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)

6 Months Ended

Jun. 30, 2012

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

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



	June 30, 2012				December 31, 2011
	Carrying Value		Fair Value		Carrying Value		Fair Value
13% Senior Notes due 2016 (1)	$	112,215	$	99,385	$	125,345	$	110,571

(1) Fair value is calculated only in relation to the $96,961 and $106,961 principal outstanding of the Senior Notes at the dates indicated above, respectively. The remaining $15,254 and $18,384, 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 liabilities measured at fair value on a recurring basis for each hierarchy level:



As of 6/30/2012	Balance Sheet Presentation	Level 1		Level 2		Level 3		Total
Assets
Derivative financial instruments - current	Fair market value of derivatives	$	—	$	4,645	$	—	$	4,645
Derivative financial instruments - non-current	Other long-term assets	—		1,982		—		1,982

Liabilities
Derivative financial instruments - current	Fair market value of derivatives	$	—	$	—	$	—	$	—
Derivative financial instruments - non-current	Other long-term liabilities	—		350		—		350
Total		$	—	$	6,277	$	—	$	6,277

As of 12/31/2011	Balance Sheet Presentation	Level 1		Level 2		Level 3		Total
Assets
Derivative financial instruments - current	Fair market value of derivatives	$	—	$	2,499	$	—	$	2,499
Derivative financial instruments - non-current	Other long-term assets	—		—		—		—
Total		$	—	$	2,499	$	—	$	2,499

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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+ Details

- 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.

+ References + Details