Callon Petroleum — Q4 2023 Earnings Presentation
31 slides from Callon Petroleum's earnings presentation, Feb 22, 2024
Slide 1: Fourth-Quarter & Full-Year 2023 Financial & Operational Supplement
Fourth-Quarter & Full-Year 2023 Financial & Operational Supplement February 21, 2024
Slide 2: Notice to Investors
Notice to Investors Certain statements in this earnings supplement contain “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 including, without limitation, expectations, beliefs, plans, and objectives r
Slide 3: Disclaimer
Disclaimer No Offer or Solicitation This communication is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which
Slide 4: 4Q and Full-Year 2023 Key Metrics
4Q and Full-Year 2023 Key Metrics 4Q 2023 FY 2023 Reported Production 414 Mboe/d 405 Mboe/d Adjusted Production(1) 341 Mboe/d 331 Mboe/d Cost Incurred in Oil and Gas Property $979 Million $2,719 Million Upstream Capital Investment(2) $520 Million $2,005 Million Net Cash Provided by Operating $1,030
Slide 5: APA Strategic Framework
APA Strategic Framework Remain Build and Maintain Deliver Top Committed to Grow a High- Financial Operational Oil and Gas Quality Portfolio Discipline Performance Oil and gas production APA seeks a diverse APA manages costs, Across safety, is APA’s core and balanced portfolio protects the balance ex
Slide 6: Recent Highlights
Recent Highlights Strong Permian performance drove Returned 66% ($637 Million) of free cash 4Q23 total volumes above guidance flow to Y 2023 Adjusted production(1)(2) of 341 MBOE/D Repurchas of stock at Adjusted oil production(1)(2) of 160 MBO/D average price of $37.64 per share in 4Q23 Announced ac
Slide 7: 2024 Plan Overview & Guidance
2024 Plan Overview & Guidance A P A C O R P O R A T I O N 7
Slide 8: 2024 Plan Overview
2024 Plan Overview FY23 Actuals FY24 Plan Commentary Adjusted Oil Production (Mbo/d)(1) 157 157 Flat year-over-year oil production; focused on FCF generation & cash returns over organic growth Adjusted Total Production (Mboe/d)(1) 331 ~324 NGLs expected to decline due to U.S. ethane rejection; reduc
Slide 9: Guidance
Guidance 1Q 2024 FY 2024 Commentary Production (Mboe/d) United States 220 222 ~6 Mboe/d of production impact for ethane rejection in 1Q24 & FY24 Egypt (Reported) 135 134 North Sea……………………………………………………………….. 41-43 35-37 Total Reported Production…………………………………… 396-398 391-393 Less: Egypt Tax Barrels………
Slide 10: 4Q 2023 Asset Update
4Q 2023 Asset Update A P A C O R P O R A T I O N 10
Slide 11: Differentiated Large Cap Independent with Diverse Asset Base
Differentiated Large Cap Independent with Diverse Asset Base N OR T H 4Q 2023 Global Portfolio A L A S K A S E A Global P E R MIA N E GYP T 414,430 BOE/D 50% / 17% / 33% Reported Production Oil / NGL / Gas S U R IN A ME 60 Gross, 56 Net 23 D e ve l o p m e n t Drilled & Completed Wells Average Rigs
Slide 12: U.S. Update
U.S. Update Asset Highlights 4Q 2023 Asset Stats 228,671 BOE/D Reported Production 37% / 29% / 34% Steady and balanced development program continues to deliver strong results Oil / NGL / Gas 29 Gross, 25 Net Southern Midland Basin: Averaged 3 rigs; placed 9 wells on production in 4Q23 Drilled & Comp
Slide 13: 2024 U.S. Completion Activity Cadence
2024 U.S. Completion Activity Cadence U.S. Production vs. Wells Online Production (MBOE/D) Wells 250 40 229 220 200 32 ⎻ Permian driving APA’s oil growth ⎻ 2024 production profile expected to be back-150 24 half-weighted due to timing of completions 100 16 ⎻ Targeting more than 10% oil product
Slide 14: Egypt Update
Egypt Update Asset Highlights 4Q 2023 Asset Stats 144,001 BOE/D Drilling program continues to perform well Reported Production 64% / 0% / 36% Rig efficiency (wells per rig/year) was up 15% in FY23 vs. FY22; continued to improve in 4Q23 Oil / NGL / Gas 31 Gross, 31 Net Average drilling days, well con
Slide 15: North Sea Update
North Sea Update Asset Highlights 4Q 2023 Asset Stats 41,758 BOE/D Reported Production ⎻ 4Q23 production below guidance due to additional compressor-related 74% / 3% / 23% downtime at both Beryl Alpha and Forties Oil / NGL / Gas 0 Gross, 0 Net Drilled & Completed Wells ⎻ Compressor repairs at Be
Slide 16: Suriname Update
Suriname Update Block 58 (TotalEnergies Operated) ⎻ Announced Oil Hub Project at Sapakara and Krabdagu in Fall of 2023 ⎻ FEED study progressing on 200 MBO/D FPSO project ⎻ Underpinned by an estimated 700 million barrels of recoverable oil resource at Sapakara and Krabdagu alone ⎻ Targeting F
Slide 17: Alaska Update
Alaska Update Exploration Joint Venture (North Slope, Alaska) ⎻ Established Joint Venture between APA Corp (50%), Lagniappe Alaska, LLC (25%) and Santos Ltd (25%) ⎻ 275,000 gross acre position situated on state lands ⎻ Three exploration wells expected to spud in the first quarter of 2024; oper
Slide 18: Uruguay Update
Uruguay Update Offshore blocks awarded in 2023 OFF-6 (100% Working Interest, APA Operated) ⎻ 16,500 km2 (~4.1 million acres) ⎻ Exploration well obligation OFF-4 (50% Working Interest, APA Operated) ⎻ Working interest partner with Shell (50% / 50%) ⎻ 10,000 km2 (~2.5 million acres) ⎻ Seismi
Slide 19: Appendix
Appendix A P A C O R P O R A T I O N 19
Slide 20: Cash Return Summary
Cash Return Summary 1Q 2023 2Q 2023 3Q 2023 4Q 2023 2021 2022 2023 Total Shares Repurchased (MM) 3.7 1.3 0.5 3.2 31.2 36.2 8.7 76.1 Average Stock $38.93 $33.72 $41.90 $37.64 $27.14 $39.34 $37.81 $34.15 Repurchased Price Share Repurchases ($MM) $142 $46 $20 $121 $847 $1,423 $329 $2,599 Dividends ($MM
Slide 21: Upstream Capital Investment
Upstream Capital Investment 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 ($ in millions) United States* $291 $308 $300 $341 $1,240 Egypt (excluding noncontrolling interest) $123 $133 $149 $158 $563 North Sea $54 $56 $15 $8 $133 Suriname $27 $19 $10 $13 $69 Upstream Capital Investment Total $495 $516 $474
Slide 22: Egypt Production Detail
Egypt Production Detail 3Q 2023 4Q 2023 Oil Gas Oil Gas (Bbls/d) (Mcf/d) Boe/d (Bbls/d) (Mcf/d) Boe/d Gross Production 144,528 472,744 223,319 141,953 466,403 219,687 Reported Production 88,521 300,326 138,575 92,365 309,814 144,001 % Gross 61% 64% 62% 65% 66% 66% Less: Tax Barrels 24,719 85,510 38,
Slide 23: Glossary of Referenced Terms
⎻ Upstream Capital Investment: Includes exploration, development, gathering, processing, and transmission capital, capitalized overhead, and settled asset retirement obligations. Excludes capital investment for property acquisitions, capitalized Glossary of interest, non-cash asset retirement addi
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations A P A C O R P O R A T I O N 24
Slide 25: Non-GAAP Reconciliation: Adjusted Earnings
Non – GAAP Reconciliation Adjusted Earnings Reconciliation of Income Attributable to Common Stock to Adjusted Earnings Our presentation of adjusted earnings and adjusted earnings per share are non-GAAP measures because they exclude the effect of certain items included in Income Attributable to Commo
Slide 26: Non-GAAP Reconciliation: Adjusted EBITDAX
Non – GAAP Reconciliation Adjusted EBITDAX Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDAX Management believes EBITDAX, or earnings before income tax expense, interest expense, depreciation, amortization and exploration expense is a widely accepted financial indicator
Slide 27: Non-GAAP Reconciliation: Cash Flow and Free Cash Flow
Non – GAAP Reconciliation Cash Flow Before Changes in Operating Assets & Liabilities and Free Cash Flow Reconciliation of Net Cash Provided by Operating Activities to Cash Flows from Operations before Changes in Operating Assets and Liabilities and Free Cash Flow Cash flows from operations before ch
Slide 28: Non-GAAP Reconciliation: Segment Cash Flows
Non – GAAP Reconciliation Segment Cash Flows Reconciliation of Net Cash Provided by Operating Activities to Cash Flows from Continuing Operations before Changes in Operating Assets and Liabilities Cash flows from operations before changes in operating assets and liabilities is a non-GAAP financial m
Slide 29: Non-GAAP Reconciliation: Net Debt
Non – GAAP Reconciliation Net Debt Reconciliation of Debt to Net Debt Net debt, or outstanding debt obligations less cash and cash equivalents, is a non-GAAP financial measure. Management uses net debt as a measure of the Company’s outstanding debt obligations that would not be readily satisfied by
Slide 30: Non-GAAP Reconciliation: Upstream Capital Investment
Non – GAAP Reconciliation Upstream Capital Investment Reconciliation of Costs Incurred to Upstream Capital Investment Management believes the presentation of upstream capital investments is useful for investors to assess APA’s expenditures related to our upstream capital activity. We define capital
Slide 31: apacorp.com
apacorp.com