Callon Petroleum expects 2023 planned capital expenditures of $1B

Highlights: 2023 planned capital expenditures of $1 billion, representing a projected reinvestment rate of ~60%. 2023 production expected to average 104-107 thousand barrels per day of oil equivalent. Adjusted free cash flow from 2023-27 projected to total greater than$2.75B, assuming $80 per barrel NYMEX WTI and current service cost levels, or more than 125% of Callon’s current market capitalization. Company expects to continue its rapid pace of debt reduction and reach its key $2B debt milestone in the second half of 2023, based on the current commodity price environment. Five-year outlook characterized by increasing capital efficiency and a projected compounded annual production growth rate of 2%-4%, highlighting the depth of consistent, high-quality inventory and improved cycle times."Our 2023 business plan builds on the strong operational execution and financial outcomes we delivered last year," said Joe Gatto, President and CEO. "We remain committed to consistent capital allocation to our high rate of return projects complemented by debt reduction from our free cash flow. We are confident that our plan will allow us to reduce debt to $2 billion later this year, which is now our financial threshold for implementing plans to return capital to shareholders. Over the next five years, adhering to disciplined reinvestment rates combined with improving capital efficiencies, we project that our investments will generate over $2.75 billion of cumulative adjusted free cash flow."