Natchez, MS (April 20, 2001)-Callon Petroleum Company (NYSE: CPE/CPE.PrA) today reported the results of its operations for the quarter ending March 31, 2001.
For the first quarter of 2001 the company reported net income of $6,174,000 or $0.41 per diluted share. This compares to the 2000 first quarter net income of $1,164,000 or $0.05 per share on a diluted basis.
Operating results for the three-month period ended March 31, 2001 include oil and gas sales of $20.2 million from average production of 41.7 million cubic feet of natural gas equivalent per day (MMcfe/d). This corresponds to sales of $9.4 million from average daily production of 38.2 MMcfe/d during the same period of 2000. The average price per thousand cubic feet of natural gas increased by 117 percent to $5.46 compared to $2.52 during the same period a year earlier, while the average price per barrel of oil increased slightly to $26.62 compared to $26.42 during the first quarter of 2000.
Callon Petroleum Company is engaged in the acquisition, development, exploration and operation of oil and gas properties primarily in the Gulf Coast region.
Callon Petroleum Company
Summary Financial Information
(In thousands, except per share amounts)
Three Months Ended
March 31,
2001 2000
____ ____
Consolidated Statements of Operations Data:
___________________________________________
Revenues:
Oil & gas sales $20,177 $ 9,448
Interest and other 635 670
______ ______
Total revenues 20,812 10,118
______ ______
Costs and Expenses:
Lease operating expenses 2,673 1,820
Depreciation, depletion
and amortization 4,897 3,717
General and administrative, net 1,123 1,042
Interest expense 2,621 1,775
______ ______
Total costs and expenses 11,314 8,354
______ ______
Income from operations 9,498 1,764
Income tax expense 3,324 600
______ ______
Net income 6,174 1,164
Preferred stock dividends 319 553
______ ______
Net income available to common shares $ 5,855 $ 611
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Net income per common share:
Basic $ 0.44 $ 0.05
Diluted $ 0.41 $ 0.05
Shares used in computing net income per common share:
Basic 13,253 12,156
Diluted (1) 14,908 12,354
(1) Diluted shares for 2001 includes 1,366,000 shares of common stock because of the dilutive impact of the convertible preferred stock in the first quarter of 2001. The conversion of the preferred stock was not included in the 2000 diluted calculation due to its antidilutive impact on earnings per share.
Consolidated Condensed Balance Sheet Data:
__________________________________________ March 31, December 31,
2001 2000
____ ____
Cash and cash equivalents $ 6,456 $ 11,876
Oil and gas properties 277,221 258,613
All other assets 28,423 31,080
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Total assets $ 312,100 $ 301,569
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Long-term debt $ 140,000 $ 134,000
All other liabilities 30,063 31,241
Stockholders' equity 142,037 136,328
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Total liabilities and stockholders' equity $ 312,100 $ 301,569
Three Months Ended
March 31,
2001 2000
____ ____
($ in thousands except per share amounts)
Other Financial Information:
____________________________
Net cashflow from operations before changes
in current assets and liabilities $ 14,891 $ 5,878
Net cashflow per share $ 1.00 $ 0.43
Weighted average shares outstanding 14,908 12,354
EBITDA $ 17,512 $ 7,653
Production and price information:
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Production:
Oil (MBbls) 51 61
Gas (Mcf) 3,444 3,107
Gas equivalent (Mcfe) 3,751 3,471
Average daily (MMcfe) 41.7 38.2
Average prices:
Oil ($/Bbl) $ 26.62 $ 26.42
Gas ($/Mcf) $ 5.46 $ 2.52
Gas equivalent ($/Mcfe) $ 5.38 $ 2.72
Callon Petroleum Company
Second Quarter and Full Year 2001
Guidance Estimates
(In thousands, except per production unit amounts)
Guidance Guidance
for Second for Full
Description Quarter 2001 Year 2001
____________ _________
Production volumes (MMcfe/d) 43 - 45 50 - 52
Percent Gas 90% 90%
Average costs (per Mcfe):
Lease operating expense $ 0.67 - $ 0.70 $ 0.61 - $ 0.64
General and administrative expense $ 0.28 - $ 0.29 $ 0.24 - $ 0.26
Interest expense $ 0.70 - $ 0.74 $ 0.65 - $ 0.67
DD&A $ 1.28 - $ 1.30 $ 1.28 - $ 1.30
Volumetric production payment:
Committed volume (MMcf) 580 2,237
Effective price (per Mcf) $2.08 $2.08
Natural gas hedges (collars):
Volume (MMcf) 1,300 4,400
Average floor (per Mcf) $4.39 $4.73
Average ceiling (per Mcf) $5.50 $5.91
Effective tax rate 35% 35%
Basic weighted average shares 13,253 13,253
Diluted computation :
Basic weighted average shares 13,253 13,253
Dilutive impact of stock options 290 290
Dilutive impact of conv. preferred stock 1,365 1,365
______ ______
Diluted weighted average shares 14,908 14,908
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.
For further information contact: Terry Trovato P.O. Box 1287 Natchez, MS 39121 (601) 442-1601terryt@callon.com