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2004 First Quarter Record Results
today reported record results of operations for
the three-month period ended
For
the three-month period ended March 31, 2004, Callon reported net income of $2.1
million, or $0.12 per diluted share after charges of $2.5 million, or $0.17 per
diluted share, attributable to early extinguishment of debt and $2.6 million,
or $0.18 per diluted share, resulting from the retirement of two executive
officers of the company. The company
reported a net income of $1.4 million, or $0.08 per share on a diluted basis,
for the same period in 2003.
Oil and gas sales totaled
$32 million from average production of 63 million cubic feet of natural gas
equivalent per day (MMcfe/d). This corresponds to sales of $21 million from
average daily production of 41 MMcfe/d during the
same period in 2003. During the first
quarter of 2004, natural gas represented approximately 54 percent of the company’s
total production versus 93 percent for 2003.
The average price received per thousand cubic feet of natural gas in the
first quarter of 2004 increased to $5.94 compared to $5.79 during the first
quarter of 2003, while the average price received per barrel of oil in the
first quarter of 2004 decreased to $30.67 compared to $31.32 during the same
period a year earlier.
For the three months ended
Non-GAAP Financial Measure - This news
release refers to a non-GAAP financial measure as “discretionary cash
flow.” Callon believes this measure is a
financial indicator of the company’s ability to fund capital expenditures and
service debt. Callon also believes this
non-GAAP financial measure of cash flow is useful information to investors
because it is widely used by professional research analysts in the valuation,
comparison, rating and investment recommendations of companies within the oil
and gas exploration and production industry.
Many investors use the published research of these analysts in making
their investment decisions. Discretionary
cash flow should not be considered an alternative to net cash provided by
operating activities or net income as defined by GAAP.
Reconciliation
Non-GAAP Financial Measure: |
Three
Months Ended |
|
|
(In thousands)
|
March 31, |
|
|
|
2004 2003 |
|
|
Discretionary cash flow |
$17,899 |
$12,153 |
|
Net working capital changes and other
changes |
4 |
(1,181) |
|
Net cash flow provided by operating
activities |
$17,903 |
$10,972 |
|
Consolidated
Condensed Balance Sheets: |
March 31, |
December 31, |
|
(In
thousands) |
2004 |
2003 |
|
|
|
|
|
Cash
and cash equivalents |
$3,391 |
$8,700 |
|
Restricted
cash* |
--- |
63,345 |
|
Oil
and gas properties, net |
395,712 |
390,163 |
|
All
other assets |
37,389 |
33,824 |
|
Total assets |
$436,492 |
$496,032 |
|
|
|
|
|
Long-term
debt including current maturities* |
$237,867 |
$308,108 |
|
All
other liabilities |
66,636 |
54,663 |
|
Stockholders’
equity |
131,989 |
133,261 |
|
Total liabilities and stockholders’
equity |
$436,492 |
$496,032 |
|
|
|
|
|
* On which were included
in long-term debt including current maturities above as of |
||
|
Production and Price
Information: |
Three Months Ended |
|
|
|
March 31, |
|
|
|
2004 |
2003 |
|
Production: |
|
|
|
Oil (MBbls) |
439 |
45 |
|
Gas (MMcf) |
3,108 |
3,427 |
|
Total Production (MMcfe) |
5,743
|
3,697 |
|
Average daily (MMcfe) |
63.1 |
41.1 |
|
|
|
|
|
Average
prices: |
|
|
|
Oil ($/Bbl) |
$30.67 |
$31.32 |
|
Gas ($/Mcf) |
$
5.94 |
$ 5.79 |
|
Gas equivalent ($/Mcfe) |
$
5.56 |
$ 5.75 |
Callon
Petroleum Company
Consolidated
Statements of Operations
(Unaudited)
(In
thousands, except share amounts)
|
|
Three Months Ended |
|
||
|
|
March 31, |
|
||
|
|
2004 |
|
2003 |
|
|
Operating
revenues: |
|
|
|
|
|
Oil and gas sales |
$ 31,919 |
|
$ 21,268 |
|
|
Total operating revenues |
31,919 |
|
21,268 |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
Lease operating expenses |
5,168 |
|
2,832 |
|
|
Depreciation, depletion and amortization |
11,835 |
|
7,402 |
|
|
General and administrative |
3,793 |
|
1,235 |
|
|
Accretion expense |
816 |
|
715 |
|
|
Loss on mark-to-market commodity derivative
contracts |
76 |
|
138 |
|
|
Total operating expenses |
21,688 |
|
12,322 |
|
|
|
|
|
|
|
|
Income from operations |
10,231 |
|
8,946 |
|
|
Other
(income) expenses: |
|
|
|
|
|
Interest expense |
5,891 |
|
7,181 |
|
|
Other income |
(86) |
|
(83) |
|
|
Loss on early extinguishment of debt |
2,472 |
|
-- |
|
|
Total other (income) expenses |
8,277 |
|
7,098 |
|
|
|
|
|
|
|
|
Income before income taxes |
1,954 |
|
1,848 |
|
|
Income tax expense (benefit) |
-- |
|
647 |
|
|
Income before Medusa Spar LLC and cumulative
effect of change in |
|
|
|
|
|
accounting principle |
1,954 |
|
1,201 |
|
|
Income from Medusa Spar LLC, net of tax |
148 |
|
-- |
|
|
Income before cumulative effect of change
in accounting principle |
2,102 |
|
1,201 |
|
|
|
|
|
|
|
|
Cumulative effect of change in accounting
principle, net of tax |
-- |
|
181 |
|
|
|
|
|
|
|
|
Net income |
2,102 |
|
1,382 |
|
|
Preferred Stock dividends |
319 |
|
319 |
|
|
Net income available to Common Stock |
$ 1,783 |
|
$ 1,063 |
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
Basic |
|
|
|
|
|
Net income available to Common Stock
before cumulative |
|
|
|
|
|
effect of change in accounting
principle |
$ 0.13 |
|
$ 0.07 |
|
|
Cumulative effect of change in accounting
principle, net of tax |
-- |
|
0.01 |
|
|
Net income available to Common Stock |
$ 0.13 |
|
$ 0.08 |
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
Net income available to Common Stock
before cumulative |
|
|
|
|
|
effect of change in accounting
principle | ||||