017 Budget Comparison Revised 2017 capital budget estimated to be 325 - 350MM Drivers of capital increase vs. prior 2017 estimate (pre-Spur acquisition) Additional Delaware net completions with longer lateral lengths and higher well…
  15. 2016 Annual Earnings – Callon Petroleum Co. – slide 15
    2017 Guidance Highlights 1Q17 and FY17 Guidance Current three rig program transitioning to four rigs 1Q17 FY17 by mid-year Guidance Guidance Activity in all four core operating areas Total production (Boe/d) 19,500 - 21,000 22,500 -…
  16. 2016 Annual Earnings – Callon Petroleum Co. – slide 16
    Organic Growth Plan Impact of additional rigs in July 2017 and January 2018 One dedicated to Spur in mid-2017 / One currently assumed in Midland Basin in early 2018 Focused on consistent growth through drill-bit optionality across four…
  17. 2016 Annual Earnings – Callon Petroleum Co. – slide 17
    Appendix
  18. 2016 Annual Earnings – Callon Petroleum Co. – slide 18
    Risk Management Oil Hedges (/Bbl) (1) Gas Hedges (/MMBtu) (2) Hedged Volume (Bbl/d) Swap/Long Put Price (/Bbl) Hedged Volume (MMBtu/d) Swap/Long Put Price (/MMBtu) 10,000 52.00 10,000 3.50 9,000 9,000 3.00 3.00 3.00 3.00 50.00…
  19. 2016 Annual Earnings – Callon Petroleum Co. – slide 19
    Hedge Portfolio - Oil 2017 Average Daily Volumes 2018 Average Daily Volumes 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Crude Oil Swap contracts combined with short put option Volume (Bbl per day) 2,000 2,000 2,000 2,000 Average NYMEX…
  20. 2016 Annual Earnings – Callon Petroleum Co. – slide 20
    Hedge Portfolio - Gas 2017 Average Daily Volumes 2018 Average Daily Volumes 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Natural Gas Two-way collar contracts Volume (MMbtu per day) 4,000 4,000 4,000 4,000 Average NYMEX price: Ceiling…
  21. 2016 Annual Earnings – Callon Petroleum Co. – slide 21
    Quarterly Income Statement 1Q-2016 2Q-2016 3Q-2016 4Q-2016 Operating revenues: Oil sales 27,443 40,555 49,095 60,559 Natural gas sales 3,255 4,590 6,832 8,522 Total operating revenues 30,698 45,145 55,927 69,081 Operating expenses:…
  22. 2016 Annual Earnings – Callon Petroleum Co. – slide 22
    Quarterly Cash Flow Statement 1Q-2016 2Q-2016 3Q-2016 4Q-2016 Cash flows from operating activities: Net income (loss) (41,109) (70,097) 21,139 (1,746) Adjustments to reconcile net income (loss) to cash provided by operating…
  23. 2016 Annual Earnings – Callon Petroleum Co. – slide 23
    Drill-Bit F&D Calculation For the Year Ended For the Year Ended (MM) December 31, 2016 December 31, 2016 Evaluated Properties Proved developed and undeveloped reserves: Beginning of period balance 2,335.2 Oil (MBbls): Capitalized G&A…
  24. 2016 Annual Earnings – Callon Petroleum Co. – slide 24
    PD F&D Calculation For the Year Ended For the Year Ended (MM) December 31, 2016 December 31, 2016 Evaluated Properties Proved developed and undeveloped reserves: Beginning of period balance 2,335.2 Oil (MBbls): Capitalized G&A…
  25. 2016 Annual Earnings – Callon Petroleum Co. – slide 25
    Non-GAAP Reconciliation (1) 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 Adjusted Income Reconciliation Income (loss) available to common stockholders (115,144) (42,933) (71,920) 19,315 (3,570) Adjustments: Change in valuation allowance…
  26. 2016 Annual Earnings – Callon Petroleum Co. – slide 26
    Non-GAAP Reconciliation (1) 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 Adjusted G&A Reconciliation Total G&A expense 6,180 5,562 6,302 7,891 6,562 Adjustments: Change in the fair value of liability share-based awards (1,842) (698) (1,954)…

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