Annual report pursuant to Section 13 and 15(d)

Description of Business and Basis of Presentation

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Description of Business and Basis of Presentation
12 Months Ended
Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business and Basis of Presentation
Description of Business and Basis of Presentation

Callon Petroleum Company is an independent oil and natural gas company established in 1950, which has been focused on building reserves and production both onshore and offshore through efficient operations and low finding and development costs. In 2013, the Company completed the onshore strategic repositioning it initiated in 2009, shifting its operations from the offshore waters in the Gulf of Mexico to the Permian Basin region in Texas. The Company has built seasoned technical and operational teams with extensive experience in the Permian Basin to manage and progress its growth plan. In the fourth quarter of 2012, Callon sold its interest in its deepwater Habanero field. Similarly, in the fourth quarter of 2013, the Company sold its interest in its only remaining deepwater property, the Medusa field, including the sale of the Medusa Spar facility and substantially all remaining offshore shelf properties. These transactions completed the Company’s long-term strategic goal of becoming an onshore operator with an asset base concentrated in the Permian Basin.

The Company was incorporated under the laws of the state of Delaware in 1994 and succeeded to the business of a publicly traded limited partnership, a joint venture with a consortium of European investors and an independent energy company partially owned by a member of current management.  As used herein, the “Company,” “Callon,” “we,” “us,” and “our” refer to Callon Petroleum Company and its predecessors and subsidiaries unless the context requires otherwise.

The Consolidated Financial Statements include the accounts of the Company, and its subsidiary, Callon Petroleum Operating Company (“CPOC”).  CPOC also includes the subsidiaries Callon Offshore Production, Inc. and Mississippi Marketing, Inc.  All intercompany accounts and transactions have been eliminated.  Certain prior year amounts have been reclassified to conform to presentation in the current year.  To the extent these amounts are material, we have either footnoted them within the Company’s disclosures or have noted the items within this footnote. The Company reclassified on its 2012 and 2011 Consolidated Statements of Operations $3,224 and $2,062, respectively, from “Lease operating expenses” to “Production taxes” to conform to current year presentation.

Unless otherwise indicated, all amounts included within the footnotes to the financial statements are presented in thousands, except for share, well, acreage and per-derivative instrument data.