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, 2022

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	2022	2021	2020
Oil (MBbls)
Beginning of period	290,296	289,487	346,361
Extensions and discoveries	41,064	22,520	25,678
Revisions to previous estimates	(31,163)	(10,514)	(49,336)
Purchase of reserves in place	—	35,045	—
Sales of reserves in place	(949)	(24,019)	(9,673)

Production	(23,639)	(22,223)	(23,543)
End of period	275,609	290,296	289,487
Natural Gas (MMcf)
Beginning of period	577,327	541,598	757,134
Extensions and discoveries	75,801	37,896	44,282
Revisions to previous estimates	(11,155)	(3,389)	(198,628)
Purchase of reserves in place	—	73,445	—
Sale of reserves in place	(7,503)	(34,837)	(20,389)

Production	(41,627)	(37,386)	(40,801)
End of period	592,843	577,327	541,598
NGLs (MBbls)
Beginning of period	98,104	96,126	67,462
Extensions and discoveries	14,264	7,345	8,349
Revisions to previous estimates	1,376	(3,103)	30,214
Purchase of reserves in place	—	10,366	—
Sale of reserves in place	(1,159)	(6,191)	(3,049)
Production	(7,476)	(6,439)	(6,850)
End of period	105,109	98,104	96,126
Total (MBoe)
Beginning of period	484,621	475,879	540,012
Extensions and discoveries	67,961	36,180	41,407
Revisions to previous estimates	(31,645)	(14,181)	(52,227)
Purchase of reserves in place	—	57,652	—
Sale of reserves in place	(3,359)	(36,015)	(16,120)

Production	(38,053)	(34,894)	(37,193)
End of period	479,525	484,621	475,879


	Years Ended December 31,
Proved developed reserves	2022	2021	2020
Oil (MBbls)
Beginning of period	162,886	128,923	152,687
End of period	170,866	162,886	128,923
Natural gas (MMcf)
Beginning of period	332,266	238,119	320,676
End of period	351,278	332,266	238,119
NGLs (MBbls)
Beginning of period	55,720	43,315	24,844
End of period	63,788	55,720	43,315
Total proved developed reserves (MBoe)
Beginning of period	273,983	211,925	230,977
End of period	293,200	273,983	211,925
Proved undeveloped reserves
Oil (MBbls)
Beginning of period	127,410	160,564	193,674
End of period	104,743	127,410	160,564
Natural gas (MMcf)
Beginning of period	245,061	303,479	436,458
End of period	241,565	245,061	303,479
NGLs (MBbls)
Beginning of period	42,384	52,811	42,618
End of period	41,321	42,384	52,811
Total proved undeveloped reserves (MBoe)
Beginning of period	210,638	263,954	309,035
End of period	186,325	210,638	263,954
Total proved reserves
Oil (MBbls)
Beginning of period	290,296	289,487	346,361
End of period	275,609	290,296	289,487
Natural gas (MMcf)
Beginning of period	577,327	541,598	757,134
End of period	592,843	577,327	541,598
NGLs (MBbls)
Beginning of period	98,104	96,126	67,462
End of period	105,109	98,104	96,126
Total proved reserves (MBoe)
Beginning of period	484,621	475,879	540,012
End of period	479,525	484,621	475,879

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,
	2022	2021
Oil and natural gas properties:	(In thousands)
Evaluated properties	$10,367,478	$9,238,823
Unevaluated properties	1,711,306	1,812,827
Total oil and natural gas properties	12,078,784	11,051,650
Accumulated depreciation, depletion, amortization and impairments	(6,343,875)	(5,886,002)
Total oil and natural gas properties, net	$5,734,909	$5,165,648

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,
	2022	2021	2020
Acquisition costs:	(In thousands)
Evaluated properties	$—	$677,250	$—
Unevaluated properties	32,548	301,404	30,696
Development costs	742,991	396,181	379,900
Exploration costs	133,080	137,989	122,865
Total costs incurred	$908,619	$1,512,824	$533,461

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

Details of the 12-Month Average Realized Price of oil for the years ended December 31, 2022, 2021, and 2020 are summarized in the table below:


	Years Ended December 31,
	2022		2021		2020
Impairment of evaluated oil and natural gas properties (In thousands)	$—		$—		$2,547,241
Beginning of period 12-Month Average Realized Price ($/Bbl)	$65.44		$37.44		$53.90
End of period 12-Month Average Realized Price ($/Bbl)	$95.02		$65.44		$37.44
Percent increase (decrease) in 12-Month Average Realized Price	45	%	75	%	(31	%)

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,
	2022	2021	2020
Oil ($/Bbl)	$95.02	$65.44	$37.44
Natural gas ($/Mcf)	$5.75	$3.31	$1.02
NGLs ($/Bbl)	$36.40	$29.19	$11.10

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


	Standardized Measure
	For the Year Ended December 31,
	2022	2021	2020
	(In thousands)
Future cash inflows	$33,424,190	$23,775,358	$12,458,033
Future costs
Production	(10,702,897)	(8,038,362)	(5,433,496)
Development and net abandonment	(2,326,789)	(1,927,789)	(2,204,301)
Future net inflows before income taxes	20,394,504	13,809,207	4,820,236
Future income taxes	(3,000,300)	(1,481,005)	(65,405)
Future net cash flows	17,394,204	12,328,202	4,754,831
10% discount factor	(8,390,068)	(6,077,447)	(2,444,441)
Standardized measure of discounted future net cash flows	$9,004,136	$6,250,755	$2,310,390


	Changes in Standardized Measure
	For the Year Ended December 31,
	2022	2021	2020
	(In thousands)
Standardized measure at the beginning of the period	$6,250,755	$2,310,390	$4,951,026
Sales and transfers, net of production costs	(2,208,492)	(1,466,413)	(649,781)
Net change in sales and transfer prices, net of production costs	4,168,425	4,336,078	(2,719,579)
Net change due to purchases of in place reserves	—	797,327	—
Net change due to sales of in place reserves	(36,389)	(105,376)	(202,928)
Extensions, discoveries, and improved recovery, net of future production and development costs incurred	1,338,286	583,976	250,759
Changes in future development cost	(257,344)	(81,480)	361,008
Previously estimated development costs incurred	289,207	209,078	318,470
Revisions of quantity estimates	(215,828)	(104,572)	(671,800)
Accretion of discount	705,127	234,495	536,958
Net change in income taxes	(730,185)	(765,956)	383,999
Changes in production rates, timing and other	(299,426)	303,208	(247,742)
Aggregate change	2,753,381	3,940,365	(2,640,636)
Standardized measure at the end of period	$9,004,136	$6,250,755	$2,310,390

- 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