Callon Petroleum Company Issues Guidance For First Quarter, Full Year 2013
3/14/2013

Natchez, MS (March 14, 2013) - Callon Petroleum Company (CPE) is issuing guidance for the first quarter and full year 2013. The guidance, found in the table below, is expressed in ranges for the detailed components.

The following guidance estimates contain assumptions that we believe are reasonable. These estimates are based upon 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.

First Quarter and Full Year 2013
Guidance Estimates
($ amounts in millions, except per production unit amounts)
Guidance for Guidance for
1st Quarter 2013 Full Year 2013
Total production (Boe/d) 3,400 - 3,600 3,800 - 4,200
Permian (Boe/d) 1,500 - 1,650 2,000 - 2,300
% Oil 65% 65%
Lease operating expenses $4 - $6 $22 - $24
Severance tax $1 $3 - $4
General and administrative expenses:
Cash $4 - $5 $14 - $16
Non-cash $1 $4 - $6
Interest expense:
Cash $3 $9 - $12
Non-cash $(1) $(2) - $(3)
DD&A - per Boe $36.00 - $37.00 $35.00 - $38.00
Accretion expense $1 $2 - $3

Listed below are the outstanding hedges for crude oil and natural gas per quarter for 2013 and 2014.

Crude Oil 1Q - 2013 2Q - 2013 3Q - 2013 4Q - 2013
Collars Volume (Mbo) 40 - - -
Ceiling $ 116.00 $ - $ - $ -
Floor 90.00 - - -
Swap Volume (Mbo) 80 120 120 120
Price $ 101.30 $ 101.30 $ 101.30 $ 101.30
1Q - 2014 2Q - 2014 3Q - 2014 4Q - 2014
Swap Volume (Mbo) 90 91 92 92
Price $ 93.35 $ 93.35 $ 93.35 $ 93.35
Put Option Volume (Mbo) 90 91 92 92
Price $ 70.00 $ 70.00 $ 70.00 $ 70.00
Natural Gas 1Q - 2013 2Q - 2013 3Q - 2013 4Q - 2013
Swap Volume (Bbtu) 270 273 276 276
Price $ 3.52 $ 3.52 $ 3.52 $ 3.52
Put Option Volume (Bbtu) 270 273 276 276
Price $ 3.00 $ 3.00 $ 3.00 $ 3.00
1Q - 2014 2Q - 2014 3Q - 2014 4Q - 2014
Call Option Volume (Bbtu) 113 114 115 115
Price $ 4.75 $ 4.75 $ 4.75 $ 4.75

Callon Petroleum Company is engaged in the acquisition, development, exploration and operation of oil and gas properties in Texas, Louisiana and 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 at the top of the homepage.

This news release contains projections and other forward-looking statements (including statements about 2013 financial and operating performance) 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 and industry conditions;
  • volatility 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 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 but not limited to those in our Annual Report for the year ended December 31, 2012 on Form 10-K.

The preceding estimates reflect our review of continuing operations 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 review these types of transactions and may engage in one or more of these types of transactions without prior notice.

For further information contact
Rodger W. Smith 1-800-451-1294