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)

3 Months Ended

Mar. 31, 2014

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

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


						`
	March 31, 2014				December 31, 2013
	Carrying Value		Fair Value			Carrying Value	Fair Value
Credit Facility	$	68,000	$	68,000	$	22,000	$	22,000
13% Senior Notes due 2016 (a)		53,315		50,420		53,748		50,299
Total	$	121,315	$	118,420	$	75,748	$	72,299

(a) Fair value is calculated only in relation to the $48,481 and $48,481 principal outstanding of the Senior Notes at the dates indicated above, respectively. The remaining $4,834 and $5,267, 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:


March 31, 2014	Balance Sheet Presentation		Level 1		Level 2		Level 3		Total
Liabilities
Derivative financial instruments (current)	Fair market value of derivatives	$	—	$	2,645	$	—	$	2,645
Derivative financial instruments (non-current)	Other long-term liabilities		—		41		—		41
Total net liability		$	—	$	(2,686)	$	—	$	(2,686)

December 31, 2013	Balance Sheet Presentation		Level 1		Level 2		Level 3		Total
Assets
Derivative financial instruments (current)	Fair market value of derivatives	$	—	$	60	$	—	$	60
Sub-total assets			—		60		—		60
Liabilities
Derivative financial instruments (current)	Fair market value of derivatives	$	—	$	1,036	$	—	$	1,036
Derivative financial instruments (non-current)	Other long-term liabilities		—		72		—		72
Sub-total liabilities		$	—	$	1,108	$	—	$	1,108

Total net liability		$	—	$	(1,048)	$	—	$	(1,048)

- 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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