CALLON PETROLEUM COMPANY May 2014 Investor Presentation
CALLON TODAY Exclusively Midland Basin PERMIAN PRODUCTION focused 7,000 Evolution to horizontal Daily Net Production (Boepd) 6,000 development in 2012 5,000 31 horizontal wells currently on production 4,000 (76% of total…
PURE-PLAY GROWTH STRATEGY Drive growth with ongoing horizontal program execution Two fields in 2013 Four fields in 2014 Move to larger completion designs to increase EURs and IRRs Staggered laterals from same pad Testing concepts for…
OPERATIONS MAY 2014
OPERATIONAL EXCELLENCE BRUNO HANSON ENVIRONMENTAL Operational team built EXCELLENCE AWARD (2013) over last four years Dedicated HES team Continued reductions in lease operating costs Unique operating capabilities for a small cap…
CAPITAL EFFICIENCY REAGAN COUNTY UPTON COUNTY 1,800 2,000 1,600 Total Cost per Lateral Foot Total Cost per Lateral Foot 1,400 1,500 1,200 1,000 1,000 800 600 400 500 200 0 0 1 2 3 4 5 6 7 8 9 10 11 1 2 3 4 5 6 7 8 9…
GROWING HORIZONTAL BASE Existing Additional 2014 Target PDP Locations Plans Middle Spraberry -- 28 Jo-Mill -- 86 Lower Spraberry -- 108 Wolfcamp A 2 102 Upper/Middle Wolfcamp B 19 86 Lower Wolfcamp B 10 55 Wolfcamp C -- 60…
ACQUISITION ACTIVITY Established two new core development fields in Southern Midland Basin since late 2012 Follow-on transactions near core fields add incremental value and leverage operational footprint Date Area County Price Net…
CORE AREAS (13,500+ NET ACRES) N S CENTRAL MIDLAND SIX PROSPECTIVE ZONES DEEPER INTO BASIN W E SOUTHERN MIDLAND SEVEN PROSPECTIVE ZONES WELL-ESTABLISHED HZ AREA May 2014 Investor Presentation 10
SOUTHERN MIDLAND BASIN Three core fields with pad PRODUCTION development 4,000 Over 25 horizontal wells on 3,500 production Daily Net Production (Boepd) 3,000 Encouraging data from 2,500 new completion design 2,000 Three…
SOUTHERN MIDLAND BASIN 10,260 NET ACRES 89% WI 415 LOCATIONS Zone Potential PDP 7,500 7,500 (Colors correspond to map) Locations Wells EUR (MBOE) D&C (MM) Jo Mill 62 Encouraging N. Upton tests Lower Spraberry 73 Offsetting…
CENTRAL MIDLAND BASIN 50+ vertical wells / HBP by PRODUCTION end of 2014 900 Initial two horizontal 800 Wolfcamp B wells with 60- Daily Net Production (Boepd) day rates of 800 Boepd 700 600 Deeper into basin with 500 more…
CENTRAL MIDLAND BASIN 3,360 NET ACRES 81% WI 170 LOCATIONS Zone Potential PDP 7,500 7,500 (colors correspond to map) Locations Wells EUR (MBOE) D&C (MM) Middle Spraberry 28 Sarah Ann 3812H / Fendley 404H Jo Mill 24 Tests…
DEVELOPMENT HIGHLIGHTS Multi-zone pad development with staggered laterals East Bloxom (Upton) Three-well pad drilling Two Upper WC B / One Lower WC B Garrison Draw (Reagan) Two-well pad drilling One Upper WC B / One WC A New…
FINANCIAL MAY 2014
IMPROVING FINANCIAL PROFILE Significant progress reducing cost of capital Redemption of Senior Notes with new second lien facility Expanded revolving credit capacity and lending group Reduced pricing grid and improved covenant…
BALANCE SHEET STRENGTH Senior Notes redemption CAPITALIZATION(a) completed 600 LQA Debt/EBITDA = 1.3x 500 Positioned for robust 400 horizontal drilling program MM 300 Borrowing base 200 redetermination in process 100 0…
PERMIAN CAPITAL PLAN Two-rig horizontal program 2014 OPERATIONAL CAPITAL Plans for 27 completions and 28 drill wells Four targeted horizons Five drilling areas Horizontal Vertical Facilities Current pace funded with 200MM…
SUMMARY MAY 2014
KEY MESSAGES Focused Midland team and asset base Horizontal production established in three distinct zones with other planned delineation activity Continued optimization after establishing track record of robust development…
2014 GUIDANCE 2Q14 Full Year 2014 Net Production (BOE/d) 5,000 - 5,250 5,100 - 5,400 % Oil 82% - 84% 82% - 85% Expenses (per BOE) LOE, including workovers 9.00 - 10.00 9.00 - 10.00 Production taxes 4.75 - 5.00 4.75 - 5.00…
NON-GAAP RECONCILIATIONS Three Months Ended Three Months Ended EBITDA March 31, 2014 March 31, 2013 Net Income (loss) 1,863 (800) Net pre-tax adjustments to 6,869 849 Adjusted Income Income tax expense (benefit) 1,341 (169)…
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