CPE Q1

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ChuckGeb
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Joined: Thu Nov 21, 2013 2:46 pm

CPE Q1

Post by ChuckGeb »

Reported net income of $220.6 million, or $3.57 per diluted share
Reported adjusted income of $119.9 million, or $1.94 per diluted share
1Q23 production in line with guidance with capital expenditures below guidance
Increased drilling and completions efficiencies through simultaneous operations on larger projects
Debt moves lower for the eleventh consecutive quarter
Net income of $220.6 million, or $3.57 per diluted share (all share amounts are stated on a diluted basis), adjusted EBITDAX of $326.3 million, and adjusted income of $119.9 million or $1.94 per diluted share
Net cash provided by operating activities was $247.9 million and adjusted free cash flow was $7.2 million
Total production averaged 100 MBoe/d (60% oil), in-line with guidance
Capital expenditures were below expectations at $270.1 million
Reduced total debt by $37.7 million, the eleventh consecutive quarter of debt reduction
Increased completion stages pumped per day by more than 15% vs. the first half of 2022
ChuckGeb
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Joined: Thu Nov 21, 2013 2:46 pm

Re: CPE Acq

Post by ChuckGeb »

Transactions solidify Company's Permian focus and accelerate achievement of debt milestone
Company to launch $300 million share buyback at closing

HOUSTON, May 3, 2023 /PRNewswire/ -- Callon Petroleum Company (NYSE: CPE) ("Callon" or the "Company") today signed two definitive agreements that streamline and focus Callon's operations, accelerate the achievement of its debt reduction target and allow for the initiation of a shareholder return program in the third quarter of 2023.

Callon has entered into a definitive agreement to acquire the membership interests of Permian-based Percussion Petroleum Operating II, LLC ("Percussion") in a cash and stock transaction valued at approximately $475 million and potential contingent payments of up to $62.5 million. Under the terms of the agreement, Percussion will receive $265 million of cash and a maximum of 6.46 million shares of Callon common stock. The transaction is structured as the acquisition by Callon Petroleum Operating Company of 100% of the limited liability company interests of Percussion.

Under a separate agreement, Callon agreed to sell all its assets in the Eagle Ford Shale to Ridgemar Energy Operating, LLC ("Ridgemar") for $655 million in cash and potential contingent payments of up to $45 million. The transaction is structured as the acquisition by Ridgemar of 100% of the limited liability company interests of Callon's wholly owned subsidiary Callon (Eagle Ford) LLC.

The transactions are subject to customary terms and conditions and are expected to simultaneously close in July 2023, both with an effective date of January 1, 2023.

In conjunction with the release of its first quarter results and the announcement of these transactions, a conference call is planned for 8 a.m. CDT, May 4, 2023. Slides accompanying today's releases are available at www.callon.com/investors.

Highlights

Solidifies Permian focus – Callon's operations will be focused on its more than 145,000 net acres in the prolific Permian Basin, executing its proven "Life of Field" Co-Development Model on an expanded Delaware Basin footprint. Callon's scale and singular focus on the Permian will enhance operational and capital efficiencies. The Company will have an inventory of more than 1,500 high-quality locations on a concentrated acreage position in the Permian Basin.
Increases Permian oil-weighting, improves margins – The oil-weighting of Callon's production in the Permian Basin is expected to increase post-closing. Pro forma cash operating costs per Boe are estimated to drop approximately 5% in the second half of 2023 through identified G&A and LOE savings.
Immediately accretive to key financial metrics – Acquisition attractively priced at 2.5x1 next 12 months EV/ EBITDA, excluding the impact of contingency payments. The deal will be immediately accretive to key financial metrics, including absolute and per share adjusted free cash flow and operating margins. In addition, the transaction is also expected to improve the conversion rate of EBITDAX to adjusted free cash flow through capital efficiencies.
Accelerates achievement of $2 billion total debt target – The transactions will strengthen Callon's balance sheet with total debt expected to be below $1.9 billion at closing.
Initiates shareholder return program – Callon's Board has authorized, subject to the closing of the transactions, a $300 million share buyback program over a two-year period.
dan_s
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Re: CPE Q1

Post by dan_s »

Good quarter and I really like the impact of the transactions they announced yesterday. Callon remains no pace to be one of the most profitable Sweet 16 companies on a per share basis.
Dan Steffens
Energy Prospectus Group
Cliff_N
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Re: CPE Q1

Post by Cliff_N »

Announcement of Buy Back on Shares was a real plus! Debt after the deal will move to 1.9 billion.
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