Callon Petroleum (CPE) Q3 Results

dan_s · Post by **dan_s** » Tue Nov 06, 2018 7:22 pm

An OUTSTANDING quarter

Financial and operational highlights for the third quarter of 2018 and other recent data points include:

Increased production to 34.9 MBOE/D (78% oil), an increase of 55% year-over-year < Compares to my forecast of 32,500 Boepd.
Generated an operating margin of $41.22 per BOE, an increase of 27% year-over-year
Recent multi-well pads at WildHorse outperforming early time type curve expectations by an average of 29%
Second "mega-pad" placed on production in October and tracking early time performance of first "mega-pad" that is outperforming offset three-well pads by approximately 30%
Extended preferred vendor agreement for completion services providing price certainty for the next five quarters
Initiated delivery of disposal volumes to Goodnight Midstream saltwater disposal system within the Spur operating area, complementing recently enhanced recycling and operated saltwater disposal network
Completed the previously announced acquisition of properties in the Delaware Basin

"Callon continued to drive strong operational execution in the third quarter as evidenced by sustained operating margins in excess of 80% for a fifth consecutive quarter. I am extremely pleased with our organization's ability to seamlessly integrate our recent bolt-on acquisition in the Delaware Basin while continuing to drive efficiencies across the entire Callon portfolio," commented Joe Gatto, President and Chief Executive Officer. He continued, "We have entered a phase of sustained growth and visibility with the maturing of our business model, characterized by increased efficiencies from larger scale developments, strategic partnerships with leading service providers and tactical development of multiple zones to preserve robust returns in our inventory for the long run. As stated previously, we expect to generate solid positive free cash flows at the field level in the fourth quarter of 2018 as we target corporate level free cash flow generation by the latter portion of 2019."