For further information contact
John S. Weatherly, CFO 1-800-451-1294
FOR IMMEDIATE RELEASE
Callon Petroleum Company Issues Guidance
For Second Quarter, Full Year 2004
issuing guidance for the second quarter and full year 2004. The guidance, found in the table below, is
expressed in ranges for the detailed components.
Second
Quarter and Full Year 2004
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Guidance Estimates |
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(In thousands, except per production unit amounts) |
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Guidance for 2nd
Quarter 2004 |
Guidance for Full Year 2004 |
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Estimated production volumes: |
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Natural gas
(Bcf) |
3.3 – 3.6 |
12.0 – 13.5 |
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Crude oil (Mbo) |
490 – 530 |
2,100 – 2,400 |
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MMcfe/d |
68 – 74 |
67 – 76 |
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Hedges outstanding: |
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Natural Gas
Volumes Hedged – Thousand mmBtu |
1,600 |
5,500 |
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Natural Gas
Average Floor – Price per mmBtu |
$5.00 |
$5.01 |
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Natural Gas
Average Ceiling – Price per mmBtu |
$6.05 |
$6.19 |
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Crude Oil
Volumes Hedged – Thousands of Barrels |
315 |
1,185 |
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Crude Oil
Average Floor – Price per Barrel |
$30.08 |
$30.08 |
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Crude Oil
Average Ceiling – Price per Barrel |
$31.65 |
$31.55 |
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Lease operating expenses: |
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Cash |
$6,000 - $6,600 |
$23,500 - $25,500 |
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Non-cash |
-- |
-- |
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Total |
$6,000 - $6,600 |
$23,500 - $25,500 |
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General and administrative expenses: |
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Cash |
$900 - $1,000 |
$3,500 -
$3,800 |
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Non-cash |
300
- 350 |
1,400 - 1,500 |
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Total |
$1,200
- $1,350 |
$4,900 - $5,300 |
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Interest expense: |
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Cash |
$4,900 - $5,400 |
$20,000 -
$21,500 |
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Non-cash |
400
- 450 |
1,700 - 1,800 |
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Total |
$5,300 - $5,850 |
$21,700 -
$23,300 |
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Medusa Spar LLC, net of tax |
$300 - $350 |
$1,200 - $1,300 |
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DD & A – Oil and gas properties |
$12,700 - $14,000 |
$51,000 -
$55,000 |
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Accretion expense |
$725 - $800 |
$3,000
- $3,200 |
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Loss on Early Extinguishment of Debt |
$0 |
$2,472 |
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Early Retirement of two executive officers |
$0 |
$2,624 |
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Accrual income tax rate |
0% |
0% |
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Cash income tax rate |
0% |
0% |
Callon Petroleum Company has been engaged
in the exploration, development, acquisition and operation of oil and gas
properties in the
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 but not limited to those in our Annual Report
for the year ended December 31, 2003 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 transactions and may engage in one or more of
these types of transactions without prior notice.
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