CALLON PETROLEUM COMPANY March 2014 Investor Presentation
POISED FOR GROWTH Completed onshore transition PERMIAN PRODUCTION Focused in Permian Basin 7,000 Daily Production (Boepd) 6,000 Demonstrated horizontal 5,000 drilling expertise 4,000 Wolfcamp A/B-only inventory 3,000 of 10…
RECORD OF VALUE CREATION INDEXED PERFORMANCE(a) Marketing of GoM assets announced in 300% late April 2013 250% 225%+ stock price 200% appreciation over period 150% Increasing recognition 100% as horizontal operator with…
PURE-PLAY GROWTH STRATEGY Drive growth with ongoing horizontal program development Two fields in 2013 Four fields in 2014 Testing larger completion designs to increase EURs Drilling different zones from same pad All Southern and…
OPERATIONS MARCH 2014
MIDLAND BASIN EXPOSURE Over 30,000 net acres (13,500 in Southern/Central) NORTHERN 100% operated production Entered in 2009 with 8,800 net acres Expanded acreage position through leasing and acquisitions Evolved to horizontal…
OPERATIONAL EXCELLENCE BRUNO HANSON ENVIRONMENTAL Operational team built EXCELLENCE AWARD (2013) over last four years Dedicated HES team Continued reductions in lease operating costs Unique operating capabilities for a small cap…
GROWING HORIZONTAL BASE Existing Existing Additional 2014 Target PD PUD Locations Plans Jo-Mill 0 0 81 Lower Spraberry 0 0 102 Wolfcamp A 1 0 118 Upper Wolfcamp B 15 16 84 Lower Wolfcamp B 5 7 49 Wolfcamp C 0 0 74 Cline 0 0…
SOUTHERN MIDLAND BASIN Most established area in PRODUCTION basin for horizontal 3,000 development 21 horizontal wells on 2,500 production Daily Production (Boepd) 2,000 Pad development of two fields in 2013 with 1,500…
STRONG ECONOMICS TAYLOR DRAW: 6.5MM WELL EAST BLOXOM: 6.7MM WELL Baseline EURs and economics established New wells testing larger completions Confirming contribution to higher returns on capital March 2014 Investor…
CENTRAL MIDLAND BASIN 50+ vertical wells (high- PRODUCTION grade for deep potential) 600 Initial two horizontal Wolfcamp B wells on 500 production with strong Daily Production (Boepd) early-time rates 400 Deeper into basin…
CENTRAL MIDLAND BASIN REGIONAL ACTIVITY CALLON INITIAL TWO WELLS EACH OVER 1,200 BOEPD (90%+ OIL) 13
NORTHERN MIDLAND BASIN Delineation program LACEY NEWTON 2801 ongoing in Borden Co. 600 (Mississippian chat focus) 500 Daily Production (Boepd) Encouraging vertical 400 well drilled in 4Q13 300 Additional vertical testing…
NEW/UPCOMING DATAPOINTS Increased scope of horizontal development Central Midland horizontal wells on production Wolfcamp A well at East Bloxom completing Lower Spraberry well planned for 3Q14 Resource base expansion Acquisition of…
FINANCIAL MARCH 2014
IMPROVING FINANCIAL PROFILE Significant progress reducing cost of capital Redemption of Senior Notes with new second lien facility Expanded revolving credit capacity and lending group Reduced pricing grid and improved covenant…
BALANCE SHEET STRENGTH Total pro forma Debt-to-Cap CAPITALIZATION(a) of 20% at 12/31/13 600 Positioned for robust 500 horizontal drilling program 400 Near-term borrowing base MM 300 redetermination based on 200 May reserve…
SUMMARY MARCH 2014
KEY MESSAGES Focused Midland team and asset base Horizontal production established in three distinct zones with other planned delineation activity Continued optimization after establishing track record of robust development…
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