For further information contact
John S. Weatherly, CFO 1-800-451-1294
FOR IMMEDIATE
RELEASE
Callon Petroleum Company Reports Fourth Quarter,
Year-end Results for 2001
Natchez, MS (April 1, 2002)—Callon Petroleum Company (NYSE: CPE/CPE.PrA) today reported the results of its operations for the year and three-month period ended December 31, 2001.
For the three-month period ended
December 31, 2001 the company reported a net loss of $0.63 per diluted share
compared to net income of $0.24 per diluted share for the same period of 2000. The fourth quarter results for 2001 include a
non-cash charge of $9.2 million ($6.0 million net of tax), or $0.45 per diluted
share, related to Enron derivatives.
Excluding such charge, the fourth quarter net loss was $2.4 million or
$0.18 per diluted share.
Operating results for the
three-month period ended December 31, 2001 include oil and gas sales of $10.4
million from average production of 41.2 million cubic feet of natural gas
equivalent per day (MMcfe/d). This
corresponds to sales of $16.6 million from average daily production of 35.5
MMcfe/d during the same period of 2000.
For the year ended December 31,
2001, the company reported net income of $1.8 million, or $0.04 per diluted
share. Excluding the non-cash, Enron
related charge, net income for 2001 was $7.8 million, or $0.49 per diluted
share. At year-end 2000, the company reported net income of $12.5 million, or
$0.80 per diluted share.
Operating results for the year ended December 31, 2001 include oil and gas sales of $60.0 million from average production of 41.7 MMcfe/d. This corresponds to sales of $56.3 million from average daily production of 41.9 MMcfe/d during 2000.
At December
31, 2001, the company’s independent petroleum engineers estimated the present
value of the company’s proved reserves, excluding income taxes, using constant
prices in effect as of year-end 2001 and discounted at 10%, to be $272
million. Prices used in determining
this present value averaged $2.58 per thousand cubic feet of natural gas and
$18.92 per barrel of oil. Proved
reserves at December 31, 2001 were estimated to be 303 billion cubic feet of
natural gas equivalent (Bcfe) and included 121 billion cubic feet of natural
gas and 30 million barrels of crude oil.
.
Consolidated
Statements of Operations:
(In
thousands, except per share amounts)
Three Months
Ended Twelve Months Ended
December 31 December 31
2001 2000
2001 2000
Revenues:
Oil and gas sales $10,363 $
16,590 $60,010 $ 56,310
Interest and other 150 231 1,742 1,767
Total revenues 10,513 16,821 61,752 58,077
Costs and expenses:
Lease operating expenses 2,289 2,890
11,252 9,339
Depreciation, depletion
and amortization 6,308 4,268
21,081 17,153
General and
administrative,
net 1,090 1,191 4,635 4,155
Write-down of Enron
derivatives 9,186 -0- 9,186
-0-
Interest expense 4,063 2,471 12,805
8,420
Total costs and expenses 22,936 10,820
58,959 39,067
Income (loss) from operations
(12,423) 6,001 2,793 19,010
Income tax expense (benefit)
( 4,349) 2,040 977 6,463
Net income (loss) (
8,074) 3,961 1,816 12,547
Preferred stock dividends
319 745 1,277 2,403
Net income (loss) available
to common shares
$(8,393) $ 3,216 $ 539 $
10,144
Net income (loss) per
common share:
Basic $ (0.63) $ 0.25 $
0.04 $ 0.82
Diluted $ (0.63) $ 0.24 $
0.04 $ 0.80
Shares used in computing net income
(loss) per common share:
Basic 13,295 13,120 13,273 12,420
Diluted 13,295 13,551 13,366 12,745
Consolidated Condensed
Balance Sheets:
(In thousands)
December 31, December 31,
2001 2000
Cash
and cash equivalents $ 6,887 $
11,876
Oil
and gas properties, net
343,158
258,613
All
other assets 22,050 31,080
Total assets $372,095 $301,569
Long-term
debt
$199,078
$134,000
All
other liabilities
25,793 31,241
Stockholders’
equity 147,224 136,328
Total liabilities and
stockholders’ equity $372,095 $301,569
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
Other Financial Information:
Cashflow
from operations before
Changes in current assets and
liabilities (000’s) $4,343 $10,884
$37,115 $38,711
Cashflow
per share $ 0.30 $
0.75 $ 2.68 $ 2.85
EBITDA
(000’s) $7,531 $13,025 $47,435 $46,097
Production and Price Information:
Production:
Oil (MBbls) 77 46 273
232
Gas (MMcf) 3,328 2,987 13,566
13,943
Gas equivalent (MMcfe) 3,792 3,262
15,206 15,334
Average daily
(MMcfe) 41.2 35.5 41.7
41.9
Average
prices:
Oil ($/Bbl) $17.73 $29.76 $22.95
$27.88
Gas ($/Mcf) $ 2.57 $ 5.10 $ 3.96 $
3.57
Gas equivalent
($/Mcfe) $ 2.62 $ 5.09 $ 3.95 $
3.67
Callon Petroleum Company
Guidance Estimates
(In
thousands, except per production unit amounts)
Guidance
Guidance
Description 1Q 2002 2002
Production volumes (MMcfe/d) 35 - 37 42.5 – 46.5
Percent
Gas
90% 92%
Average
costs (per Mcfe):
Lease operating
expense $ 0.89 - $
0.86 $ 0.78 - $
0.72
General and
administrative expense $ 0.35 - $
0.34 $ 0.29 - $
0.27
Interest
expense $ 1.78 - $
1.72 $ 1.59 - $
1.45
Non-cash expenses
included above $ 0.41 - $
0.39 $ 0.32 - $
0.29
DD&A $ 1.64 $
1.64
Effective
tax rate
35% 35%
Share
data:
Basic weighted
average shares 13,300 13,300
Dilutive impact of
stock options
and
warrants
290 768
Dilutive impact of
conv.
preferred stock 1,366 1,366
The preceding guidance estimates contain assumptions
that we believe are reasonable. These
estimates are based on information that is available as of the date of this
news release. We are not undertaking
any obligation to update these estimates as conditions change or as additional
information becomes available.
This news release contains
projections and other 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. These projections and
statements reflect the company’s current views with respect to future events
and financial performance. No
assurances can be given, however, 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. 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:
·
general
economic conditions;
·
volatility
of oil and natural gas prices;
·
uncertainty
of estimates of oil and natural gas reserves;
·
impact
of competition;
·
availability
and cost of seismic, drilling and other equipment;
·
operating
hazards inherent in the exploration for and production of oil and natural gas;
·
difficulties
encountered during the exploration for and production of oil and natural gas;
·
difficulties
encountered in delivering oil and natural gas to commercial markets;
·
changes
in customer demand and producers’ supply;
·
uncertainty
of our ability to attract capital;
·
compliance
with, or the effect of changes in, the extensive governmental regulations
regarding the oil and natural gas business;
·
actions
of operators of our oil and gas properties;
·
weather
conditions; and
·
the
risk factors discussed in our filings with the Securities and Exchange
Commission, including those in our annual report for the year ended December
31, 2000 on Form 10-K.
The
preceding estimates reflect our review of continuing operations only. These estimates do not take into account any
material transactions such as sales of debt and equity securities, acquisitions
or divestitures of assets, and formations of joint ventures. We continually review these types of
transaction and may engage in one or more of these types of transactions
without prior notice.
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