0000928022December 312020Q3false0.1P3YP3Y00009280222020-01-012020-09-300000928022dei:FormerAddressMember2020-01-012020-09-30xbrli:shares00009280222020-10-29iso4217:USD00009280222020-09-3000009280222019-12-31iso4217:USDxbrli:sharesxbrli:pure00009280222020-08-072020-08-070000928022us-gaap:OilAndGasExplorationAndProductionMember2020-07-012020-09-300000928022us-gaap:OilAndGasExplorationAndProductionMember2019-07-012019-09-300000928022us-gaap:OilAndGasExplorationAndProductionMember2020-01-012020-09-300000928022us-gaap:OilAndGasExplorationAndProductionMember2019-01-012019-09-300000928022us-gaap:NaturalGasMidstreamMember2020-07-012020-09-300000928022us-gaap:NaturalGasMidstreamMember2019-07-012019-09-300000928022us-gaap:NaturalGasMidstreamMember2020-01-012020-09-300000928022us-gaap:NaturalGasMidstreamMember2019-01-012019-09-300000928022srt:NaturalGasLiquidsReservesMember2020-07-012020-09-300000928022srt:NaturalGasLiquidsReservesMember2019-07-012019-09-300000928022srt:NaturalGasLiquidsReservesMember2020-01-012020-09-300000928022srt:NaturalGasLiquidsReservesMember2019-01-012019-09-300000928022us-gaap:OilAndGasPurchasedMember2020-07-012020-09-300000928022us-gaap:OilAndGasPurchasedMember2019-07-012019-09-300000928022us-gaap:OilAndGasPurchasedMember2020-01-012020-09-300000928022us-gaap:OilAndGasPurchasedMember2019-01-012019-09-3000009280222020-07-012020-09-3000009280222019-07-012019-09-3000009280222019-01-012019-09-300000928022us-gaap:PreferredStockMember2019-12-310000928022us-gaap:CommonStockMember2019-12-310000928022us-gaap:AdditionalPaidInCapitalMember2019-12-310000928022us-gaap:RetainedEarningsMember2019-12-310000928022us-gaap:RetainedEarningsMember2020-01-012020-03-3100009280222020-01-012020-03-310000928022us-gaap:CommonStockMember2020-01-012020-03-310000928022us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310000928022us-gaap:PreferredStockMember2020-03-310000928022us-gaap:CommonStockMember2020-03-310000928022us-gaap:AdditionalPaidInCapitalMember2020-03-310000928022us-gaap:RetainedEarningsMember2020-03-3100009280222020-03-310000928022us-gaap:RetainedEarningsMember2020-04-012020-06-3000009280222020-04-012020-06-300000928022us-gaap:CommonStockMember2020-04-012020-06-300000928022us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300000928022us-gaap:PreferredStockMember2020-06-300000928022us-gaap:CommonStockMember2020-06-300000928022us-gaap:AdditionalPaidInCapitalMember2020-06-300000928022us-gaap:RetainedEarningsMember2020-06-3000009280222020-06-300000928022us-gaap:RetainedEarningsMember2020-07-012020-09-300000928022us-gaap:CommonStockMember2020-07-012020-09-300000928022us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300000928022us-gaap:PreferredStockMember2020-09-300000928022us-gaap:CommonStockMember2020-09-300000928022us-gaap:AdditionalPaidInCapitalMember2020-09-300000928022us-gaap:RetainedEarningsMember2020-09-300000928022us-gaap:PreferredStockMember2018-12-310000928022us-gaap:CommonStockMember2018-12-310000928022us-gaap:AdditionalPaidInCapitalMember2018-12-310000928022us-gaap:RetainedEarningsMember2018-12-3100009280222018-12-310000928022us-gaap:RetainedEarningsMember2019-01-012019-03-3100009280222019-01-012019-03-310000928022us-gaap:CommonStockMember2019-01-012019-03-310000928022us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-310000928022us-gaap:PreferredStockMember2019-03-310000928022us-gaap:CommonStockMember2019-03-310000928022us-gaap:AdditionalPaidInCapitalMember2019-03-310000928022us-gaap:RetainedEarningsMember2019-03-3100009280222019-03-310000928022us-gaap:RetainedEarningsMember2019-04-012019-06-3000009280222019-04-012019-06-300000928022us-gaap:CommonStockMember2019-04-012019-06-300000928022us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-300000928022us-gaap:PreferredStockMember2019-06-300000928022us-gaap:CommonStockMember2019-06-300000928022us-gaap:AdditionalPaidInCapitalMember2019-06-300000928022us-gaap:RetainedEarningsMember2019-06-3000009280222019-06-300000928022us-gaap:RetainedEarningsMember2019-07-012019-09-300000928022us-gaap:CommonStockMember2019-07-012019-09-300000928022us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300000928022us-gaap:PreferredStockMember2019-07-012019-09-300000928022us-gaap:PreferredStockMember2019-09-300000928022us-gaap:CommonStockMember2019-09-300000928022us-gaap:AdditionalPaidInCapitalMember2019-09-300000928022us-gaap:RetainedEarningsMember2019-09-3000009280222019-09-300000928022cpe:NinePointZeroZeroPercentSecondLienSeniorSecuredNotesDue2025Member2020-09-300000928022us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMembercpe:OilandGasSalesRevenueMember2019-07-012019-09-300000928022us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMembercpe:OilandGasSalesRevenueMember2019-01-012019-09-300000928022us-gaap:OilAndGasOperationAndMaintenanceMember2020-09-300000928022us-gaap:OilAndGasOperationAndMaintenanceMember2019-12-310000928022us-gaap:SubsequentEventMembercpe:ORRITransactionMember2020-10-010000928022us-gaap:ScenarioPlanMembercpe:ORRITransactionMember2020-09-300000928022us-gaap:ScenarioPlanMembercpe:ORRITransactionMember2020-09-302020-09-300000928022us-gaap:ScenarioPlanMembercpe:ORRITransactionMember2019-04-012019-06-300000928022cpe:NonOperatedWorkingInterestTransactionMemberus-gaap:SubsequentEventMember2020-11-020000928022cpe:NonOperatedWorkingInterestTransactionMemberus-gaap:SubsequentEventMember2020-11-022020-11-020000928022cpe:CarrizoOilGasInc.Member2019-12-200000928022cpe:CarrizoOilGasInc.Member2019-12-202019-12-200000928022cpe:EightPointEightSevenFivePercentPreferredStockMembercpe:CarrizoOilGasInc.Member2019-12-202019-12-200000928022cpe:EvaluatedOilAndGasPropertiesMembercpe:CarrizoOilGasInc.Member2019-12-200000928022cpe:CarrizoOilGasInc.Membercpe:UnevaluatedOilAndGasPropertiesMember2019-12-200000928022cpe:CarrizoOilGasInc.Member2020-07-012020-09-300000928022cpe:CarrizoOilGasInc.Member2020-01-012020-09-300000928022cpe:CarrizoOilGasInc.Member2019-01-012019-12-310000928022cpe:CarrizoOilGasInc.Member2019-01-012019-12-310000928022us-gaap:EmployeeSeveranceMembercpe:CarrizoOilGasInc.Member2020-07-012020-09-300000928022us-gaap:EmployeeSeveranceMembercpe:CarrizoOilGasInc.Member2020-01-012020-09-300000928022cpe:CarrizoOilGasInc.Membercpe:AcquisitionIntegrationMember2020-07-012020-09-300000928022cpe:CarrizoOilGasInc.Membercpe:AcquisitionIntegrationMember2020-01-012020-09-300000928022cpe:CarrizoOilGasInc.Member2019-12-202020-09-300000928022us-gaap:EmployeeSeveranceMembercpe:CarrizoOilGasInc.Member2019-12-202020-09-300000928022cpe:CarrizoOilGasInc.Membercpe:AcquisitionIntegrationMember2019-12-202020-09-300000928022cpe:CarrizoOilGasInc.Memberus-gaap:AccountsPayableAndAccruedLiabilitiesMember2020-09-300000928022cpe:CertainNoncoreAssetsintheMidlandBasinMember2019-06-300000928022cpe:CertainNoncoreAssetsintheMidlandBasinMember2019-04-012019-06-30utr:acreiso4217:USDutr:bbl0000928022srt:ScenarioForecastMember2020-10-012020-12-310000928022us-gaap:RestrictedStockMember2020-07-012020-09-300000928022us-gaap:RestrictedStockMember2020-01-012020-09-300000928022us-gaap:RestrictedStockMember2019-07-012019-09-300000928022us-gaap:RestrictedStockMember2019-01-012019-09-300000928022cpe:TenPercentSeriesACumulativePreferredStockMember2019-07-180000928022cpe:SeniorSecuredRevolvingCreditFacilityMember2020-09-300000928022cpe:SeniorSecuredRevolvingCreditFacilityMember2019-12-310000928022cpe:NinePointZeroZeroPercentSecondLienSeniorSecuredNotesDue2025Member2019-12-310000928022us-gaap:UnsecuredDebtMembercpe:SixPointTwoFivePercentSeniorUnsecuredNotesDue2023Member2020-09-300000928022cpe:SixPointTwoFivePercentSeniorUnsecuredNotesDue2023Member2020-09-300000928022cpe:SixPointTwoFivePercentSeniorUnsecuredNotesDue2023Member2019-12-310000928022us-gaap:UnsecuredDebtMembercpe:SixPointOneTwoFiveSeniorUnsecuredNotesDueTwentyTwentyFourMember2020-09-300000928022cpe:SixPointOneTwoFiveSeniorUnsecuredNotesDueTwentyTwentyFourMember2020-09-300000928022cpe:SixPointOneTwoFiveSeniorUnsecuredNotesDueTwentyTwentyFourMember2019-12-310000928022cpe:EightPointTwoFivePercentSeniorUnsecuredNotesDue2025Memberus-gaap:UnsecuredDebtMember2020-09-300000928022cpe:EightPointTwoFivePercentSeniorUnsecuredNotesDue2025Member2020-09-300000928022cpe:EightPointTwoFivePercentSeniorUnsecuredNotesDue2025Member2019-12-310000928022cpe:SixPointThreeSevenFivePercentSeniorUnsecuredNotesdue2026Memberus-gaap:UnsecuredDebtMember2020-09-300000928022cpe:SixPointThreeSevenFivePercentSeniorUnsecuredNotesdue2026Member2020-09-300000928022cpe:SixPointThreeSevenFivePercentSeniorUnsecuredNotesdue2026Member2019-12-310000928022cpe:NewCreditFacilityMember2020-09-300000928022cpe:NewCreditFacilityMember2020-05-070000928022cpe:SixPointTwoFivePercentSeniorUnsecuredNotesDue2023Member2016-10-030000928022cpe:SixPointOneTwoFiveSeniorUnsecuredNotesDueTwentyTwentyFourMember2016-10-030000928022srt:MinimumMember2020-09-300000928022cpe:NinePointZeroZeroPercentSecondLienSeniorSecuredNotesDue2025Member2020-05-070000928022srt:MaximumMembercpe:FirstAmendmentToTheCreditAgreementMember2020-05-070000928022srt:ScenarioForecastMembersrt:MaximumMembercpe:FirstAmendmentToTheCreditAgreementMember2021-12-310000928022cpe:FirstAmendmentToTheCreditAgreementMemberus-gaap:BaseRateMember2020-05-070000928022cpe:FirstAmendmentToTheCreditAgreementMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-05-070000928022cpe:FirstAmendmentToTheCreditAgreementMember2020-05-070000928022cpe:FirstAmendmentToTheCreditAgreementMember2020-05-072020-05-070000928022srt:MinimumMembercpe:FirstAmendmentToTheCreditAgreementMember2020-05-070000928022cpe:SecondAmendmentToTheCreditAgreementMember2020-09-300000928022srt:MinimumMembercpe:NewCreditFacilityMemberus-gaap:BaseRateMember2020-05-072020-05-070000928022srt:MaximumMembercpe:NewCreditFacilityMemberus-gaap:BaseRateMember2020-05-072020-05-070000928022cpe:FederalFundsRateMembercpe:NewCreditFacilityMember2020-05-072020-05-070000928022cpe:NewCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-05-072020-05-070000928022srt:MinimumMembercpe:NewCreditFacilityMemberus-gaap:EurodollarMember2020-05-072020-05-070000928022srt:MaximumMembercpe:NewCreditFacilityMemberus-gaap:EurodollarMember2020-05-072020-05-070000928022srt:MinimumMembercpe:NewCreditFacilityMember2020-05-072020-05-070000928022srt:MaximumMembercpe:NewCreditFacilityMember2020-05-072020-05-0700009280222020-09-302020-09-300000928022cpe:NewCreditFacilityMember2020-09-302020-09-300000928022us-gaap:MeasurementInputExercisePriceMember2020-09-300000928022us-gaap:MeasurementInputExpectedTermMember2020-09-300000928022us-gaap:MeasurementInputOptionVolatilityMember2020-09-300000928022us-gaap:MeasurementInputRiskFreeInterestRateMember2020-09-300000928022us-gaap:MeasurementInputExpectedDividendRateMember2020-09-300000928022cpe:SecondLienNotesMember2020-09-300000928022srt:MinimumMembercpe:SecondLienNotesMember2020-09-300000928022cpe:SecondLienNotesMembersrt:MaximumMemberus-gaap:DebtInstrumentRedemptionPeriodOneMember2020-09-302020-09-300000928022cpe:SecondLienNotesMember2020-09-302020-09-300000928022cpe:SecondLienNotesMemberus-gaap:DebtInstrumentRedemptionPeriodOneMember2020-09-302020-09-300000928022cpe:SecondLienNotesMemberus-gaap:DebtInstrumentRedemptionPeriodTwoMembersrt:MaximumMember2020-09-302020-09-300000928022us-gaap:DebtInstrumentRedemptionPeriodTwoMembercpe:SecondLienNotesMember2020-09-302020-09-300000928022cpe:SecondLienNotesMemberus-gaap:DebtInstrumentRedemptionPeriodThreeMember2020-09-302020-09-300000928022cpe:SecondLienNotesMemberus-gaap:DebtInstrumentRedemptionPeriodFourMember2020-09-302020-09-300000928022cpe:SecondLienNotesMemberus-gaap:DebtInstrumentRedemptionPeriodFiveMember2020-09-302020-09-300000928022cpe:DebtInstrumentRedemptionPeriodSixMembercpe:SecondLienNotesMember2020-09-302020-09-300000928022srt:MaximumMembercpe:NewCreditFacilityMember2020-05-070000928022srt:MinimumMembercpe:NewCreditFacilityMember2020-05-070000928022cpe:DivestitureRangerMember2020-09-300000928022cpe:DivestitureRangerMembercpe:ActualSettlement2019Member2020-09-300000928022cpe:ActualSettlement2019Member2020-09-300000928022cpe:DivestitureRangerMembercpe:RemainingPotentialSettlements20202021Member2020-09-300000928022cpe:RemainingPotentialSettlements20202021Member2020-09-300000928022cpe:MergerContingentExLConsiderationMember2020-09-300000928022cpe:MergerContingentExLConsiderationMembercpe:ActualSettlement2019Member2020-09-300000928022cpe:MergerContingentExLConsiderationMembercpe:RemainingPotentialSettlements20202021Member2020-09-300000928022cpe:MergerContingentExLConsiderationMember2020-01-310000928022cpe:AcquiredContingentConsiderationMembersrt:MinimumMember2020-09-300000928022cpe:AcquiredContingentConsiderationMembersrt:MaximumMember2020-09-30iso4217:USDutr:MMBTU0000928022cpe:AcquiredContingentConsiderationMember2020-01-310000928022us-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMemberus-gaap:CommodityContractMember2020-09-300000928022us-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMembercpe:ContingentConsiderationArrangementsMember2020-09-300000928022us-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMember2020-09-300000928022us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:OtherNoncurrentAssetsMember2020-09-300000928022us-gaap:NondesignatedMembercpe:ContingentConsiderationArrangementsMemberus-gaap:OtherNoncurrentAssetsMember2020-09-300000928022us-gaap:NondesignatedMemberus-gaap:OtherNoncurrentAssetsMember2020-09-300000928022us-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:CommodityContractMember2020-09-300000928022us-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMembercpe:ContingentConsiderationArrangementsMember2020-09-300000928022us-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMember2020-09-300000928022us-gaap:NondesignatedMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:CommodityContractMember2020-09-300000928022us-gaap:NondesignatedMembercpe:ContingentConsiderationArrangementsMemberus-gaap:OtherNoncurrentLiabilitiesMember2020-09-300000928022us-gaap:NondesignatedMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:WarrantMember2020-09-300000928022us-gaap:NondesignatedMemberus-gaap:OtherNoncurrentLiabilitiesMember2020-09-300000928022us-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMemberus-gaap:CommodityContractMember2019-12-310000928022us-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMembercpe:ContingentConsiderationArrangementsMember2019-12-310000928022us-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMember2019-12-310000928022us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:OtherNoncurrentAssetsMember2019-12-310000928022us-gaap:NondesignatedMembercpe:ContingentConsiderationArrangementsMemberus-gaap:OtherNoncurrentAssetsMember2019-12-310000928022us-gaap:NondesignatedMemberus-gaap:OtherNoncurrentAssetsMember2019-12-310000928022us-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:CommodityContractMember2019-12-310000928022us-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMembercpe:ContingentConsiderationArrangementsMember2019-12-310000928022us-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMember2019-12-310000928022us-gaap:NondesignatedMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:CommodityContractMember2019-12-310000928022us-gaap:NondesignatedMembercpe:ContingentConsiderationArrangementsMemberus-gaap:OtherNoncurrentLiabilitiesMember2019-12-310000928022us-gaap:NondesignatedMemberus-gaap:OtherNoncurrentLiabilitiesMember2019-12-310000928022us-gaap:NondesignatedMembersrt:CrudeOilMember2020-07-012020-09-300000928022us-gaap:NondesignatedMembersrt:CrudeOilMember2019-07-012019-09-300000928022us-gaap:NondesignatedMembersrt:CrudeOilMember2020-01-012020-09-300000928022us-gaap:NondesignatedMembersrt:CrudeOilMember2019-01-012019-09-300000928022us-gaap:NondesignatedMembersrt:NaturalGasReservesMember2020-07-012020-09-300000928022us-gaap:NondesignatedMembersrt:NaturalGasReservesMember2019-07-012019-09-300000928022us-gaap:NondesignatedMembersrt:NaturalGasReservesMember2020-01-012020-09-300000928022us-gaap:NondesignatedMembersrt:NaturalGasReservesMember2019-01-012019-09-300000928022us-gaap:NondesignatedMembersrt:NaturalGasLiquidsReservesMember2020-07-012020-09-300000928022us-gaap:NondesignatedMembersrt:NaturalGasLiquidsReservesMember2019-07-012019-09-300000928022us-gaap:NondesignatedMembersrt:NaturalGasLiquidsReservesMember2020-01-012020-09-300000928022us-gaap:NondesignatedMembersrt:NaturalGasLiquidsReservesMember2019-01-012019-09-300000928022us-gaap:NondesignatedMemberus-gaap:CreditRiskContractMember2020-07-012020-09-300000928022us-gaap:NondesignatedMemberus-gaap:CreditRiskContractMember2019-07-012019-09-300000928022us-gaap:NondesignatedMemberus-gaap:CreditRiskContractMember2020-01-012020-09-300000928022us-gaap:NondesignatedMemberus-gaap:CreditRiskContractMember2019-01-012019-09-300000928022us-gaap:NondesignatedMember2020-07-012020-09-300000928022us-gaap:NondesignatedMember2019-07-012019-09-300000928022us-gaap:NondesignatedMember2020-01-012020-09-300000928022us-gaap:NondesignatedMember2019-01-012019-09-30utr:bbl0000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:SwapMember2020-07-012020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:SwapMember2022-01-012022-03-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:SwapMember2020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:SwapMember2021-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMembercpe:CollarContractsMember2020-04-012020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMembercpe:CollarContractsMember2022-01-012022-06-300000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:ShortMemberus-gaap:CallOptionMembercpe:CollarContractsMember2020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:ShortMemberus-gaap:CallOptionMembercpe:CollarContractsMember2021-12-310000928022us-gaap:LongMembersrt:ScenarioForecastMemberus-gaap:PutOptionMemberus-gaap:NondesignatedMembersrt:CrudeOilMembercpe:CollarContractsMember2020-12-310000928022us-gaap:LongMembersrt:ScenarioForecastMemberus-gaap:PutOptionMemberus-gaap:NondesignatedMembersrt:CrudeOilMembercpe:CollarContractsMember2021-12-310000928022srt:ScenarioForecastMemberus-gaap:PutOptionMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:ShortMember2020-04-012020-12-310000928022srt:ScenarioForecastMemberus-gaap:PutOptionMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:ShortMember2022-01-012022-06-300000928022srt:ScenarioForecastMemberus-gaap:PutOptionMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:ShortMember2020-12-310000928022srt:ScenarioForecastMemberus-gaap:PutOptionMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:ShortMember2021-12-310000928022us-gaap:LongMembersrt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:CallOptionMember2020-04-012020-12-310000928022us-gaap:LongMembersrt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:CallOptionMember2022-01-012022-06-300000928022us-gaap:LongMembersrt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:CallOptionMember2020-12-310000928022us-gaap:LongMembersrt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:CallOptionMember2021-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:ShortMemberus-gaap:CallOptionMember2020-07-012020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:ShortMemberus-gaap:CallOptionMember2022-01-012022-03-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:ShortMemberus-gaap:CallOptionMember2020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:ShortMemberus-gaap:CallOptionMember2021-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:ShortMemberus-gaap:SwapMemberus-gaap:CallOptionMember2020-07-012020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:ShortMemberus-gaap:SwapMemberus-gaap:CallOptionMember2022-01-012022-03-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:ShortMemberus-gaap:SwapMemberus-gaap:CallOptionMember2020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:ShortMemberus-gaap:SwapMemberus-gaap:CallOptionMember2021-12-310000928022srt:ScenarioForecastMembercpe:OilContractsBrentICEMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:SwapMember2020-07-012020-12-310000928022srt:ScenarioForecastMembercpe:OilContractsBrentICEMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:SwapMember2022-01-012022-03-310000928022srt:ScenarioForecastMembercpe:OilContractsBrentICEMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:SwapMember2020-12-310000928022srt:ScenarioForecastMembercpe:OilContractsBrentICEMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:SwapMember2021-12-310000928022srt:ScenarioForecastMembercpe:OilContractsBrentICEMemberus-gaap:NondesignatedMembersrt:CrudeOilMember2020-04-012020-12-310000928022srt:ScenarioForecastMembercpe:OilContractsBrentICEMemberus-gaap:NondesignatedMembersrt:CrudeOilMember2022-01-012022-06-300000928022srt:ScenarioForecastMembercpe:OilContractsBrentICEMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:ShortMemberus-gaap:CallOptionMember2020-12-310000928022srt:ScenarioForecastMembercpe:OilContractsBrentICEMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:ShortMemberus-gaap:CallOptionMember2021-12-310000928022us-gaap:LongMembersrt:ScenarioForecastMemberus-gaap:PutOptionMembercpe:OilContractsBrentICEMemberus-gaap:NondesignatedMembersrt:CrudeOilMember2020-12-310000928022us-gaap:LongMembersrt:ScenarioForecastMemberus-gaap:PutOptionMembercpe:OilContractsBrentICEMemberus-gaap:NondesignatedMembersrt:CrudeOilMember2021-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMembercpe:SwapcontractsMidlandbasisdifferentialMemberus-gaap:SwapMember2020-07-012020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMembercpe:SwapcontractsMidlandbasisdifferentialMemberus-gaap:SwapMember2022-01-012022-03-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMembercpe:SwapcontractsMidlandbasisdifferentialMemberus-gaap:SwapMember2020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMembercpe:SwapcontractsMidlandbasisdifferentialMemberus-gaap:SwapMember2021-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:SwapMembercpe:SwapContractArgusHoustonMEHbasisDifferentialMember2020-07-012020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:SwapMembercpe:SwapContractArgusHoustonMEHbasisDifferentialMember2022-01-012022-03-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:SwapMembercpe:SwapContractArgusHoustonMEHbasisDifferentialMember2020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:SwapMembercpe:SwapContractArgusHoustonMEHbasisDifferentialMember2021-12-310000928022srt:ScenarioForecastMembercpe:OilContractsArgusHoustonMEHSwapsMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:SwapMember2020-07-012020-12-310000928022srt:ScenarioForecastMembercpe:OilContractsArgusHoustonMEHSwapsMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:SwapMember2022-01-012022-03-310000928022srt:ScenarioForecastMembercpe:OilContractsArgusHoustonMEHSwapsMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:SwapMember2020-12-310000928022srt:ScenarioForecastMembercpe:OilContractsArgusHoustonMEHSwapsMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:SwapMember2021-12-31utr:MMBTU0000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMemberus-gaap:SwapMembersrt:NaturalGasReservesMember2020-07-012020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMemberus-gaap:SwapMembersrt:NaturalGasReservesMember2022-01-012022-03-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMemberus-gaap:SwapMembersrt:NaturalGasReservesMember2020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMemberus-gaap:SwapMembersrt:NaturalGasReservesMember2021-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembercpe:CollarContractsThreeWayCollarsMembersrt:NaturalGasReservesMember2020-07-012020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembercpe:CollarContractsThreeWayCollarsMembersrt:NaturalGasReservesMember2022-01-012022-03-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMemberus-gaap:ShortMembercpe:CollarContractsThreeWayCollarsMemberus-gaap:CallOptionMembersrt:NaturalGasReservesMember2020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMemberus-gaap:ShortMembercpe:CollarContractsThreeWayCollarsMemberus-gaap:CallOptionMembersrt:NaturalGasReservesMember2021-12-310000928022us-gaap:LongMembersrt:ScenarioForecastMemberus-gaap:PutOptionMemberus-gaap:NondesignatedMembercpe:CollarContractsThreeWayCollarsMembersrt:NaturalGasReservesMember2020-12-310000928022us-gaap:LongMembersrt:ScenarioForecastMemberus-gaap:PutOptionMemberus-gaap:NondesignatedMembercpe:CollarContractsThreeWayCollarsMembersrt:NaturalGasReservesMember2021-12-310000928022srt:ScenarioForecastMemberus-gaap:PutOptionMemberus-gaap:NondesignatedMemberus-gaap:ShortMembercpe:CollarContractsThreeWayCollarsMembersrt:NaturalGasReservesMember2020-12-310000928022srt:ScenarioForecastMemberus-gaap:PutOptionMemberus-gaap:NondesignatedMemberus-gaap:ShortMembercpe:CollarContractsThreeWayCollarsMembersrt:NaturalGasReservesMember2021-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembercpe:CollarContractsTwowayCollarsMembersrt:NaturalGasReservesMember2020-07-012020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembercpe:CollarContractsTwowayCollarsMembersrt:NaturalGasReservesMember2022-01-012022-03-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMemberus-gaap:ShortMemberus-gaap:CallOptionMembercpe:CollarContractsTwowayCollarsMembersrt:NaturalGasReservesMember2020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMemberus-gaap:ShortMemberus-gaap:CallOptionMembercpe:CollarContractsTwowayCollarsMembersrt:NaturalGasReservesMember2021-12-310000928022us-gaap:LongMembersrt:ScenarioForecastMemberus-gaap:PutOptionMemberus-gaap:NondesignatedMembercpe:CollarContractsTwowayCollarsMembersrt:NaturalGasReservesMember2020-12-310000928022us-gaap:LongMembersrt:ScenarioForecastMemberus-gaap:PutOptionMemberus-gaap:NondesignatedMembercpe:CollarContractsTwowayCollarsMembersrt:NaturalGasReservesMember2021-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMemberus-gaap:ShortMemberus-gaap:CallOptionMembersrt:NaturalGasReservesMember2020-07-012020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMemberus-gaap:ShortMemberus-gaap:CallOptionMembersrt:NaturalGasReservesMember2022-01-012022-03-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMemberus-gaap:ShortMemberus-gaap:CallOptionMembersrt:NaturalGasReservesMember2020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMemberus-gaap:ShortMemberus-gaap:CallOptionMembersrt:NaturalGasReservesMember2021-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembercpe:WahaBasisDifferentialMemberus-gaap:SwapMembersrt:NaturalGasReservesMember2020-07-012020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembercpe:WahaBasisDifferentialMemberus-gaap:SwapMembersrt:NaturalGasReservesMember2022-01-012022-03-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembercpe:WahaBasisDifferentialMemberus-gaap:SwapMembersrt:NaturalGasReservesMember2020-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMembercpe:WahaBasisDifferentialMemberus-gaap:SwapMembersrt:NaturalGasReservesMember2021-12-310000928022srt:ScenarioForecastMembercpe:NGLContractsOPISMontBelvieuPurityEthaneMembersrt:NaturalGasLiquidsReservesMemberus-gaap:NondesignatedMemberus-gaap:SwapMember2020-07-012020-12-310000928022srt:ScenarioForecastMembercpe:NGLContractsOPISMontBelvieuPurityEthaneMembersrt:NaturalGasLiquidsReservesMemberus-gaap:NondesignatedMemberus-gaap:SwapMember2022-01-012022-03-310000928022srt:ScenarioForecastMembercpe:NGLContractsOPISMontBelvieuPurityEthaneMembersrt:NaturalGasLiquidsReservesMemberus-gaap:NondesignatedMemberus-gaap:SwapMember2020-12-310000928022srt:ScenarioForecastMembercpe:NGLContractsOPISMontBelvieuPurityEthaneMembersrt:NaturalGasLiquidsReservesMemberus-gaap:NondesignatedMemberus-gaap:SwapMember2021-12-310000928022us-gaap:UnsecuredDebtMembercpe:SixPointTwoFivePercentSeniorUnsecuredNotesDue2023Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2020-09-300000928022us-gaap:UnsecuredDebtMembercpe:SixPointTwoFivePercentSeniorUnsecuredNotesDue2023Memberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-09-300000928022us-gaap:UnsecuredDebtMembercpe:SixPointTwoFivePercentSeniorUnsecuredNotesDue2023Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2019-12-310000928022us-gaap:UnsecuredDebtMembercpe:SixPointTwoFivePercentSeniorUnsecuredNotesDue2023Memberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310000928022us-gaap:UnsecuredDebtMembercpe:SixPointOneTwoFiveSeniorUnsecuredNotesDueTwentyTwentyFourMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2020-09-300000928022us-gaap:UnsecuredDebtMembercpe:SixPointOneTwoFiveSeniorUnsecuredNotesDueTwentyTwentyFourMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-09-300000928022us-gaap:UnsecuredDebtMembercpe:SixPointOneTwoFiveSeniorUnsecuredNotesDueTwentyTwentyFourMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2019-12-310000928022us-gaap:UnsecuredDebtMembercpe:SixPointOneTwoFiveSeniorUnsecuredNotesDueTwentyTwentyFourMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310000928022cpe:EightPointTwoFivePercentSeniorUnsecuredNotesDue2025Memberus-gaap:UnsecuredDebtMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2020-09-300000928022cpe:EightPointTwoFivePercentSeniorUnsecuredNotesDue2025Memberus-gaap:UnsecuredDebtMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-09-300000928022cpe:EightPointTwoFivePercentSeniorUnsecuredNotesDue2025Memberus-gaap:UnsecuredDebtMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2019-12-310000928022cpe:EightPointTwoFivePercentSeniorUnsecuredNotesDue2025Memberus-gaap:UnsecuredDebtMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310000928022cpe:SixPointThreeSevenFivePercentSeniorUnsecuredNotesdue2026Memberus-gaap:UnsecuredDebtMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2020-09-300000928022cpe:SixPointThreeSevenFivePercentSeniorUnsecuredNotesdue2026Memberus-gaap:UnsecuredDebtMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-09-300000928022cpe:SixPointThreeSevenFivePercentSeniorUnsecuredNotesdue2026Memberus-gaap:UnsecuredDebtMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2019-12-310000928022cpe:SixPointThreeSevenFivePercentSeniorUnsecuredNotesdue2026Memberus-gaap:UnsecuredDebtMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310000928022us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2020-09-300000928022us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-09-300000928022us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2019-12-310000928022us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310000928022cpe:NinePointZeroZeroPercentSecondLienSeniorSecuredNotesDue2025Memberus-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-09-300000928022cpe:NinePointZeroZeroPercentSecondLienSeniorSecuredNotesDue2025Memberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-09-300000928022cpe:NinePointZeroZeroPercentSecondLienSeniorSecuredNotesDue2025Memberus-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2019-12-310000928022cpe:NinePointZeroZeroPercentSecondLienSeniorSecuredNotesDue2025Memberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310000928022us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-09-300000928022us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-09-300000928022us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-09-300000928022us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2019-12-310000928022us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310000928022us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2019-12-310000928022us-gaap:FairValueInputsLevel3Memberus-gaap:WarrantMember2019-12-310000928022us-gaap:FairValueInputsLevel3Memberus-gaap:WarrantMember2020-01-012020-09-300000928022us-gaap:FairValueInputsLevel3Memberus-gaap:WarrantMember2020-09-300000928022cpe:CarrizoOilGasInc.Member2020-09-300000928022cpe:A2020OmnibusIncentivePlan2020PlanMember2020-09-300000928022us-gaap:RestrictedStockUnitsRSUMember2020-06-300000928022us-gaap:RestrictedStockUnitsRSUMember2019-06-300000928022us-gaap:RestrictedStockUnitsRSUMember2020-07-012020-09-300000928022us-gaap:RestrictedStockUnitsRSUMember2019-07-012019-09-300000928022us-gaap:RestrictedStockUnitsRSUMember2020-09-300000928022us-gaap:RestrictedStockUnitsRSUMember2019-09-300000928022us-gaap:RestrictedStockUnitsRSUMember2019-12-310000928022us-gaap:RestrictedStockUnitsRSUMember2018-12-310000928022us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300000928022us-gaap:RestrictedStockUnitsRSUMember2019-01-012019-09-300000928022cpe:VestingPercentageRangeOf0And200Memberus-gaap:RestrictedStockUnitsRSUMember2020-07-012020-09-300000928022cpe:VestingPercentageRangeOf0And200Memberus-gaap:RestrictedStockUnitsRSUMember2019-07-012019-09-300000928022us-gaap:RestrictedStockUnitsRSUMembercpe:VestingPercentageRangeOf0And300Member2020-01-012020-09-300000928022cpe:VestingPercentageRangeOf0And200Memberus-gaap:RestrictedStockUnitsRSUMember2019-01-012019-09-300000928022us-gaap:RestrictedStockUnitsRSUMembercpe:VestingPercentageMinimumMember2020-01-012020-09-300000928022cpe:VestingPercentageMaximumMemberus-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300000928022us-gaap:RestrictedStockUnitsRSUMembercpe:VestingPercentageMinimumMember2019-01-012019-09-300000928022cpe:VestingPercentageMaximumMemberus-gaap:RestrictedStockUnitsRSUMember2019-01-012019-09-300000928022cpe:PerformanceBasedRestrictedStockUnitsRSUsMembercpe:VestingPercentageMinimumMember2020-07-012020-09-300000928022cpe:PerformanceBasedRestrictedStockUnitsRSUsMembercpe:VestingPercentageMaximumMember2020-07-012020-09-300000928022cpe:PerformanceBasedRestrictedStockUnitsRSUsMembercpe:VestingPercentageMinimumMember2020-01-012020-06-300000928022cpe:PerformanceBasedRestrictedStockUnitsRSUsMembercpe:VestingPercentageMaximumMember2020-01-012020-06-300000928022cpe:PerformanceBasedRestrictedStockUnitsRSUsMember2020-01-012020-09-300000928022cpe:PerformanceBasedRestrictedStockUnitsRSUsMember2019-07-012019-09-300000928022cpe:PerformanceBasedRestrictedStockUnitsRSUsMember2020-07-012020-09-300000928022cpe:PerformanceBasedRestrictedStockUnitsRSUsMember2019-01-012019-09-300000928022cpe:PerformanceBasedCashSettledRSUsMember2020-06-012020-06-290000928022cpe:PerformanceBasedCashSettledRSUsMember2020-01-012020-01-310000928022cpe:PerformanceBasedCashSettledRSUsMember2019-01-012019-01-310000928022cpe:CashSettleableRsuAwardsMember2020-06-300000928022cpe:CashSettleableRsuAwardsMember2019-06-300000928022cpe:CashSettleableRsuAwardsMember2020-07-012020-09-300000928022cpe:CashSettleableRsuAwardsMember2019-07-012019-09-300000928022cpe:CashSettleableRsuAwardsMember2020-09-300000928022cpe:CashSettleableRsuAwardsMember2019-09-300000928022cpe:CashSettleableRsuAwardsMember2019-12-310000928022cpe:CashSettleableRsuAwardsMember2018-12-310000928022cpe:CashSettleableRsuAwardsMember2020-01-012020-09-300000928022cpe:CashSettleableRsuAwardsMember2019-01-012019-09-300000928022cpe:CashSockAppreciationRightsSARsMember2020-07-012020-09-300000928022cpe:CashSockAppreciationRightsSARsMember2019-07-012019-09-300000928022cpe:CashSockAppreciationRightsSARsMember2020-01-012020-09-300000928022cpe:CashSockAppreciationRightsSARsMember2019-01-012019-09-3000009280222020-08-0600009280222020-08-070000928022cpe:JointInterestReceivableMember2020-09-300000928022cpe:JointInterestReceivableMember2019-12-310000928022cpe:OtherReceivablesMember2020-09-300000928022cpe:OtherReceivablesMember2019-12-310000928022srt:ScenarioForecastMembercpe:CollarContractsSubsequentContractsMemberus-gaap:NondesignatedMembersrt:CrudeOilMember2021-01-012021-12-310000928022srt:ScenarioForecastMembercpe:CollarContractsSubsequentContractsMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:ShortMemberus-gaap:CallOptionMember2021-12-310000928022us-gaap:LongMembersrt:ScenarioForecastMemberus-gaap:PutOptionMembercpe:CollarContractsSubsequentContractsMemberus-gaap:NondesignatedMembersrt:CrudeOilMember2021-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMemberus-gaap:SwapMembercpe:WahaBasisDifferentialSubsequentContractsMembersrt:NaturalGasReservesMember2021-01-012021-12-310000928022srt:ScenarioForecastMemberus-gaap:NondesignatedMemberus-gaap:SwapMembercpe:WahaBasisDifferentialSubsequentContractsMembersrt:NaturalGasReservesMember2021-12-310000928022us-gaap:SubsequentEventMemberus-gaap:NondesignatedMembercpe:ArgusWTIHoustonMembersrt:CrudeOilMemberus-gaap:SwapMember2020-10-012020-11-030000928022us-gaap:SubsequentEventMembercpe:ICEBrentMemberus-gaap:NondesignatedMembersrt:CrudeOilMemberus-gaap:SwapMember2020-10-012020-11-030000928022us-gaap:SubsequentEventMember2020-11-020000928022cpe:NinePointZeroZeroPercentSecondLienSeniorSecuredNotesDue2025Memberus-gaap:SubsequentEventMember2020-11-020000928022us-gaap:UnsecuredDebtMembercpe:SixPointTwoFivePercentSeniorUnsecuredNotesDue2023Memberus-gaap:SubsequentEventMember2020-11-020000928022us-gaap:UnsecuredDebtMemberus-gaap:SubsequentEventMembercpe:SixPointOneTwoFiveSeniorUnsecuredNotesDueTwentyTwentyFourMember2020-11-020000928022cpe:EightPointTwoFivePercentSeniorUnsecuredNotesDue2025Memberus-gaap:UnsecuredDebtMemberus-gaap:SubsequentEventMember2020-11-020000928022cpe:SixPointThreeSevenFivePercentSeniorUnsecuredNotesdue2026Memberus-gaap:UnsecuredDebtMemberus-gaap:SubsequentEventMember2020-11-020000928022us-gaap:UnsecuredDebtMembercpe:SixPointTwoFivePercentSeniorUnsecuredNotesDue2023Member2016-10-030000928022us-gaap:SubsequentEventMember2020-11-022020-11-020000928022us-gaap:SubsequentEventMembersrt:MinimumMember2020-11-020000928022us-gaap:SubsequentEventMembersrt:MaximumMember2020-11-02
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For The Quarterly Period Ended September 30, 2020
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to ____________
Commission File Number 001-14039
Callon Petroleum Company
| | | | | | | | |
| (Exact Name of Registrant as Specified in Its Charter) | |
| | | | | | | | | | | |
Delaware | | 64-0844345 |
State or Other Jurisdiction of Incorporation or Organization | | I.R.S. Employer Identification No. |
| | |
One Briarlake Plaza | | |
2000 W. Sam Houston Parkway S., Suite 2000 | | |
Houston, | Texas | | 77042 |
Address of Principal Executive Offices | | Zip Code |
| | | | | | | | | | | | | | | | | | | | | | | |
| (281) | 589-5200 | |
| Registrant’s Telephone Number, Including Area Code | |
| | | | | | | |
| Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report | |
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | | | | | | | |
Title of Each Class | | Trading Symbol(s) | | Name of Each Exchange on Which Registered |
Common Stock, $0.01 par value | | CPE | | New York Stock Exchange |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
| | | | | | | | | | | | | | | | | |
Large accelerated filer | ☒ | Accelerated filer | ☐ | | |
| | | | | |
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | | |
| | | | | |
| | Emerging growth company | ☐ | | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
The Registrant had 39,752,672 shares of common stock outstanding as of October 29, 2020.
Table of Contents
| | | | | |
Part I. Financial Information | |
| |
Item 1. Financial Statements (Unaudited) | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Part II. Other Information | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
GLOSSARY OF CERTAIN TERMS
All defined terms under Rule 4-10(a) of Regulation S-X shall have their prescribed meanings when used in this report. As used in this document:
•ASU: accounting standards update.
•Bbl: barrel or barrels of oil or natural gas liquids.
•Boe: barrel of oil equivalent, determined by using the ratio of one Bbl of oil or NGLs to six Mcf of natural gas. The ratio of one barrel of oil or NGLs to six Mcf of natural gas is commonly used in the industry and represents the approximate energy equivalence of oil or NGLs to natural gas, and does not represent the economic equivalency of oil and NGLs to natural gas. The sales price of a barrel of oil or NGLs is considerably higher than the sales price of six Mcf of natural gas.
•Boe/d: Boe per day.
•Btu: a British thermal unit, which is a measure of the amount of energy required to raise the temperature of one pound of water one degree Fahrenheit.
•Completion: the process of treating a drilled well followed by the installation of permanent equipment for the production of oil or natural gas or, in the case of a dry hole, the reporting of abandonment to the appropriate agency.
•Cushing: an oil delivery point that serves as the benchmark oil price for West Texas Intermediate.
•FASB: Financial Accounting Standards Board.
•GAAP: Generally Accepted Accounting Principles in the United States.
•Henry Hub: a natural gas pipeline delivery point that serves as the benchmark natural gas price underlying NYMEX natural gas futures contracts.
•Horizontal drilling: a drilling technique used in certain formations where a well is drilled vertically to a certain depth and then drilled at an angle within a specified interval.
•LOE: lease operating expense.
•MBbls: thousand barrels of oil.
•MBoe: thousand Boe.
•Mcf: thousand cubic feet of natural gas.
•MEH: Magellan East Houston, a delivery point in Houston, Texas that serves as a benchmark for crude oil.
•MMBoe: million Boe.
•MMBtu: million Btu.
•MMcf: million cubic feet of natural gas.
•NGL or NGLs: natural gas liquids, such as ethane, propane, butanes and natural gasoline that are extracted from natural gas production streams.
•NYMEX: New York Mercantile Exchange.
•Oil: includes crude oil and condensate.
•OPEC: Organization of Petroleum Exporting Countries.
•Proved reserves: Those reserves which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs and under existing economic conditions, operating methods and government regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced, or the operator must be reasonably certain that it will commence the project, within a reasonable time.
The area of the reservoir considered as proved includes all of the following:
a.The area identified by drilling and limited by fluid contacts, if any, and
b.Adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain economically producible oil or gas on the basis of available geoscience and engineering data.
Reserves that can be produced economically through application of improved recovery techniques (including, but not limited to, fluid injection) are included in the proved classification when both of the following occur:
a.Successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes the reasonable certainty of the engineering analysis on which the project or program was based, and
b.The project has been approved for development by all necessary parties and entities, including governmental entities.
Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be the average price during the 12‑month period before the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions.
•Realized price: the cash market price less all expected quality, transportation and demand adjustments.
•Royalty interest: an interest that gives an owner the right to receive a portion of the resources or revenues without having to carry any costs of development.
•RSU: restricted stock units.
•SEC: United States Securities and Exchange Commission.
•Waha: a delivery point in West Texas that serves as the benchmark for natural gas.
•Working interest: an operating interest that gives the owner the right to drill, produce and conduct operating activities on the property and receive a share of production and requires the owner to pay a share of the costs of drilling and production operations.
•WTI: West Texas Intermediate grade crude oil, used as a pricing benchmark for sales contracts and NYMEX oil futures contracts.
With respect to information relating to our working interest in wells or acreage, “net” oil and gas wells or acreage is determined by multiplying gross wells or acreage by our working interest therein. Unless otherwise specified, all references to wells and acres are gross.
Part I. Financial Information
Item 1. Financial Statements
Callon Petroleum Company
Consolidated Balance Sheets
(In thousands, except par and share amounts)
(Unaudited)
| | | | | | | | | | | | | | |
| | September 30, 2020 | | December 31, 2019 |
ASSETS | | | | |
Current assets: | | | | |
Cash and cash equivalents | | $10,500 | | | $13,341 | |
Accounts receivable, net | | 112,536 | | | 209,463 | |
Fair value of derivatives | | 9,821 | | | 26,056 | |
Other current assets | | 27,049 | | | 19,814 | |
Total current assets | | 159,906 | | | 268,674 | |
Oil and natural gas properties, full cost accounting method: | | | | |
Evaluated properties | | 2,916,542 | | | 4,682,994 | |
Unevaluated properties | | 1,758,132 | | | 1,986,124 | |
Total oil and natural gas properties, net | | 4,674,674 | | | 6,669,118 | |
Operating lease right-of-use assets | | 29,519 | | | 63,908 | |
Other property and equipment, net | | 32,920 | | | 35,253 | |
Deferred tax asset | | — | | | 115,720 | |
Deferred financing costs | | 24,850 | | | 22,233 | |
| | | | |
Other assets, net | | 15,472 | | | 19,932 | |
Total assets | | $4,937,341 | | | $7,194,838 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | |
Current liabilities: | | | | |
Accounts payable and accrued liabilities | | $332,979 | | | $490,442 | |
Operating lease liabilities | | 19,458 | | | 42,858 | |
| | | | |
Fair value of derivatives | | 34,950 | | | 71,197 | |
Other current liabilities | | 30,013 | | | 47,750 | |
Total current liabilities | | 417,400 | | | 652,247 | |
Long-term debt | | 3,190,273 | | | 3,186,109 | |
Operating lease liabilities | | 28,906 | | | 37,088 | |
Asset retirement obligations | | 49,542 | | | 48,860 | |
| | | | |
Fair value of derivatives | | 35,705 | | | 32,695 | |
Other long-term liabilities | | 11,411 | | | 14,531 | |
Total liabilities | | 3,733,237 | | | 3,971,530 | |
Commitments and contingencies | | | | |
Stockholders’ equity: | | | | |
| | | | |
Common stock, $0.01 par value, 52,500,000 shares authorized; 39,749,985 and 39,659,001 shares outstanding, respectively (1) | | 397 | | | 3,966 | |
Capital in excess of par value | | 3,210,991 | | | 3,198,076 | |
Retained earnings (Accumulated deficit) | | (2,007,284) | | | 21,266 | |
Total stockholders’ equity | | 1,204,104 | | | 3,223,308 | |
Total liabilities and stockholders’ equity | | $4,937,341 | | | $7,194,838 | |
(1) All share amounts (except par value) have been retroactively adjusted for the Company’s 1-for-10 reverse stock split effective August 7, 2020. See “Note 11 - Stockholders’ Equity” for additional information.
The accompanying notes are an integral part of these consolidated financial statements.
Callon Petroleum Company
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
| 2020 | | 2019 | | 2020 | | 2019 |
Operating revenues: | | | | | | | |
Oil | $231,654 | | | $148,210 | | | $627,934 | | | $450,036 | |
Natural gas | 15,034 | | | 7,168 | | | 33,305 | | | 25,441 | |
Natural gas liquids | 23,025 | | | — | | | 55,627 | | | — | |
Sales of purchased oil and gas | 20,313 | | | — | | | 21,469 | | | — | |
Total operating revenues | 290,026 | | | 155,378 | | | 738,335 | | | 475,477 | |
| | | | | | | |
Operating Expenses: | | | | | | | |
Lease operating | 45,870 | | | 19,668 | | | 149,091 | | | 66,511 | |
Production and ad valorem taxes | 16,110 | | | 11,866 | | | 46,151 | | | 33,810 | |
Gathering, transportation and processing | 22,200 | | | — | | | 56,615 | | | — | |
Cost of purchased oil and gas | 21,282 | | | — | | | 22,450 | | | — | |
Depreciation, depletion and amortization | 114,201 | | | 56,130 | | | 384,594 | | | 179,275 | |
General and administrative | 8,224 | | | 9,388 | | | 26,573 | | | 34,729 | |
Impairment of evaluated oil and gas properties | 684,956 | | | — | | | 1,961,474 | | | — | |
Merger and integration | 2,465 | | | 5,943 | | | 26,362 | | | 5,943 | |
| | | | | | | |
Other operating | 4,425 | | | (161) | | | 8,548 | | | 931 | |
Total operating expenses | 919,733 | | | 102,834 | | | 2,681,858 | | | 321,199 | |
Income (Loss) From Operations | (629,707) | | | 52,544 | | | (1,943,523) | | | 154,278 | |
| | | | | | | |
Other (Income) Expenses: | | | | | | | |
Interest expense, net of capitalized amounts | 24,683 | | | 739 | | | 67,843 | | | 2,218 | |
(Gain) loss on derivative contracts | 27,038 | | | (21,809) | | | (97,966) | | | 31,415 | |
Other (income) expense | (1,044) | | | (122) | | | (149) | | | (270) | |
Total other (income) expense | 50,677 | | | (21,192) | | | (30,272) | | | 33,363 | |
| | | | | | | |
Income (Loss) Before Income Taxes | (680,384) | | | 73,736 | | | (1,913,251) | | | 120,915 | |
Income tax expense | — | | | (17,902) | | | (115,299) | | | (29,444) | |
Net Income (Loss) | (680,384) | | | 55,834 | | | (2,028,550) | | | 91,471 | |
Preferred stock dividends | — | | | (350) | | | — | | | (3,997) | |
Loss on redemption of preferred stock | — | | | (8,304) | | | — | | | (8,304) | |
Income (Loss) Available to Common Stockholders | ($680,384) | | | $47,180 | | | ($2,028,550) | | | $79,170 | |
| | | | | | | |
Income (Loss) Available to Common Stockholders Per Common Share (1): | | | | | | | |
Basic | ($17.12) | | | $2.07 | | | ($51.09) | | | $3.47 | |
Diluted | ($17.12) | | | $2.07 | | | ($51.09) | | | $3.47 | |
| | | | | | | |
Weighted Average Common Shares Outstanding (1): | | | | | | | |
Basic | 39,746 | | | 22,831 | | | 39,707 | | | 22,805 | |
Diluted | 39,746 | | | 22,846 | | | 39,707 | | | 22,841 | |
(1) All share and per share amounts have been retroactively adjusted for the Company’s 1-for-10 reverse stock split effective August 7, 2020. See “Note 11 - Stockholders’ Equity” for additional information.
The accompanying notes are an integral part of these consolidated financial statements.
Callon Petroleum Company
Consolidated Statements of Stockholders’ Equity
(In thousands, except per share amounts)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Retained | | |
| Preferred | | Common | | Capital in | | Earnings | | Total |
| Stock | | Stock | | Excess | | (Accumulated | | Stockholders’ |
| Shares | | $ | | Shares (1) | | $ | | of Par | | Deficit) | | Equity |
Balance at 12/31/2019 | — | | | $— | | | 39,659 | | | $3,966 | | | $3,198,076 | | | $21,266 | | | $3,223,308 | |
Net income | — | | | — | | | — | | | — | | | — | | | 216,565 | | | 216,565 | |
Restricted stock | — | | | — | | | 14 | | | 1 | | | 3,141 | | | — | | | 3,142 | |
Other | — | | | — | | | — | | | — | | | (112) | | | — | | | (112) | |
Balance at 3/31/2020 | — | | | $— | | | 39,673 | | | $3,967 | | | $3,201,105 | | | $237,831 | | | $3,442,903 | |
Net loss | — | | | — | | | — | | | — | | | — | | | (1,564,731) | | | (1,564,731) | |
Restricted stock | — | | | — | | | 66 | | | 7 | | | 3,205 | | | — | | | 3,212 | |
| | | | | | | | | | | | | |
Balance at 6/30/2020 | — | | | $— | | | 39,739 | | | $3,974 | | | $3,204,310 | | | ($1,326,900) | | | $1,881,384 | |
Net loss | — | | | — | | | — | | | — | | | — | | | (680,384) | | | (680,384) | |
Restricted stock | — | | | — | | | 11 | | | 1 | | | 3,008 | | | — | | | 3,009 | |
Reverse stock split | — | | | — | | | — | | | (3,578) | | | 3,578 | | | — | | | — | |
Other | — | | | — | | | — | | | — | | | 95 | | | — | | | 95 | |
Balance at 9/30/2020 | — | | | $ | — | | | 39,750 | | | $ | 397 | | | $ | 3,210,991 | | | $ | (2,007,284) | | | $ | 1,204,104 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Preferred | | Common | | Capital in | | | | Total |
| Stock | | Stock | | Excess | | Accumulated | | Stockholders’ |
| Shares | | $ | | Shares (1) | | $ | | of Par | | Deficit | | Equity |
Balance at 12/31/2018 | 1,459 | | | $15 | | | 22,757 | | | $2,276 | | | $2,477,278 | | | ($34,361) | | | $2,445,208 | |
Net loss | — | | | — | | | — | | | — | | | — | | | (19,543) | | | (19,543) | |
Shares issued pursuant to employee benefit plans | — | | | — | | | 2 | | | — | | | 154 | | | — | | | 154 | |
Restricted stock | — | | | — | | | 28 | | | 3 | | | 4,447 | | | — | | | 4,450 | |
Preferred stock dividend | — | | | — | | | — | | | — | | | — | | | (1,824) | | | (1,824) | |
Balance at 3/31/2019 | 1,459 | | | $15 | | | 22,787 | | | $2,279 | | | $2,481,879 | | | ($55,728) | | | $2,428,445 | |
Net income | — | | | — | | | — | | | — | | | — | | | 55,180 | | | 55,180 | |
Restricted stock | — | | | — | | | 38 | | | 4 | | | 2,071 | | | — | | | 2,075 | |
Preferred stock dividend | — | | | — | | | — | | | — | | | — | | | (1,823) | | | (1,823) | |
Preferred stock redemption costs | — | | | — | | | — | | | — | | | (5) | | | — | | | (5) | |
Balance at 6/30/2019 | 1,459 | | | $15 | | | 22,825 | | | $2,283 | | | $2,483,945 | | | ($2,371) | | | $2,483,872 | |
Net income | — | | | — | | | — | | | — | | | — | | | 55,834 | | | 55,834 | |
Restricted stock | — | | | — | | | 11 | | | 1 | | | 2,307 | | | — | | | 2,308 | |
| | | | | | | | | | | | | |
Preferred stock dividend | — | | | — | | | — | | | — | | | — | | | (350) | | | (350) | |
Preferred stock redemption | (1,459) | | | (15) | | | — | | | — | | | (64,693) | | | — | | | (64,708) | |
Loss on redemption of preferred stock | — | | | — | | | — | | | — | | | — | | | (8,304) | | | (8,304) | |
Balance at 9/30/2019 | — | | | $ | — | | | 22,836 | | | $ | 2,284 | | | $ | 2,421,559 | | | $ | 44,809 | | | $ | 2,468,652 | |
(1) All share amounts have been retroactively adjusted for the Company’s 1-for-10 reverse stock split effective August 7, 2020. See “Note 11 - Stockholders’ Equity” for additional information.
The accompanying notes are an integral part of these consolidated financial statements.
Callon Petroleum Company
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| | | | | | | | | | | |
| Nine Months Ended September 30, |
Cash flows from operating activities: | 2020 | | 2019 |
Net income (loss) | ($2,028,550) | | | $91,471 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | |
Depreciation, depletion and amortization | 384,594 | | | 182,738 | |
Impairment of evaluated oil and gas properties | 1,961,474 | | | — | |
Amortization of non-cash debt related items | 1,582 | | | 2,218 | |
Deferred income tax expense | 115,299 | | | 29,444 | |
(Gain) loss on derivative contracts | (97,966) | | | 31,415 | |
Cash (paid) received for commodity derivative settlements | 101,754 | | | (436) | |
Loss on sale of other property and equipment | — | | | 36 | |
| | | |
Non-cash expense related to equity share-based awards | 6,302 | | | 7,868 | |
Change in the fair value of liability share-based awards | (6,607) | | | 106 | |
Payments to settle asset retirement obligations | — | | | (1,425) | |
Payments for cash-settled restricted stock unit awards | (770) | | | (1,425) | |
Other, net | 6,510 | | | — | |
Changes in current assets and liabilities: | | | |
Accounts receivable | 96,110 | | | 17,600 | |
Other current assets | (6,556) | | | (5,172) | |
Current liabilities | (107,979) | | | (13,038) | |
Other | — | | | (2,662) | |
Net cash provided by operating activities | 425,197 | | | 338,738 | |
Cash flows from investing activities: | | | |
Capital expenditures | (567,746) | | | (503,425) | |
Acquisitions | — | | | (40,788) | |
| | | |
Proceeds from sale of assets | 149,818 | | | 279,952 | |
Cash paid for settlements of contingent consideration arrangements, net | (40,000) | | | — | |
Other, net | 8,261 | | | — | |
Net cash used in investing activities | (449,667) | | | (264,261) | |
Cash flows from financing activities: | | | |
Borrowings on senior secured revolving credit facility | 5,087,500 | | | 581,000 | |
Payments on senior secured revolving credit facility | (5,347,500) | | | (581,000) | |
| | | |
| | | |
| | | |
Issuance of 9.00% Second Lien Senior Secured Notes due 2025 | 300,000 | | | — | |
Discount on the issuance of 9.00% Second Lien Senior Secured Notes due 2025 | (35,270) | | | — | |
Issuance of warrants | 23,909 | | | — | |
| | | |
| | | |
Payment of preferred stock dividends | — | | | (3,997) | |
Payment of deferred financing costs | (6,312) | | | (31) | |
Tax withholdings related to restricted stock units | (495) | | | (2,174) | |
Redemption of preferred stock | — | | | (73,017) | |
Other, net | (203) | | | — | |
Net cash provided by (used in) financing activities | 21,629 | | | (79,219) | |
Net change in cash and cash equivalents | (2,841) | | | (4,742) | |
Balance, beginning of period | 13,341 | | | 16,051 | |
Balance, end of period | $10,500 | | | $11,309 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
The accompanying notes are an integral part of these consolidated financial statements.
Index to the Notes to the Consolidated Financial Statements
| | | | | | | | | | | |
| | 9. | |
| | 10. | Share-based Compensation |
3. | | 11. | Stockholders’ Equity |
4. | Property and Equipment, Net | 12. | |
5. | | 13. | Accounts Receivable, Net |
6. | | 14. | Accounts Payable and Accrued Liabilities |
7. | | 15. | Supplemental Cash Flow |
8. | | 16. | Subsequent Events |
Note 1 - Description of Business and Basis of Presentation
Description of business
Callon is an independent oil and natural gas company focused on the acquisition, exploration and development of high-quality assets in the leading oil plays of South and West Texas. 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 Company’s activities are primarily focused on horizontal development in the Midland and Delaware Basins, both of which are part of the larger Permian Basin in West Texas, as well as the Eagle Ford Shale, which the Company entered into through its acquisition of Carrizo Oil & Gas, Inc. (“Carrizo”) in late 2019. The Company’s primary operations in the Permian Basin reflect a high-return, oil-weighted drilling inventory with multiple prospective horizontal development intervals and are complemented by a well-established and repeatable cash flow generating business in the Eagle Ford Shale.
Basis of presentation
The accompanying unaudited interim consolidated financial statements include the accounts of the Company after elimination of intercompany transactions and balances and have been prepared pursuant to the rules and regulations of the SEC and therefore do not include all disclosures required for financial statements prepared in conformity with accounting principles generally accepted in the U.S. (“GAAP”). In the opinion of management, these financial statements include all adjustments (consisting of normal recurring accruals and adjustments) necessary to present fairly, in all material respects, the Company’s interim financial position, results of operations and cash flows. However, the results of operations for the periods presented are not necessarily indicative of the results of operations that may be expected for the full year. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. Such reclassifications had no material impact on prior period financial statements. However, the comparability of certain 2020 amounts to prior periods could be impacted as a result of the Carrizo Acquisition in December 2019.
Significant Accounting Policies
The Company’s significant accounting policies are described in “Note 2. Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2019 (“2019 Annual Report”) and are supplemented by the notes included in this Quarterly Report on Form 10-Q. The financial statements and related notes included in this report should be read in conjunction with the Company’s 2019 Annual Report.
Three-stream reporting. Effective January 1, 2020, certain of our natural gas processing agreements were modified to allow the Company to take title to NGLs resulting from the processing of our natural gas. As a result, sales and reserve volumes, prices, and revenues for NGLs and natural gas are presented separately for periods subsequent to January 1, 2020. For periods prior to January 1, 2020, except for sales and reserve volumes, prices, and revenues specifically associated with the Carrizo Acquisition, as defined below, sales and reserve volumes, prices, and revenues for NGLs were presented with natural gas.
See “Note 2 - Revenue Recognition” for additional information regarding the impact of three-stream reporting on our current results.
Recently Adopted Accounting Standards
None that had a material impact on our financial statements.
Recently Issued Accounting Pronouncements
Income Taxes. In December 2019, the FASB released Accounting Standards Update No. 2019-12 (ASU 2019-12): Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes, which removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The amended standard is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. We do not expect the adoption of this standard to have a material impact on our financial statements.
Subsequent Events
The Company evaluates subsequent events through the date the financial statements are issued. See “Note 16 - Subsequent Events” for further discussion.
Note 2 - Revenue Recognition
Revenue from contracts with customers
Oil sales
Under the Company’s oil sales contracts it sells oil production at the point of delivery and collects an agreed upon index price, net of pricing differentials. The Company recognizes revenue when control transfers to the purchaser at the point of delivery at the net price received.
Natural gas sales
Effective January 1, 2020, certain of our natural gas processing agreements were modified to allow the Company to take title to NGLs resulting from the processing of our natural gas. As a result, sales and reserve volumes, prices, and revenues for NGLs and natural gas are presented separately for periods subsequent to January 1, 2020. For periods prior to January 1, 2020, except for sales and reserve volumes, prices, and revenues specifically associated with Carrizo, sales and reserve volumes, prices, and revenues for NGLs were presented with natural gas.
Under the Company’s natural gas sales processing contracts, it delivers natural gas to a midstream processing entity which gathers and processes the natural gas and remits proceeds to the Company for the resulting sale of NGLs and residue gas. We evaluate whether the processing entity is the principal or the agent in the transaction for each of our natural gas processing agreements and have concluded that we maintain control through processing or we have the right to take residue gas and/or NGLs in-kind at the tailgate of the midstream entity’s processing plant and subsequently market the product. We recognize revenue when control transfers to the purchaser at the delivery point based on the contractual index price received.
Contractual fees associated with gathering, processing, treating and compression, as well as any transportation fees incurred to deliver the product to the purchaser, for the majority of the Company’s natural gas processing agreements were previously recorded as a reduction of revenue. As a result of the modifications to certain of the Company’s natural gas processing agreements, as well as the natural gas processing agreements assumed in the Carrizo Acquisition, the Company now recognizes revenue for natural gas and NGLs on a gross basis with gathering, transportation and processing fees recognized separately as “Gathering, transportation and processing” in its consolidated statements of operations as the Company maintains control throughout processing. These changes impact the comparability of 2020 with prior periods. For the three and nine months ended September 30, 2019, $2.6 million and $7.8 million of gathering, transportation, and processing fees were recognized as a reduction to natural gas revenues in the consolidated statement of operations.
Oil and Gas Purchase and Sale Arrangements
Sales of purchased oil and gas represent revenues the Company receives from sales of commodities purchased from a third-party. The Company recognizes these revenues and the purchase of the third-party commodities, as well as any costs associated with the purchase, on a gross basis, as the Company acts as a principal in these transactions by assuming control of the purchased commodity before it is transferred to the customer.
Accounts receivable from revenues from contracts with customers
Net accounts receivable include amounts billed and currently due from revenues from contracts with customers of our oil and natural gas production, which had a balance at September 30, 2020 and December 31, 2019 of $81.4 million and $165.3 million, respectively, are presented in “Accounts receivable, net” in the consolidated balance sheets.
Transaction price allocated to remaining performance obligations
For the Company’s product sales that have a contract term greater than one year, it utilized the practical expedient in ASC 606, which states the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under these sales contracts, each unit of product generally represents a separate performance obligation, therefore, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required.
Prior period performance obligations
The Company records revenue in the month production is delivered to the purchaser. However, settlement statements for sales may not be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The Company records the differences between estimates and the actual amounts received for product sales in the month that payment is received from the
purchaser. The Company has existing internal controls for its revenue estimation process and related accruals, and any identified differences between its revenue estimates and actual revenue received historically have not been significant.
Note 3 - Acquisitions and Divestitures
2020 Acquisitions and Divestitures
ORRI Transaction. On September 30, 2020, the Company entered into a Purchase and Sale Agreement with Chambers Minerals, LLC, a private investment vehicle managed by Kimmeridge Energy, where the Company agreed to sell an undivided 2.0% (on an 8/8ths basis) overriding royalty interest, proportionately reduced to the Company’s net revenue interest, in and to the Company’s operated leases, excluding certain interests as defined in the Purchase and Sale Agreement, for an aggregate purchase price of $140.0 million (“ORRI Transaction”), with an effective date of October 1, 2020. After adjusting for costs associated with the sale, the net proceeds of $135.8 million were used to repay borrowings outstanding under the Company’s senior secured revolving credit facility. The net proceeds were recognized as a reduction of evaluated oil and gas properties with no gain or loss recognized.
Non-Operated Working Interest Transaction. On September 25, 2020, the Company entered into a Purchase and Sale Agreement to sell substantially all of its non-operated assets for estimated gross proceeds of approximately $30.0 million, with an effective date of September 1, 2020, subject to purchase price adjustments. The Company received $29.6 million at closing on November 2, 2020, subject to post-closing adjustments.
2019 Acquisitions and Divestitures
Carrizo Oil & Gas, Inc. Merger. On December 20, 2019, the Company completed its acquisition of Carrizo in an all-stock transaction (the “Merger” or the “Carrizo Acquisition”). Under the terms of the Merger, each outstanding share of Carrizo common stock was converted into 1.75 shares of the Company’s common stock. The Company issued approximately 168.2 million shares of common stock at a price of $4.55 per share, resulting in total consideration paid by the Company to the former Carrizo shareholders of approximately $765.4 million. In connection with the closing of the Merger, the Company funded the redemption of Carrizo’s 8.875% Preferred Stock, repaid the outstanding principal under Carrizo’s revolving credit facility and assumed all of Carrizo’s senior notes.
The Merger was accounted for as a business combination, therefore, the purchase price was allocated to the assets acquired and the liabilities assumed based on their estimated acquisition date fair values with information available at that time. A combination of a discounted cash flow model and market data was used by a third-party specialist in determining the fair value of the oil and gas properties. Significant inputs into the calculation included future commodity prices, estimated volumes of oil and gas reserves, expectations for timing and amount of future development and operating costs, future plugging and abandonment costs and a risk-adjusted discount rate. Certain data necessary to complete the purchase price allocation is not yet available, including final tax returns that provide the underlying tax basis of Carrizo’s assets and liabilities. The Company expects to complete the purchase price allocation during the 12-month period following the acquisition date.
The following table sets forth the Company’s preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date.
| | | | | | | | |
| | Preliminary Purchase Price Allocation |
| | (In thousands) |
Consideration: | | |
Fair value of the Company’s common stock issued | | $765,373 | |
Total consideration | | $765,373 | |
| | |
Liabilities: | | |
Accounts payable | | $37,657 | |
Revenues and royalties payable | | 52,449 | |
Operating lease liabilities - current | | 29,924 | |
Fair value of derivatives - current | | 61,015 | |
Other current liabilities | | 88,714 | |
Long-term debt | | 1,984,135 | |
Operating lease liabilities - non-current | | 30,070 | |
Asset retirement obligation | | 26,151 | |
Fair value of derivatives - non-current | | 26,960 | |
Other long-term liabilities | | 17,260 | |
Common stock warrants | | 10,029 | |
Total liabilities assumed | | $2,364,364 | |
| | |
Assets: | | |
Accounts receivable, net | | $48,479 | |
Fair value of derivatives - current | | 17,451 | |
Other current assets | | 11,640 | |
Evaluated oil and natural gas properties | | 2,133,280 | |
Unevaluated properties | | 682,950 | |
Other property and equipment | | 9,614 | |
Fair value of derivatives - non-current | | 4,518 | |
Deferred tax asset | | 159,320 | |
Operating lease right-of-use-assets | | 59,907 | |
Other long term assets | | 2,578 | |
Total assets acquired | | $3,129,737 | |
Approximately $160.5 million and $408.8 million of revenues and $51.6 million and $151.5 million of direct operating expenses attributed to the Carrizo Acquisition were included in the Company’s consolidated statements of operations for the three and nine months ended September 30, 2020, respectively.
Pro Forma Operating Results (Unaudited). The following unaudited pro forma combined condensed financial data for the year ended December 31, 2019 was derived from the historical financial statements of the Company giving effect to the Merger, as if it had occurred on January 1, 2018. The below information reflects pro forma adjustments for the issuance of the Company’s common stock in exchange for Carrizo’s outstanding shares of common stock, as well as pro forma adjustments based on available information and certain assumptions that the Company believes are reasonable, including (i) the Company’s common stock issued to convert Carrizo’s outstanding shares of common stock and equity awards as of the closing date of the Merger, (ii) the depletion of Carrizo’s fair-valued proved oil and natural gas properties and (iii) the estimated tax impacts of the pro forma adjustments.
Additionally, pro forma earnings were adjusted to exclude acquisition-related costs incurred by the Company of approximately $58.8 million for the year ended December 31, 2019 and acquisition-related costs incurred by Carrizo that totaled approximately $15.6 million for the year ended December 31, 2019. The pro forma results of operations do not include any cost savings or other synergies that may result from the Merger or any estimated costs that have been or will be incurred by the Company to integrate the Carrizo assets. The pro forma financial data does not include the pro forma results of operations for any other acquisitions made during the periods presented, as they were primarily acreage acquisitions and their results were not deemed material.
The pro forma consolidated statements of operations data has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the Merger taken place on January 1, 2018 and is not intended to be a projection of future results.
| | | | | | | | |
| | For the Year Ended |
| | December 31, 2019 |
| | (In thousands) |
Revenues | | $1,620,357 | |
Income from operations | | 614,668 | |
Net income | | 369,777 | |
Basic earnings per common share | | 0.89 | |
Diluted earnings per common share | | 0.89 | |
In conjunction with the Carrizo Acquisition, the Company incurred costs totaling $2.5 million and $26.4 million for the three and nine months ended September 30, 2020, respectively, comprised of severance costs of $0.8 million and $6.2 million for the three and nine months ended September 30, 2020, respectively, and other merger and integration expenses of $1.7 million and $20.2 million for the three and nine months ended September 30, 2020, respectively. Through September 30, 2020, the Company has incurred cumulative costs associated with the Carrizo Acquisition of $100.8 million comprised of severance costs of $35.8 million and other merger and integration expenses of $65.0 million. As of September 30, 2020, $5.6 million remained accrued and is included as a component of “Accounts payable and accrued liabilities” in the consolidated balance sheets.
Ranger Divestiture. In the second quarter of 2019, the Company completed its divestiture of certain non-core assets in the southern Midland Basin (the “Ranger Asset Divestiture”) for net cash proceeds of $244.9 million. The transaction also provided for potential additional contingent consideration in payments of up to $60.0 million based on West Texas Intermediate average annual pricing over a three-year period. See “Note 7 - Derivative Instruments and Hedging Activities” and “Note 8 - Fair Value Measurements” for further discussion of this contingent consideration arrangement. The divestiture encompasses the Ranger operating area in the southern Midland Basin which includes approximately 9,850 net Wolfcamp acres with an average 66% working interest. The net cash proceeds were recognized as a reduction of evaluated oil and gas properties with no gain or loss recognized.
Note 4 - Property and Equipment, Net
As of September 30, 2020 and December 31, 2019, total property and equipment, net consisted of the following:
| | | | | | | | | | | | | | |
| | September 30, 2020 | | December 31, 2019 |
Oil and natural gas properties, full cost accounting method | | (In thousands) |
Evaluated properties | | $7,775,858 | | | $7,203,482 | |
Accumulated depreciation, depletion, amortization and impairments | | (4,859,316) | | | (2,520,488) | |
Net evaluated oil and natural gas properties | | 2,916,542 | | | 4,682,994 | |
Unevaluated properties | | | | |
Unevaluated leasehold and seismic costs | | 1,574,451 | | | 1,843,725 | |
Capitalized interest | | 183,681 | | | 142,399 | |
Total unevaluated properties | | 1,758,132 | | | 1,986,124 | |
Total oil and natural gas properties, net | | $4,674,674 | | | $6,669,118 | |
| | | | |
Other property and equipment | | $66,365 | | | $67,202 | |
Accumulated depreciation | | (33,445) | | | (31,949) | |
Other property and equipment, net | | $32,920 | | | $35,253 | |
The Company capitalized internal costs of employee compensation and benefits, including stock-based compensation, directly associated with acquisition, exploration and development activities totaling $10.3 million and $8.2 million for the three months ended September 30, 2020 and 2019, respectively, and $26.7 million and $27.4 million for the nine months ended September 30, 2020 and 2019.
The Company capitalized interest costs associated with its unproved properties totaling $20.7 million and $18.1 million for the three months ended September 30, 2020 and 2019, respectively, and $65.6 million and $56.7 million for the nine months ended September 30, 2020 and 2019.
As a result of the downturn in the oil and gas industry as well as in the broader macroeconomic environment, the Company analyzed its unevaluated leasehold giving consideration to its updated exploration program as well as to the remaining lease term of certain unevaluated leaseholds. The Company transferred $235.9 million from unevaluated leasehold to evaluated properties during the nine months ended September 30, 2020 primarily as a result of the analysis described above.
Impairment of Evaluated Oil and Gas Properties
Primarily due to declines in the average realized prices for sales of oil on the first calendar day of each month during the trailing 12-month period (“12-Month Average Realized Price”) prior to September 30, 2020, the capitalized costs of oil and gas properties exceeded the cost center ceiling resulting in an impairment in the carrying value of evaluated oil and gas properties for the three and nine months ended September 30, 2020. An impairment of evaluated oil and gas properties recognized in one period may not be reversed in a subsequent period even if higher oil and gas prices in the future increase the cost center ceiling applicable to the subsequent period. There were no impairments of evaluated oil and gas properties for the three months ended March 31, 2020 or for the corresponding prior year periods.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2020 | | 2019 | | 2020 | | 2019 |
Impairment of evaluated oil and gas properties (in thousands) | | $684,956 | | $— | | $1,961,474 | | $— |
Beginning of period 12-Month Average Realized Price ($/Bbl) | | $45.87 | | $53.00 | | $53.90 | | $58.40 |
End of period 12-Month Average Realized Price ($/Bbl) | | $41.71 | | $52.44 | | $41.71 | | $52.44 |
Percent decrease in 12-Month Average Realized Price | | (9 | %) | | (1 | %) | | (23 | %) | | (10 | %) |
The Company expects to record an additional impairment in the carrying value of evaluated oil and gas properties in the fourth quarter of 2020 based on an estimated 12-Month Average Realized price of crude oil of approximately $39.65 per Bbl as of December 31, 2020, which is based on the average realized price for sales of crude oil on the first calendar day of each month for the first 10 months and an estimate for the eleventh and twelfth months based on a quoted forward price. Declines in the 12-Month Average Realized Price of crude oil in subsequent quarters could result in a lower present value of the estimated future net revenues from proved oil and gas reserves and may result in additional impairments of evaluated oil and gas properties.
Note 5 - Earnings Per Share
Basic earnings (loss) per share is computed by dividing income (loss) available to common stockholders by the weighted average number of shares outstanding for the periods presented. The calculation of diluted earnings per share includes the potential dilutive impact of non-vested restricted shares outstanding during the periods presented, as calculated using the treasury stock method, unless their effect is anti-dilutive. For the three and nine months ended September 30, 2020, the Company reported a loss available to common stockholders. As a result, the calculation of diluted weighted average common shares outstanding excluded the anti-dilutive effect of 1.3 million and 1.0 million potentially dilutive common shares outstanding for the three and nine months ended September 30, 2020, respectively. The following table sets forth the computation of basic and diluted earnings per share:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
| 2020 | | 2019 | | 2020 | | 2019 |
| (In thousands, except per share amounts) |
Net income (loss) | ($680,384) | | | $55,834 | | | ($2,028,550) | | | $91,471 | |
Preferred stock dividends (1) | — | | | (350) | | | — | | | (3,997) | |
Loss on redemption of preferred stock | — | | | (8,304) | | | — | | | (8,304) | |
Income (loss) available to common stockholders | ($680,384) | | | $47,180 | | | ($2,028,550) | | | $79,170 | |
| | | | | | | |
Basic weighted average common shares outstanding (2) | 39,746 | | | 22,831 | | | 39,707 | | | 22,805 | |
Dilutive impact of restricted stock (2) | — | | | 15 | | | — | | |