CPE Q1 Results

[dan_s]

Cash flow from operations exceeded my forecast.

NATCHEZ, Miss., May 2, 2018 /PRNewswire/ -- Callon Petroleum Company (CPE) ("Callon" or the "Company") today reported results of operations for the three months ended March 31, 2018.

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 first quarter of 2018 and other recent data points include:

Increased production to 26.6 MBoepd (77% oil), an increase of 30% year-over-year < Compares to my forecast of 27,100 boepd
Reduced lease operating expense by 18% year-over-year to $5.45 per BOE
Generated a first quarter operating margin of $44.31 per BOE, an increase of 30% year-over-year
Successful early results from Wolfcamp A down-spacing test in Howard County with 10-well spacing exceeding the performance of offsetting eight-well spacing pads
Initial production rates from the first two-well pad targeting the upper and lower Wolfcamp A intervals in Ward County have reached approximately 1,700 Boepd (85% oil) to date from each of the wells within the first 20 days of production
Improved drilling efficiency in the Delaware Basin has resulted in a greater than 25% increase in footage per day through the first six operated wells

Joe Gatto, President and Chief Executive Officer, commented, "We are pleased to deliver another solid quarter of execution while positioning ourselves for an increased level of baseline activity. During the first quarter, we added a fifth horizontal drilling rig and made substantial progress completing our Delaware Basin infrastructure initiatives to support the next phase of program development on our Permian footprint. Similar to our proactive past investments in the Midland Basin, our established facilities and takeaway investments in the Spur area will help preserve our leading cash margins for the long-term." He continued, "The first quarter also produced drilling and completion efficiency gains that were ahead of expectations. Combined with strong well productivity across the portfolio and a low-cost operating structure, the stage is set for robust production growth and cash flow generation in the coming quarters."