Callon Petroleum — Merger or Acquisition (January 2024)
13 slides from Callon Petroleum's merger presentation, Jan 4, 2024
Slide 1: Accretive Permian Transaction
Accretive Permian Transaction JANUARY 4, 2024 Exhibit 99.2
Slide 2: Disclaimer: Forward-Looking Statements
APA CORPORATION Disclaimer 2 Forward-Looking Statements This presentation and the oral statements made in connection therewith relate to a proposed business combination transaction between APA and Callon and contain “forward-looking statements” within the meaning of the federal securities laws, incl
Slide 3: Disclaimer (continued)
APA CORPORATION Disclaimer (continued) 3 Non-GAAP Financial Measures This presentation includes financial information not prepared in conformity with generally accepted accounting principles (GAAP). Net debt and adjusted EBITDAX are non-GAAP measures. This non-GAAP information should be considered b
Slide 4: APA + Callon | Accretive Permian Transaction
APA CORPORATION 4 APA + Callon | Accretive Permian Transaction Callon Asset Overview – Permian pure-play with ~145,000 total net acres – ~119,000 net acres in the Delaware Basin – ~26,000 net acres in the Midland Basin – Total Q3 2023 net production of ~102 Mboe/d (57% Oil) Transaction Summary – All
Slide 5: Transaction Highlights
APA CORPORATION 5 Transaction Highlights Enhances APA’s Positioning as a Large Cap Independent Combined business of > 500 Mboe/d of production and enterprise value of approximately $21 billion Complementary Permian Acreage Positions Delivers scale and balance across the Midland and Delaware basins;
Slide 6: Scale and Balance in the Midland / Delaware
APA CORPORATION Scale and Balance in the Midland / Delaware 6 Source: APA and Callon investor presentations, public filings. (1) APA Delaware Basin acreage count excludes Alpine High. APA Midland Basin acreage count excludes Gaines, Dawson, Martin & Borden counties. (2) Q3 2023 average daily product
Slide 7: Callon Fulfills Criteria of APA's Disciplined M&A Approach
APA CORPORATION Attracts capital within APA portfolio Callon Fulfills Criteria of APA’s Disciplined M&A Approach 7 APA M&A Strategy Callon Attributes Builds scale / complementary Permian footprint Leverages APA competencies Value accretive ⎻ APA continuously screens opportunities to add scale in the
Slide 8: Significant Cost Synergies Identified
APA CORPORATION 8 Significant Cost Synergies Identified Category Commentary Estimated Annual Run-Rate Savings Overhead – Elimination of duplicate public company costs and optimizing G&A on the combined asset base ~$55 million Cost of Capital – Replacement of Callon’s debt cost with APA over time – I
Slide 9: Differentiated Large Cap Independent with Diverse Asset Base
APA CORPORATION Differentiated Large Cap Independent with Diverse Asset Base 9 Enhanced Permian Position with Large-Scale International Production and Exploration Upside PERMIAN SURINAME NORTH SEA EGYPT Balanced Global Production Base APA Pro Forma with Callon 3Q 2023 Production (% of total) United
Slide 10: APA's Disciplined Financial Approach
APA CORPORATION APA’s Disciplined Financial Approach 10 Return of Capital Balance Sheet Framework – Return a minimum of 60% of free cash flow to shareholders through a competitive base dividend and share repurchases Base Dividend – Currently $1.00 per share (annually) – Current yield is approximatel
Slide 11: APA is a Highly Differentiated Large Cap E&P
APA CORPORATION 11 APA is a Highly Differentiated Large Cap E&P Diversified portfolio of high-quality development assets and commodity price exposure – Short-cycle unconventional oil drilling inventory in the Permian is bolstered by transaction – Onshore conventional development in Egypt and the opt
Slide 12: Attractive Pro Forma Maturity Profile
APA CORPORATION 500 1,500 551 211 1,608 325 235 516 3,389 2023 2024 2025 2026 2027 2028 2029 2030 …. 2037+ Long-Term Debt Anticipated Term Loan Debt 12 (1) Excludes finance lease obligations and is before unamortized discount and debt issuance costs. (2) Excludes APA’s revolving credit facility. 9/3
Slide 13: APA Corporation
APA Corporation apacorp.com
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