Callon Petroleum : 1st Quarter 2022 Earnings Presentation

First Quarter Earnings

Presentation

MAY 2022

Important Disclosures

Cautionary Statement Regarding Forward-Looking Information

This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include all statements regarding wells anticipated to be drilled and placed on production; inventory; future levels of development activity and associated production, capital expenditures, cash flow expectations, and margins; the Company's guidance for income statement expenditures and capital expenditures; estimated realizations; estimated reserve quantities and the present value thereof; future debt levels and leverage and the implementation of the Company's business plans and strategy, as well as statements including the words "believe," "expect," "plans," "may," "will," "should," "could," and words of similar meaning. These statements reflect the Company's current views with respect to future events and financial performance based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. No assurances can be given, however, that these events will occur or that these projections will be achieved, and actual results could differ materially from those projected as a result of certain factors. Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. Some of the factors which could affect our future results and could cause results to differ materially from those expressed in our forward-looking statements include the volatility of oil and natural gas prices; changes in the supply of and demand for oil and natural gas, including as a result of the COVID-19 pandemic and various governmental actions taken to mitigate its impact or actions by, or disputes among members of OPEC and other oil and natural gas producing countries with respect to production levels or other matters related to the price of oil; our ability to drill and complete wells; operational, regulatory and environment risks; the cost and availability of equipment and labor; our ability to finance our development activities at expected costs or at expected times or at all; our inability to realize the benefits of recent transactions; currently unknown risks and liabilities relating to the newly acquired assets and operations; adverse actions by third parties involved with the transactions; risks that are not yet known or material to us; and other risks more fully discussed in our filings with the SEC, including our most recent Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, available on our website or the SEC's website atwww.sec.gov. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

Non-GAAP Financial Measures

This presentation refers to non-GAAP financial measures such as "adjusted free cash flow," "adjusted EBITDA," "operating margin", "all-in cash margin", and "net debt". These measures, detailed below, are provided in addition to, and not as an alternative for, and should be read in conjunction with, the information contained in our financial statements prepared in accordance with GAAP (including the notes), included in our filings with the U.S. Securities and Exchange Commission (the "SEC") and posted on our website.

Adjusted free cash flow is a supplemental non-GAAP measure that is defined by the Company as adjusted EBITDA less operational capital expenditures (accrual), capitalized cash interest, capitalized cash G&A (which excludes capitalized expense related to share-based awards), and cash interest expense, net. We believe adjusted free cash flow provides useful information to investors because it is a comparable metric against other companies in the industry and is a widely accepted financial indicator of an oil and natural gas company's ability to generate cash for the use of internally funding their capital development program and to service or incur debt. Adjusted free cash flow is not a measure of a company's financial performance under GAAP and should not be considered as an alternative to net cash provided by operating activities, or as a measure of liquidity, or as an alternative to net income (loss).

Callon calculates adjusted EBITDA as net income (loss) before interest expense, income tax expense (benefit), depreciation, depletion and amortization, (gains) losses on derivative instruments excluding net settled derivative instruments, impairment of evaluated oil and gas properties, non-cash share-based compensation expense, merger, integration and transaction expense, (gain) loss on extinguishment of debt, and certain other expenses. Adjusted EBITDA is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for net income (loss), operating income (loss), cash flow provided by operating activities or other income or cash flow data prepared in accordance with GAAP. However, the Company believes that adjusted EBITDA provides useful information to investors because it provides additional information with respect to our performance or ability to meet our future debt service, capital expenditures and working capital requirements. Because adjusted EBITDA excludes some, but not all, items that affect net income (loss) and may vary among companies, the adjusted EBITDA presented in this presentation may not be comparable to similarly titled measures of other companies.

Operating margin is a supplemental non-GAAP measure that is defined by the Company as oil, natural gas, and NGL revenues sales price less lease operating expense; production and ad valorem taxes; and gathering, transportation and processing fees divided by total production for the period. We believe operating margin is a comparable metric against other companies in the industry and is useful to investors because it is an indicator of an oil and natural gas company's operating profitability per unit of production.

"All-in" cash margin is a supplemental non-GAAP measure that is defined by the Company as oil, natural gas, and NGL revenues sales price including the impact of commodity derivative settlements less; lease operating expense; production and ad valorem taxes; gathering, transportation and processing fees; adjusted cash G&A; and cash interest expense divided by total production for the period. We believe "all-in" cash margin is a comparable metric against other companies in the industry and is an indicator of an oil and natural gas company's profitability per unit of production.

The Company is unable to reconcile the projected adjusted free cash flow (non-GAAP) and adjusted EBITDA (non-GAAP) metrics included in this release to projected net cash provided by operating activities (GAAP) and net income (loss) (GAAP), respectively, because components of the calculations are inherently unpredictable, such as changes to current assets and liabilities, the timing of capital expenditures, movements in oil and gas pricing, unknown future events, and estimating future certain GAAP measures. The inability to project certain components of the calculation would significantly affect the accuracy of the reconciliation.

Net debt is a supplemental non-GAAP measure that is defined by the Company as total debt excluding unamortized premiums, discount, and deferred loan costs, less cash and cash equivalents. Net debt should not be considered an alternative to, or more meaningful than, total debt, the most directly comparable GAAP measure. Management uses net debt to determine the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. We believe this metric is useful to analysts and investors in determining the Company's leverage position since the Company has the ability to, and may decide to, use a portion of its cash and cash equivalents to reduce debt. This metric is sometimes presented as a ratio with Adjusted EBITDA in order to provide investors with another means of evaluating the Company's ability to service its existing debt obligations as well as any future increase in the amount of such obligations.

Focused On Capital Discipline and Creating Shareholder Value

Sustainable Development Focus

Committed to ESG Excellence

Disciplined Capital Spending Program

Focused on Free Cash Flow

Dedicated to Improving Balance Sheet

Disciplined Strategy Delivers Results

Exceeding Expectations

Q1 2022 Highlights

Production Volumes

103

MBoe/d (63% oil)

Reinvestment Percentage1

46%

% of cash flow

Operational Capital2 ($MM)

$157

Below Guidance

Operating Margin per Boe3

7th

consecutive quarterly increase

$58.35

$48.71

$45.16

$37.76

2Q21 Actual

3Q21 Actual

4Q21 Actual

1Q22 Actual

Leverage Ratio

Net Debt / LTM Adj. EBITDA3

1.00x - 1.25x

by year-end 2022 4.12x

2Q21 Actual

• 1. Reinvestment percentage is calculated by dividing operational capital expenditures by adjusted discretionary cash flow minus capitalized interest minus capitalized G&A

• 2. Operational capital includes drilling, completions, facilities, and equipment, but excludes land and seismic

  3.46x
  2.32x
  1.97x
  3Q21	4Q21	1Q22
  Actual	Actual	Actual

• 3. Operating margin & net debt are non-GAAP financial measures, please see the Appendix for the reconciliation. Net Debt / LTM Adjusted EBITDA calculations are pursuant to the credit facility

Strong Execution Advances Our Goals

1Q22 by the Numbers

Metric	1Q22 Result
Total production (MBoe/d)	102.7 (Guidance 100 - 102)
Oil production	63% (Guidance 63%)
LOE ($MM)	$67.3
Production and ad valorem tax (% of total oil, natural gas, and NGL revenue)	5.7%
GP&T ($MM)	$20.8
Operational capital1 ($MM)	$157.4 (Guidance $175 - $185)
Adjusted EBITDA2 ($MM)	$393.7
Adjusted Free Cash Flow2 ($MM)	$183.3

First Quarter Accomplishments

Operational

Increased Operational Flexibility

Increased DUC inventory by 15 wells to 42 wells

Successful Delaware South Wells

Placed two large pads on production with results exceeding expectations

Reduced GHG Through Replacement of Pneumatics

Substantial progress on our pneumatic replacement initiative

Secured All Key Services and Materials for 2022

Including varying degrees of price certainty and extended terms

Financial

Third Sequential Increase in Adjusted Free Cash Flow

First quarter adjusted FCF generation of ~$183MM

and ~46% reinvestment rate

Reduced Lease Operating Expense

LOE costs declined by $6.2MM sequentially driven by reductions at the Delaware South asset

Further Leverage Reduction

First Quarter PF Net Debt / LTM Adj. EBITDA of < 2.0x (average LTM realized prices of $58.23/Bbl and $3.03/Mcf, after hedging impacts)3

1.

Operational capital includes drilling, completions, facilities, and equipment, but excludes land and seismic

• 2. Adjusted EBITDA and Adjusted Free Cash Flow are non-GAAP measures. Please see Appendix for reconciliation

3.

Net debt / LTM Adjusted EBITDA calculations are pursuant to the credit facility