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IPAA Oil and Gas Investment Symposium – Callon Petroleum Co.

Callon Petroleum Co. · Apr 10, 2018 · 27 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. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 1
    INVESTOR PRESENTATION APRIL 2018
  2. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 2
    Callon Petroleum 4Q17 RESULTS CURRENT RIG ACTIVITY 4Q17 production of 26.5 Mboe/d - Oil mix of 79% - Sequential oil growth of 22% Operating Margin of 40.51 per Boe (80%) LOE per Boe 4.84 (1) (5.41 including G&T) YE17 HIGHLIGHTS…
  3. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 3
    Quarterly Production Callon has delivered sustained, sequential production growth while consistently outpacing peers on oil content 90% 29,000 78% 79% 79% 80% 77% 76% 76% 77% 27,000 70% 64% 25,000 61% 62% 62% 62% 62% 62%…
  4. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 4
    Consistent, Solid Execution PRODUCTION GROWTH (MBOE) RESERVE GROWTH (MMBOE) 25 160 20 120 15 80 10 40 5 0 0 2015 2016 2017 2015 2016 2017 OPERATING CASH COST IMPROVEMENT (1) DRILL-BIT F&D IMPROVEMENT (/BOE) (2) 16 9.50…
  5. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 5
    Organic Value Creation YE17 PD Value (SEC) 1,030 Less: YE16 PD Value (SEC) (540) Total Value Increase 490 Net Investment 150 Total Value Increase / Net Investment 3.3x 1,200 1,000 1,030 270 PD PV-10 Value (MM) 800…
  6. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 6
    Highly Efficient Drilling with Leading Cash Margins RESERVE REPLACEMENT RATIO VERSUS PEERS (1) 700% 642% 600% 500% 400% 300% 200% 100% 0% CPE Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 4Q17 CASH MARGINS VERSUS…
  7. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 7
    PD F&D vs 4Q17 Cash Margins (1)(2) 20 18 16 14 Peer 1 (50% oil) CPE 1 PD F&D (/BOE) 12 (78% oil) Peer 6 Peer 2 CPE 2 (49% oil) 10 (70% oil) (78% oil) Peer 5 8 Peer 3 (70% oil) (37% oil) Peer 4 (58% oil) 6…
  8. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 8
    Compelling Valuation with Oil Exposure After adjustment for proved developed value (2017 PDP PV-10), Callon trades at a discount, despite highest oil content and robust reserve life. /NET ACRE (EV LESS PDP PV-10 VALUE) % OIL 70,000…
  9. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 9
    Capital Deployment Across The Entire Portfolio 2018 DEVELOPMENT PLAN OPERATIONAL CAPEX BUDGET OF 500-540 MILLION Operating plan is focused on increasing capital efficiency with a Drilling focus on development activity Completion…
  10. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 10
    Midland Basin Delineation and Development MAJOR 2018 INITIATIVES IN THE MIDLAND Focused on High Return/Potential Projects LSBY at Monarch WC A at WildHorse WC C at Ranger WildHorse: Expanded drilling of WC A pads Testing…
  11. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 11
    Delaware Basin Increasing Activity MAJOR 2018 INITIATIVES IN THE DELAWARE 2018 activity will focus primarily on WC A drilling with tests of WC C and 2nd BS Shale planned Activity level increase with entry of 2nd rig in mid-Q1 Majority…
  12. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 12
    2018 Operational Activity PROJECTED CAPITAL SPENDING (MM) (1) 2018E NET WELLS PLACED ON PRODUCTION (2) 200 15 Drilling & Completion Facilities Other 150 10 100 5 50 0 0 1Q18 2Q18 3Q18 4Q18 1Q18 2Q18 3Q18…
  13. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 13
    2018 Infrastructure Projects 2018 DEVELOPMENT MAJOR INFRASTRUCTURE PROJECTS 2018 infrastructure focus primarily at Spur 2018 Projects with increasing activity Tank batteries in new drilling units Saltwater Disposal Water system…
  14. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 14
    Water Disposal as a Competitive Advantage Between company owned and third party committed volumes, Callon has in excess of 400,000 bbl/d of water disposal capacity (excluding pending Goodnight project of 80,000 bbl/d) Average CPE water…
  15. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 15
    Commodity Flow Assurance Basin Wide Multiple Deliverable Points Available Commodity Flow Options for Callon Production Delaware Gas Volumes Enters El Paso line past Waha (firm sales agreement) Gas Pipeline with back haul options to hub…
  16. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 16
    Crude Oil Hedge Contracts (1) PRICE PROTECTION OF 50/BBL FOR 2018 2018 STRUCTURE BREAKDOWN 18,000 70 6% 16,000 60 34% 53.00 14,000 49.81 49.81 50.15 50.15 47.25 50 12,000 Barrels Hedged Per Day 58% Avg Price (/Bbl)…
  17. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 17
    Financial Positioning HIGHLIGHTS CAPITALIZATION (MM) (1) Significant liquidity enhanced by recent increase to December 31, 2017 credit facility Raised borrowing base to 825MM with an elected commitment of Cash 28 650MM Credit Facility…
  18. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 18
    APPENDIX
  19. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 19
    Guidance Summary FY18 Guidance Total production (MBoepd) 29.5 32.0 Oil production 77% Income statement expenses (per BOE) LOE, including workovers 5.25 - 6.25 Production taxes, including ad valorem 6% (% of unhedged…
  20. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 20
    Continued Focus on Responsible Water Management DISPOSAL DEPTH COMPARISON (1) IDENTIFYING SWD LOCATIONS WITH SEISMIC (2) Conventional CPE SWD Depth (SS) San Andres 4,000 San Andres SWD 10% of volume Ellenburger Lower…
  21. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 21
    Salt Water Disposal Leading the Way in the Delaware KEY PARTNERSHIP DETAILS SOUTH CENTRAL BASIN DISPOSAL SYSTEM (SCBDS) New agreement with 3rd party operator (Goodnight) to dispose up to 80% of produced volumes at Spur Disposal volumes…
  22. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 22
    Crude Oil Hedge Contracts (1) Crude Oil (Bbl, /Bbl) 4Q17 1Q18 2Q18 3Q18 4Q18 FY18 FY19 Swaps 184,000 450,000 455,000 552,000 552,000 2,009,000 - Strike Price 45.74 51.42 51.42 52.07 52.07 51.78 Costless Collars 340,400 90,000…
  23. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 23
    Natural Gas Hedge Contracts (1) PRICE PROTECTION OF 3/MMBTU FOR 2018 2018 STRUCTURE BREAKDOWN 16,000 4.00 18% 14,000 3.50 3.25 3.18 2.95 2.95 2.95 12,000 3.00 MMBtu Hedged Per Day Avg Price (/MMBtu) 10,000 2.50 82%…
  24. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 24
    Natural Gas Hedge Contracts (1) Natural Gas (MMBtu, /MMBtu) 4Q17 1Q18 2Q18 3Q18 4Q18 FY18 FY19 Swaps 124,000 341,000 1,001,000 1,012,000 1,012,000 3,366,000 - Strike Price 3.39 2.95 2.95 2.95 2.95 2.95 Costless Collars 856,000…
  25. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 25
    Quarterly Cash Flow Statement 4Q16 1Q17 2Q17 3Q17 4Q17 Cash flows from operating activities: Net income (loss) (1,746) 47,129 33,390 17,081 22,824 Adjustments to reconcile net income to cash provided by Depreciation, depletion and…
  26. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 26
    Non-GAAP Reconciliation (1) 4Q16 1Q17 2Q17 3Q17 4Q17 Adjusted Income Reconciliation Income (loss) available to common stockholders (3,570) 45,305 31,566 15,257 21,001 Adjustments: Change in valuation allowance 559 (13,119) (11,194)…
  27. IPAA Oil and Gas Investment Symposium – Callon Petroleum Co. – slide 27
    Non-GAAP Reconciliation (1) 4Q16 1Q17 2Q17 3Q17 4Q17 Adjusted G&A Reconciliation Total G&A expense 6,562 5,206 6,430 7,259 8,173 Adjustments: Less: Early retirement expenses (444) Less: Early retirement expenses related to share-…

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