Callon Petroleum Stock

Callon Petroleum Company, an independent oil and natural gas company, focuses on the acquisition, exploration and sustainable development of high-quality assets in the Permian Basin in West Texas. The company is a subsidiary of APA Corporation.

The company's activities are primarily focused on horizontal development in the Midland and Delaware basins, both of which are part of the larger Permian Basin in West Texas. The company's primary operations in the Permian reflect a high-return, oil-weighted drilling inventory with multiple prospective horizontal development intervals.

Eagle Ford Divestiture

On July 3, 2023, the company closed on the sale of all the company's oil and gas properties in the Eagle Ford to Ridgemar Energy Operating, LLC.

Business Strategy

The company's strategy is to create value for its shareholders through the safe development of the company's oil and gas properties, which the company calls its 'Life of Field' co-development model.

The key elements of the company's strategy are to employ a 'Life of Field' co-development model that enhances the value of the company's asset base; and integrate sustainable business practices that intend to minimize its impact on the environment, empower and develop a diverse workforce, and enrich the company's communities.

Major Customers

The company markets the majority of the production from properties the company operates on account of both itself and that of the other working interest owners in these properties.

The company's customers are Vitol Inc.; Plains Marketing, L.P.; Rio Energy International, Inc.; BP Products North America, Inc.; Valero Marketing and Supply Company Shell Trading Company; Trafigura Trading, LLC; and Occidental Energy Marketing, Inc.

Environmental Matters and Regulation

The company is in material compliance with the requirements of each of the Clean Water Act or the OPA laws.

The pipelines used to gather and transport natural gas being produced by the company is also subject to regulation by the U.S. Department of Transportation ('DOT') under the Natural Gas Pipeline Safety Act of 1968, as amended, the Pipeline Safety Act of 1992, as reauthorized and amended, the Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011, the Securing America's Future Energy: Protecting our Infrastructure of Pipelines and Enhancing Safety Act of 2016, and the Protecting our Infrastructure of Pipelines and Enhancing Safety Act of 2019.

With regard to physical purchases and sales of natural gas and other energy commodities, and any related hedging activities that the company undertakes, the company is thus required to observe anti-market manipulation and disruptive trading practices laws and related regulations enforced by the CFTC.

The legislation, known as the Dodd-Frank Wall Street Reform and Consumer Protection Act ('Dodd-Frank Act'), required the CFTC and the SEC to promulgate rules and regulations implementing the legislation, including regulations that affect derivatives contracts that the company uses to hedge its exposure to price volatility.

The company is subject to a number of federal and state laws and regulations, including OSHA, and comparable state statutes, the purpose of which are to protect the health and safety of workers. In addition, OSHA's hazard communication standard, the EPA community right-to-know regulations under Title III of the federal Superfund Amendment and Reauthorization Act and comparable state statutes require that information be maintained concerning hazardous materials used or produced in the company's operations, and that this information be provided to employees, state and local government authorities and citizens.

History

Callon Petroleum Company was founded in 1950. The company was incorporated under the laws of the state of Delaware in 1994.