For further information contact
John S. Weatherly, CFO 1-800-451-1294
First Quarter Results
Natchez, MS (May 13, 2003)—Callon Petroleum Company (NYSE: CPE/CPE.PrA) today reported its results of operations for the quarter ended March 31, 2003.
For the first quarter of 2003 the company reported net income of $1,382,000, or earnings of $0.08 per diluted share after the cumulative effect of change in accounting principle related to Statement of Financial Accounting Standards (SFAS) No.143 (“Accounting for Asset Retirement Obligations”). This compares to the 2002 first quarter net loss of $2,454,000, or a loss of $0.21 per share on a diluted basis.
On January 1, 2003, the company adopted SFAS No. 143, which required
companies to record the fair value of a liability for legal obligations associated
with the retirement of tangible long-lived assets and the associated asset
retirement costs. As a result, the
impact of adopting the statement resulted in a gain of $181,000, net of tax,
which was reported as the cumulative effect of change in accounting principle.
Net cash flow provided by operating activities before changes in operating assets and liabilities for the first quarter of 2003 was $12.2 million, or $0.83 per diluted share. The schedule below provides for a reconciliation of net cash flow provided by operating activities to net cash flow provided by operating activities before changes in operating assets and liabilities.
During the first three months of 2003, average daily production, as well as prices realized for crude oil and natural gas, increased when compared with the same period of last year.
Operating results for the three-month period ended March 31, 2003 include oil and gas sales of $21.3 million from average daily production of 41.1 million cubic feet of natural gas equivalent per day (MMcfe/d). This corresponds to sales of $11.1 million from average daily production of 37.3 MMcfe/d during the same period of 2002. The average price per thousand cubic feet of natural gas increased to $5.79 compared to $2.34 during the same period a year earlier, while the average price per barrel of oil increased to $31.32 compared to $18.65 during the first quarter of 2002.
The financial and other statistical guidance presented during the company’s conference call will be available on the company’s homepage. In addition, any reconciliation required pursuant to Regulation G of the Securities Exchange Act of 1934 will also be available on the company’s homepage. This information can be accessed by logging onto www.callon.com, clicking on the “Investor Info” button and selecting “2003 Guidance and SEC Regulation G Disclosure.”
Callon Petroleum Company is engaged in the exploration, development, acquisition and operation of oil and gas properties primarily in the Gulf Coast region.
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Consolidated Statement of Operations |
Three Months Ended
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(In thousands, except per share amounts) |
March 31, |
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2003 |
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2002 |
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Operating revenues: |
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Oil and gas sales |
$21,268 |
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$11,054 |
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Operating expenses: |
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Lease operating expenses |
2,832 |
|
2,564 |
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Depreciation, depletion and amortization |
7,402 |
|
5,588 |
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Accretion expense* |
715 |
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-- |
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General and administrative |
1,235 |
|
1,139 |
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Loss on mark-to-market commodity derivative contract** |
138 |
|
388 |
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Total operating expenses |
12,322 |
|
9,679 |
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Income from operations |
8,946 |
|
1,375 |
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Other (income) expenses: |
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Interest |
7,181 |
|
5,720 |
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Other income |
(83) |
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(570) |
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Total other expenses |
7,098 |
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5,150 |
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Income (loss) before income taxes |
1,848 |
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(3,775) |
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Income tax expense (benefit) |
647 |
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(1,321) |
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Income (loss) before cumulative effect of change in accounting principle |
1,201 |
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(2,454) |
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Cumulative effect of change in accounting principle, net of tax* |
181 |
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-- |
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Net income (loss) |
1,382 |
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(2,454) |
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Preferred stock dividends |
319 |
|
319 |
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Net income (loss) available to common shares |
$ 1,063 |
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$ (2,773) |
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Net income (loss) per common share |
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Basic: |
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Net income (loss) available to common before cumulative effect of change |
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in accounting principle |
$ 0.07 |
|
$ (0.21) |
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Cumulative effect of change in accounting principle, net of tax* |
0.01 |
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-- |
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Net income (loss) available to common |
$ 0.08 |
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$ (0.21) |
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Diluted: |
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Net income (loss) available to common before cumulative effect of change |
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in accounting principle |
$ 0.07 |
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$ (0.21) |
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Cumulative effect of change in accounting principle, net of tax* |
0.01 |
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-- |
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Net income (loss) available to common |
$ 0.08 |
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$ (0.21) |
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Shares used in computing net income (loss) per common share: |
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Basic |
13,599 |
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13,315 |
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Diluted |
14,192 |
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13,315 |
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* Associated with the adoption of SFAS 143 |
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** Associated with SFAS 133 |
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Consolidated Condensed Balance Sheets: |
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(In thousands) |
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March 31, |
December 31, |
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2003 |
2002 |
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Cash and cash equivalents |
$ 2,713 |
$ 5,807 |
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Oil and gas properties, net* |
404,205 |
377,661 |
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All other assets |
36,815 |
27,145 |
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Total
assets |
$443,733 |
$410,613 |
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Long-term debt |
$250,392 |
$249,589 |
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All other liabilities* |
51,371 |
20,064 |
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Stockholders’ equity |
141,970 |
140,960 |
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Total
liabilities and stockholders’ equity |
$443,733 |
$410,613 |
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*Impacted by the adoption
of SFAS No. 143 on January 1, 2003 |
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