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Capital One Energy Conference December 7 2020 – Callon Petroleum Co.

Callon Petroleum Co. · Dec 7, 2020 · 24 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. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 1
    Capital One Energy Conference December 7, 2020
  2. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 2
    IMPORTANT DISCLOSURES EARNINGS DECK (CONT) SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES (cont) Adjusted Income available to common shareholders (Adjusted Income) and Adjusted Income per fully diluted common share are supplemental non-GAAP…
  3. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 3
    IMPROVED LIQUIDITY & ROCK-SOLID PERFORMANCE Free Cash Flow Improving Margins Scaled Continued Strong Solid Liquidity Generation Development Well Performance Position Recent ORRI sale and second lien notes 3rd Quarter Financial…
  4. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 4
    CLOSING OUT THE YEAR WITH CLEAR GOALS FOR 2021 A LONG LIST OF ACCOMPLISHMENTS ALREADY IN 2020 Completed the integration of two organizations after closing in late December 2019 Began prosecuting scaled, multi-zone development model…
  5. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 5
    FOCUS ON ESG DRIVES POSITIVE CHANGE ENVIRONMENT (1) SOCIAL (1) GOVERNANCE (1) Reduced truck traffic by TRIR Performance (2) Board members are over 400,000 truck loads independent 1.11 per year 0.6 Best safety year on record Stringent…
  6. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 6
    COST SAVINGS WELL BEYOND INITIAL EXPECTATIONS CAPITAL EFFICIENCY IMPROVING OPERATIONAL CAPITAL EVOLUTION Significant structural capital reductions 1,200 Initial FY20 full year operational capital of 975 MM Nearly 50% 1,000 now…
  7. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 7
    OPTIMIZING ORGANIZATION FOR THE FUTURE REALIZED FULL CASH G&A SYNERGIES (1) HIGHLIGHTS Post-merger rationalization, combining strengths of each company 3.50 Estimated Reduced compensation for executives and Board of 140 75MM in…
  8. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 8
    FIELD OPTIMIZATION IMPROVING LOE IMPACT OF LEADING PRACTICES SUSTAINABLE REDUCTIONS DRIVE IMPROVED FCF (1) Eagle Ford 60 43% reduction in workovers due to improved sand management during production Electrification of 20 operating…
  9. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 9
    MIDLAND WELLS SHOWING STRONG PERFORMANCE KEY LEARNINGS AND TAKEAWAYS COMPARABLE WOLFCAMP WELLS 2019 VERSUS 2020 VINTAGE Reduced water loadings allow for 200 better flowback and lower impact on offset wells 180 Tailored project…
  10. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 10
    DELAWARE CONTINUES TO IMPRESS AMPHITHEATER PROJECT (6 WELLS) CONSISTENT STRONG SOUTHERN DELAWARE PERFORMANCE 160 Drilled and completed using updated custom stacking and spacing methodology 140 330 vertical separation with offsets…
  11. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 11
    METHODICAL EXECUTION OF FINANCIAL INITIATIVES (1) NON-OPERATED WORKING INTEREST SALE: 30 MM Asset Sales September production of 1,700 Boe/d (49% oil) 170 MM Closed on November 2, 2020 Credit 2% ORRI SALE: 140 MM Facility Equates…
  12. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 12
    FOUNDATION FOR FURTHER IMPROVEMENT BOLSTERED LIQUIDITY AND CAPITALIZATION 2Q20 3Q20 (1) PF 3Q20 (2)(3) Improvement Cash 8 11 11 Credit Facility 1,450 1,025 995 455 MM Second Lien Notes - 300 617 Senior Notes 1,900 1,900 1,344 556 MM…
  13. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 13
    IMPROVED CASH FLOW PROTECTION FOR 2021 MEANINGFUL 2021 HEDGES ADDED TO ENHANCE CASH FLOW CERTAINTY More than 60% of estimated oil production is hedged using collars 4Q20 Oil Hedges and swaps 70% collars with price participation up to…
  14. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 14
    UPDATED CAPITAL PLANS AND OUTLOOK Prior Updated FY20 2021 Outlook: FY20 Guidance Guidance Maintenance Plan Driven by D&C Operational Capital 500 - 525 MM efficiencies & synergies 500 - 510 MM 375 - 400 MM Production 99 - 101…
  15. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 15
    FCF YIELD IS WELL AHEAD OF PEERS EQUITY VALUE DOES NOT REFLECT CALLONS ABILITY TO GENERATE FREE CASH FLOW AND REDUCE LEVERAGE 2021 FCF Yield per Consensus Estimates 60% 40% 20% 0% -20% Callon -40% -60%…
  16. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 16
    APPENDIX
  17. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 17
    OIL HEDGES (1) 4Q20 1Q21 2Q21 3Q21 4Q21 FY 2021 NYMEX WTI (Bbls, /Bbl) Swaps Total Volumes 2,496,880 - 273,000 552,000 552,000 1,377,000 Total Daily Volumes 27,140 - 3,000 6,000 6,000 3,773 Avg. Swap 42.10 - 41.62 42.10 42.10 42.00…
  18. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 18
    GAS AND NGL HEDGES (1) 4Q20 1Q21 2Q21 3Q21 4Q21 FY 2021 NYMEX HENRY HUB (MMBtu, /MMBtu) Swaps Total Volumes 1,633,000 - 3,822,000 3,864,000 3,437,000 11,123,000 Total Daily Volumes 17,750 - 42,000 42,000 37,359 30,474 Avg. Swap…
  19. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 19
    NON-GAAP ADJUSTED EBITDA RECONCILIATION (1) (000s) 3Q 2020 Net loss (680,384) Loss on derivatives contracts 27,038 Loss on commodity derivative settlements, net (5,540) Non-cash stock-based compensation benefit (94) Impairment of…
  20. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 20
    NON-GAAP ADJUSTED INCOME PER SHARE (1) (000s) 3Q 2020 Loss available to common shareholders (680,384) Loss on derivatives contracts 27,038 Loss on commodity derivative settlements, net (5,540) Non-cash stock-based compensation benefit…
  21. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 21
    NON-GAAP FREE CASH FLOW (1) (000s) 2Q 2020 3Q 2020 Net cash provided by operating activities 97,801 135,701 Changes in working capital and other 40,078 14,473 Change in accrued hedge settlement (14,480) (5,993) Cash interest expense,…
  22. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 22
    NON-GAAP ADJUSTED DISCRETIONARY CASH FLOW (1) (000s) 3Q 2020 Net loss (680,384) Adjustments to reconcile net loss to cash provided by operating activities: Depreciation, depletion, and amortization 114,201 Impairment of evaluated oil…
  23. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 23
    NON-GAAP FULL CASH G&A COSTS (1) (000s) 2Q20 3Q 2020 Total G&A expense 10,024 8,224 Change in the fair value of liability share-based awards (non-cash) (1,720) 1,582 Restricted stock share-based compensation (non-cash) and other…
  24. Capital One Energy Conference December 7 2020 – Callon Petroleum Co. – slide 24
    NON-GAAP NET DEBT RECONCILIATION (1) As of September 30, 2020 (in millions) Long-term debt 3,225 Less: Cash and cash equivalents 11 Net Debt 3,214 1. See Important Disclosures slide for additional information related to…

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