For further information contact
John S. Weatherly, CFO 1-800-451-1294
Callon Petroleum Company Issues Guidance
for 2002,
Updates Guidance for 2001
Natchez, MS (October 10, 2001)—Callon Petroleum Company (NYSE: CPE/CPE.PrA) is issuing guidance for 2002 and is updating its guidance for the third quarter and full year 2001.
Comments regarding guidance are available via a link on the company's website at www.callon.com.
The guidance, found in the table below, is expressed in ranges for the detailed components.
|
Description |
|
Guidance for 3rd Quarter 2001 |
|
Guidance for 2001 |
|
Guidance for 2002 |
|
|
|
|
|
|
|
|
|
Production
volumes (MMcfe/d) |
|
41-40 |
|
43-41 |
|
59-53 |
|
|
|
|
|
|
|
|
|
Percent
Gas |
|
88% |
|
90% |
|
91% |
|
|
|
|
|
|
|
|
|
Average
Costs (per Mcfe): |
|
|
|
|
|
|
|
Lease
Operating Costs |
|
$0.82-$0.85 |
|
$0.76-$0.78 |
|
$0.67-$0.74 |
|
General
& Administrative Expenses |
|
$0.27-$0.28 |
|
$0.31-$0.32 |
|
$0.23-$0.25 |
|
Interest
Expense |
|
$1.00-$1.03 |
|
$0.87-$0.89 |
|
$1.05-$1.16 |
|
Depletion, Depreciation
& Amortization |
|
$1.30 |
|
$1.30 |
|
$1.30 |
|
|
|
|
|
|
|
|
|
Volumetric
Production Payment: |
|
|
|
|
|
|
|
Committed
volume (MMcf) |
|
586.5 |
|
2,326.9 |
|
1,160.3 |
|
Effective
price (per Mcf) |
|
$2.08 |
|
$2.08 |
|
$2.08 |
|
|
|
|
|
|
|
|
|
Natural
Gas Hedges (collars): |
|
|
|
|
|
|
|
Volume
(MMcf) |
|
1,200 |
|
4,400 |
|
7,000 |
|
Average
floor (per Mcf) |
|
$4.44 |
|
$4.73 |
|
$4.11 |
|
Average
ceiling (per Mcf) |
|
$5.50 |
|
$5.91 |
|
$6.09 |
|
|
|
|
|
|
|
|
|
Effective
tax rate |
|
35% |
|
35% |
|
35% |
|
|
|
|
|
|
|
|
|
Diluted
computation (in thousands): |
|
|
|
|
|
|
|
Basic
weighted average shares |
|
13,284 |
|
13,300 |
|
13,357 |
|
Dilutive
impact of stock options |
|
-- |
|
100 |
|
-- |
|
|
|
|
|
|
|
|
|
Diluted
weighted average shares |
|
13,284 |
|
13,400 |
|
13,357 |
|
|
|
|
|
|
|
|
|
Conversion of preferred
stock (if dilutive) |
|
1,366 |
|
1,366 |
|
1,366 |
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.
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 but not limited to 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
transactions and may engage in one or more of these types of transactions
without prior notice.
#
For further information contact
John S. Weatherly, CFO
P.O. Box 1287
Natchez, MS 39121
(601) 442-1601