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JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co.

Callon Petroleum Co. · Jun 19, 2018 · 25 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. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 1
    INVESTOR PRESENTATION JUNE 19, 2018
  2. JP Morgan 2018 Energy Equity Conference – 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. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 3
    Sustained, Leading Operating Margins OPERATING MARGIN GROWTH (/Boe) 70.00 60.00 50.00 44.31 40.51 40.00 34.02 32.32 32.58 28.90 27.83 30.34 30.00 20.00 10.00 0.00 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 1Q…
  4. JP Morgan 2018 Energy Equity Conference – 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. JP Morgan 2018 Energy Equity Conference – 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. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 6
    Delaware Basin Ramping Activity SPUR AREA IN PROGRAM DEVELOPMENT MODE Strong initial results from Rendezvous two Rendezvous Pad well pad (Upper and Lower WC A) Improved efficiency in drilling as activity increases Goodnight…
  7. JP Morgan 2018 Energy Equity Conference – 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. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 8
    Delaware Basin Acquisition Overview ASSET HIGHLIGHTS PRO FORMA DELAWARE POSITION (47,500 NET ACRES) 29,000 net surface acres that complement existing Spur area position Delineated 3BS, WCA and WCB benches with other emerging upside…
  9. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 9
    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…
  10. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 10
    Strategic Acquisition Complements Our Strategy Bolsters position in oil rich, over-pressured core of Delaware Basin Unique Bolt-On Opportunity Land / ownership depth synergies unlock significant value Benefits from existing geologic…
  11. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 11
    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…
  12. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 12
    Wolfcamp A Design & Performance Optimization 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. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 13
    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…
  14. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 14
    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:…
  15. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 15
    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…
  16. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 16
    Financial Positioning HIGHLIGHTS PRO FORMA CAPITALIZATION (MM) Long-term acquisition financing completed 1Q18 Adj. Pro Forma Cash 18 37 55 299MM equity offering Credit facility 75 (75) 0 Senior notes due 2024 600 600 400MM 8NC3…
  17. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 17
    Physical Oil Flow Assurance OFFTAKE 90% on pipeline/gathering systems (pro- Pipe takeaway Purchasers forma) with firm transport Shell, BP, 55% Current Medallion Firm Trafigura, Rio Long-term firm sales agreements (NYMEX- Production…
  18. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 18
    Portfolio Approach Provides Broad Optionality Oil Marketing Arrangements Firm Transport on Medallion System Provides Broad Options for Delivery Firm sales volumes are covered by buyer held Centurion FT agreements for transport out of the…
  19. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 19
    Callon Pure Play…
  20. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 20
    APPENDIX
  21. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 21
    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…
  22. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 22
    Current Guidance Summary (Unadjusted for Acquistion) 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…
  23. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 23
    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 1,840 Short…
  24. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 24
    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)…
  25. JP Morgan 2018 Energy Equity Conference – Callon Petroleum Co. – slide 25
    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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