Callon Petroleum Company Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

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

The following table summarizes the respective carrying and fair values at:



	September 30, 2013				December 31, 2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
Credit Facility	$	17,000	$	17,000	$	10,000	$	10,000
13% Senior Notes due 2016 (1)	108,220		100,718		110,668		100,112
Total	$	125,220	$	117,718	$	120,668	$	110,112

(1) Fair value is calculated only in relation to the $96,961 principal outstanding of the Senior Notes at each of the dates indicated above, respectively. The remaining $11,259 and $13,707, respectively, which the Company has recorded as a deferred credit, is excluded from the fair value calculation, and will be recognized in earnings as a reduction of interest expense over the remaining amortization period. See Note 4 for additional information.

Fair Value Liabilities Measured on Recurring Basis

The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis for each hierarchy level:



As of 9/30/2013	Balance Sheet Presentation	Level 1		Level 2			Level 3		Total
Assets
Derivative financial instruments - current	Fair market value of derivatives	$	—	$	—		$	—	$	—
Derivative financial instruments - non-current	Other long-term assets	—		36			—		36
Sub-total assets		—		36			—		36

Liabilities
Derivative financial instruments - current	Fair market value of derivatives	$	—	$	1,139		$	—	$	1,139
Derivative financial instruments - non-current	Other long-term liabilities	—		18			—		18
Sub-total liabilities	Other long-term liabilities	—		1,157			—		1,157

Total		$	—	$	(1,121	)	$	—	$	(1,121	)

As of 12/31/2012	Balance Sheet Presentation	Level 1		Level 2			Level 3		Total
Assets
Derivative financial instruments - current	Fair market value of derivatives	$	—	$	1,674		$	—	$	1,674
Derivative financial instruments - non-current	Other long-term assets	—		250			—		250
Sub-total assets		—		1,924			—		1,924

Liabilities
Derivative financial instruments - current	Fair market value of derivatives	$	—	$	125		$	—	$	125
Derivative financial instruments - non-current	Other long-term liabilities	—		116			—		116
Sub-total liabilities		—		241			—		241

Total		$	—	$	1,683		$	—	$	1,683

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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- Definition

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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