Texas independent Callon Petroleum Co. has revised its 2022 spending plans upward, citing higher than expected inflation in oilfield services (OFS) costs.

Callon

Houston-based Callon has updated its operational capital budget to a range of $790 million to $810 million for the full year, up from previous guidance of $725 million published in February.

Production guidance of 101-105,000 boe/d remains unchanged from the last forecast, underscoring the impact of rising OFS prices in the oil patch. Callon operates in the Eagle Ford Shale, and in the Permian Basin’s Midland and Delaware sub-basins.

The revised spending guidance “is the product of inflationary service cost pressures that have resulted in average price increases of approximately 20% related to key drilling and...