Callon Petroleum Company Reports Results For Second Quarter, First Six Months of 2006.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. -- 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 ) today reported results of operations for both the quarter and the six-month period ended June June: see month. 30, 2006. Second Quarter 2006 Net Income. Net income for the quarter was $12.3 million, or $0.57 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. The company reported net income of $9.3 million, or $0.46 per share on a diluted basis, for the same period in 2005. Second Quarter 2006 Operating Results. Oil and gas sales totaled $47.1 million from average production of 58 million cubic feet of natural gas equivalent per day (MMcfe/d). This corresponds to sales of $41.7 million from average daily production of 64 MMcfe/d during the same period in 2005. During the second quarter of 2006, crude oil represented approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 51% of the company's total production. The average price realized per barrel barrel: see English units of measurement. of oil in the second quarter of 2006 increased to $59.99 compared to $41.53 during the same period in 2005, while the average price realized per thousand cubic feet of natural gas in the second quarter of 2006 increased to $7.93 compared to $7.43 during the same period a year earlier. Six Months 2006 Net Income. Net income increased to $25.1 million, or $1.17 per diluted share, compared to net income of $18.8 million, or $0.92 per share on a diluted basis, for the same period in 2005. Six Months 2006 Operating Results. Oil and gas sales totaled $92.6 million from average production of 57 MMcfe/d. This corresponds to sales of $84.7 million from average daily production of 69 MMcfe/d during the same period in 2005. Crude oil represented 56% of total production. The average price realized per barrel of oil increased to $56.74 compared to $39.41 during the same period in 2005, while the average price realized per thousand cubic feet of natural gas for the six-month period ended June 30, 2006 increased to $8.44 compared to $7.15 during the same period a year earlier. Second Quarter 2006 Discretionary Cash Flow Discretionary cash flow Cash flow that is available after the funding of all positive net present value (NPV) capital investment projects; it is available for paying cash dividends, repurchasing common stock, retiring debt, and so on. . Discretionary cash flow increased by 15% to $35.1 million during the three-month period ended June 30, 2006 compared to $30.4 million for the same period in 2005. Net cash flow provided by operating activities, as defined by GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , totaled $34.3 million and $32.2 million during the three-month periods ended June 30, 2006 and 2005, respectively. (See "Non-GAAP Financial Measure" that follows and the accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. reconciliation of discretionary cash flow to net cash flow provided by operating activities.) Six Months 2006 Discretionary Cash Flow. Discretionary cash flow totaled $68.9 million during the six-month period ended June 30, 2006 compared to $61.8 million for the same period in 2005. Net cash flow provided by operating activities, as defined by GAAP, totaled $75.3 million and $53.6 million during the six-month periods ended June 30, 2006 and 2005, respectively. (See "Non-GAAP Financial Measure" that follows and the accompanying reconciliation of discretionary cash flow to net cash flow provided by operating activities.) Non-GAAP Financial Measure - This news release refers to a non-GAAP financial measure as "discretionary cash flow." Callon believes that the non-GAAP measure of discretionary cash flow is useful as an indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. of an oil and gas exploration and production company's ability to internally fund exploration and development activities and to service or incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. additional debt. The company also has included this information because changes in operating assets Operating Assets Another term for working capital. and liabilities relate to the timing of cash receipts and disbursements which the company may not control and may not relate to the period in which the operating activities occurred. Discretionary cash flow should not be considered an alternative to net cash provided by operating activities or net income as defined by GAAP.
Reconciliation of Non-GAAP Financial Measure:
---------------------------------------------
(In thousands) Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2006 2005 2006 2005
--------- --------- --------- ---------
Discretionary cash flow $35,100 $30,424 $68,880 $61,838
Net working capital changes
and other changes (774) 1,798 6,462 (8,285)
--------- --------- --------- ---------
Net cash flow provided by
operating activities $34,326 $32,222 $75,342 $53,553
========= ========= ========= =========
Consolidated Condensed Balance Sheets:
--------------------------------------
(In thousands)
(Unaudited) June 30, December 31,
2006 2005
---------- ------------
Cash and cash equivalents $1,046 $2,565
Oil and gas properties, net 501,924 447,364
All other assets 66,335 83,847
---------- ------------
Total assets $569,305 $533,776
========== ============
Long-term debt excluding current maturities $196,641 $188,813
All other liabilities 115,921 116,915
Stockholders' equity 256,743 228,048
---------- ------------
Total liabilities and stockholders'
equity $569,305 $533,776
========== ============
Production and Price Information: Three Months Six Months
--------------------------------- Ended Ended
June 30, June 30,
--------------- ---------------
2006 2005 2006 2005
------- ------- ------- -------
Production:
Oil (MBbls) 443 590 958 1,230
Gas (MMcf) 2,581 2,313 4,530 5,060
Gas equivalent (MMcfe) 5,239 5,850 10,281 12,443
Average daily (MMcfe) 57.6 64.3 56.8 68.7
Average realized prices:
Oil ($/Bbl) (a) $59.99 $41.53 $56.74 $39.41
Gas ($/Mcf) $7.93 $7.43 $8.44 $7.15
Gas equivalent ($/Mcfe) $8.98 $7.12 $9.01 $6.81
(a) Below is a reconciliation of the
average NYMEX price to the
Average realized sales price per
barrel of oil:
Average NYMEX oil price $70.70 $53.17 $67.09 $51.51
Basis differentials and quality
adjustments ( 7.83) ( 7.37) ( 7.93) ( 6.89)
Transportation ( 1.29) ( 1.28) ( 1.28) ( 1.30)
Hedging ( 1.59) ( 2.99) ( 1.14) ( 3.91)
------- ------- ------- -------
Averaged realized oil price $59.99 $41.53 $56.74 $39.41
======= ======= ======= =======
Callon Petroleum Company
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2006 2005 2006 2005
--------- --------- --------- ---------
Operating revenues:
Oil and gas sales $47,057 $41,668 $92,638 $84,680
--------- --------- --------- ---------
Operating expenses:
Lease operating expenses 7,365 6,197 13,270 12,733
Depreciation, depletion and
amortization 14,791 13,671 28,627 29,079
General and administrative 1,924 2,801 3,650 4,495
Accretion expense 1,331 770 2,750 1,631
Derivative expense 30 533 120 912
--------- --------- --------- ---------
Total operating expenses 25,441 23,972 48,417 48,850
--------- --------- --------- ---------
Income from operations 21,616 17,696 44,221 35,830
--------- --------- --------- ---------
Other (income) expenses:
Interest expense 4,128 4,265 8,276 8,834
Other (income) (670) (96) (1,000) (298)
--------- --------- --------- ---------
Total other (income)
expenses 3,458 4,169 7,276 8,536
--------- --------- --------- ---------
Income before income taxes 18,158 13,527 36,945 27,294
Income tax expense 6,294 4,735 12,844 9,553
--------- --------- --------- ---------
Income before Medusa Spar LLC 11,864 8,792 24,101 17,741
Income from Medusa Spar LLC
net of tax 439 519 969 1,045
--------- --------- --------- ---------
Net income 12,303 9,311 25,070 18,786
Preferred stock dividends -- -- -- 318
--------- --------- --------- ---------
Net income available to
common shares $12,303 $9,311 $25,070 $18,468
========= ========= ========= =========
Net income per common share:
Basic $0.61 $0.52 $1.26 $1.04
========= ========= ========= =========
Diluted $0.57 $0.46 $1.17 $0.92
========= ========= ========= =========
Shares used in computing net
income:
Basic 20,314 17,736 19,855 17,703
========= ========= ========= =========
Diluted 21,448 20,345 21,388 20,511
========= ========= ========= =========
Callon Petroleum Company is engaged in the exploration, development, acquisition and operation of oil and gas properties primarily in the Gulf Coast region. Callon's properties and operations are geographically ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge concentrated in the offshore waters of the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east . This news release is posted on the company's website at www.callon.com and will be archived there for subsequent review. It can be accessed from the "News Releases" link on the left side of the homepage See home page. . It should be noted that 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 are discussed in our filings with the Securities and Exchange Commission, including our Annual Reports 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. , available on our website or the SEC's website at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion