Callon reserve write downs ?//

[Roadster]

Dan Are inventory write downs a possibility ?? Thanks

"I've sold off most of my ESTE position partly due to concerns of a possible upcoming reserve write-down.  Nearly half of their capitalized costs for reserves were acquired at times when the 12-month crude strip was higher than it is currently.   Maybe they dodge the bullet for 4Q but I'm concerned that if oil prices go below $70 the gong could go off."

[dan_s]

I doubt it. The big impairment charges in 2019 and 2020 make more impairment charges unlikely. Plus, SEC proved reserve valuations are based on the previous 12 months of oil and gas prices.

None of the Sweet 16 should be required to make reserve writedowns. Plus, they have no impact on my valuations which are based on operating cash flow. Impairment charges are "non-cash expenses" just like DD&A.