Callon Petroleum Company Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Supplemental Information on Oil and Natural Gas Properties (Unaudited) (Tables)

Supplemental Information on Oil and Natural Gas Properties (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2020

Oil and Gas Exploration and Production Industries Disclosures [Abstract]

Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities

The following tables disclose changes in the estimated quantities of proved reserves, all of which are located onshore within the continental United States:


	Years Ended December 31,
Proved reserves	2020	2019	2018
Oil (MBbls)
Beginning of period	346,361	180,097	107,072
Purchase of reserves in place	—	183,382	30,756
Sales of reserves in place	(9,673)	(17,980)	—
Extensions and discoveries	25,678	45,663	67,763
Revisions to previous estimates	(49,336)	(33,136)	(16,051)

Production	(23,543)	(11,665)	(9,443)
End of period	289,487	346,361	180,097
Natural Gas (MMcf)
Beginning of period	757,134	350,466	179,410
Purchase of reserves in place	—	455,158	53,563
Sale of reserves in place	(20,389)	(86,856)	—
Extensions and discoveries	44,282	82,566	103,149
Revisions to previous estimates	(198,628)	(24,482)	29,791

Production	(40,801)	(19,718)	(15,447)
End of period	541,598	757,134	350,466
NGLs (MBbls)
Beginning of period	67,462	—	—
Purchase of reserves in place	—	67,597	—
Sale of reserves in place	(3,049)	—	—
Extensions and discoveries	8,349	—	—
Revisions to previous estimates	30,214	—	—
Production	(6,850)	(135)	—
End of period	96,126	67,462	—
Total (MBoe)
Beginning of period	540,012	238,508	136,974
Purchase of reserves in place	—	326,838	39,683
Sale of reserves in place	(16,120)	(32,456)	—
Extensions and discoveries	41,407	59,424	84,955
Revisions to previous estimates	(52,227)	(37,216)	(11,086)

Production	(37,193)	(15,086)	(12,018)
End of period	475,879	540,012	238,508


	Years Ended December 31,
Proved developed reserves	2020	2019	2018
Oil (MBbls)
Beginning of period	152,687	92,202	51,920
End of period	128,923	152,687	92,202
Natural gas (MMcf)
Beginning of period	320,676	218,417	104,389
End of period	238,119	320,676	218,417
NGLs (MBbls)
Beginning of period	24,844	—	—
End of period	43,315	24,844	—
Total proved developed reserves (MBoe)
Beginning of period	230,977	128,605	69,318
End of period	211,925	230,977	128,605
Proved undeveloped reserves
Oil (MBbls)
Beginning of period	193,674	87,895	55,152
End of period	160,564	193,674	87,895
Natural gas (MMcf)
Beginning of period	436,458	132,049	75,021
End of period	303,479	436,458	132,049
NGLs (MBbls)
Beginning of period	42,618	—	—
End of period	52,811	42,618	—
Total proved undeveloped reserves (MBoe)
Beginning of period	309,035	109,903	67,656
End of period	263,954	309,035	109,903
Total proved reserves
Oil (MBbls)
Beginning of period	346,361	180,097	107,072
End of period	289,487	346,361	180,097
Natural gas (MMcf)
Beginning of period	757,134	350,466	179,410
End of period	541,598	757,134	350,466
NGLs (MBbls)
Beginning of period	67,462	—	—
End of period	96,126	67,462	—
Total proved reserves (MBoe)
Beginning of period	540,012	238,508	136,974
End of period	475,879	540,012	238,508

Capitalized Costs Relating to Oil and Natural Gas Activities

Capitalized costs related to oil and natural gas production activities with applicable accumulated depreciation, depletion, amortization and impairment are as follows:


	As of December 31,
	2020	2019
Oil and natural gas properties:	(In thousands)
Evaluated properties	$7,894,513	$7,203,482
Unevaluated properties	1,733,250	1,986,124
Total oil and natural gas properties	9,627,763	9,189,606
Accumulated depreciation, depletion, amortization and impairment	(5,538,803)	(2,520,488)
Total oil and natural gas properties capitalized	$4,088,960	$6,669,118

Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities

Costs incurred in oil and natural gas property acquisitions, exploration and development activities are as follows:


	Years Ended December 31,
	2020	2019	2018
Acquisition costs:	(In thousands)
Evaluated properties	$—	$49,572	$347,305
Unevaluated properties	30,696	107,347	466,816
Development costs	379,900	189,259	259,410
Exploration costs	122,865	309,013	323,458
Total costs incurred	$533,461	$655,191	$1,396,989

Oil and Gas Net Production, Average Sales Price and Average Production Costs Disclosure

Details of the 12-Month Average Realized Price of crude oil for the years ended December 31, 2020, 2019, and 2018 are summarized in the table below:


	Years Ended December 31,
	2020		2019		2018
Impairment of evaluated oil and natural gas properties (In thousands)	$2,547,241		$—		$—
Beginning of period 12-Month Average Realized Price ($/Bbl)	$53.90		$58.40		$49.48
End of period 12-Month Average Realized Price ($/Bbl)	$37.44		$53.90		$58.40
Percent increase (decrease) in 12-Month Average Realized Price	(31	%)	(8	%)	18	%

The following average realized prices were used in the calculation of proved reserves and the standardized measure of discounted future net cash flows.


	Years Ended December 31,
	2020	2019	2018
Oil ($/Bbl)	$37.44	$53.90	$58.40
Natural gas ($/Mcf)	$1.02	$1.55	$3.64
NGLs ($/Bbl)	$11.10	$15.58	$—

Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure


	Standardized Measure
	For the Year Ended December 31,
	2020	2019	2018
	(In thousands)
Future cash inflows	$12,458,033	$20,891,469	$11,794,080
Future costs
Production	(5,433,496)	(6,717,088)	(2,923,959)
Development and net abandonment	(2,204,301)	(3,058,861)	(1,429,787)
Future net inflows before income taxes	4,820,236	11,115,520	7,440,334
Future income taxes	(65,405)	(941,768)	(782,470)
Future net cash flows	4,754,831	10,173,752	6,657,864
10% discount factor	(2,444,441)	(5,222,726)	(3,716,571)
Standardized measure of discounted future net cash flows	$2,310,390	$4,951,026	$2,941,293


	Changes in Standardized Measure
	For the Year Ended December 31,
	2020	2019	2018
	(In thousands)
Standardized measure at the beginning of the period	$4,951,026	$2,941,293	$1,556,682
Sales and transfers, net of production costs	(649,781)	(579,744)	(481,306)
Net change in sales and transfer prices, net of production costs	(2,719,579)	(387,970)	222,802
Net change due to purchases of in place reserves	—	2,975,296	554,697
Net change due to sales of in place reserves	(202,928)	(303,526)	—
Extensions, discoveries, and improved recovery, net of future production and development costs incurred	250,759	607,146	1,001,873
Changes in future development cost	361,008	205,398	40,483
Previously estimated development costs incurred	318,470	134,037	91,900
Revisions of quantity estimates	(671,800)	(420,488)	(167,096)
Accretion of discount	536,958	314,921	157,676
Net change in income taxes	383,999	(210,641)	(187,841)
Changes in production rates, timing and other	(247,742)	(324,696)	151,423
Aggregate change	(2,640,636)	2,009,733	1,384,611
Standardized measure at the end of period	$2,310,390	$4,951,026	$2,941,293

- Definition

Tabular disclosure of the net quantities of an enterprise's interests in proved developed and undeveloped reserves of (a) crude oil (including condensate and natural gas liquids), (b) natural gas (including coal bed methane), (c) synthetic oil, (d) synthetic gas, and (e) other nonrenewable natural resources that are intended to be upgraded during the period as of the beginning of the period, changes in quantities during the period, and as of the end of the period.

+ References + Details

- Definition

Tabular disclosure of the future net cash flows relating to proved oil and gas reserves and oil and gas subject to purchase under long-term agreements in which the enterprise participates in the operation of the properties on which the oil and gas is located or otherwise serves as the producer. This information is presented in aggregate and for each geographic area for which reserve quantities are disclosed.

+ References + Details