Callon Petroleum Company Reports First Quarter Results.Energy Editors/Business Editors NATCHEZ Natchez, city, United States Natchez, city (1990 pop. 19,460), seat of Adams co., SW Miss., on bluffs above the Mississippi River; settled 1716, inc. 1803. , Miss.--(BUSINESS WIRE)--May 13, 2003 Callon Petroleum Company (NYSE NYSE See: New York Stock Exchange :CPE (Customer Premises Equipment) Communications equipment that resides on the customer's premises. CPE - Customer Premises Equipment )(NYSE:CPE.PrA) today reported its results of operations for the quarter ended March 31, 2003. For the first quarter of 2003 the company reported net income of $1,382,000, or earnings of $0.08 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, after the cumulative effect of a change in accounting principle related to Statement of Financial Accounting Standards (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ) No.143 ("Accounting for Asset Retirement Obligations Asset Retirement Obligations provide for future disposal of assets as required by SFAS 143 [1]. Firms must recognize the ARO liability in the period it was acquired, generally acquisition. "). This compares to the 2002 first quarter net loss of $2,454,000, or a loss of $0.21 per share on a diluted basis. On January January: see month. 1, 2003, the company adopted SFAS No. 143, which required companies to record the fair value of a liability for legal obligations associated with the retirement of tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. long-lived long-lived adj. 1. Having a long life: a long-lived aunt. 2. Lasting a long time; persistent: a long-lived rumor. 3. assets and the associated asset retirement costs. As a result, the impact of adopting the statement resulted in a gain of $181,000, net of tax, which was reported as the cumulative effect of change in accounting principle. Net cash flow provided by operating activities before changes in operating assets Operating Assets Another term for working capital. and liabilities for the first quarter of 2003 was $12.2 million, or $0.83 per diluted share. The schedule below provides for a reconciliation of net cash flow provided by operating activities to net cash flow provided by operating activities before changes in operating assets and liabilities. During the first three months of 2003, average daily production, as well as prices realized for crude oil and natural gas, increased when compared with the same period of last year. Operating results for the three-month period ended March 31, 2003 include oil and gas sales of $21.3 million from average daily production of 41.1 million cubic feet of natural gas equivalent per day (MMcfe/d). This corresponds to sales of $11.1 million from average daily production of 37.3 MMcfe/d during the same period of 2002. The average price per thousand cubic feet of natural gas increased to $5.79 compared to $2.34 during the same period a year earlier, while the average price per barrel barrel: see English units of measurement. of oil increased to $31.32 compared to $18.65 during the first quarter of 2002. The financial and other statistical guidance presented during the company's conference call will be available on the company's homepage See home page. . In addition, any reconciliation required pursuant to Regulation G of the Securities Exchange Act of 1934 will also be available on the company's homepage. This information can be accessed by logging onto www.callon.com, clicking on the "Investor Info INFO Information INFO Information (logging abbreviation) INFO Inform(ed/ation) INFO Ionic Difluoroamino Oxidizer " button and selecting "2003 Guidance and SEC Regulation G Disclosure." Callon Petroleum Company is engaged in the exploration, development, acquisition and operation of oil and gas properties primarily in the Gulf Coast region.
Consolidated Statement of Operations Three Months Ended
(In thousands, except per share amounts) March 31,
------------------
2003 2002
-------- --------
Operating revenues:
Oil and gas sales $21,268 $11,054
-------- --------
Operating expenses:
Lease operating expenses 2,832 2,564
Depreciation, depletion and amortization 7,402 5,588
Accretion expense (a) 715 --
General and administrative 1,235 1,139
Loss on mark-to-market commodity derivative
contract (b) 138 388
-------- --------
Total operating expenses 12,322 9,679
-------- --------
Income from operations 8,946 1,375
-------- --------
Other (income) expenses:
Interest 7,181 5,720
Other income (83) (570)
-------- --------
Total other expenses 7,098 5,150
-------- --------
Income (loss) before income taxes 1,848 (3,775)
Income tax expense (benefit) 647 (1,321)
-------- --------
Income (loss) before cumulative effect of change in
accounting principle 1,201 (2,454)
Cumulative effect of change in accounting principle,
net of tax (a) 181 --
-------- --------
Net income (loss) 1,382 (2,454)
Preferred stock dividends 319 319
-------- --------
Net income (loss) available to common shares $1,063 $(2,773)
======== ========
Net income (loss) per common share
Basic:
Net income (loss) available to common before
cumulative effect of change in accounting
principle $0.07 $(0.21)
Cumulative effect of change in accounting
principle, net of tax (a) 0.01 --
-------- --------
Net income (loss) available to common $0.08 $(0.21)
======== ========
Diluted:
Net income (loss) available to common before
cumulative effect of change in accounting
principle $0.07 $(0.21)
Cumulative effect of change in accounting
principle, net of tax (a) 0.01 --
-------- --------
Net income (loss) available to common $0.08 $(0.21)
======== ========
Shares used in computing net income (loss) per
common share:
Basic 13,599 13,315
======== ========
Diluted 14,192 13,315
======== ========
(a) Associated with the adoption of SFAS 143
(b) Associated with SFAS 133
Consolidated Condensed Balance Sheets:
(In thousands)
March 31, December 31,
2003 2002
--------------------------
Cash and cash equivalents $2,713 $5,807
Oil and gas properties, net (a) 404,205 377,661
All other assets 36,815 27,145
------------ ------------
Total assets $443,733 $410,613
============ ============
Long-term debt $250,392 $249,589
All other liabilities (a) 51,371 20,064
Stockholders' equity 141,970 140,960
------------ ------------
Total liabilities and stockholders'
equity $443,733 $410,613
============ ============
(a) Impacted by the adoption of SFAS No. 143 on January 1, 2003
Other Financial Information:
(In thousands, except per share amounts)
Net cash provided by operating activities before changes in operating
assets and liabilities is presented because of its acceptance as an
indicator of the ability of an oil and gas exploration and production
company to internally fund exploration and development activities.
This measure should not be considered as an alternative to net cash
provided by operating activities as defined by generally accepted
accounting principles. A reconciliation of net cash provided by
operating activities before changes in operating assets and
liabilities to net cash provided by operating activities is shown
below:
Three Months
Ended
------------
March 31,
2003
------------
Cash provided by operating activities $10,972
Change in operating assets and liabilities 1,181
------------
Cash provided by operating activities before
changes in operating assets and liabilities $12,153
============
Net cash flow provided per diluted share $0.83
============
Shares used in computing cash flow per common
share diluted: 14,192
============
Production and Price Information: Three Months
Ended
March 31,
-----------------
Production: 2003 2002
-------- --------
Oil (MBbls) 45 54
Gas (MMcf) 3,427 3,029
Gas equivalent (MMcfe) 3,697 3,353
Average daily (MMcfe) 41.1 37.3
Average prices:
Oil ($/Bbl) $31.32 $18.65
Gas ($/Mcf) $5.79 $2.34
Gas equivalent ($/Mcfe) $5.75 $2.42
Second Quarter and Full Year 2003
Guidance Estimates
(In thousands, except per production unit amounts)
Guidance for 2nd Guidance for
Quarter 2003 Full Year 2003
---------------- --------------
Description:
Production volumes (MMcfe/d) 35 - 37 48 - 52
Percent Natural Gas 91% 75%
Average costs (per Mcfe):
Lease operating expense $0.82 - $0.78 $0.71 - $0.66
General and administrative expense $0.41 - $0.39 $0.29 - $0.27
Interest expense $2.27 - $2.15 $1.70 - $1.57
Non-cash expenses included above $0.65 - $0.61 $0.48 - $0.44
Accretion expense $0.23 - $0.22 $0.17 - $0.16
DD&A $2.00 $2.00
Fixed delivery contract:
Committed volume (MMcf) 250 1,000
Floor price (per Mcf) $3.75 $3.75
Ceiling price (per Mcf) $4.60 $4.70
Natural gas hedges:
Collars:
Volume (MMcf) 1,600 4,650
Average floor price (per Mcf) $4.02 $4.06
Average ceiling price (per Mcf) $5.10 $5.15
Share data:
Basic weighted average shares 13,700 13,700
Diluted impact of stock equivalents 775 775
Diluted impact of convertible
preferred stock 1,366 1,366
The preceding guidance estimates contain assumptions that we believe are reasonable. These estimates are based on information that is available as of the date of this news release. We are not undertaking any obligation to update these estimates as conditions change or as additional information becomes available. This news release contains projections and other forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These projections and statements reflect the company's current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that these projections will be achieved and actual results could differ materially from those projected as a result of certain factors. Some of the factors which could affect our future results and could cause results to differ materially from those expressed in our forward-looking statements include: -- general economic conditions; -- volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the of oil and natural gas prices; -- uncertainty of estimates of oil and natural gas reserves; -- impact of competition; -- availability and cost of seismic, drilling and other equipment; -- operating hazards
Hazards is an independent, union-friendly magazine based in Sheffield, England, which has won major international awards. inherent in the exploration for and production of oil and natural gas; -- difficulties encountered during the exploration for and production of oil and natural gas; -- difficulties encountered in delivering oil and natural gas to commercial markets; -- changes in customer demand and producers' supply; -- uncertainty of our ability to attract capital; -- compliance with, or the effect of changes in, the extensive governmental regulations regarding the oil and natural gas business; -- actions of operators of our oil and gas properties; -- weather conditions; and -- the risk factors discussed in our filings with the Securities and Exchange Commission, including those in our Annual Report for the year ended December December: see month. 31, 2002 on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . The preceding estimates reflect our review of continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the only. These estimates do not take into account any material transactions such as sales of debt and equity securities, acquisitions or divestitures of assets, and formations of joint ventures. We continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. review these types of transaction and may engage in one or more of these types of transactions without prior notice. |
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