Callon Petroleum Co. will allocate 80% of its $1 billion planned capital expenditures in 2023 on Permian basin activity.
The company set a 2023 planned capital expenditures budget of $1 billion and expects full year production to average 104,000-107,000 boe/d.
Some 55-60% of the year's total budget will be weighted to the year's first half as multiple, large-scale Permian projects are executed with simultaneous operations of drilling and completion activity, the company said in its earnings release Feb. 23.
For the year, a total of $830 million will be allocated to Permian activity where the company plans to run 5-6 rigs for 80-90 gross turned-in-line wells.
In the Eagle Ford, the company expects to spend $170 million this year to run 1 rig for 30-40 gross turned-in-line wells.
For first-quarter 2023, Callon expects to produce 97,000-100,000 boe/d with oil volumes of 59,000-61,000 b/d. The decline in production compared to the prior quarter is primarily related to lower completion activity in fourth-quarter 2022 (18 wells turned in-line as scheduled) and the timing of large project sizes to begin the year, the company said.
Production is expected to increase materially in second-quarter 2023 as large multi-well projects in the Permian are placed online. Callon expects to turn-in-line 15-17 wells, or about 15% of the annual forecast, in first-quarter 2023.
2022
In fourth-quarter 2022, the company generated $372.6 million of net cash provided by operating activities, net income of $272.5 million, and adjusted income of $207.7 million.
Fourth-quarter 2022 production averaged 106,300 boe/d (62% oil). Results reflect the negative impact of adverse winter weather, which is estimated at about 600 boe/d. Full year production was 104,300 boe/d, up 10% year-over-year.
Full year net cash provided by operating activities was $1.5 billion.
Net cash provided by operating activities in 2022 was up 54% year-over-year to $1.5 billion.
Total operational capital expenditures for the fourth quarter and full-year 2022 were $191.7 million and $841.5 million, respectively.