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John S. Weatherly, CFO   1-800-451-1294

 

FOR IMMEDIATE RELEASE

 

Callon Petroleum Company Reports 

            First Quarter Results

           

            Natchez, MS (May 13, 2002)—Callon Petroleum Company (NYSE: CPE/CPE.PrA) today reported its results of operations for the quarter ending March 31, 2002.  

 

            For the first quarter of 2002 the company reported a net loss of $2,454,000, or a loss of $0.21 per diluted share.  This compares to the 2001 first quarter net income of $6,174,000, or  earnings of $0.41 per share on a diluted basis.

 

            Operating results for the three-month period ended March 31, 2002 include oil and gas sales of $11.1 million from average production of 37.3 million cubic feet of natural gas equivalent per day (MMcfe/d).  This corresponds to sales of $20.2 million from average daily production of 41.7 MMcfe/d during the same period of 2001.  The average price per thousand cubic feet of natural gas decreased by 57 percent to $2.34 compared to $5.46 during the same period a year earlier, while the average price per barrel of oil decreased to $18.65 compared to $26.62 during the first quarter of 2001.

 

            “With natural gas representing more than 90 percent of our production in the first quarter of both this year and last, the decline in realized prices had a substantial impact on reported results,” explains Fred Callon, president and CEO.  “The first quarter decline in production was, in large part, due to a shut-in of wells in conjunction with the installation of production facilities at Mobile Block 952.  We expect noticeably better quarterly results for the balance of this year.  The added production facilities in the Mobile Bay area now are in operation, and to date, natural gas prices have increased by 45 percent from first quarter levels.”

           

Callon Petroleum Company is engaged in the exploration, development, acquisition and operation of oil and gas properties primarily in the Gulf Coast region.

 

           

 

(MORE)

 

           


 

Consolidated Statements of Operations:

(In thousands, except per share amounts)

 

 

 

     Three Months Ended

 

               March 31,

 

         2002

           2001

Revenues:

 

 

   Oil and gas sales

$11,054

$20,177

   Interest and other

182

635

      Total revenues

11,236

20,812

Costs and expenses:

 

 

   Lease operating expenses

2,564

2,673

   Depreciation, depletion

 

 

      and amortization

5,588

4,897

   General and administrative, net

1,139

1,123

    Interest expense

5,720

2,621

      Total costs and expenses

15,011

11,314

 

 

 

Income (loss) from operations

(3,775)

9,498

Income tax expense (benefit)

(1,321)

3,324

Net income (loss)

(2,454)

6,174

Preferred stock dividends

319

319

 

 

 

Net income (loss) available to common shares

$(2,773)

$5,855

Net income (loss) per common share

 

 

   Basic

$(0.21)

$  0.44  

   Diluted

$(0.21)

$  0.41

 

 

 

Shares used in computing net income (loss)

 

 

per common share

 

 

   Basic

13,315

13,253

   Diluted

13,315

14,908

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Condensed Balance Sheets:

 

 

(In thousands)

 

 

 

March 31,

December 31,

 

2002

2001

 

 

 

Cash and cash equivalents

    $    3,579    

  $    6,887

Oil and gas properties, net

      364,366

    343,158

All other assets

        23,595

      22,050

      Total assets

    $391,540

  $372,095

 

 

 

Long-term debt

    $228,542

  $199,078

All other liabilities

        19,624

      25,793

Stockholders’ equity

      143,374

    147,224

      Total liabilities and stockholders’ equity

    $391,540

  $372,095

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Financial Information:

 

(In thousands, except per share amounts)

 

 

 

 

Three Months Ended

 

March 31,

 

2002

2001

 

 

 

Net cash flow from operations before changes

 

 

in current assets and liabilities

$   805

$14,891

 

 

 

Net cash flow per share

$  0.04

$    1.00

 

 

 

Weighted average shares outstanding

13,315

14,908

 

 

 

EBITDA

$5,397

$17,143

 

 

 

Production and Price Information:

 

 

 

 

 

Production:

 

 

   Oil (MBbls)

54

51

   Gas (MMcf)

3,029

3,444

   Gas equivalent (MMcfe)

3,353

3,751

   Average daily (MMcfe)

37.3

41.7

 

 

 

Average prices:

 

 

   Oil ($/Bbl)

$18.65

$  26.62

   Gas ($/Mcf)

$  2.34

$    5.46

   Gas equivalent ($/Mcfe)

$  2.42

$    5.38

 

 

                                                                                                                                                           

 

 

Second Quarter and Full Year 2002

Guidance Estimates

(In thousands, except per production unit amounts)

 

 

 

Guidance for 2nd Quarter 2002

Guidance for

Full Year 2002

Description:

 

 

 

 

 

Production volumes (MMcfe/d)

38 - 41

40 - 42

 

 

 

Percent Natural Gas

91%

92%

 

 

 

Average costs (per Mcfe):

 

 

   Lease operating expense

$0.80 - $0.75

$0.76 - $0.71

   General and administrative expense

$0.33 - $0.30

$0.32 - $0.29

   Interest expense

$1.83 - $1.71

$1.82 - $1.70

   Non-cash expenses included above

$0.47 - $0.44