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

Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2023

Summary of Fair Value of Financial Instruments at Carrying and Fair Value

The carrying amount of borrowings outstanding under the Credit Facility approximates fair value as the borrowings bear interest at variable rates and are reflective of market rates. The following table presents the principal amounts of the Senior Notes with the fair values measured using quoted secondary market trading prices which are designated as Level 2 within the valuation hierarchy.


	December 31, 2023		December 31, 2022
	Principal Amount	Fair Value	Principal Amount	Fair Value
	(In thousands)
8.25% Senior Notes	$—	$—	$187,238	$186,719
6.375% Senior Notes	320,783	320,119	320,783	301,732
8.0% Senior Notes	650,000	665,164	650,000	616,935
7.5% Senior Notes	600,000	606,414	600,000	550,812
Total	$1,570,783	$1,591,697	$1,758,021	$1,656,198

Fair Value of Assets Measured on Recurring Basis

The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022:


	December 31, 2023
	Level 1	Level 2	Level 3
	(In thousands)
Derivative Assets
Commodity derivative assets	$—	$11,857	$—
Contingent consideration arrangements	—	12,580	—
Total net assets	$—	$24,437	$—
Derivative Liabilities
Commodity derivative liabilities (1)	$—	($11,647)	$—
Contingent consideration arrangements	—	(42,380)	—
Total net assets (liabilities)	$—	($54,027)	$—

	December 31, 2022
	Level 1	Level 2	Level 3
	(In thousands)

Commodity derivative assets	$—	$21,786	$—


Commodity derivative liabilities	$—	($29,612)	$—

(1) Includes approximately $4.1 million of deferred premiums, which will be paid as the applicable contracts settled.

Fair Value of Liabilities Measured on Recurring Basis

The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022:


	December 31, 2023
	Level 1	Level 2	Level 3
	(In thousands)
Derivative Assets
Commodity derivative assets	$—	$11,857	$—
Contingent consideration arrangements	—	12,580	—
Total net assets	$—	$24,437	$—
Derivative Liabilities
Commodity derivative liabilities (1)	$—	($11,647)	$—
Contingent consideration arrangements	—	(42,380)	—
Total net assets (liabilities)	$—	($54,027)	$—

	December 31, 2022
	Level 1	Level 2	Level 3
	(In thousands)

Commodity derivative assets	$—	$21,786	$—


Commodity derivative liabilities	$—	($29,612)	$—

(1) Includes approximately $4.1 million of deferred premiums, which will be paid as the applicable contracts settled.