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3Q 2018 Earnings – Callon Petroleum Co.

Callon Petroleum Co. · Nov 6, 2018 · 20 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. 3Q 2018 Earnings – Callon Petroleum Co. – slide 1
    3rd QUARTER 2018 EARNINGS November 6, 2018
  2. 3Q 2018 Earnings – Callon Petroleum Co. – slide 2
    EXECUTION IS PRIORITY ONE FOCUSED ON THE FUTURE, AND THE FUTURE IS NOW Significant scale attained via 87,000 net acres of best in class Permian footprint Robust infrastructure network resulting from thoughtful planning and…
  3. 3Q 2018 Earnings – Callon Petroleum Co. – slide 3
    CALLONS EVOLUTION IN THE PERMIAN 2014: INITIAL BUILDING PHASE 2018: TRANSITION TO FULL ASSET DEVELOPMENT 19,000 net surface acres (1) 87,000 net surface acres 5,650 Boe/d of production (2014) 34,900 Boe/d of production (3Q18) 2 rigs…
  4. 3Q 2018 Earnings – Callon Petroleum Co. – slide 4
    RECENT COMPANY HIGHLIGHTS 3Q18 HIGHLIGHTS NET WELLS PoP PER QUARTER Quarterly Production: 34.9 Mboed (78% oil) 16 55% growth yoy 14 Targeting 40 Mboe/d for 4Q18 12 September production of 40 Mboe/d achieved including the 10 impact of…
  5. 3Q 2018 Earnings – Callon Petroleum Co. – slide 5
    CAPITAL EFFICIENCY DRIVING CASH FLOW ALIGNMENT MATURING MODEL DRIVING IMPROVED RETURNS REDUCED HBP WELLS PROMOTES SCALABLE GROWTH Optionality provides breadth of opportunity % HBP of Wells Completed Pad development and contiguous acreage…
  6. 3Q 2018 Earnings – Callon Petroleum Co. – slide 6
    DELAWARE: INFLECTION POINT OF EFFICIENCY GAINS INCREASED PAD DEVELOPMENT REDUCES COMPLETION TIMES SUSTAINABLE INVESTMENTS 3 750 2019 program development Average Gross Lateral Feet Completed Per Day Average Gross Operated Pad Size…
  7. 3Q 2018 Earnings – Callon Petroleum Co. – slide 7
    DELAWARE: STRONG WOLFCAMP A RESULTS 3BS INDUSTRY LATERAL MAP WITH CPE ACREAGE AND WCA WELLS DELAWARE HIGHLIGHTS CPE operated wells continue to 2016/2017 Avg IP30/1,000: 126 Boe/d 2018 Avg IP30/1,000: 168 Boe/d (1) outperform 2018 YTD…
  8. 3Q 2018 Earnings – Callon Petroleum Co. – slide 8
    LARGE PAD CONCEPTS ACROSS PORTFOLIO TESTING OPTIMAL DEVELOPMENT CONCEPTS SINGLE INTERVAL DEVELOPMENT: MIDLAND MEGA-PADS Monarch U/L LS mega-pad outperforming 30 Average Cum Oil Production MBo (Normalized 5,000') First Mega-Pad…
  9. 3Q 2018 Earnings – Callon Petroleum Co. – slide 9
    MIDLAND: PILOTS EXCEEDING EXPECTATIONS RECENT MIDLAND HIGHLIGHTS 2018 CPE MIDLAND WELLS VS. 1 MMBOE EUR MIDLAND TYPE CURVE Optimized frac loadings achieving 120 3% - 5% cost savings Gibson Unit 28-21 wells (9,400 laterals)…
  10. 3Q 2018 Earnings – Callon Petroleum Co. – slide 10
    FINANCIAL POSITIONING (1) HIGHLIGHTS Liquidity improved through +30% increase in elected commitment of 850MM under 1.1 BN borrowing base 65MM drawn on revolver with 12MM cash in hand Pro-forma 3Q18 net debt / LQA adj. EBITDA of 2.0x…
  11. 3Q 2018 Earnings – Callon Petroleum Co. – slide 11
    RISK MANAGEMENT DOWNSIDE RISK PROTECTION (1) WTI INSTRUMENT BREAKOUT Locking in WTI protection to support 100% % of Hedges by Instrument cash flow 4Q18: 65% hedged 80% 2019: 50% hedged 60% Midland-Cushing basis differential 40%…
  12. 3Q 2018 Earnings – Callon Petroleum Co. – slide 12
    2018 GUIDANCE UPDATE GUIDANCE TAKEAWAYS PRIOR UPDATED YTD 2018 FY18 FY18 Operational outperformance ACTUALS GUIDANCE GUIDANCE Raised mid-point FY18 production guidance despite expected 4Q loss of Total production (MBoepd) 30.2 31.5…
  13. 3Q 2018 Earnings – Callon Petroleum Co. – slide 13
    2019 AND BEYOND GOALS AND OBJECTIVES LONGER-TERM OUTLOOK Long-term strategic focus Subsurface technology: balancing long-term IRR and NPV objectives from 2018 learnings 2016-2018 Larger development concepts Acquisition Assimilation…
  14. 3Q 2018 Earnings – Callon Petroleum Co. – slide 14
    APPENDIX
  15. 3Q 2018 Earnings – Callon Petroleum Co. – slide 15
    INDUSTRY LEADING MARGINS CONTINUE TO IMPROVE MARGIN EXPANSION COST IMPROVEMENTS DRIVING OPERATING RETURNS Industry leading operating margins 70 31% Per unit cash margins of 39.05 improved 60 29% 30% YoY (1) 50 27% Cash G&A of…
  16. 3Q 2018 Earnings – Callon Petroleum Co. – slide 16
    OIL HEDGE PORTFOLIO (1) 4Q18 1Q19 2Q19 3Q19 4Q19 2020 NYMEX WTI (Bbls, /Bbl) Swaps Total Volumes 552,000 - - - - - Daily Volumes 6,000 - - - - - Avg. Swap 52.07 - - - - - Three-way Collars Total Volumes 874,000 810,000 819,000…
  17. 3Q 2018 Earnings – Callon Petroleum Co. – slide 17
    GAS HEDGE PORTFOLIO (1) 4Q18 1Q19 2Q19 3Q19 4Q19 2020 NYMEX Henry Hub (MMBtu, /MMBtu) Swaps Total Volumes 1,380,000 - - - - - Daily Volumes 15,000 - - - - - Avg. Swap 2.91 - - - - - Two-way Collars Total Volumes 552,000…
  18. 3Q 2018 Earnings – Callon Petroleum Co. – slide 18
    QUARTERLY CASH FLOW STATEMENT 3Q17 4Q17 1Q18 2Q18 3Q18 Cash flows from operating activities: Net income 17,081 22,824 55,761 50,474 37,931 Adjustments to reconcile net income to cash provided by operating activities: Depreciation,…
  19. 3Q 2018 Earnings – Callon Petroleum Co. – slide 19
    NON-GAAP RECONCILIATION (1) 3Q17 4Q17 1Q18 2Q18 3Q18 Adjusted Income Reconciliation Income available to common stockholders 15,257 21,001 53,937 48,650 36,108 Adjustments: Net (gain) loss on derivatives, net of settlements 12,947 26,037…
  20. 3Q 2018 Earnings – Callon Petroleum Co. – slide 20
    NON-GAAP RECONCILIATION (1) 3Q17 4Q17 1Q18 2Q18 3Q18 Adjusted G&A Reconciliation Total G&A expense 7,259 8,173 8,769 8,289 9,721 Adjustments: Less: Change in the fair value of liability share-based awards (non-cash) (731) (844) (991) 484…

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