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3Q 2019 Earnings Presentation – Callon Petroleum Co.

Callon Petroleum Co. · Nov 5, 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. 3Q 2019 Earnings Presentation – Callon Petroleum Co. – slide 1
    3rd QUARTER 2019 EARNINGS November 5th, 2019
  2. 3Q 2019 Earnings Presentation – Callon Petroleum Co. – slide 2
    CALLON CORPORATE STRATEGY THE EVOLUTION FROM CORE ASSETS TO A SUSTAINABLE OPERATING BUSINESS MODEL Core Permian Evolving to Full Field Sustainable Growth Footprint Established Development and FCF Generation 2014 - 2018 2019 2020…
  3. 3Q 2019 Earnings Presentation – Callon Petroleum Co. – slide 3
    DELIVERING SUPERIOR RESULTS AND CAPITAL EFFICIENCY YoY FINANCIAL ACHIEVEMENTS OPERATIONAL HIGHLIGHTS 180 DAILY PRODUCTION PER 6.00 LEASE OPERATING Increased capital efficiency with transition to larger pad SHARE (Boepd/MM) (1) EXPENSE…
  4. 3Q 2019 Earnings Presentation – Callon Petroleum Co. – slide 4
    UNLOCKING VALUE THROUGH SCALED DEVELOPMENT DELAWARE: EARLY TIME RAG RUN PERFORMANCE DELAWARE: OPTIMIZED LARGE PAD FLOWBACK 600 35 8 90 Day Average Well Production: 1,000 Boepd (80% Oil) Average Project Size ( of wells) Average 30…
  5. 3Q 2019 Earnings Presentation – Callon Petroleum Co. – slide 5
    RISK MANAGEMENT COMPLEMENTS STRONG FUNDAMENTAL MARGINS HEDGE PROGRAM SECURES CASH RETURN MARKETING DIVERSIFIES PRICE EXPOSURE 30,000 NYMEX 45 2Q21: 40 mb/d gross CPE (Excluding Brent and Basis Hedges) Floor Permian volumes linked…
  6. 3Q 2019 Earnings Presentation – Callon Petroleum Co. – slide 6
    CONSISTENT FOCUS ON FINANCIAL OBJECTIVES ACHIEVED BY MERGER WITH CARRIZO INCREASE CASH Ongoing compensation alignment with shareholder interests RETURN ON Retain best-in-class margins INVESTED Reduce capital intensity of business…
  7. 3Q 2019 Earnings Presentation – Callon Petroleum Co. – slide 7
    PREMIER OPERATOR WITH STRONG INTEGRATION TRACK RECORD PREMIER SOUTHERN DELAWARE OPERATOR (1) IMPROVED PERFORMANCE FROM 2018 WARD ACQUISITION 20,000 15 Average 6 Month Cumulative Boe 18,000 Average 6 Month Lateral Adjusted…
  8. 3Q 2019 Earnings Presentation – Callon Petroleum Co. – slide 8
    CRZO ACQUISITION: STRONGER COMBINED COMPANY 2x Core Delaware Basin Footprint Years Permian Inventory 17 PERMIAN - DELAWARE 105 Mboed Production (2Q19) (1) 1.2B Q2 2019 Annualized EBITDA 100MM Incremental Free Cash Flow…
  9. 3Q 2019 Earnings Presentation – Callon Petroleum Co. – slide 9
    SIGNIFICANT AND ACHIEVABLE SYNERGIES TO BENEFIT STAKEHOLDERS NPV OF 2 PER CALLON SHARE REPRESENTS 50% OF CALLONS CURRENT SHARE PRICE 10 YR TOTAL (OPERATIONAL AND ANNUAL RUN RATE OPERATIONAL SYNERGIES (2021+) (MM) CAPITAL) NPV OF…
  10. 3Q 2019 Earnings Presentation – Callon Petroleum Co. – slide 10
    SCALED DEVELOPMENT UNLOCKS VALUE FOR COMBINED COMPANY 900 Operational CapEx (mm) Scale development is a capital issue, not an acreage issue Standalone, neither Callon nor Carrizo could afford the capital program 600 Midpoint of 2019…
  11. 3Q 2019 Earnings Presentation – Callon Petroleum Co. – slide 11
    MANAGEMENT FOCUSED ON FINANCIAL STRENGTH KEY CORPORATE PRINCIPLES Generate Prudent Financial Reduce Leverage to Maintain Strong Preserve Top-Tier Sustainable Free and Physical Risk < 2.0x Liquidity Position Operating Margins Cash…
  12. 3Q 2019 Earnings Presentation – Callon Petroleum Co. – slide 12
    EXECUTING OUR STRATEGY Driving capital efficiency gains through sustained high levels of well productivity coupled with emerging capital cost reductions from scaled development SUPERIOR Beat consensus estimates for EBITDA/Boe by an…
  13. 3Q 2019 Earnings Presentation – Callon Petroleum Co. – slide 13
    APPENDIX
  14. 3Q 2019 Earnings Presentation – Callon Petroleum Co. – slide 14
    CARRIZO ACQUISITION IS CREDIT ENHANCING SCALE AND FREE CASH FLOW ENHANCING TRANSACTION IS A CREDIT POSITIVE FROM RATINGS PERSPECTIVE POSITIVE COMMENTARY FROM CREDIT AGENCIES CURRENT NET DEBT / 2019E EBITDA The CreditWatch positive…
  15. 3Q 2019 Earnings Presentation – Callon Petroleum Co. – slide 15
    LEADING SOUTHERN DELAWARE WELL PERFORMANCE (1) SOUTHERN DELAWARE WCA WELLS ACROSS PEERS WCA RESULTS BY OPERATOR (2017+) (2) 100% 90% Well Count and Production Distribution Plot P(x) 80% 70% 60% 50% 40% 30% 20%…
  16. 3Q 2019 Earnings Presentation – Callon Petroleum Co. – slide 16
    HEDGE PORTFOLIO (1) 4Q19 1Q20 2Q20 3Q20 4Q20 FY 2020 FY 2021 WTI NYMEX (Bbls, /Bbl) Sw aps & Sw aps w ith Puts Total Volumes 276,000 546,000 546,000 552,000 552,000 2,196,000 - Total Daily Volumes 3,000 6,000 6,000 6,000 6,000 6,000…
  17. 3Q 2019 Earnings Presentation – Callon Petroleum Co. – slide 17
    HEDGE PORTFOLIO (1) 4Q19 1Q20 2Q20 3Q20 4Q20 FY 2020 FY 2021 MIDLAND-CUSHING DIFFERENTIAL (Bbls//Bbl) Sw aps Total Volumes 2,176,000 1,092,000 1,092,000 1,196,000 1,196,000 4,576,000 1,095,000 Total Daily Volumes 23,652 12,000 12,000…
  18. 3Q 2019 Earnings Presentation – Callon Petroleum Co. – slide 18
    QUARTERLY CASH FLOW STATEMENT 3Q18 4Q18 1Q19 2Q19 3Q19 Cash flows from operating activities: Net income (loss) 37,931 156,194 (19,543) 55,180 55,834 Adjustments to reconcile net income to cash provided by operating activities:…
  19. 3Q 2019 Earnings Presentation – Callon Petroleum Co. – slide 19
    NON-GAAP RECONCILIATION (1) Adjusted EBITDA Reconciliation 3Q18 4Q18 1Q19 2Q19 3Q19 Net income (loss) 37,931 156,194 (19,543) 55,180 55,834 (Gain) loss on derivatives, net of settlements 25,100 (105,512) 66,970 (15,193) (20,798)…

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