For further information contact
John S. Weatherly, CFO 1-800-451-1294
Callon Petroleum Company Reports Results
For Second Quarter, First Six Months
of 2003
Natchez,
MS (August 11, 2003)—Callon Petroleum Company (NYSE: CPE/CPE.PrA) today
reported its results of operations for both the quarter and the six-month
period ended June 30, 2003.
Results for the
three-month period ended June 30, 2003 include a net loss of $647,000, or $0.07 per diluted share. This compares to net
income of $2.3 million, or $0.15 per share on a diluted basis, for the same
period in 2002.
Operating results for the three-month period
ended June 30, 2003 include oil and gas sales of $18.4 million from average
production of 38 million cubic feet of natural gas equivalent per day
(MMcfe/d). This corresponds to sales of
$15.3 million from average daily production of 43 MMcfe/d during the same
period in 2002. During the second
quarter of 2003, natural gas represented approximately 92 percent of the
company’s total production. The
average price received per thousand cubic feet of natural gas in the second
quarter of 2003 increased by 67 percent to $5.44 compared to $3.25 during the
second three months in 2002, while the average price received per barrel of oil
in the second quarter of 2003 increased by 14 percent to $26.59 compared to
$23.41 during the same period a year earlier.
For the six months
ended June 30, 2003, the company reported net income of $735,000, or $0.00 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 a net loss of
$113,000, or $0.06 per share on a diluted basis, for the same period in 2002.
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 in the first quarter of 2003 as the cumulative effect of the change in
accounting principle.
Operating results for the six-month
period ended June 30, 2003 include oil and gas sales of $39.7 million from
average production of 39 million cubic feet of natural gas equivalent per day
(MMcfe/d). This corresponds to sales of
$26.4 million from average daily production of 40 MMcfe/d during the same
period in 2002. The average price received per thousand
cubic feet of natural gas for the six-month period ended June 30, 2003
increased by 99 percent to $5.62 compared to $2.83 during the first six months
in 2002, while the average price received per barrel of oil increased by 37
percent to $28.93 compared to $21.16 during the same period a year earlier.
Callon Petroleum Company is engaged in
the exploration, development, acquisition and operation of oil and gas
properties primarily in the Gulf Coast region.
Consolidated
Statements of Operations
(Unaudited)
(In
thousands, except per share amounts)
|
Three Months Ended Six Months Ended |
|
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|
|
June 30, |
|
June 30, |
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|
|
2003 |
|
2002 |
|
2003 |
|
2002 |
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Operating
revenues: |
|
|
|
|
|
|
|
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|
Oil and gas sales |
$ 18,409 |
|
$ 15,304 |
|
$ 39,677 |
|
$ 26,358 |
|
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|
Total operating revenues |
18,409 |
|
15,304 |
|
39,677 |
|
26,358 |
|
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|
|
|
|
|
|
|
|
|
|
||||
|
Operating
expenses: |
|
|
|
|
|
|
|
|
||||
|
Lease operating expenses |
2,512 |
|
2,805 |
|
5,344 |
|
5,369 |
|
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|
Depreciation, depletion and amortization |
6,951 |
|
6,489 |
|
14,353 |
|
12,077 |
|
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|
General and administrative |
1,401 |
|
1,299 |
|
2,636 |
|
2,438 |
|
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|
Accretion expense |
727 |
|
-- |
|
1,442 |
|
-- |
|
||||
|
Loss on mark-to-market commodity
derivative contracts |
396 |
|
382 |
|
534 |
|
770 |
|
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|
Total operating expenses |
11,987 |
|
10,975 |
|
24,309 |
|
20,654 |
|
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|
|
|
|
|
|
|
|
|
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Income from operations |
6,422 |
|
4,329 |
|
15,368 |
|
5,704 |
|
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|
Other (income) expenses: |
|
|
|
|
|
|
|
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Interest expense |
7,490 |
|
5,913 |
|
14,671 |
|
11,633 |
|
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|
Other income |
(73) |
|
(252) |
|
(156) |
|
(822) |
|
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|
Gain on sale of pipeline |
-- |
|
(2,454) |
|
-- |
|
(2,454) |
|
||||
|
Gain on sale of Enron derivatives |
-- |
|
(2,479) |
|
-- |
|
(2,479) |
|
||||
|
Total other (income) expenses |
7,417 |
|
728 |
|
14,515 |
|
5,878 |
|
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|
|
|
|
|
|
|
|
|
|
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|
Income (loss) before income taxes |
(995) |
|
3,601 |
|
853 |
|
(174) |
|
||||
|
Income tax expense (benefit) |
(348) |
|
1,260 |
|
299 |
|
(61) |
|
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|
Income (loss) before cumulative effect of
change in |
|
|
|
|
|
|
|
|
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|
accounting principle |
(647) |
|
2,341 |
|
554 |
|
(113) |
|
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|
|
|
|
|
|
|
|
|
|
||||
|
Cumulative effect of change in accounting
principle, net of tax |
-- |
|
-- |
|
181 |
|
-- |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
|
Net income (loss) |
(647) |
|
2,341 |
|
735 |
|
(113) |
|
||||
|
Preferred stock dividends |
319 |
|
319 |
|
638 |
|
638 |
|
||||
|
Net income (loss) available to common
shares |
$ (966) |
|
$ 2,022 |
|
$ 97 |
|
$ (751) |
|
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|
|
|
|
|
|
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Net income (loss) per common share: |
|
|
|
|
|
|
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|
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|
Basic |
|
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Net income (loss) available to common
before cumulative |
|
|
|
|
|
|
|
|
||||
|
effect of change in accounting
principle |
$ (0.07) |
|
$ 0.15 |
|
$ (0.01) |
|
$ (0.06) |
|
||||
|
Cumulative effect of change in
accounting principle, net of tax |
-- |
|
-- |
|
0.01 |
|
-- |
|
||||
|
Net income (loss) available to common |
$ (0.07) |
|
$ 0.15 |
|
$ 0.00 |
|
$ (0.06) |
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|
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Diluted |
|
|
|
|
|
|
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|
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|
Net income (loss) available to common before
cumulative |
|
|
|
|
|
|
|
|
||||
|
effect of change in accounting
principle |
$ (0.07) |
|
$ 0.15 |
|
$
( 0.01) |
|
$ (0.06) |
|
||||
|
Cumulative effect of change in
accounting principle, net of tax |
-- |
|
-- |
|
0.01 |
|
-- |
|
||||
|
Net income (loss) available to common |
$ (0.07) |
|
$ 0.15 |
|
$ 0.00 |
|
$ (0.06) |
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