Callon Petroleum : Barclays Energy Conference Presentation

Barclays Energy Conference

September 8, 2021

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 the pending acquisitions, the pending exchange, the financing of the acquisition and future performance of the Company, as well as statements including the words and indicators "believe," "expect," "plans," "may," "will," "should," "could," "project," "paves the way," "path," and words or indicators of similar meaning. These statements reflect the Company's current views with respect to future events, financial performance and operational performance based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate, including information provided by the seller of Primexx and Saragosa. No assurances can be given, however, that these events will occur or that projections will be achieved or expectations will be realized, and actual results could differ materially from those projected or expected as a result of certain factors, many of which are beyond our control. 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 the acquisition and our development activities at expected costs or at expected times or at all; our inability to realize the benefits of the pending 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 U.S. Securities and Exchange Commission (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 at www.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," and "adjusted operating cash flow." 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 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, cash capitalized interest, net cash interest expense and capitalized cash G&A (which excludes capitalized expense related to share-based awards). We believe adjusted free cash flow 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-cashstock-based compensation expense, merger and integration expense, (gain) loss on extinguishment of debt, and other operating 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 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 above may not be comparable to similarly titled measures of other companies.

Callon calculates adjusted operating cash flow as adjusted EBITDA less cash capitalized interest, net cash interest expense, and capitalized cash G&A (which excludes capitalized expense related to share-based awards). Adjusted operating cash flow 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 operating cash flow provides useful information to our investors as an indicator of cash flow generated from normal business operations before capital expenditures. Because adjusted operating cash flow excludes some, but not all, items that affect net cash provided by operating activities and may vary among companies, the adjusted operating cash flow presented may not be comparable to similarly titled measures of other companies.

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.

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Primexx: Expanding Our Capital Efficient Delaware Development

Acquisition Checks All Financial and Operational Goals		Pro Forma Delaware Acreage Position

• Builds upon Delaware position and expertise
• Accretive to all key financial metrics

~110,000 Net Acres

• Strengthens balance sheet with day 1 deleveraging, accelerates timeline to achieve <2.0x Net Debt to Adjusted EBITDA1 (YE 2022)
• Increases annual free cash flow by over $100 MM in 2022
• Adds more than 300 core drilling locations
• Lowers the overall corporate reinvestment rate

	FCF Growth		Leverage Improvement
	2022 FCF1 per share		2022 YE Debt/EBITDA
	5%+		(0.4x)
	Uplift		Improvement
	2022 FCF @ $60 WTI		2021 YE PF Debt/Share
	$100 MM+		20%
	Incremental		Reduction			Callon
							Primexx

1. Pro Forma projections are shown at conservative planning prices of $60.00 oil / $2.75 natural gas / $24.00 NGLs in 2022E.

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Primexx: A High-Quality, Integrated Asset

One of the largest private, contiguous, operated positions in the Delaware Basin

Asset Highlights			Acreage Overview
2Q21 Production; % Oil	18.0 Mboe/d; 61% Oil
Net Acres	~35,000
Core Locations (Net)	~300
"Parent" / "Child" Mix	75% / 25%
(Future Locations)
Average Working Interest	~87%
% Held By Production	~87%
% Operated	~98%
Producing Horizontal Wells	~85
(Operated)
Water Infrastructure	~60 mi. water transfer lines, ~80
Mbbls/d recycling capacity and over
	100 Mbbls/d freshwater supply
Gas Gathering	50+ miles of gas gathering lines

Vertically integrated with substantial gas and water facilities in place to support full-scale development

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Primexx: Multi-Zone Development Opportunities

Targeted Development Across Position		Increasing Project Sizes for Co-Development

 Multiple zone potential delineated across our footprint	1H21 - 7 gross wells / >1 well per project
- Robust well results throughout the asset area in multiple zones	2H21 - 15 gross wells / ~3 wells per project
- Southwestern acreage currently contemplates single zone	1H22 - 17 gross wells / ~6 wells per project
development
 2H21 activity involves continuing 2 rig program that will carry
into 2022	Reeves
- Upcoming projects averaging ~6 wells
- 2 zone development with mild bias towards Wolfcamp A
("WC A")
 Projecting ~10 net wells placed on production during 2H21
- Estimated 8 to 10 gross wells drilled and awaiting completion or
initial production at year-end
- 15 to 20 gross locations in various stages of development at
year-end
 Well-spacing roughly 900' in primary target zone (WC A)
- Deeper zone spacing at 900' or wider as needed
- Custom offset spacing will be employed where deemed
necessary to preserve productivity
 Planning well cost expectations of ~$750 per lateral foot
- Opportunities to lower costs through application of CPE
Delaware learnings	Scaling up project size to optimize resource capture
- Additional synergy opportunities available from larger scale of
development program

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