CPE - Callon Petroleum beats Q2 top and bottom line estimates; initiates Q3 and Q4 outlook

2023-08-02 17:19:54 ET

• Callon Petroleum press release ( NYSE: CPE ): Q2 Non-GAAP EPS of $1.99 beats by $0.21 .
• Revenue of $562.28M (-38.5% Y/Y) beats by $21.08M .
• Generated 7% sequential growth in total daily production volumes and 5% sequential growth in daily oil volumes (107 MBoe/d and 63 MBbls/d, respectively).
• Capital expenditures at the low end of guidance at $285.1 million.
• Adjusted EBITDAX of $332.3 million.
• Net cash provided by operating activities was $279.5 million and adjusted free cash flow was $12.3 million.
• Outlook: Transitioning to the third quarter, the Company expects to produce 100 – 103 MBoe/d, which includes oil volumes of 60 – 62 MBbls/d. The third quarter production is reduced estimates by approximately 1,500 Boe/d. Wells turned in-line are expected to be 30 - 35 gross operated wells (27 - 32 net). Operational capital expenditures are expected to be $250 - $275 million on an accrual basis.

  For the fourth quarter, Callon expects to produce 104 – 108 MBoe/d which includes oil volumes of 63 – 65 MBbls/d.

  Capital spending for the second half now includes approximately $15 million in non-operated capital projects previously budgeted for 2024 due to a change in the operator's schedule. Despite the incremental activity, Callon's 2023 full-year capital expenditure guidance is unchanged due to identified savings related to the base activity plan that offset the project spend. The production contribution from these non-operated capital projects is expected in 2024.

  Full-year 2023 production and capital spending guidance remains unchanged and is available in the accompanying presentation.

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