Callon Petroleum Company Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Summary of Fair Value of Financial Instruments at Carrying and Fair Value

The carrying amount of borrowings outstanding under the Credit Facility approximates fair value as the borrowings bear interest at variable rates and are reflective of market rates. The following table presents the principal amounts of the Senior Notes with the fair values measured using quoted secondary market trading prices which are designated as Level 2 within the valuation hierarchy.


	September 30, 2023		December 31, 2022
	Principal Amount	Fair Value	Principal Amount	Fair Value
	(In thousands)


8.25% Senior Notes	$—	$—	$187,238	$186,719
6.375% Senior Notes	320,783	314,634	320,783	301,732
8.0% Senior Notes	650,000	650,800	650,000	616,935
7.5% Senior Notes	600,000	581,754	600,000	550,812
Total	$1,570,783	$1,547,188	$1,758,021	$1,656,198

Schedule of Fair Value of Assets Measured on Recurring Basis

The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022:


	September 30, 2023
	Level 1	Level 2	Level 3
	(In thousands)
Derivative Assets
Commodity derivative instruments	$—	$1,258	$—
Contingent consideration arrangements	—	21,680	—
Total net assets	$—	$22,938	$—
Derivative Liabilities
Commodity derivative instruments	$—	($59,576)	$—
Contingent consideration arrangements	—	(46,420)	—
Total net liabilities	$—	($105,996)	$—

	December 31, 2022
	Level 1	Level 2	Level 3
	(In thousands)
Commodity derivative assets	$—	$21,786	$—
Commodity derivative liabilities	$—	($29,612)	$—

Schedule of Fair Value of Liabilities Measured on Recurring Basis

The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022:


	September 30, 2023
	Level 1	Level 2	Level 3
	(In thousands)
Derivative Assets
Commodity derivative instruments	$—	$1,258	$—
Contingent consideration arrangements	—	21,680	—
Total net assets	$—	$22,938	$—
Derivative Liabilities
Commodity derivative instruments	$—	($59,576)	$—
Contingent consideration arrangements	—	(46,420)	—
Total net liabilities	$—	($105,996)	$—

	December 31, 2022
	Level 1	Level 2	Level 3
	(In thousands)
Commodity derivative assets	$—	$21,786	$—
Commodity derivative liabilities	$—	($29,612)	$—