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Callon Acquisitions of Carrizo – Callon Petroleum Co.

Callon Petroleum Co. · Jul 15, 2019 · 19 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. Callon Acquisitions of Carrizo – Callon Petroleum Co. – slide 1
    CALLON ACQUISITION OF CARRIZO July 15, 2019
  2. Callon Acquisitions of Carrizo – Callon Petroleum Co. – slide 2
    TEXAS STRONG: CREATING THE PREMIER OILY MID-CAP COMPANY HOUSTON MIDLAND BASIN HEADQUARTERS Recently streamlined operations in Houston-based company mid-cycle manufacturing mode focused on the Co-development of multi-interval high…
  3. Callon Acquisitions of Carrizo – Callon Petroleum Co. – slide 3
    TRANSACTION OVERVIEW 3.2 billion transaction value Carrizo shareholders will receive a fixed exchange ratio of 2.05x Callon common shares for each share of Carrizo common stock they own Exchange ratio implies a price of 13.12 per…
  4. Callon Acquisitions of Carrizo – Callon Petroleum Co. – slide 4
    COMBINATION ACCELERATES STRATEGIC PATH Relentless Pursuit of Capital Efficiency Differentiated Oil and Clear economic benefits of scaled development model Gas Investment across portfolio Combining Repeatable Sustainable life of field…
  5. Callon Acquisitions of Carrizo – Callon Petroleum Co. – slide 5
    PRO FORMA ASSET PORTFOLIO OVERVIEW BASIN STATISTICS CORE ASSET OVERVIEW PERMIAN Net acres (1) 120,000 PERMIAN - DELAWARE Delineated operated locations (1) 1,900 1Q19 production (2) 62.7 Mboe/d (66% oil) 2020E rigs 7 EAGLE…
  6. Callon Acquisitions of Carrizo – Callon Petroleum Co. – slide 6
    BALANCED CONTRIBUTION FROM HIGH-RETURN INVENTORY PORTFOLIOS PRO FORMA DELINEATED INVENTORY RANKED BY IRR (1) Delineated locations with 25% IRR including facilities LEADING MARGINS AND F&D RECYCLE RATIO VS. PEERS 10 Pro forma…
  7. Callon Acquisitions of Carrizo – Callon Petroleum Co. – slide 7
    ACCELERATING GOALS AS OPTIMIZED ENTITY PRODUCTION (1) (MBOE/D) FREE CASH FLOW (2) (mm) CALLON CARRIZO PRO FORMA CALLON CARRIZO PRO FORMA 10% CAGR 104.3 2020E SYNERGIES 11 64.7 115 CONSENSUS 89 (66) 39.6 2019E Consensus 2021…
  8. Callon Acquisitions of Carrizo – Callon Petroleum Co. – slide 8
    STRONG PRO FORMA POSITIONING 2020E CASH G&A EXPENSE (1) (/Boe) 5.38 RATIONALIZING 4.11 2.98 2.94 2.91 2.86 2.85 2.67 2.57 2.44 CORPORATE 2.14 1.37 COSTS A H E C G I F D CALLON B CARRIZO PRO FORMA 2Q19 PERMIAN RIG COUNT SCALE…
  9. Callon Acquisitions of Carrizo – Callon Petroleum Co. – slide 9
    PRIMARY IDENTIFIED SYNERGIES ANNUAL RUNRATE VALUE 10-YEAR LOW HIGH TOTAL PV (1) TIMING COMMENTARY Expanded large scale development with simultaneous operations (SimOps) improves production cycle times and well costs Optimized,…
  10. Callon Acquisitions of Carrizo – Callon Petroleum Co. – slide 10
    ADDITIONAL VALUE CREATION UPSIDE Reapplication of advanced development concepts pulls forward value for the entirety of the combined Delaware footprint DSU VALUE Accelerated shift to mega-pad development mitigates the occurrence and…
  11. Callon Acquisitions of Carrizo – Callon Petroleum Co. – slide 11
    CAPITAL EFFICIENCY BENEFITS OF DELAWARE SCALE SCALE BENEFITS DELAWARE D&C REDUCTIONS (1) Consolidation of ancillary services over combined footprint GROSS D&C PER FOOT TBU Visual on D&C Operational improvements and…
  12. Callon Acquisitions of Carrizo – Callon Petroleum Co. – slide 12
    MEANINGFUL SCHEDULING BENEFITS FROM INTEGRATED PROGRAM PRO FORMA SCHEDULE BENEFITS ENHANCED SCHEDULING INTEGRATION Combined entity cash flow base supports capital program with Illustrative 2019 Stand-Alone Schedules (5 crews) ample…
  13. Callon Acquisitions of Carrizo – Callon Petroleum Co. – slide 13
    PRESERVING VALUE THROUGH OPTIMIZED DEVELOPMENT PARENT-CHILD ISSUES REDUCED THROUGH INCREASE IN SIMOPS MEGA-PAD DEVELOPMENT SINGLE-WELL PADS (75% CHILDREN) Switching to mega-pad development designs significantly reduces the proportion…
  14. Callon Acquisitions of Carrizo – Callon Petroleum Co. – slide 14
    MEGA-PAD PRO FORMA BALANCE SHEET IMPACT MEGA-PAD EFFICIENCIES MEGA-PAD BENEFITS FROM LARGER BALANCE SHEET (1) NPV benefits from shifting to mega-pad development need CALLON REVOLVER CARRIZO REVOLVER PRO FORMA REVOLVER to be balanced…
  15. Callon Acquisitions of Carrizo – Callon Petroleum Co. – slide 15
    MARKETING & MIDSTREAM MARKETING BENEFITS CRUDE PRICE POINT DIVERSIFICATION Scaled volumes provide CALLON 2018 CALLON 2020E PRO FORMA 2020E optionality for improved marketing and additional firm transport options Eagle Ford assets…
  16. Callon Acquisitions of Carrizo – Callon Petroleum Co. – slide 16
    FINANCIAL STRENGTH KEY CORPORATE PRINCIPLES Prudent Financial and Generate Sustainable Reduce Leverage to Maintain Strong Liquidity Preserve Top-Tier Physical Risk Free Cash Flow Growth < 2.0x Position Operating Margins Management…
  17. Callon Acquisitions of Carrizo – Callon Petroleum Co. – slide 17
    ADVANCING CALLONS STRATEGIC GOALS Relentless Pursuit of Capital Efficiency Clear economic benefits of scaled development model across portfolio Life of field development of substantial inventory Balance of project cycle times…
  18. Callon Acquisitions of Carrizo – Callon Petroleum Co. – slide 18
    APPENDIX 20
  19. Callon Acquisitions of Carrizo – Callon Petroleum Co. – slide 19
    NON-GAAP RECONCILIATION (1) Adjusted EBITDA Reconciliation (2) 2Q18 3Q18 4Q18 1Q19 1Q19 LTM Net income (loss) available to common shareholders 78,745 112,226 409,490 124,835 725,296 Dividends on preferred stock 6,298 6,280 6,191 6,184…

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