2012-11-07 23:18:19 -
Natchez, MS (November 7, 2012)-Callon Petroleum Company (NYSE: CPE) is issuing
guidance for the full year 2012. The guidance, found in the table below, is
expressed in ranges for the detailed components.
The following guidance estimates contain assumptions that we believe are
reasonable. These estimates are based upon information that is available as of
the date of this news release. We are not undertaking any obligation to update
these estimates as conditions change or as additional information becomes
available.
Guidance for
Full Year 2012
Estimated production volumes:
Natural gas (Bcf) 3.6 - 3.8
Crude oil (Mbo) 990 -- 1,070
Boe/d 4,350 -- 4,650
Lease operating expenses $24,000 -- $27,000
Severance Tax $3,000 -- $4,000
General and administrative expenses:
Cash $12,600 -- $13,400
Non-cash 5,400 -- 6,600
Total $18,000 -- $20,000
Interest expense:
Cash $12,500 -- $14,000
Non-cash (2,500) -- (3,000)
Total $10,000 -- $11,000
Medusa Spar LLC, net of tax $300 -- $400
DD & A - per BOE $ 29.00 -- $32.00
Accretion expense $2,100 -- $2,400
Effective income tax rate 28%
Cash income tax rate -%
Listed below are the outstanding hedges for crude oil and natural gas per
quarter for 2012, 2013 and 2014.
12/31/2012
Crude Oil
Volume
Collars (Mbo) 75
Ceiling $ 122.00
Floor $ 90.00
Volume
Collars (Mbo) 75
Ceiling $ 125.00
Floor $ 95.00
3/31/2013 6/30/2013 9/30/2013 12/31/2013
Volume
Collars (Mbo) 120 120 120 120
Ceiling $ 116.00 $ 116.00 $ 116.00 $ 116.00
Floor $ 90.00 $ 90.00 $ 90.00 $ 90.00
12/31/2012
Natural Gas
Volume
Swap (MMbtu) 276
Price $ 3.52
3/31/2013 6/30/2013 9/30/2013 12/31/2013
Volume
Swap (MMbtu) 270 273 276 276
$
Price 3.52 $ 3.52 $ 3.52 $ 3.52
Volume
Put Option (MMbtu) 270 273 276 276
Ceiling $ 3.00 $ 3.00 $ 3.00 $ 3.00
3/31/2014 6/30/2014 9/30/2014 12/31/2014
Call Option Volume (MMbtu) 113 114 115 115
Ceiling $ 4.75 $ 4.75 $ 4.75 $ 4.75
Callon Petroleum Company is engaged in the acquisition, development, exploration
and operation of oil and gas properties in Texas, Louisiana and the offshore
waters of the Gulf of Mexico.
This news release is posted on the company's website at www.callon.com and will
be archived there for subsequent review. It can be accessed from the "News
Releases" link at the top of the homepage.
This news release contains projections and other forward-looking statements
(including statements about 2012 financial and operating performance) within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These projections and statements reflect the
company's current views with respect to future events and financial
performance. No assurances can be given, however, that these events will occur
or that these projections will be achieved and actual results could differ
materially from those projected as a result of certain factors. Some of the
factors which could affect our future results and could cause results to differ
materially from those expressed in our forward-looking statements include:
* general economic and industry conditions;
* volatility of oil and natural gas prices;
* uncertainty of estimates of oil and natural gas reserves;
* impact of competition;
* availability and cost of seismic, drilling and other equipment;
* operating hazards inherent in the exploration for and production of oil and
natural gas;
* difficulties encountered during the exploration for and production of oil
and natural gas;
* difficulties encountered in delivering oil and natural gas to commercial
markets;
* changes in customer demand and producers' supply;
* uncertainty of our ability to attract capital;
* compliance with, or the effect of changes in, the extensive governmental
regulations regarding the oil and natural gas business;
* actions of operators of our oil and gas properties;
* weather conditions; and
* the risk factors discussed in our filings with the Securities and Exchange
Commission, including but not limited to those in our Annual Report for the
year ended December 31, 2011 on Form 10-K.
The preceding estimates reflect our review of continuing operations only. These
estimates do not take into account any material transactions such as sales of
debt and equity securities, acquisitions or divestitures of assets, and
formations of joint ventures. We continually review these types of transactions
and may engage in one or more of these types of transactions without prior
notice.
For further information contact
Rodger W. Smith 1-800-451-1294
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Callon Petroleum Company via Thomson Reuters ONE
[HUG#1656059]
