For further information contact
Rodger Smith, 1-800-451-1294
Callon Petroleum Company Reports Results For
Second Quarter, First Six Months of 2005
Second Quarter 2005 Net Income. Net income for the quarter was $9.3 million, or $0.46 per diluted share, after a non-cash charge of $928,000, or $0.03 per diluted share, attributable to the accelerated vesting of performance shares of common stock for an executive officer and two directors of the company, two of whom are deceased. The company reported net income of $9.7 million, or $0.58 per share on a diluted basis, for the same period in 2004.
Second Quarter 2005 Operating Results. Oil and gas sales totaled $41.7 million from average production of 64 million cubic feet of natural gas equivalent per day (MMcfe/d). This corresponds to sales of $37.6 million from average daily production of 73 MMcfe/d during the same period in 2004. During the second quarter of 2005, crude oil represented approximately 60% of the company’s total production. The average price realized per barrel of oil in the second quarter of 2005 increased to $41.53 compared to $30.03 during the second three months of 2004, while the average price realized per thousand cubic feet of natural gas in the second quarter of 2005 increased to $7.43 compared to $6.28 during the same period a year earlier.
Six Months 2005 Net Income. Net income increased to $18.8 million, or $0.92 per diluted share, compared to net income of $11.8 million, or $0.75 per share on a diluted basis, for the same period in 2004.
Six Months 2005 Operating Results. Oil and gas sales totaled $84.7 million from average production of 69 million cubic feet of natural gas equivalent per day (MMcfe/d). This corresponds to sales of $69.5 million from average daily production of 68 MMcfe/d during the same period in 2004. Crude oil represented 59% of total production. The average price received per barrel of oil increased to $39.41 compared to $30.32 during the same period in 2004, while the average price realized per thousand cubic feet of natural gas for the six-month period ended June 30, 2005 increased to $7.15 compared to $6.11 during the same period a year earlier.
Second Quarter 2005 Discretionary Cash Flow. Discretionary cash flow increased by 19% to
$30.4 million compared to $25.6 million during the second three months of the
previous year. Net cash flow provided by
operating activities, as defined by GAAP, totaled $32.2 million and $21.9
million during the three-month period ended
Six Months 2005 Discretionary Cash Flow. Discretionary cash flow totaled $61.8
million compared to $43.5 million during the first six months of the previous
year. Net cash flow provided by
operating activities, as defined by GAAP, totaled $53.6 million and $39.8
million during the six-month period 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.
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Reconciliation of Non-GAAP Financial Measure: |
Three Months Ended |
Six Months Ended |
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(In thousands) |
June 30, |
June 30, |
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2005 2004 |
2005 2004 |
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Discretionary cash flow |
$30,424 |
$25,625 |
$61,838 |
$43,524 |
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Net working capital changes and other changes |
1,798 |
(3,764) |
(8,285) |
(3,760) |
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Net cash flow provided by operating activities |
$32,222 |
$21,861 |
$53,553 |
$39,764 |
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Consolidated Condensed Balance Sheets: |
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(In thousands) |
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June 30, |
December 31, |
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2005 |
2004 |
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(Unaudited) |
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Cash and cash equivalents |
$ 18,723 |
$ 3,266 |
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Oil and gas properties, net |
407,526 |
406,690 |
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All other assets |
56,194 |
47,567 |
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Total
assets |
$482,443 |
$457,523 |
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Long-term debt including current maturities |
$188,435 |
$192,927 |
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All other liabilities |
78,583 |
66,284 |
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Stockholders’ equity |
215,425 |
198,312 |
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Total
liabilities and stockholders’ equity |
$482,443 |
$457,523 |
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Production and Price Information: |
Three Months Ended |
Six Months Ended |
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June 30, |
June 30, |
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2005 |
2004 |
2005 |
2004 |
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Production: |
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Oil (MBbls) |
590 |
539 |
1,230 |
978 |
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Gas (MMcf) |
2,313 |
3,412 |
5,060 |
6,520 |
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Gas
equivalent (MMcfe) |
5,850 |
6,648 |
12,443 |
12,390 |
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Average
daily (MMcfe) |
64.3 |
73.1 |
68.7 |
68.1 |
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Average prices: |
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Oil ($/Bbl)
(a) |
$41.53 |
$30.03 |
$39.41 |
$30.32 |
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Gas ($/Mcf) |
$ 7.43 |
$ 6.28 |
$ 7.15 |
$ 6.11 |
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Gas
equivalent ($/Mcfe) |
$ 7.12 |
$ 5.66 |
$ 6.81 |
$ 5.61 |
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(a) Below is a reconciliation of the average NYMEX
price to the |
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Average
realized sales price per barrel of oil: |
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Average NYMEX oil price |
$53.17 |
$38.31 |
$51.51 |
$36.73 |
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Basis
differentials and quality adjustments |
( 7.37) |
( 3.09) |
( 6.89) |
( 2.31) |
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Transportation |
( 1.28) |
( 1.30) |
( 1.30) |
( 1.28) |
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Hedging |
( 2.99) |
( 3.89) |
( 3.91) |
( 2.82) |
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Averaged realized oil price |
$41.53 |
$30.03 |
$39.41 |
$30.32 |
Callon Petroleum Company
Consolidated Statements
of Operations
(Unaudited)
(In thousands, except per share amounts)
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Three Months
Ended |
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