Callon Petroleum - Q3 Results
Posted: Mon Nov 06, 2017 7:25 pm
Callon's results are a bit of a disappointment as Q3 production came is below forecast. However, more important is the fact that operating cash flow per share came in at $0.30/share, compared to my forecast of $0.27/share. Higher NGL prices really bailed them out. Guidance for Q4 is that that production will be up 2,000 to 2,500 BOE per day with most of the increase being crude oil. I will update my forecast model and post it to the EPG website tomorrow.
NATCHEZ, Miss., Nov. 6, 2017 /PRNewswire/ -- Callon Petroleum Company (CPE) ("Callon" or the "Company") today reported results of operations for the three months ended September 30, 2017.
Presentation slides accompanying this earnings release are available on the Company's website at www.callon.com located on the "Presentations" page within the Investors section of the site.
Financial and operational highlights for the third quarter of 2017, and other recent data points include:
Increased production by 36% year-over-year, with an increased percentage of oil volumes
Reduced lease operating expense by 9% on a sequential basis to $5.08 per BOE, contributing to a total reduction of 23% since the first quarter of 2017
Generated a third quarter operating margin of $32.58 per BOE
First operated Delaware Basin Lower Wolfcamp A well had a 24 hour peak flowing rate of 238 BOE/d per 1,000' (82% oil)
Successful return to Ranger drilling program with two Lower Wolfcamp B wells outperforming previous type curves
Joe Gatto, Chief Executive Officer and President commented, "This quarter's results speak to our team's commitment to generating strong returns by focusing on driving down costs while extracting the best well results possible from our premier asset base. Consistent improvement in our already strong cash margins, despite production deferrals during the quarter, is evidence that we are taking the correct steps to create shareholder value. Our goal is to manage growth as a function of creating returns on our capital investment. We have been consistent in our focus on these priorities and will continue to be into 2018." He continued, "Callon's well results were strong across all four of our operations areas during the third quarter, including our first operated well in the Delaware Basin. Early well results in the fourth quarter have been equally strong and we are excited about our prospects for 2018."
NATCHEZ, Miss., Nov. 6, 2017 /PRNewswire/ -- Callon Petroleum Company (CPE) ("Callon" or the "Company") today reported results of operations for the three months ended September 30, 2017.
Presentation slides accompanying this earnings release are available on the Company's website at www.callon.com located on the "Presentations" page within the Investors section of the site.
Financial and operational highlights for the third quarter of 2017, and other recent data points include:
Increased production by 36% year-over-year, with an increased percentage of oil volumes
Reduced lease operating expense by 9% on a sequential basis to $5.08 per BOE, contributing to a total reduction of 23% since the first quarter of 2017
Generated a third quarter operating margin of $32.58 per BOE
First operated Delaware Basin Lower Wolfcamp A well had a 24 hour peak flowing rate of 238 BOE/d per 1,000' (82% oil)
Successful return to Ranger drilling program with two Lower Wolfcamp B wells outperforming previous type curves
Joe Gatto, Chief Executive Officer and President commented, "This quarter's results speak to our team's commitment to generating strong returns by focusing on driving down costs while extracting the best well results possible from our premier asset base. Consistent improvement in our already strong cash margins, despite production deferrals during the quarter, is evidence that we are taking the correct steps to create shareholder value. Our goal is to manage growth as a function of creating returns on our capital investment. We have been consistent in our focus on these priorities and will continue to be into 2018." He continued, "Callon's well results were strong across all four of our operations areas during the third quarter, including our first operated well in the Delaware Basin. Early well results in the fourth quarter have been equally strong and we are excited about our prospects for 2018."