Callon Petroleum has reported a web lack of $107.9 million for the second quarter, in comparison with a web revenue of $303.25 million for a similar interval in 2022.
Excluding a one-time $406.9 million non-cash impairment cost associated to the sale of Eagle Ford belongings, in addition to different gadgets, Callon’s adjusted revenue was $123.1 million, or $1.99 per share, the corporate stated in an earnings launch.
The corporate’s web money supplied by working actions for the quarter was $279.5 million, in comparison with $336.1 million for the previous-year quarter, the discharge stated.
“The second quarter highlighted the contributions from a number of large-scale initiatives throughout the Permian Basin mixed with enhancements in our money working construction and efficiencies in our capital spending program”, Callon President and CEO Joe Gatto stated. “We enter the second half of 2023 as a Permian-focused firm with a number of initiatives to drive additional enhancements in our capital effectivity and working margins that are already delivering near-term outcomes. Importantly, we now progress ahead with one other lever to extend shareholder worth by means of a share repurchase program that can complement additional reductions in our debt balances.”
Callon’s second-quarter manufacturing averaged 107,000 barrels of oil equal per day (boepd)—59 p.c oil and 80 p.c liquids, consistent with its steerage. A complete of 32 wells had been turned in-line within the quarter.
In July, Callon closed its acquisition of Delaware Basin belongings from Percussion Petroleum Working II LLC and the sale of its Eagle Ford belongings to Ridgemar Power Working LLC, in line with an earlier information launch.
Callon paid a complete consideration of $249 million in money and roughly 6.3 million shares of Callon frequent inventory to Percussion for the Delaware Basin belongings. Callon acquired $551 million in money for the sale of its Eagle Ford belongings. Each transactions are topic to customary post-closing changes and have an efficient date of January 1, Callon stated.
Callon stated it had finalized plans for integrating the newly acquired Delaware Basin belongings into its scaled co-development mannequin and drilling and completion schedules. The corporate intends to launch a drilling rig within the Permian Basin in August and keep a five-rig drilling program by means of to yearend.
Callon will resume improvement exercise on the acquired belongings within the second half, with drilled however uncompleted wells acquired with the asset package deal anticipated to be turned to gross sales within the fourth quarter, the earnings launch stated.
Within the second quarter, the divested Eagle Ford belongings produced 17,000 boepd and the newly acquired Delaware belongings produced 14,000 boepd. Callon expects to provide 100,000 to 103,000 boepd, which incorporates oil volumes of 60,000 to 62,000 barrels per day (bpd). These estimates embody the affect of a pressure majeure occasion at a big Midland Basin pure fuel processing facility in July that lasted for 14 days, the corporate stated.
Given the elevated occurrences of weather-related energy and midstream disruptions skilled throughout June and July, Callon stated it has additionally assumed incremental downtime above earlier seasonal ranges used for forecasting. These two components have decreased third-quarter manufacturing estimates by roughly 1,500 boepd, the corporate stated. For the fourth quarter, Callon expects to provide 104,000 to 108,000 boepd, which incorporates oil volumes of 63,000 to 65,000 bpd.
On the finish of the second quarter, Callon stated it was working seven drilling rigs, 5 within the Delaware Basin, one within the Midland Basin, and one within the Eagle Ford Basin, which was assumed by the buying celebration after the shut of the transaction.
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