• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Callon Petroleum Company Reports First Quarter 2006 Results of Operations

Posted on: Monday, 8 May 2006, 18:06 CDT

Callon Petroleum Company (NYSE: CPE) today reported its results of operations for the three-month period ended March 31, 2006.

First Quarter 2006 Net Income. For the three-month period ended March 31, 2006, Callon reported record net income of $12.7 million, or $0.60 per diluted share. For the first quarter of 2005, the company reported net income of $9.5 million, or $0.46 per diluted share.

First Quarter 2006 Operating Results. Oil and gas sales totaled $45.6 million from average production of 56.0 million cubic feet of natural gas equivalent per day (MMcfe/d). This corresponds to sales of $43.0 million from average production of 73.3 MMcfe/d during the same period in 2005. During the first quarter of 2006, natural gas represented approximately 39 percent of the company's total production. The average price realized per thousand cubic feet of natural gas in the first quarter of 2006 increased by 32 percent to $9.12 compared to $6.92 during the first quarter of 2005, while the average price realized per barrel of oil in the first quarter of 2006 increased by 44 percent to $53.95 compared to $37.46 during the same period in 2005.

First Quarter 2006 Discretionary Cash Flow. For the quarter ended March 31, 2006, discretionary cash flow increased by 8 percent to $33.8 million compared to $31.4 million during the same period a year earlier. Net cash flow provided by operating activities, as defined by GAAP, totaled $41.0 million and $21.3 million during the quarter ended March 31, 2006 and 2005, respectively. (See "Non-GAAP Financial Measure" that follows and the accompanying financial information for a reconciliation of discretionary cash flow, a non-GAAP measure, 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 of an oil and gas exploration and production company's ability to internally fund exploration and development activities and to service or incur additional debt. The company also has included this information because changes in operating assets 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: Three Months Ended --------------------------------------------- (In thousands) March 31, -------------- -------------------- 2006 2005 -------------------- Discretionary cash flow $ 33,780 $ 31,414 Net working capital changes and other changes 7,236 (10,083) --------- --------- Net cash flow provided by operating activities $ 41,016 $ 21,331 ========= ========= Consolidated Condensed Balance Sheets: March 31 December 31 -------------------------------------- --------------------- (In thousands) 2006 2005 --------- --------- (Unaudited) Cash and cash equivalents $ 5,139 $ 2,565 Oil and gas properties, net 487,392 447,364 All other assets 93,433 83,847 --------- --------- Total assets $ 585,964 $ 533,776 ========= ========= Long-term debt excluding current maturities $ 194,218 $ 188,813 All other liabilities 148,677 116,915 Stockholders' equity 243,069 228,048 --------- --------- Total liabilities and stockholders' equity $ 585,964 $ 533,776 ========= ========= Production and Price Information: Three Months Ended --------------------------------- March 31, --------------------- 2006 2005 ---------- --------- Production: Oil (MBbls) 515 641 Gas (MMcf) 1,950 2,748 Total Production (MMcfe) 5,042 6,593 Average daily (MMcfe) 56.0 73.3 Average prices: Oil ($/Bbl) (a) $ 53.95 $ 37.46 Gas ($/Mcf) $ 9.12 $ 6.92 Gas equivalent ($/Mcfe) $ 9.04 $ 6.52 (a) Below is a reconciliation of the average NYMEX price to the average realized sales price per barrel of oil: Average NYMEX oil price $ 63.48 $ 49.85 Basis differentials and quality adjustments (7.52) (6.33) Transportation (1.27) (1.31) Hedging (0.74) (4.75) ---------- --------- Average realized oil price $ 53.95 $ 37.46 ========== ========= Callon Petroleum Company Consolidated Statements of Operations (Unaudited) (In thousands, except share amounts) Three Months Ended March 31, -------------------- 2006 2005 --------- --------- Operating revenues: Oil and gas sales $ 45,581 $ 43,012 --------- --------- Operating expenses: Lease operating expenses 5,905 6,536 Depreciation, depletion and amortization 13,836 15,408 General and administrative 1,726 1,694 Accretion expense 1,419 861 Derivative expense 90 379 --------- --------- Total operating expenses 22,976 24,878 --------- --------- Income from operations 22,605 18,134 --------- --------- Other (income) expenses: Interest expense 4,148 4,569 Other income (330) (202) --------- --------- Total other (income) expenses 3,818 4,367 --------- --------- Income before income taxes 18,787 13,767 Income tax expense 6,550 4,818 --------- --------- Income before Medusa Spar LLC 12,237 8,949 Income from Medusa Spar LLC, net of tax 530 526 --------- --------- Net income 12,767 9,475 Preferred stock dividends -- 318 --------- --------- Net income available to common shares $ 12,767 $ 9,157 ========= ========= Net income per common share: Basic $ 0.66 $ 0.52 ========= ========= Diluted $ 0.60 $ 0.46 ========= ========= Shares used in computing net income: Basic 19,396 17,671 ========= ========= Diluted 21,329 20,678 ========= =========

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 concentrated in the offshore waters of the Gulf of Mexico.

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.

It should be noted that this news release contains projections and other forward-looking statements 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, available on our website or the SEC's website at www.sec.gov.

Source: Business Wire

More News in this Category