CALLON PETROLEUM COMPANY April 2014 Investor Presentation
CALLON TODAY Exclusively Permian PERMIAN PRODUCTION Evolution to horizontal 7,000 Daily Production (Boepd) development in 2012 6,000 5,000 10 MMBOE reserve adds 4,000 in 2013 15/BOE 3,000 26 horizontals planned in 2,000…
PURE-PLAY GROWTH STRATEGY Drive growth with ongoing horizontal program development Two fields in 2013 Four fields in 2014 Testing larger completion designs to increase EURs and IRRs Drilling different zones from same pad Southern and…
OPERATIONS APRIL 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…
GROWING HORIZONTAL BASE Existing Existing Additional 2014 Target PD PUD Locations Plans Jo-Mill 0 0 81 Lower Spraberry 0 0 102 Wolfcamp A 1 0 118 Upper Wolfcamp B 15 16 84 Lower Wolfcamp B 5 7 49 Wolfcamp C 0 0 74 Cline 0 0…
CORE AREAS (13,500 NET ACRES) N S CENTRAL MIDLAND MIDDLE WC B (1 ZONE) THICK SPRABERRY CONSISTENT WC A W E SOUTHERN MIDLAND UPR & LWR WC B (2 ZONES) THICK SPRABERRY CONSISTENT WC A April 2014 Investor Presentation…
SOUTHERN MIDLAND BASIN Three core fields with pad PRODUCTION development 3,000 20+ horizontal wells on production 2,500 Daily Production (Boepd) Encouraging data from 2,000 new completion design 1,500 Three Wolfcamp zones…
CALLON WELL PERFORMANCE LOWER WC B Avg 24 HR Avg 30 Day (Boepd) (Boepd) Gas lift Taylor Draw (3) 988 optimization Garrison Draw (1) 1,600** 710** East Bloxom 2Q14 UPPER WC B Avg 24 HR Avg 30 Day (Boepd) (Boepd) East…
STRONG ECONOMICS LOWER WC B TAYLOR DRAW 6.5MM WELL UPPER WC B EAST BLOXOM 6.7MM WELL Baseline EURs and economics established in 2013 New wells testing larger completions in both WC B zones April 2014 Investor…
CENTRAL MIDLAND BASIN 50+ vertical wells (high- PRODUCTION grade for deep potential) 600 Initial two horizontal Wolfcamp B wells recently 500 placed on production with Daily Production (Boepd) 1ST HZ 24-hour IPs 1,200 Boepd…
MIDLAND COUNTY LOWER 24 HR 30 Day SPRABERRY (Boepd) (Boepd) Headlee 3911H N/A 782 Parks Bell 3909H N/A 683 Kemmer 4210LS 1,076 955 Kendra-Annie 15SH 3Q14 WOLFCAMP B 24 HR 30 Day (Boepd) (Boepd) Kemmer 4210WB 966 657 ST…
NORTHERN MIDLAND BASIN Delineation program LACEY NEWTON 2801 ongoing in Borden Co. 600 (Mississippian chat focus) 500 Daily Production (Boepd) Encouraging vertical 400 well drilled in 4Q13 300 Additional vertical 200…
RECENT/UPCOMING DATAPOINTS Increased scope of horizontal development Central Midland horizontal wells on production Wolfcamp A well at East Bloxom flowing back Stacked-lateral development of Wolfcamp zones Lower Spraberry well planned…
FINANCIAL APRIL 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 Total pro forma(a) Debt-to- CAPITALIZATION(a) Cap of 20% at 12/31/13 600 Positioned for robust 500 horizontal drilling program 400 Near-term borrowing base MM 300 redetermination using May 200 2014…
PURE-PLAY VALUE PROPOSITION 2.9x Oil Production 3.2x Total Prod* 7.8x Ent Value 3.1x Oil Production 25,000 4.1x Total Prod* 4,000 7.0x Ent Value 3,500 Midpoint 2014E Production (Boepd) 20,000 3,000 Enterprise Value…
SUMMARY APRIL 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…
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