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John S. Weatherly, CFO 1-800-451-1294

 

FOR IMMEDIATE RELEASE

 

Callon Petroleum Company Reports Results 

            For Third Quarter, First Nine Months of 2002

           

            Natchez, MS (November 6, 2002)—Callon Petroleum Company (NYSE: CPE/CPE.PrA) today reported its results of operations for both the quarter and the nine-month period ended September 30, 2002.  

 

            Results for the three-month period ended September 30, 2002 include a net loss of $1.3 million, or $0.12 per diluted share. This compares to net income of $262,000, or $0.00 per share on a diluted basis, for the same period in 2001.  Total revenues for the three-month period ended September 30, 2002 were $15.8 million compared to $12.7 million for the same period in 2001.

           

Operating results for the three-month period ended September 30, 2002 include oil and gas sales of $15.8 million from average production of 45 million cubic feet of natural gas equivalent per day (MMcfe/d).  This corresponds to sales of $12.4 million from average daily production of 40 MMcfe/d during the same period in 2001.  During the third quarter of 2002, natural gas represented approximately 92 percent of the company’s total production.

 

Production delays during the third quarter of 2002 as a result of tropical storms totaled approximately 130 million cubic feet of natural gas equivalent and reduced the company’s average production for the quarter by 1.4 MMcfe/d.

 

The average price received per thousand cubic feet of natural gas in the third quarter of 2002 decreased by 4 percent to $3.24 compared to $3.38 during the same three months of 2001, while the average price received per barrel of oil in the third quarter of 2002 increased by 1 percent to $24.60 compared to $24.28 during the same period a year earlier.

 

For the nine months ended September 30, 2002, the company reported a net loss, before preferred stock dividends, of $1.4 million, or $0.18 per diluted share. This compares to net income of $9.9 million, or $0.67 per share on a diluted basis, for the same period in 2001. Total revenues for the nine-month period ended September 30, 2002 were $47.1 million compared to $51.2 million for the first nine months in 2001.         

 

Callon Petroleum Company is engaged in the exploration, development, acquisition and operation of oil and gas properties primarily in the Gulf Coast region.

 

           

 

                                                                (MORE)

 

           

 

 

 

 

     Consolidated Statements of Operations:

     (In thousands, except per share amounts)

 

 

 

 

   Three Months Ended 

 

 Nine Months Ended

 

 

 

         September 30,

 

        September 30,

 

 

    2002

 

    2001

 

    2002

 

     2001

Revenues:

          

 

 

 

 

 

 

  Oil and gas sales

 $ 15,763

 

$ 12,404

 

$  42,121

 

$ 49,647

  Loss on mark-to-market commodity

 

 

 

 

 

 

 

    derivative contracts

     (18)

 

          --

 

 (788)

 

--

  Interest and other

           23

 

       311

 

        845

 

1,592

 Gain on sale of pipeline

            --

 

          --

 

     2,454

 

--

 Gain on sale of Enron derivatives

            --

 

          --

 

     2,479

 

--

    Total revenues

    15,768

 

    12,715

 

   47,111

 

51,239

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

  Lease operating expenses

     2,832

 

    3,238

 

     8,201

 

8,963

  Depreciation, depletion and amortization

     6,763

 

    4,722

 

   18,840

 

14,773

  General and administrative

      1,070

 

       843

 

     3,508

 

3,545

  Interest

      7,103

 

    3,508

 

   18,736

 

8,742

    Total costs and expenses

    17,768

 

  12,311

 

   49,285

 

36,023

 

 

 

 

 

 

 

 

Income (loss) from operations

   (2,000)

 

       404

 

(2,174)

 

15,216

 

 

 

 

 

 

 

 

Income tax expense (benefit)

(700)

 

       142

 

(761)

 

5,326

 

 

 

 

 

 

 

 

Net income (loss)

(1,300)

 

       262

 

(1,413)

 

9,890

 

 

 

 

 

 

 

 

Preferred stock dividends

          320

 

       320

 

        958

 

958

 

 

 

 

 

 

 

 

Net income (loss) available to common shares

  $ (1,620)

 

 $    (58)

 

$ (2,371)

 

$   8,932

 

 

 

 

 

 

 

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 Basic

$   (0.12)

 

$    0.00

 

$    (0.18)

 

$     0.67

 Diluted

  $   (0.12)

 

$    0.00

 

$    (0.18)

 

$     0.67

 

 

 

 

 

 

 

 

Shares used in computing net income (loss) 

 

 

 

 

 

 

 

Per common share:

 

 

 

 

 

 

 

 Basic

     13,377