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, 2021

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	2021	2020	2019
Oil (MBbls)
Beginning of period	289,487	346,361	180,097
Purchase of reserves in place	35,045	—	183,382
Sales of reserves in place	(24,019)	(9,673)	(17,980)
Extensions and discoveries	22,520	25,678	45,663
Revisions to previous estimates	(10,514)	(49,336)	(33,136)

Production	(22,223)	(23,543)	(11,665)
End of period	290,296	289,487	346,361
Natural Gas (MMcf)
Beginning of period	541,598	757,134	350,466
Purchase of reserves in place	73,445	—	455,158
Sale of reserves in place	(34,837)	(20,389)	(86,856)
Extensions and discoveries	37,896	44,282	82,566
Revisions to previous estimates	(3,389)	(198,628)	(24,482)

Production	(37,386)	(40,801)	(19,718)
End of period	577,327	541,598	757,134
NGLs (MBbls)
Beginning of period	96,126	67,462	—
Purchase of reserves in place	10,366	—	67,597
Sale of reserves in place	(6,191)	(3,049)	—
Extensions and discoveries	7,345	8,349	—
Revisions to previous estimates	(3,103)	30,214	—
Production	(6,439)	(6,850)	(135)
End of period	98,104	96,126	67,462
Total (MBoe)
Beginning of period	475,879	540,012	238,508
Purchase of reserves in place	57,652	—	326,838
Sale of reserves in place	(36,015)	(16,120)	(32,456)
Extensions and discoveries	36,180	41,407	59,424
Revisions to previous estimates	(14,181)	(52,227)	(37,216)

Production	(34,894)	(37,193)	(15,086)
End of period	484,621	475,879	540,012


	Years Ended December 31,
Proved developed reserves	2021	2020	2019
Oil (MBbls)
Beginning of period	128,923	152,687	92,202
End of period	162,886	128,923	152,687
Natural gas (MMcf)
Beginning of period	238,119	320,676	218,417
End of period	332,266	238,119	320,676
NGLs (MBbls)
Beginning of period	43,315	24,844	—
End of period	55,720	43,315	24,844
Total proved developed reserves (MBoe)
Beginning of period	211,925	230,977	128,605
End of period	273,983	211,925	230,977
Proved undeveloped reserves
Oil (MBbls)
Beginning of period	160,564	193,674	87,895
End of period	127,410	160,564	193,674
Natural gas (MMcf)
Beginning of period	303,479	436,458	132,049
End of period	245,061	303,479	436,458
NGLs (MBbls)
Beginning of period	52,811	42,618	—
End of period	42,384	52,811	42,618
Total proved undeveloped reserves (MBoe)
Beginning of period	263,954	309,035	109,903
End of period	210,638	263,954	309,035
Total proved reserves
Oil (MBbls)
Beginning of period	289,487	346,361	180,097
End of period	290,296	289,487	346,361
Natural gas (MMcf)
Beginning of period	541,598	757,134	350,466
End of period	577,327	541,598	757,134
NGLs (MBbls)
Beginning of period	96,126	67,462	—
End of period	98,104	96,126	67,462
Total proved reserves (MBoe)
Beginning of period	475,879	540,012	238,508
End of period	484,621	475,879	540,012

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,
	2021	2020
Oil and natural gas properties:	(In thousands)
Evaluated properties	$9,238,823	$7,894,513
Unevaluated properties	1,812,827	1,733,250
Total oil and natural gas properties	11,051,650	9,627,763
Accumulated depreciation, depletion, amortization and impairment	(5,886,002)	(5,538,803)
Total oil and natural gas properties capitalized	$5,165,648	$4,088,960

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,
	2021	2020	2019
Acquisition costs:	(In thousands)
Evaluated properties	$677,250	$—	$49,572
Unevaluated properties	301,404	30,696	107,347
Development costs	396,181	379,900	189,259
Exploration costs	137,989	122,865	309,013
Total costs incurred	$1,512,824	$533,461	$655,191

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, 2021, 2020, and 2019 are summarized in the table below:


	Years Ended December 31,
	2021		2020		2019
Impairment of evaluated oil and natural gas properties (In thousands)	$—		$2,547,241		$—
Beginning of period 12-Month Average Realized Price ($/Bbl)	$37.44		$53.90		$58.40
End of period 12-Month Average Realized Price ($/Bbl)	$65.44		$37.44		$53.90
Percent increase (decrease) in 12-Month Average Realized Price	75	%	(31	%)	(8	%)

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,
	2021	2020	2019
Oil ($/Bbl)	$65.44	$37.44	$53.90
Natural gas ($/Mcf)	$3.31	$1.02	$1.55
NGLs ($/Bbl)	$29.19	$11.10	$15.58

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


	Standardized Measure
	For the Year Ended December 31,
	2021	2020	2019
	(In thousands)
Future cash inflows	$23,775,358	$12,458,033	$20,891,469
Future costs
Production	(8,038,362)	(5,433,496)	(6,717,088)
Development and net abandonment	(1,927,789)	(2,204,301)	(3,058,861)
Future net inflows before income taxes	13,809,207	4,820,236	11,115,520
Future income taxes	(1,481,005)	(65,405)	(941,768)
Future net cash flows	12,328,202	4,754,831	10,173,752
10% discount factor	(6,077,447)	(2,444,441)	(5,222,726)
Standardized measure of discounted future net cash flows	$6,250,755	$2,310,390	$4,951,026


	Changes in Standardized Measure
	For the Year Ended December 31,
	2021	2020	2019
	(In thousands)
Standardized measure at the beginning of the period	$2,310,390	$4,951,026	$2,941,293
Sales and transfers, net of production costs	(1,466,413)	(649,781)	(579,744)
Net change in sales and transfer prices, net of production costs	4,336,078	(2,719,579)	(387,970)
Net change due to purchases of in place reserves	797,327	—	2,975,296
Net change due to sales of in place reserves	(105,376)	(202,928)	(303,526)
Extensions, discoveries, and improved recovery, net of future production and development costs incurred	583,976	250,759	607,146
Changes in future development cost	(81,480)	361,008	205,398
Previously estimated development costs incurred	209,078	318,470	134,037
Revisions of quantity estimates	(104,572)	(671,800)	(420,488)
Accretion of discount	234,495	536,958	314,921
Net change in income taxes	(765,956)	383,999	(210,641)
Changes in production rates, timing and other	303,208	(247,742)	(324,696)
Aggregate change	3,940,365	(2,640,636)	2,009,733
Standardized measure at the end of period	$6,250,755	$2,310,390	$4,951,026

- 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