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June 2018 Investor Presentation – Callon Petroleum Co.

Callon Petroleum Co. · Jun 5, 2018 · 29 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. June 2018 Investor Presentation – Callon Petroleum Co. – slide 1
    INVESTOR PRESENTATION JUNE 2018
  2. June 2018 Investor Presentation – Callon Petroleum Co. – slide 2
    Callon Petroleum 1Q18 RESULTS CURRENT RIG ACTIVITY 1Q18 production of 26.6 Mboe/d Oil mix of 77% YOY growth of 30% Operating margin of 44.31 per Boe (83%) LOE per Boe 5.45 (1) Adjusted EBITDA of 91.7MM OPERATIONAL HIGHLIGHTS…
  3. June 2018 Investor Presentation – Callon Petroleum Co. – slide 3
    Sustained, Leading Operating Margins OPERATING MARGIN GROWTH (/Boe) 60 44.31 40.51 40 34.02 32.32 32.58 28.90 27.83 30.34 20 0 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 1Q 2018 OPERATING MARGIN PEER…
  4. June 2018 Investor Presentation – Callon Petroleum Co. – slide 4
    Midland Basin Operational Updates 2nd QUARTER MIDLAND ACTIVITY SHIFT Monarch recycling program yielding benefits Recent wells have been able to source over 40% of frac volumes from recycling Model for expanded efforts across…
  5. June 2018 Investor Presentation – Callon Petroleum Co. – slide 5
    Wildhorse WC A Down-Spacing Test Early results are very encouraging with ten well spacing test (Open wells) currently exceeding cumulative oil plots for comparable two well pads (eight well spacing) 140,000 120,000 100,000…
  6. June 2018 Investor Presentation – Callon Petroleum Co. – slide 6
    Delaware Basin Ramping Activity SPUR AREA INTEGRATION WELL UNDERWAY Strong initial results from Rendezvous two well pad encouraging (Upper and Lower WC A) Both wells have reached 1,700 Boepd, (85% oil) within first 18 days of…
  7. June 2018 Investor Presentation – Callon Petroleum Co. – slide 7
    Improved Delaware Drilling Efficiency AVERAGE DRILLING FOOTAGE PER DAY 8% increase 18% increase 1st 2nd 3rd 4th 5th 6th Offset CPE Latest Operator Average CPE Well Callon Operated Delaware Wells Average Note: Offset…
  8. June 2018 Investor Presentation – Callon Petroleum Co. – slide 8
    Delaware Basin Acquisition Overview ASSET HIGHLIGHTS PRO FORMA DELAWARE BASIN POSITION 29,000 net surface acres that complement existing Spur area position Delineated 3BS, WCA and WCB benches with Loving Winkler other emerging…
  9. June 2018 Investor Presentation – Callon Petroleum Co. – slide 9
    Strategic Acquisition Complements Our Strategy Directly adjacent and highly complementary to our existing Delaware Basin position True Bolt-On Provides increased scale and focused core inventory expansion Benefits from existing…
  10. June 2018 Investor Presentation – Callon Petroleum Co. – slide 10
    Expansion in the Core of the Delaware Basin CORE ACREAGE POSITION WOLFCAMP TOTAL OOIP (MMBO/SEC) WOLFCAMP RESERVOIR PRESSURE Expands operating High Winkler High Loving Winkler Loving position in the core of the 200 10,000…
  11. June 2018 Investor Presentation – Callon Petroleum Co. – slide 11
    Building Scale in the Core of the Delaware December 2016 December 2017 May 2018 Loving Winkler Loving Winkler Loving Winkler Ward Ward Ward Reeves Reeves Reeves Callon Dec 2016 Callon May 2018 Callon Dec 2016 Pecos…
  12. June 2018 Investor Presentation – Callon Petroleum Co. – slide 12
    Wolfcamp A Design & Performance Optimization (1) CORBETS 34 149 02WA SARATOGA A1 07LA COMPLETION DESIGN EVOLUTION SLEEPING INDIAN A1 01LA RENDEZVOUS A1 01LA & 09UA 180 SELLER WCA AVG (9 wells) 1 Corbets 34 149 02WA 1 Prior operator…
  13. June 2018 Investor Presentation – Callon Petroleum Co. – slide 13
    Contiguous Acreage Benefits KEY BENEFITS OF INTEGRATED POSITION Increases working interests in numerous existing blocks Allows for extended laterals in contiguous sections Significantly increases number of long laterals Ward…
  14. June 2018 Investor Presentation – Callon Petroleum Co. – slide 14
    Benefits of Significant Existing Infrastructure FACILITIES HIGHLIGHTS INTEGRATED FACILITIES FOOTPRINT SUPPORTS EFFICIENT PAD DEVELOPMENT Four operated SWD wells with 95 Mbbl/d of current injection capacity Supporting water gathering…
  15. June 2018 Investor Presentation – Callon Petroleum Co. – slide 15
    Upside 2nd Bone Spring Shale & Wolfcamp C Industry delineation continues beyond primary horizons (Wolfcamp A, Wolfcamp B and 3rd Bone Spring) A G UL Mayflower 42-18 3H K Arno 78 121H Felix Energy Loving Winkler Matador IP24/1,000:…
  16. June 2018 Investor Presentation – Callon Petroleum Co. – slide 16
    Value Enhancing Financial Impact BENEFICIAL FINANCIAL IMPACTS Transaction is a measured approach to growth that is immediately accretive to debt-adjusted per share metrics, including cash flow and production, and returns on capital…
  17. June 2018 Investor Presentation – Callon Petroleum Co. – slide 17
    Financial Positioning HIGHLIGHTS PRO FORMA CAPITALIZATION (MM) On May 24th, announced our agreement to 1Q18 Adj. Pro Forma purchase 29,000 net surface acres in the Cash 18 37 55 Delaware Basin for 570MM Credit facility 75 (75) 0 Senior…
  18. June 2018 Investor Presentation – Callon Petroleum Co. – slide 18
    Risk Management STRATEGY CRUDE OIL NYMEX WTI HEDGE PORTFOLIO (1) Portfolio approach with focus on total 25 realized price 20 Allow for upside pricing participation in Mbbl per day a volatile differential market 15 Locking in…
  19. June 2018 Investor Presentation – Callon Petroleum Co. – slide 19
    2019 Mid-Cush Basis Differential HEDGING STRATEGY MID-CUSH FRONT MONTH SPREAD (1) Mid-cush basis differential 4.00 2.00 50% hedged for 2018; - position built over a 12 month (2.00) period (4.00) (6.00) Given thinly traded…
  20. June 2018 Investor Presentation – Callon Petroleum Co. – slide 20
    Callon Pure Play…
  21. June 2018 Investor Presentation – Callon Petroleum Co. – slide 21
    APPENDIX
  22. June 2018 Investor Presentation – Callon Petroleum Co. – slide 22
    Crude Oil Hedge Contracts (1) Crude Oil (MBbl, Wtd Avg. /Bbl) 2H18 1H19 2H19 1H20 2H20 Swaps 1,104 - - - - Strike Price 52.07 Costless Collars 184 Short Call Price 60.50 - - - - Put Price 50.00 Three-way Collars 1,748 1,629…
  23. June 2018 Investor Presentation – Callon Petroleum Co. – slide 23
    Natural Gas Hedge Contracts (1) Natural Gas (BBtu, Wtd. Avg. /MMBtu) 1H18 2H18 Swaps 1,706 2,760 Strike Price 2.91 2.91 Costless Collars 720 Short Call Price 3.84 - Put Price 3.40 Total NYMEX Henry Hub Hedge Volume 2,426 2,760…
  24. June 2018 Investor Presentation – Callon Petroleum Co. – slide 24
    Current Guidance Summary (Unadjusted) 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% (%…
  25. June 2018 Investor Presentation – Callon Petroleum Co. – slide 25
    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…
  26. June 2018 Investor Presentation – Callon Petroleum Co. – slide 26
    Commodity Flow Assurance Basin Wide Multiple Deliverable Points Available Commodity Flow Options for Callon Production Delaware Gas Volumes Gas Pipeline Enters El Paso line past Waha (firm sales agreement) with back haul options to…
  27. June 2018 Investor Presentation – Callon Petroleum Co. – slide 27
    Quarterly Cash Flow Statement 1Q17 2Q17 3Q17 4Q17 1Q18 Cash flows from operating activities: Net income 47,129 33,390 17,081 22,824 55,761 Adjustments to reconcile net income to cash provided by operating activities: Depreciation,…
  28. June 2018 Investor Presentation – Callon Petroleum Co. – slide 28
    Non-GAAP Reconciliation (1) 1Q17 2Q17 3Q17 4Q17 1Q18 Adjusted Income Reconciliation Income available to common stockholders 45,305 31,566 15,257 21,001 53,937 Adjustments: Change in valuation allowance (13,119) (11,194) (6,064) (8,285)…
  29. June 2018 Investor Presentation – Callon Petroleum Co. – slide 29
    Non-GAAP Reconciliation (1) 1Q17 2Q17 3Q17 4Q17 1Q18 Adjusted G&A Reconciliation Total G&A expense 5,206 6,430 7,259 8,173 8,769 Adjustments: Less: Early retirement expenses (444) Less: Early retirement expenses related to share-based…

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