Callon Closes $245MM Sale of Non-Core Midland Assets; Lowers Guidance, Capex for 2019

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| Thursday,June 13,2019

Callon Petroleum Co. has wrapped up its $245 million sale of its non-core Midland Basin assets to Sequitur Energy Resources, LLC.

As a result, the company has updated its 2019 guidance as follows (lower spending and production expectations for 2019):

	Previous Full Year	Updated Full Year
	2019 Guidance	2019 Guidance
Total production (Mboe/d)	39.5 - 41.5	38.0 - 39.5
% oil	77% - 78%	78% - 79%
Income statement expenses (per Boe)
LOE, including workovers	$5.50 - $6.50	$5.50 - $6.50
Production taxes, including ad valorem (% unhedged revenue)	7 %	7 %
Adjusted G&A: cash component ^(a)	$2.00 - $2.50	$2.00 - $2.50
Adjusted G&A: non-cash component ^(b)	$0.50 - $1.00	$0.50 - $1.00
Cash interest expense ^(c)	$0.00	$0.00
Effective income tax rate	22%	22%
Capital expenditures ($MM, accrual basis)
Total operational ^(d)	$500 - $525	$495 - $520
Capitalized interest and G&A expenses	$100 - $105	$100 - $105
Net operated horizontal wells placed on production	47 - 49	47 - 49


a)	Excludes stock-based compensation and corporate depreciation and amortization. Adjusted G&A is a non-GAAP financial measure; see our most recent earnings release for a reconciliation of G&A expense on a GAAP basis to Adjusted G&A expense.
b)	Excludes certain non-recurring expenses and non-cash valuation adjustments. Adjusted G&A is a non-GAAP financial measure; see our most recent earnings release for a reconciliation of G&A expense on a GAAP basis to Adjusted G&A expense.
c)	All cash interest expense anticipated to be capitalized.
d)	Includes facilities, equipment, seismic, land and other items. Excludes capitalized expenses.

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