Callon Petroleum Company (NYSE:CPE) Q1 2018 Earnings Conference Call - Preliminary Transcript

May 03, 2018 • 09:00 am ET

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Callon Petroleum Company (NYSE:CPE) Q1 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good morning and welcome to the Callon Petroleum First Quarter 2018 Earnings and Operating Results Conference Call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded. A replay of this event will be available on the company's website for one year.

I would now like to turn the conference over to Mark Brewer, Director of Investor Relations. Please go ahead.

Executive
Mark Brewer

Thank you, operator. Good morning, and thank you, everyone, for joining our conference call. With me this morning are Joe Gatto, President and Chief Executive Officer; Gary Newberry, Chief Operating Officer; and Jim Ulm, Chief Financial Officer.

During our prepared remarks, we'll be referencing the earnings results presentation we posted yesterday afternoon to our website. So I encourage everyone to download the presentation if you haven't already. You can find the slides on our Events & Presentations page located within the Investors section of our website at www.callon.com.

Before we begin, I'd like to remind everybody to review our cautionary statements and important disclosures included on slide 2 of today's presentation. We'll make some forward-looking statements during today's call that refer to estimates and plans. Actual results could differ materially due to the factors noted on this slide and in our periodic SEC filings. We'll also refer to some non-GAAP financial measures today, which we believe help to facilitate comparisons across periods and with our peers.

For any non-GAAP measures we reference, we provide a reconciliation to the nearest corresponding GAAP measure. You may find these reconciliations in the appendix to the presentation slides and in the earnings press release, both of which are available on the website. Following our prepared remarks, we will open the call for Q&A.

With that, I'd like to turn the call over to Joe Gatto.

Executive
Joe Gatto

Thanks, Mark. And thanks, everyone, for joining us this morning. Our first quarter earnings release was out yesterday along with earnings slide deck that we'll be referencing during today's call. We have an active first quarter with the addition of a fifth rig in mid-February (Technical Difficulty) of the two dedicated completion crews, setting the stage for semi-level of activity through 2018. As we all know, the Permian had a rough start to the year with extreme cold conditions in January.

Our operations team did an excellent job of bringing wells back online and importantly keeping this aligned with our operational plans and expectations for well placed on production. In fact, we did better than planned with realized efficiencies of both the drilling and completion side and we will talk about in more detail.

With that, I'd like to focus on slide three of the deck. Production for the quarter was 26,600 BOE per day that was slightly ahead of the last quarter, in which we posted a sequential increase of almost 20%. The production was right in line with our expectations during a quarter where we built a small