Houston-based Callon Petroleum said last week more than 80 percent of its 2023 capital program of $1 billion will be spent in Permian Basin. Joe Gatto, president and CEO, said Feb. 22, “Our 2023 business plan builds on the strong operational execution and financial outcomes we delivered last year.” Gatto said 55-to-60 percent of the total budget will be allocated to the first half of the year as multiple, large-scale Permian projects are executed with simultaneous operations of drilling and completions. Permian spending in 2023 will be $830 million.
Callon expects its 2023 capital program to generate modest production growth compared to last year with a similar number of drilled and completed lateral feet. Production for 2023Q1 is expected to be 97,000 to 100,000 boed (decline from 106,300 boed in 2022Q4) with an increase to 104,000 to 107,000 boed for the year (production for 2022 was 104,300 boed). Callon plans to run 5-to-6 drilling rigs in 2023 for 80-to-90 turned-in-line wells.