Callon Petroleum Company. (NYSE:CPE) Q2 2023 Earnings Conference Call August 3, 2023 9:00 AM ET

Company Participants

Kevin Smith - Head-Investor Relations

Joe Gatto - President and Chief Executive Officer

Russell Parker - COO

Kevin Haggard - CFO

Conference Call Participants

Zach Parham - JPMorgan

Derrick Whitfield - Stifel

Neal Dingmann - Truist Securities

Operator

Ladies and gentlemen, welcome to the Callon Petroleum Second Quarter 2023 Earnings Conference Call. [Operator instructions] Just to remind you today’s conference is being recorded. [Operator Instructions]

I will now turn the call over Callon’s Head of Investor Relations, Kevin Smith.

Kevin Smith

Good morning everyone and thanks for dialing in today. I am joined by our CEO, Joe Gatto; our COO, Russell Parker; and our CFO, Kevin Haggard.

During our prepared remarks today, we will reference our second quarter earnings release and our supplemental slides, both of which are available on our website, at www.callon.com.

Today's call will include forward-looking statements that refer to estimates and plans. Actual results could differ materially due to risk factors noted in our presentation and SEC filings. We will also refer to some non-GAAP financial measures that help facilitate comparisons across periods and with our peers. For any non-GAAP measures reference, we provide a reconciliation to the nearest corresponding GAAP measure in the appendix to our slide deck and in our earnings press release, both of which are available on our website. Following our prepared remarks, we will open the call for Q&A.

I would now like to turn the call over to Joe Gatto. Joe?

Joe Gatto

Thank you, Kevin. Good morning everyone. Before we get started, I'd like to formally introduce Russell Parker, our new Chief Operating Officer. Russell brings more than 20 years of operations and strategic leadership experience to Callon and a partnership for the oil and gas industry. He most recently served as the President and CEO of EP Energy. We’re off to a great start since he joined in June; I know that you'll enjoy working with him.

Now turning to the quarter, we posted strong operational results as production came in above the midpoint of our guidance, increasing sequentially by 7% while capital spending came in at the low end of guidance. We are also progressing initiatives to reduce our cost structure with LOE and GP&T for Boe both coming in below guidance.

Later in our prepared remarks, Russell will discuss some of his key operational priorities, which includes steps we plan to take to further reduce costs and increase margins and free cash flow.