EXHIBIT 11.1 CALLON PETROLEUM COMPANY COMPUTATION OF PER SHARE EARNINGS (In thousands, except per share data) THREE MONTHS NINE MONTHS SEPTEMBER 30, SEPTEMBER 30, 1997 1996 1997 1996 ------ ------ ----- ----- Net income ......................... $1,192 $ 994 $ 6,083 $ 3,236 Preferred stock dividends .......... 699 699 2,097 2,097 ------ ------ ----- ----- Net income available to common shareholders .......... $ 493 $ 295 $ 3,986 $ 1,139 ====== ====== ===== ===== Net income per common share: Primary ............................ $ 0.08 $ 0.05 $0.63 $0.20 ====== ====== ===== ===== Fully diluted ...................... $ 0.08 $ 0.05 $0.62 $0.20 ====== ====== ===== ===== Average common shares outstanding ..................... 6,025 5,755 6,017 5,755 Stock options ...................... 354 0 315 0 ------ ------ ----- ----- Primary shares outstanding ......... 6,379 5,755 6,332 5,755 ====== ====== ===== ===== Average common shares outstanding ..................... 6,025 5,755 6,017 5,755 Stock options ...................... 423 0 423 0 Convertible preferred stock ........ 0 0 0 0 ------ ------ ----- ----- Fully diluted shares outstanding ... 6,448 5,755 6,440 5,755 ====== ====== ===== ===== NOTE: All computations are based on the weighted average shares outstanding for the periods presented, adjusted for the effect of stock options, if any, considered common stock equivalents computed using the treasury stock method. The Convertible preferred stock is not a common stock equivalent and was not considered in the fully diluted computation because, if included, the effect would be antidilutive. 18