Last Friday's Pick CPE gapped up 30% today

What a nice pick.
at 5/12/2009 09:38:00 AM

1 comment:

  1. TigerMay 12, 2009 at 9:45 AM

    First Quarter 2009 Net Income. For the quarter ended March 31, 2009, the company reported net income of $2.4 million, or $0.11 per share, exceeding analysis consensus which was a net loss of $0.07 per share. This compares to net income of $7.6 million, or $0.35 per share, for the same period in 2008.

    First Quarter 2009 Operating Results. Oil and gas sales totaled $24.8 million from production of 33.6 million cubic feet of natural gas equivalent per day (MMcfe/d). This corresponds to sales of $45.0 million from production of 42.1 MMcfe/d during the same period in 2008. The average price received per thousand cubic feet of natural gas decreased to $6.13, compared to $9.50 during the first quarter of 2008, while the average price received per barrel of oil decreased to $60.59, compared to $86.66 during the same period in 2008. All average realized price amounts are after the impact of hedging, which added $7.9 million to oil and gas sales.

    First Quarter 2009 Discretionary Cash Flow. Discretionary cash flow for the quarter ended March 31, 2009 totaled $14.2 million compared to $29.0 million during the previous year. Net cash flow provided by operating activities, as defined by GAAP, totaled $2.2 million and $35.1 million during the quarters ended March 31, 2009 and 2008, respectively. (See “Non-GAAP Financial Measure” that follows and the accompanying reconciliation of discretionary cash flow to net cash flow provided by operating activities.)

    Non-GAAP Financial Measure - This news release refers to a non-GAAP financial measure as “discretionary cash flow.” Callon believes that the non-GAAP measure of discretionary cash flow is useful as an indicator of an oil and gas exploration and production company’s ability to internally fund exploration and development activities and to service or incur additional debt. The company also has included this information because changes in operating assets and liabilities relate to the timing of cash receipts and disbursements which the company may not control and may not relate to the period in which the operating activities occurred. Discretionary cash flow should not be considered an alternative to net cash provided by operating activities or net income as defined by GAAP.




    Production and Price Information:

    Three Months Ended
    March 31,
    2009 2008
    Production:
    Oil (MBbls) 263 290
    Gas (MMcf) 1,447 2,090
    Gas equivalent (MMcfe) 3,026 3,828
    Average daily (MMcfe) 33.6 42.1

    Average prices:

    Oil ($/Bbl)(a)
    $ 60.59 $ 86.66
    Gas ($/Mcf) $ 6.13 $ 9.50
    Gas equivalent ($/Mcfe) $ 8.20 $ 11.75

    Additional per Mcfe data:
    Sales price $ 8.20 $ 11.75
    Lease operating expenses 1.33 1.35
    Operating margin $ 6.87 $ 10.40

    Depletion $ 3.11 $ 3.93
    General and administrative (net of management fees) $ 0.60 $ 0.69


    (a) Below is a reconciliation of the average NYMEX price to the average realized sales price per barrel of oil:


    Average NYMEX oil price $ 43.08 $ 97.90
    Basis differentials and quality adjustments ( 4.01 ) ( 3.65 )
    Transportation ( 1.35 ) ( 1.25 )
    Hedging 22.87 ( 6.34 )
    Averaged realized oil price $ 60.59 $ 86.66





    Reconciliation of Non-GAAP Financial Measure:


    Three Months Ended
    (In thousands) March 31,


    2009


    2008
    Discretionary cash flow $ 14,230 $ 29,043
    Net working capital changes and other changes (11,984 ) 6,088
    Net cash flow provided by operating activities $ 2,246 $ 35,131




    Callon Petroleum Company

    Consolidated Balance Sheets

    (In thousands, except share data)

    (Unaudited)

    March 31, December 31,
    2009 2008
    ASSETS
    Current assets:
    Cash and cash equivalents $ 651 $ 17,126
    Accounts receivable 21,472 44,290
    Fair market value of derivatives 14,857 21,780
    Other current assets 191 1,103
    Total current assets 37,171 84,299

    Oil and gas properties, full-cost accounting method:
    Evaluated properties 1,587,795 1,581,698
    Less accumulated depreciation, depletion and amortization (1,464,687 ) (1,455,275 )
    123,108 126,423

    Unevaluated properties excluded from amortization 28,595 32,829
    Total oil and gas properties 151,703 159,252

    Other property and equipment, net 2,419 2,536
    Restricted investments 4,775 4,759
    Investment in Medusa Spar LLC 12,183 12,577
    Other assets, net 2,172 2,667
    Total assets $ 210,423 $ 266,090

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
    Accounts payable and accrued liabilities $ 23,375 $ 76,516
    Asset retirement obligations 9,456 9,151
    Total current liabilities 32,831 85,667

    9.75% Senior Notes 195,065 194,420
    Callon Entrada Credit Facility (non-recourse) 78,435 78,435
    Total long-term debt 273,500 272,855

    Asset retirement obligations 32,273 33,043
    Callon Entrada Credit Facility interest payable (non-recourse) 3,339 2,719
    Other long-term liabilities 1,638 1,610
    Total liabilities 343,581 395,894

    Stockholders' equity:
    Preferred Stock, $.01 par value, 2,500,000 shares authorized; -- --

    Common Stock, $.01 par value, 30,000,000 shares authorized; 21,637,470 and 21,621,142 shares outstanding at March 31, 2009 and December 31, 2008, respectively
    216 216
    Capital in excess of par value 228,968 227,803
    Other comprehensive income 7,234 14,157
    Retained (deficit) earnings (369,576 ) (371,980 )
    Total stockholders' equity (133,158 ) (129,804 )
    Total liabilities and stockholders' equity $ 210,423 $ 266,090




    Callon Petroleum Company

    Consolidated Statements of Operations

    (In thousands, except per share amounts)

    (Unaudited)

    Three Months Ended
    March 31,
    2009 2008
    Operating revenues:
    Oil sales $ 15,952 $ 25,096
    Gas sales 8,863 19,864
    Total operating revenues 24,815 44,960

    Operating expenses:
    Lease operating expenses 4,039 5,178
    Depreciation, depletion and amortization 9,413 15,029
    General and administrative 1,819 2,652
    Accretion expense 1,038 1,032
    Total operating expenses 16,309 23,891

    Income from operations 8,506 21,069

    Other (income) expenses:
    Interest expense 4,782 9,940
    Callon Entrada Credit Facility interest expense (non-recourse) 1,556 --
    Other (income) expense (95 ) (472 )
    Total other (income) expenses 6,243 9,468

    Income before income taxes 2,263 11,601
    Income tax (benefit) expense (24 ) 4,082

    Income before equity in earnings of Medusa Spar LLC 2,287 7,519
    Equity in earnings of Medusa Spar LLC, net of tax 117 113

    Net income available to common shares $ 2,404 $ 7,632

    Net income per common share:

    Basic
    $ 0.11 $ 0.37
    Diluted $ 0.11 $ 0.35

    Shares used in computing net income per common share:
    Basic 21,607 20,871
    Diluted 21,607 21,644




    Callon Petroleum Company

    Consolidated Statements of Cash Flows

    (In thousands)

    (Unaudited)

    Three Months Ended
    March 31, March 31,
    2009 2008
    Cash flows from operating activities:
    Net income $ 2,404 $ 7,632

    Adjustments to reconcile net income to cash provided by operating activities:



    Depreciation, depletion and amortization 9,629 15,213
    Accretion expense 1,038 1,032
    Amortization of deferred financing costs 731 873
    Equity in earnings of Medusa Spar LLC (117 ) (113 )
    Deferred income tax expense (24 ) 4,082
    Non-cash charge related to compensation plans 569 371
    Excess tax benefits from share-based payment arrangements -- (47 )
    Changes in current assets and liabilities:
    Accounts receivable 5,761 (648 )
    Other current assets 912 4,702
    Current liabilities (19,614 ) (252 )
    Change in gas balancing receivable 319 923
    Change in gas balancing payable 30 557
    Change in other long-term liabilities 618 (4 )
    Change in other assets, net (10 ) 810
    Cash provided by operating activities 2,246 35,131

    Cash flows from investing activities:
    Capital expenditures (19,295 ) (46,208 )
    Distribution from Medusa Spar LLC 574 108
    Cash used in investing activities (18,721 ) (46,100 )

    Cash flows from financing activities:
    Equity issued related to employee stock plans -- (16 )
    Excess tax benefits from share-based payment arrangements -- 47
    Cash provided by financing activities -- 31

    Net decrease in cash and cash equivalents (16,475 ) (10,938 )
    Cash and cash equivalents:
    Balance, beginning of period 17,126 53,250
    Balance, end of period $ 651 $ 42,312

    Callon Petroleum Company is engaged in the acquisition, development, exploration and operation of oil and gas properties in the Gulf Coast region. The majority of Callon’s properties and operations are concentrated in the offshore waters of the Gulf of Mexico.

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