Natchez, MS (August 8, 2001)- Callon Petroleum Company (NYSE: CPE / CPE.PrA) reported results of its operations today for both the quarter and the six-month period ended June 30, 2001.
Results for the three-month period ended June 30, 2001 include net income of $3.5 million, or $0.23 per diluted share. This compares to net income of $3.2 million, or $0.21 per share on a diluted basis, for the same period in 2000. Total revenues for the three-month period ended June 30, 2001 were $17.7 million compared to $14.7 million for the same period in 2000.
Operating results for the three-month period ended June 30, 2001 include oil and gas sales of $17.1 million from average production of 43.4 million cubic feet of natural gas equivalent per day (MMcfe/d). This corresponds to sales of $14.3 million from average daily production of 47.4 MMcfe/d during the same period in 2000. During the second quarter of 2001, natural gas represented approximately 90 percent of the company's total production. The average price received per thousand cubic feet of natural gas in the second quarter of 2001 increased by 36 percent to $4.34 compared to $3.19 during the second three months in 2000, while the average price received per barrel of oil in the second quarter of 2001 decreased by 8 percent to $24.70 compared to $26.74 during the same period a year earlier.
For the six months ended June 30, 2001, the company reported net income of $9.6 million, or $0.65 per diluted share. This compares to net income of $4.3 million, or $0.26 per share on a diluted basis, for the same period in 2000. Total revenues for the six-month period ended June 30, 2001 were $38.5 million compared to $24.8 million for the first six months in 2000.
Callon Petroleum Company has been engaged in the exploration, development, acquisition and operation of oil and gas properties in the Gulf Coast region since 1950.
Callon Petroleum Company
Summary Financial Information
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
____ ____ ____ ____
Consolidated Statements of Operations Data:
Revenues:
Oil & gas sales $17,066 $14,312 $37,243 $23,760
Interest and other 646 404 1,281 1,074
_______ _______ _______ _______
Total revenues 17,712 14,716 38,524 24,834
_______ _______ _______ _______
Costs and Expenses:
Lease operating expenses 3,052 2,334 5,725 4,154
Depreciation, depletion
and amortization 5,154 4,600 10,051 8,317
General and administrative, net 1,579 930 2,702 1,972
Interest expense 2,613 2,071 5,234 3,846
_______ _______ _______ _______
Total costs and expenses 12,398 9,935 23,712 18,289
_______ _______ _______ _______
Income from operations 5,314 4,781 14,812 6,545
Income tax expense 1,860 1,626 5,184 2,226
_______ _______ _______ _______
Net income 3,454 3,155 9,628 4,319
Preferred stock dividends 319 552 638 1,105
_______ _______ _______ _______
Net income available to common shares $ 3,135 $ 2,603 $ 8,990 $ 3,214
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Net income per common share:
Basic $ 0.24 $ 0.21 $ 0.68 $ 0.26
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Diluted $ 0.23 $ 0.21 $ 0.65 $ 0.26
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Shares used in computing net income per common share:
Basic 13,258 12,171 13,255 12,163
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Diluted (1) 13,427 12,445 14,853 12,398
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(1) Diluted shares for the six months ended June 30, 2001 includes 1,366,000 shares of common stock because of the dilutive impact of the convertible preferred stock in the first half of 2001. The assumed conversion of the preferred stock was not included in any other diluted calculation presented due to its antidilutive impact on earnings per share.
Consolidated Condensed Balance Sheet Data:
_________________________________________ June 30, December 31,
2001 2000
________ (In Thousands)___________
Cash and cash equivalents $ 7,933 $ 11,876
Oil and gas properties 301,012 258,613
All other assets 30,920 31,080
_________ _________
Total assets $339,865 $301,569
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Long-term debt $155,000 $134,000
All other liabilities 34,308 31,241
Stockholders' equity 150,557 136,328
_________ _________
Total liabilities and stockholders' equity $339,865 $301,569
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Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
____ ____ ____ ____
Other Financial Information:
___________________________
Net cashflow from operations before changes
in current assets and liabilities (000's) $11,104 $ 9,919 $25,995 $15,797
Net cashflow per share $ 0.75 $ 0.67 $ 1.75 $ 1.07
Weighted average shares outstanding assuming
conversion of preferred stock (000's) 14,792 14,810 14,853 14,766
EBITDA (000's) $13,717 $11,990 $31,229 $19,643
Production and Price Information:
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Production:
Oil (MBbls) 69 70 120 130
Gas (MMcf) 3,536 3,899 6,980 7,005
Gas equivalent (MMcfe) 3,950 4,316 7,701 7,788
Average daily (MMcfe) 43.4 47.4 42.5 42.8
Average prices:
Oil ($/Bbl) $24.70 $26.74 $25.52 $26.58
Gas ($/Mcf) $ 4.34 $ 3.19 $ 4.90 $ 2.90
Gas equivalent ($/Mcfe) $ 4.32 $ 3.32 $ 4.84 $ 3.05
Callon Petroleum Company
Second Quarter and Full Year 2001
Guidance Estimates
(In thousands, except per production unit amounts)
Guidance
for 2nd Half
Description Year 2001
___________ ____________
Production volumes (MMcfe/d) 43 - 45
Percent Gas 90%
Average costs (per Mcfe):
Lease operating expense $ 0.69 - $ 0.72
General and administrative expense $ 0.28 - $ 0.29
Interest expense $ 1.03 - $ 1.08
DD&A $ 1.30
Volumetric production payment:
Committed volume (MMcf) 1,173
Effective price (per Mcf) $ 2.08
Natural gas hedges (collars):
Volume (MMcf) 1,600
Average floor (per Mcf) $4.44
Average ceiling (per Mcf) $5.50
Effective tax rate 35%
Diluted computation :
Basic weighted average shares 13,260
Dilutive impact of stock options 400
Dilutive impact of conv. preferred stock 1,366
______
Diluted weighted average shares 15,026
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 those in our annual report for the year ended December 31, 2000 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 transaction and may engage in one or more of these types of transactions without prior notice.
For further information contact: Terry Trovato P.O. Box 1287 Natchez, MS 39121 (601) 442-1601terryt@callon.com