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John S. Weatherly, CFO 1-800-451-1294
Natchez, MS (November 7, 2001)- Callon Petroleum Company (NYSE: CPE / CPE.PrA) reported results of its operations today for both the quarter and the nine-month period ended September 30, 2001.
Results for the three-month period ended September 30, 2001 include net income of $262,000, or $0.00 per diluted share. This compares to net income of $4.3 million, or $0.29 per share on a diluted basis, for the same period in 2000. Total revenues for the three-month period ended September 30, 2001 were $12.7 million compared to $16.4 million for the same period in 2000.
Operating results for the three-month period ended September 30, 2001 include oil and gas sales of $12.4 million from average production of 40.4 million cubic feet of natural gas equivalent per day (MMcfe/d). This corresponds to sales of $16.0 million from average daily production of 46.6 MMcfe/d during the same period in 2000. During the third quarter of 2001, natural gas represented approximately 88 percent of the company's total production. The average price received per thousand cubic feet of natural gas in the third quarter of 2001 decreased by 7 percent to $3.38 compared to $3.63 during the same three months in 2000, while the average price received per barrel of oil in the third quarter of 2001 decreased by 17 percent to $24.28 compared to $29.37 during the same period a year earlier.
For the nine months ended September 30, 2001, the company reported net income, before preferred stock dividends, of $9.9 million, or $0.67 per diluted share. This compares to net income of $8.6 million, or $0.56 per share on a diluted basis, for the same period in 2000. Total revenues for the nine-month period ended September 30, 2001 were $51.2 million compared to $41.3 million for the first nine 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 Nine Months Ended
September 30, September 30,
____________ ____________
2001 2000 2001 2000
____ ____ ____ ____
Consolidated Statements of Operations Data:
__________________________________________
Revenues:
Oil and gas sales $12,404 $15,960 $49,647 $39,720
Interest and other 311 462 1,592 1,536
______ ______ ______ ______
Total revenues 12,715 16,422 51,239 41,256
______ ______ ______ ______
Costs and expenses:
Lease operating expenses 3,238 2,295 8,963 6,449
Depreciation, depletion
and amortization 4,722 4,568 14,773 12,885
General and administrative, net 843 992 3,545 2,964
Interest expense 3,508 2,103 8,742 5,949
______ ______ ______ ______
Total costs and expenses 12,311 9,958 36,023 28,247
______ ______ ______ ______
Income from operations 404 6,464 15,216 13,009
Income tax expense 142 2,197 5,326 4,423
______ ______ ______ ______
Net income 262 4,267 9,890 8,586
Preferred stock dividends 320 553 958 1,658
______ ______ ______ ______
Net income (loss) available
to common shares $ (58) $ 3,714 $ 8,932 $ 6,928
______ _______ ______ ______
Net income per common share:
Basic $ 0.00 $ 0.30 $ 0.67 $ 0.57
______ _______ ______ ______
Diluted $ 0.00 $ 0.29 $ 0.67 $ 0.56
______ _______ ______ ______
Shares used in computing net
income per common share:
Basic 13,284 12,228 13,265 12,185
______ _______ ______ ______
Diluted 13,407 14,968 13,412 12,476
______ _______ ______ ______
Consolidated Condensed Balance Sheet Data:
_________________________________________
September 30, December 31,
2001 2000
____ ____
(In thousands)
Cash and cash equivalents $ 6,883 $ 11,876
Oil and gas properties 324,018 258,613
All other assets 29,249 31,080
________ ________
Total assets $ 360,150 $ 301,569
________ ________
Long-term debt $ 137,702 $ 134,000
All other liabilities 68,029 31,241
Stockholders' equity 154,419 136,328
________ ________
Total liabilities and stockholders' equity $ 360,150 $ 301,569
________ ________
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
Other Financial Information:
___________________________
Cashflow from operations before changes
in current assets and liabilities (000's) $ 6,777 $12,030 $32,772 $27,827
Cashflow per share $ 0.48 $ 0.80 $ 2.37 $ 2.10
EBITDA (000's) $ 9,489 $13,892 $39,904 $33,072
Production and Price Information:
________________________________
Production:
Oil (MBbls) 76 56 196 186
Gas (MMcf) 3,258 3,950 10,238 10,956
Gas equivalent (MMcfe) 3,713 4,285 11,414 12,072
Average daily (MMcfe) 40.4 46.6 41.8 44.1
Average prices:
Oil ($/Bbl) $ 24.28 $ 29.37 $ 25.04 $ 27.42
Gas ($/Mcf) $ 3.38 $ 3.63 $ 4.41 $ 3.16
Gas equivalent ($/Mcfe) $ 3.46 $ 3.72 $ 4.39 $ 3.29
Callon Petroleum Company
Guidance Estimates
(In thousands, except per production unit amounts)
Guidance
Description 4Q 2001
___________ _______
Production volumes (MMcfe/d) 39 - 42
Percent Gas 89%
Average costs (per Mcfe):
Lease operating expense $ 0.83 - $ 0.88
General and administrative expense $ 0.27 - $ 0.29
Interest expense $ 1.07 - $ 1.15
DD&A $ 1.25
Volumetric production payment:
Committed volume (MMcf) 586.5
Effective price (per Mcf) $2.08
Natural gas hedges (collars):
Volume (MMcf) 400
Average floor (per Mcf) $4.44
Average ceiling (per Mcf) $5.50
Effective tax rate 35%
Diluted computation :
Basic weighted average shares 13,300
Dilutive impact of stock options and warrants 300
Dilutive impact of conv. preferred stock 1,366
Diluted weighted average shares 14,966
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.