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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Callon Petroleum Company | NYSE:CPE | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 35.76 | 0 | 01:00:00 |
HOUSTON, May 11, 2020 /PRNewswire/ -- Callon Petroleum Company (NYSE: CPE) ("Callon" or the "Company") today reported results of operations for the three months ended March 31, 2020.
Presentation slides accompanying this earnings release are available on the Company's website at www.callon.com located on the "Presentations" page within the Investors section of the site.
Recent Actions
In response to the recent commodity price collapse and the global impact of the novel coronavirus pandemic (COVID-19), Callon has taken a number of steps to ensure the safety of our team members, their families, and our service providers, as well as preserve the integrity and value of our business. Some of these recent actions include:
Recent Highlights
Joe Gatto, President and Chief Executive Officer commented, "Beginning in early March, our team began taking decisive action to align our activity levels with the current economic environment. We also quickly moved to enhance our cash flow protection through strategic hedging initiatives which provide support as we transition the business to lower levels of activity. Additionally, the leadership team, along with our Board, has made the decision to pare costs through voluntary G&A reductions."
He continued, "Our operational and financial performance since the beginning of the year clearly demonstrates the collective effort of our organization to execute on our post-merger integration plan and drive the synergies that will position us to manage through a challenging time for our industry. We have developed numerous scenarios that support returning to a modest level of completion activity in the next few months, and our decisions will be based on our outlook for sustainable, unhedged returns on capital that generate incremental value. These scenarios will also be governed by the optimization of free cash flow(2) for debt reduction over the balance of the year while preparing ourselves for a solid foundation into 2021."
Credit Facility and Liquidity
Callon recently completed the spring redetermination for its senior secured credit facility. The borrowing base and elected commitment were both set at $1.7 billion, relative to a previous elected commitment of $2.0 billion. As of March 31, the drawn balance on the facility was $1.35 billion. Other key elements of the credit facility following the redetermination process include:
Operations Update
At March 31, 2020, Callon had 1,439 gross (1,268 net) horizontal wells producing from established flow units in the Permian Basin and Eagle Ford Shale. Net daily production for the three months ended March 31, 2020 grew 150% to 101.0 Mboe/d (64% oil), as compared to the same period of 2019.
For the three months ended March 31, 2020, Callon drilled 40 gross (39.4 net) horizontal wells and placed a combined 36 gross (30.8 net) horizontal wells on production. Of the wells placed on production, 61% were in the Eagle Ford Shale with the remaining 39% in the Permian Basin.
Callon continued to post meaningful gains in efficiency driven by the significant shift to simultaneous operations across the entirety of the asset base. Some of the operational highlights include:
The Company recently reduced development activity, relative to the plan previous communicated in the update provided on March 17, in response to further weakness in the commodity prices. All completion activity was suspended in April after the completion of recent projects in the Delaware and Midland Basins. Operations has also reduced drilling activity and expects to be transitioning to a single rig by mid-May.
Recently, Callon entered into additional marketing arrangements to ensure placement of its production volumes. Currently, approximately 60,000 gross barrels of oil per day ("Bbl/d") are covered by term sales agreements with an agreement for an additional 20,000 to 25,000 barrels currently under negotiation. Additionally, the Company holds 15,000 Bbls/d of firm transport capacity and will add another 10,000 Bbls/d during the third quarter to support movement of oil volumes from the Permian Basin to Gulf Coast markets.
Callon has been closely monitoring field level economics to make decisions regarding voluntary production curtailment decisions. The Company has shut-in approximately 1,500 Bbl/d (gross) through April and expects to reach over 3,000 Bbl/d (gross) during May. June volumes are currently under evaluation. In addition, Callon has deferred the flowback of a recently completed project in the WildHorse area until expected netbacks improve.
Capital Expenditures
For the three months ended March 31, 2020, Callon incurred $277.6 million in operational capital expenditures on an accrual basis. Total capital expenditures, inclusive of capitalized expenses, are detailed below on an accrual and cash basis (in thousands):
Three Months Ended March 31, 2020 | ||||||||||||||||
Operational | Capitalized | Capitalized | Total Capital | |||||||||||||
Capital (a) | Interest | G&A | Expenditures | |||||||||||||
Cash basis (b) | $ | 197,483 | $ | 19,395 | $ | 7,570 | $ | 224,448 | ||||||||
Timing adjustments (c) | 84,594 | 4,590 | — | 89,184 | ||||||||||||
Non-cash items | (4,437) | — | (168) | (4,605) | ||||||||||||
Accrual basis | $ | 277,640 | $ | 23,985 | $ | 7,402 | $ | 309,027 |
(a) | Includes seismic, land, technology, and other items. |
(b) | Cash basis is presented here to help users of financial information reconcile amounts from the cash flow statement to the balance sheet by accounting for timing related changes in working capital that align with our development pace and rig count. |
(c) | Includes timing adjustments related to cash disbursements in the current period for capital expenditures incurred in the prior period. |
Operating and Financial Results
The following table presents summary information for the periods indicated:
Three Months Ended | |||||||||
March 31, 2020 | December 31, 2019 | March 31, 2019 | |||||||
Net production | |||||||||
Oil (MBbls) | 5,847 | 3,234 | 2,858 | ||||||
Natural gas (MMcf) | 9,793 | 5,530 | 4,619 | ||||||
NGLs (MBbls) | 1,707 | 135 | — | ||||||
Total barrels of oil equivalent (MBoe) | 9,186 | 4,291 | 3,628 | ||||||
Total daily production (Boe/d) | 100,955 | 46,641 | 40,311 | ||||||
Oil as % of total daily production | 64 | % | 75 | % | 79 | % | |||
Average realized sales price (excluding impact of settled derivatives) | |||||||||
Oil (per Bbl) | $45.45 | $56.61 | $49.37 | ||||||
Natural gas (per Mcf) | 0.62 | 1.98 | 2.59 | ||||||
NGLs (per Bbl) | 10.62 | 15.37 | — | ||||||
Total (per BOE) | 31.56 | 45.70 | 42.18 | ||||||
Average realized sales price (including impact of settled derivatives) | |||||||||
Oil (per Bbl) | $48.90 | $55.33 | $48.83 | ||||||
Natural gas (per Mcf) | 1.13 | 2.12 | 2.86 | ||||||
NGLs (per Bbl) | 10.62 | 15.37 | — | ||||||
Total (per Boe) | 34.30 | 44.92 | 42.11 | ||||||
Revenues (in thousands) | |||||||||
Oil | $265,767 | $183,071 | $141,098 | ||||||
Natural gas | 6,029 | 10,949 | 11,949 | ||||||
NGLs | 18,123 | 2,075 | — | ||||||
Total revenues | 289,919 | 196,095 | 153,047 | ||||||
Additional per Boe data | |||||||||
Sales price (a) | $31.56 | $45.70 | $42.18 | ||||||
Lease operating expense | 5.70 | 5.90 | 6.63 | ||||||
Production taxes | 2.14 | 2.06 | 2.98 | ||||||
Gathering, transportation and processing | 1.57 | — | — | ||||||
Operating margin | $22.15 | $37.74 | $32.57 | ||||||
Depletion, depreciation and amortization | $14.31 | $14.30 | $16.59 | ||||||
Adjusted G&A (b) | |||||||||
Cash component (c) | $1.20 | $2.41 | $2.28 | ||||||
Non-cash component | $0.41 | 0.53 | 0.44 |
(a) | Excludes the impact of settled derivatives. |
(b) | Excludes certain non-recurring expenses and non-cash valuation adjustments. Adjusted G&A is a non-GAAP financial measure; see the reconciliation provided within this press release for a reconciliation of G&A expense on a GAAP basis to Adjusted G&A expense. |
(c) | Excludes the amortization of equity-settled, share-based incentive awards. |
Total Revenue. For the quarter ended March 31, 2020, Callon reported total revenue of $289.9 million and total revenue including the gain or loss from the settlement of derivative contracts ("Adjusted Total Revenue,"(1)) of $315.0 million, reflecting the impact of a $25.1 million gain from the settlement of derivative contracts. Average daily production for the quarter was 101.0 Mboe/d, compared to average daily production of 46.6 Mboe/d in the fourth quarter of 2019. Average realized prices, including and excluding the effects of hedging, are detailed above.
Hedging impacts. For the quarter ended March 31, 2020, the net gain (loss) on commodity derivative instruments includes the following (in thousands):
Three Months Ended | ||
Gain (loss) on oil derivatives | $257,323 | |
Gain (loss) on natural gas derivatives | (6,829) | |
Gain (loss) on total commodity derivatives | $250,494 |
For the quarter ended March 31, 2020, the cash received (paid) for commodity derivative settlements includes the following (in thousands):
Three Months Ended | ||
Cash paid on oil derivatives | ($1,777) | |
Cash received on gas derivatives | 4,390 | |
Cash received for commodity derivative settlements | $2,613 |
Lease Operating Expenses, including workover ("LOE"). LOE per Boe for the three months ended March 31, 2020 was $5.70 per Boe, compared to LOE of $5.90 per Boe in the fourth quarter of 2019. LOE on a per unit basis is fairly consistent with the previous quarter.
Production Taxes, including ad valorem taxes. Production taxes were $2.14 per Boe for the three months ended March 31, 2020, representing approximately 6.8% of total revenue before the impact of derivative settlements.
Gathering, Transportation and Processing Expenses. Gathering, transportation and processing costs for the three months ended March 31, 2020 were $14.4 million. The increase is primarily due to the assumption of processing agreements in the Carrizo acquisition and certain contract modifications effective January 1, 2020. As such, the Company now records contractual fees associated with gathering, processing, treating and compression, as well as any transportation fees incurred to deliver the product to the purchaser, as gathering, transportation and processing expense. These fees were historically recorded as a reduction of revenue depending on when control transferred to the purchaser.
Depreciation, Depletion and Amortization ("DD&A"). DD&A for the three months ended March 31, 2020 was consistent at $14.31 per Boe compared to $14.30 per Boe in the fourth quarter of 2019.
General and Administrative ("G&A"). G&A was $8.3 million, or $0.91 per Boe, and G&A, excluding certain non-cash incentive share-based compensation valuation adjustments, ("Adjusted G&A", a non-GAAP measure1) was $14.8 million, or $1.62 per Boe, for the three months ended March 31, 2020 and $12.6 million, or $2.94 per Boe, for the fourth quarter of 2019. The cash component of Adjusted G&A was $11.1 million, or $1.20 per Boe, for the three months ended March 31, 2020 compared to $10.3 million, or $2.41 per Boe, for the fourth quarter of 2019.
For the three months ended March 31, 2020, G&A and Adjusted G&A, which excludes the amortization of equity-settled and share-based incentive awards, are calculated as follows (in thousands):
Three Months Ended | ||
Total G&A expense | $8,325 | |
Change in the fair value of liability share-based awards (non-cash) | 6,516 | |
Adjusted G&A – total | 14,841 | |
Restricted stock share-based compensation (non-cash) | (3,776) | |
Adjusted G&A – cash component | $11,065 |
Income Tax Expense. Callon provides for income taxes at the statutory rate of 21% adjusted for permanent differences expected to be realized. Callon recorded income tax expense of $64.0 million for the three months ended March 31, 2020, compared to income tax expense of $5.9 million for the three months ended December 31, 2019. The change in income tax expense is largely proportional to the amount of income before income taxes generated in the respective periods.
Outlook
Due to uncertain nature of the current commodity markets and the underlying supply and demand landscape, Callon will not be providing full year guidance for 2020. As market dynamics evolve in the upcoming months, the Company will be in a better position to comment on the details surrounding long term expectations. In the interim, Callon believes the following commentary may provide additional insight to investors:
First Quarter 2020 Earnings Conference Call
The Company has posted presentation slides accompanying this earnings release and an associated, pre-recorded webcast discussion on the Company's website. The presentation slides and associated webcast can both be found at www.callon.com located on the "News/Events" page within the Investors section on the site. The Company's previously scheduled conference call to discuss first quarter results on Monday, May 11, 2020, at 10:00 am CDT is canceled.
Hedge Portfolio Summary
The following table summarizes Callon's open derivative positions as of March 31, 2020 for the periods indicated:
For the Remainder | For the Full Year | ||||||
Oil contracts (WTI) | of 2020 | of 2021 | |||||
Swap contracts | |||||||
Total volume (Bbls) | 13,085,720 | — | |||||
Weighted average price per Bbl | $42.11 | $— | |||||
Swap contracts with short puts | |||||||
Total volume (Bbls) | 1,650,000 | — | |||||
Weighted average price per Bbl | |||||||
Swap | $56.06 | $— | |||||
Floor (short put) | $42.50 | $— | |||||
Short call contracts | |||||||
Total volume (Bbls) | 2,750,000 | (1) | 4,825,300 | (1) | |||
Weighted average price per Bbl | $45.59 | $63.62 | |||||
Oil contracts (Brent ICE) | |||||||
Swap contracts | |||||||
Total volume (Bbls) | 366,000 | — | |||||
Weighted average price per Bbl | $46.15 | $— | |||||
Oil contracts (Midland basis differential) | |||||||
Swap contracts | |||||||
Total volume (Bbls) | 6,574,800 | 4,015,100 | |||||
Weighted average price per Bbl | ($1.24) | $0.40 | |||||
Oil contracts (Argus Houston MEH basis differential) | |||||||
Swap contracts | |||||||
Total volume (Bbls) | 4,612,205 | — | |||||
Weighted average price per Bbl | ($0.24) | $— | |||||
Oil contracts (Argus Houston MEH swaps) | |||||||
Swap contracts | |||||||
Total volume (Bbls) | 504,500 | — | |||||
Weighted average price per Bbl | $58.22 | $— | |||||
Natural gas contracts (Henry Hub) | |||||||
Collar contracts (three-way collars) | |||||||
Total volume (MMBtu) | 3,665,000 | 1,350,000 | |||||
Weighted average price per MMBtu | |||||||
Ceiling (short call) | $2.74 | $2.70 | |||||
Floor (long put) | $2.48 | $2.42 | |||||
Floor (short put) | $2.00 | $2.00 | |||||
Swap contracts | |||||||
Total volume (MMBtu) | 9,170,000 | — | |||||
Weighted average price per MMBtu | $2.20 | $— | |||||
Short call contracts | |||||||
Total volume (MMBtu) | 9,075,000 | 7,300,000 | |||||
Weighted average price per MMBtu | $3.50 | $3.09 | |||||
Natural gas contracts (Waha basis differential) | |||||||
Swap contracts | |||||||
Total volume (MMBtu) | 18,982,000 | — | |||||
Weighted average price per MMBtu | ($1.08) | $— |
(1) | Premiums from the sale of call options were used to increase the fixed price of certain simultaneously executed price swaps. |
Adjusted Income and Adjusted EBITDA. The Company reported income available to common stockholders of $216.6 million, or $0.55 per fully diluted share, for the three months ended March 31, 2020, and Adjusted Income available to common stockholders of $46.7 million, or $0.12 per fully diluted share. The following tables reconcile the Company's income (loss) available to common stockholders to Adjusted Income, and the Company's net income (loss) to Adjusted EBITDA:
Three Months Ended | ||||||||
March 31, 2020 | December 31, 2019 | March 31, 2019 | ||||||
(In thousands except per share data) | ||||||||
Income (loss) available to common stockholders | $216,565 | ($23,543) | ($21,367) | |||||
(Gain) loss on derivative contracts | (251,969) | 30,694 | 67,260 | |||||
Gain (loss) on commodity derivative settlements, net | 25,126 | (3,353) | (290) | |||||
Non-cash stock-based compensation expense | (2,972) | 3,390 | 6,426 | |||||
Merger and integration expense | 15,830 | 68,420 | — | |||||
Other (income) expense | (1,029) | — | — | |||||
Loss on extinguishment of debt | — | 4,881 | — | |||||
Tax effect on adjustments above | 45,153 | (21,847) | (15,413) | |||||
Adjusted Income (1) | $46,704 | $58,642 | $36,616 | |||||
Adjusted Income per fully diluted common share (1) | $0.12 | $0.24 | $0.16 |
Three Months Ended | ||||||||
March 31, 2020 | December 31, 2019 | March 31, 2019 | ||||||
(In thousands) | ||||||||
Net income (loss) | $216,565 | ($23,543) | ($19,543) | |||||
(Gain) loss on derivative contracts | (251,969) | 30,694 | 67,260 | |||||
Gain (loss) on commodity derivative settlements, net | 25,126 | (3,353) | (290) | |||||
Non-cash stock-based compensation expense | (2,972) | 3,390 | 6,426 | |||||
Merger and integration expense | 15,830 | 68,420 | — | |||||
Other (income) expense | (1,029) | 145 | 157 | |||||
Income tax (benefit) expense | 64,048 | 5,857 | (5,149) | |||||
Interest expense | 20,478 | 689 | 738 | |||||
Depreciation, depletion and amortization | 131,463 | 63,198 | 60,913 | |||||
Loss on extinguishment of debt | — | 4,881 | — | |||||
Adjusted EBITDA (1) | $217,540 | $150,378 | $110,512 |
Adjusted Discretionary Cash Flow. Operating cash flow was $191.7 million and adjusted discretionary cash flow, a non-GAAP measure(1), was $176.9 million for the three months ended March 31, 2020. Adjusted discretionary cash flow is reconciled to operating cash flow in the following table:
Three Months Ended | ||||||||
March 31, 2020 | December 31, 2019 | March 31, 2019 | ||||||
(In thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $216,565 | ($23,543) | ($19,543) | |||||
Adjustments to reconcile net income to cash provided by | ||||||||
Depreciation, depletion and amortization | 131,463 | 63,198 | 60,913 | |||||
Amortization of non-cash debt related items | 407 | 689 | 738 | |||||
Deferred income tax (benefit) expense | 64,048 | 5,857 | (5,149) | |||||
(Gain) loss on derivatives, net of settlements | (251,969) | 30,694 | 67,260 | |||||
Cash (paid) received for commodity derivative settlements, net | 2,613 | (3,353) | (290) | |||||
(Gain) loss on sale of other property and equipment | — | (126) | 28 | |||||
Non-cash stock-based compensation expense | (2,972) | 3,417 | 6,426 | |||||
Non-cash loss on early extinguishment of debt | — | 4,881 | — | |||||
Merger and integration expense | 15,830 | 68,420 | — | |||||
Other, net | 890 | — | — | |||||
Adjusted discretionary cash flow (1) | $176,875 | $150,134 | $110,383 | |||||
Changes in working capital | 31,404 | 58,587 | (33,864) | |||||
Payments to settle asset retirement obligations | — | (2,723) | (664) | |||||
Merger and integration expense | (15,830) | (68,420) | — | |||||
Payments to settle vested liability share-based awards | (754) | — | (1,296) | |||||
Net cash provided by operating activities | $191,695 | $137,578 | $74,559 |
Adjusted Total Revenue. Adjusted total revenue(1) for the three months ended March 31, 2020 was $315.0 million and is reconciled to total operating revenues in the following table:
Three Months Ended | |||||||||
March 31, 2020 | December 31, 2019 | March 31, 2019 | |||||||
(In thousands) | |||||||||
Operating Revenues | |||||||||
Oil | $265,767 | $183,071 | $141,098 | ||||||
Natural gas | 6,029 | 10,949 | 11,949 | ||||||
Natural gas liquids | 18,123 | 2,075 | — | ||||||
Total operating revenues | $289,919 | $196,095 | $153,047 | ||||||
Gain (loss) on commodity derivative settlements, net | 25,126 | (3,353) | (290) | ||||||
Adjusted total revenue | $315,045 | $192,742 | $152,757 |
Callon Petroleum Company | ||||||
March 31, 2020 | December 31, 2019 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $14,800 | $13,341 | ||||
Accounts receivable, net | 93,006 | 209,463 | ||||
Fair value of derivatives | 224,665 | 26,056 | ||||
Other current assets | 24,280 | 19,814 | ||||
Total current assets | 356,751 | 268,674 | ||||
Oil and natural gas properties, full cost accounting method: | ||||||
Evaluated properties | 5,036,095 | 4,682,994 | ||||
Unevaluated properties | 1,809,104 | 1,986,124 | ||||
Total oil and natural gas properties, net | 6,845,199 | 6,669,118 | ||||
Operating lease right-of-use assets | 56,050 | 63,908 | ||||
Other property and equipment, net | 33,216 | 35,253 | ||||
Deferred tax asset | 51,250 | 115,720 | ||||
Deferred financing costs | 21,383 | 22,233 | ||||
Fair value of derivatives | 1,983 | 9,216 | ||||
Other assets, net | 14,129 | 10,716 | ||||
Total assets | $7,379,961 | $7,194,838 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable and accrued liabilities | $525,326 | $511,622 | ||||
Operating lease liabilities | 37,686 | 42,858 | ||||
Fair value of derivatives | 4,851 | 71,197 | ||||
Other current liabilities | 15,905 | 26,570 | ||||
Total current liabilities | 583,768 | 652,247 | ||||
Long-term debt | 3,250,912 | 3,186,109 | ||||
Operating lease liabilities | 35,746 | 37,088 | ||||
Asset retirement obligations | 50,531 | 48,860 | ||||
Deferred tax liability | — | — | ||||
Fair value of derivatives | 4,257 | 32,695 | ||||
Other long-term liabilities | 11,844 | 14,531 | ||||
Total liabilities | 3,937,058 | 3,971,530 | ||||
Commitments and contingencies | ||||||
Stockholders' equity: | ||||||
Common stock, $0.01 par value, 525,000,000 shares authorized; 396,738,180 and | 3,967 | 3,966 | ||||
Capital in excess of par value | 3,201,105 | 3,198,076 | ||||
Retained earnings | 237,831 | 21,266 | ||||
Total stockholders' equity | 3,442,903 | 3,223,308 | ||||
Total liabilities and stockholders' equity | $7,379,961 | $7,194,838 |
Callon Petroleum Company | |||||
Three Months Ended March 31, | |||||
2020 | 2019 | ||||
Operating revenues: | |||||
Oil | $265,767 | $141,098 | |||
Natural gas | 6,029 | 11,949 | |||
Natural gas liquids | 18,123 | — | |||
Total operating revenues | 289,919 | 153,047 | |||
Operating Expenses: | |||||
Lease operating | 52,383 | 24,067 | |||
Production and ad valorem taxes | 19,680 | 10,813 | |||
Gathering, transportation and processing | 14,378 | — | |||
Depreciation, depletion and amortization | 131,463 | 60,184 | |||
General and administrative | 8,325 | 14,777 | |||
Merger and integration expenses | 15,830 | — | |||
Other operating | — | 157 | |||
Total operating expenses | 242,059 | 109,998 | |||
Income From Operations | 47,860 | 43,049 | |||
Other (Income) Expenses: | |||||
Interest expense, net of capitalized amounts | 20,478 | 738 | |||
(Gain) loss on derivative contracts | (251,969) | 67,260 | |||
Other income | (1,262) | (257) | |||
Total other (income) expense | (232,753) | 67,741 | |||
Income (Loss) Before Income Taxes | 280,613 | (24,692) | |||
Income tax (expense) benefit | (64,048) | 5,149 | |||
Net Income (Loss) | 216,565 | (19,543) | |||
Preferred stock dividends | — | (1,824) | |||
Income (Loss) Available to Common Stockholders | $216,565 | ($21,367) | |||
Income (Loss) Available to Common Stockholders Per Common Share: | |||||
Basic | $0.55 | ($0.09) | |||
Diluted | $0.55 | ($0.09) | |||
Weighted Average Common Shares Outstanding: | |||||
Basic | 396,682 | 227,784 | |||
Diluted | 396,836 | 227,784 |
Callon Petroleum Company | |||||
Three Months Ended March 31, | |||||
2020 | 2019 | ||||
Cash flows from operating activities: | |||||
Net income (loss) | $216,565 | ($19,543) | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation, depletion and amortization | 131,463 | 60,913 | |||
Amortization of non-cash debt related items | 407 | 738 | |||
Deferred income tax (benefit) expense | 64,048 | (5,149) | |||
(Gain) loss on derivative contracts | (251,969) | 67,260 | |||
Cash (paid) received for commodity derivative settlements | 2,613 | (290) | |||
Loss on sale of other property and equipment | — | 28 | |||
Non-cash expense related to equity share-based awards | 3,776 | 4,545 | |||
Change in the fair value of liability share-based awards | (6,748) | 1,881 | |||
Payments to settle asset retirement obligations | — | (664) | |||
Payments for cash-settled restricted stock unit awards | (754) | (1,296) | |||
Other, net | 890 | — | |||
Changes in current assets and liabilities: | |||||
Accounts receivable | 115,873 | (5,390) | |||
Other current assets | (781) | (2,294) | |||
Current liabilities | (83,688) | (26,003) | |||
Other | — | (177) | |||
Net cash provided by operating activities | 191,695 | 74,559 | |||
Cash flows from investing activities: | |||||
Capital expenditures | (224,448) | (193,211) | |||
Acquisitions | — | (27,947) | |||
Proceeds from sale of assets | 10,240 | 13,879 | |||
Cash paid for settlements of contingent consideration arrangements, net | (40,000) | — | |||
Other, net | (158) | — | |||
Net cash used in investing activities | (254,366) | (207,279) | |||
Cash flows from financing activities: | |||||
Borrowings on senior secured revolving credit facility | 4,291,000 | 220,000 | |||
Payments on senior secured revolving credit facility | (4,226,000) | (90,000) | |||
Payment of preferred stock dividends | — | (1,824) | |||
Payment of deferred financing costs | (275) | — | |||
Tax withholdings related to restricted stock units | (313) | (1,025) | |||
Other, net | (282) | — | |||
Net cash provided by financing activities | 64,130 | 127,151 | |||
Net change in cash and cash equivalents | 1,459 | (5,569) | |||
Balance, beginning of period | 13,341 | 16,051 | |||
Balance, end of period | $14,800 | $10,482 |
Non-GAAP Financial Measures and Reconciliations
This news release refers to non-GAAP financial measures such as "Free Cash Flow," "Adjusted Discretionary Cash Flow," "Adjusted G&A," "Adjusted Income," "Adjusted EBITDA" and "Adjusted Total Revenue." These measures, detailed below, are provided in addition to, and not as an alternative for, and should be read in conjunction with, the information contained in our financial statements prepared in accordance with GAAP (including the notes), included in our SEC filings and posted on our website.
About Callon Petroleum Company
Callon Petroleum is an independent oil and natural gas company focused on the acquisition, exploration and development of high-quality assets in the leading oil plays of South and West Texas.
This news release is posted on the Company's website at www.callon.com and will be archived there for subsequent review under the "News" link on the top of the homepage.
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include all statements regarding the Company's wells anticipated to be drilled and placed on production; future levels of drilling activity and associated production and cash flow expectations; the Company's production guidance and capital expenditure forecast; estimated reserve quantities and the present value thereof; anticipated returns and financial position; and the implementation of the Company's business plans and strategy, as well as statements including the words "believe," "expect," "may," "will," "forecast," "outlook," "plans" and words of similar meaning. These statements reflect the Company's current views with respect to future events and financial performance based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. No assurances can be given, however, as of this date, that these events will occur or that these projections will be achieved, and actual results could differ materially from those projected as a result of certain factors. Any forward-looking statement speaks only as of the date of which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. Some of the factors which could affect our future results and could cause results to differ materially from those expressed in our forward-looking statements include the volatility of oil, natural gas and natural gas liquids ("NGLs") prices or a prolonged period of low oil, natural gas or NGLs prices and the effects of actions by, or disputes among or between significant oil and natural gas producing countries, general economic conditions, including the availability of credit and access to existing lines of credit; the effects of excess supply of oil and natural gas resulting from reduced demand caused by the COVID-19 pandemic and the actions of certain oil and natural gas producing countries; our ability to drill and complete wells; operational, regulatory and environment risks; cost and availability of equipment and labor; our ability to finance our activities; the ultimate timing, outcome and results of integrating the operations of Carrizo Oil & Gas, Inc. and Callon; and the ability of the combined company to realize anticipated synergies and other benefits in the timeframe expected or at all; and other risks more fully discussed in our filings with the Securities and Exchange Commission (the "SEC"), including our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q and subsequent Quarterly Reports on Form 10-Q, available on our website or the SEC's website at www.sec.gov.
Contact Information
Mark Brewer
Director of Investor Relations
Callon Petroleum Company
ir@callon.com
(281) 589-5200
1) | See "Non-GAAP Financial Measures and Reconciliations" included within this release for related disclosures and calculations | |
2) | Free cash flow ("FCF") defined as Adjusted EBITDA minus the sum of operational capital, capitalized interest, capitalized G&A, and interest expense. Adjusted EBITDA is a non-GAAP financial measure; please refer to the Important Disclosures for a definition on Adjusted EBITDA as calculated by Callon and the Appendix for reconciliation. |
View original content:http://www.prnewswire.com/news-releases/callon-petroleum-company-announces-first-quarter-2020-results-301056316.html
SOURCE Callon Petroleum Company
Copyright 2020 PR Newswire
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