CPE - Callon Petroleum Company
3.8200 0.00 (0.00%)
After hours: 5:44PM EDT
| Previous Close | 4.0900 |
| Open | 4.0800 |
| Bid | 3.8100 x 4000 |
| Ask | 3.8800 x 40000 |
| Day's Range | 3.8200 - 4.1100 |
| 52 Week Range | 3.7500 - 12.7500 |
| Volume | 13,401,313 |
| Avg. Volume | 18,543,379 |
| Market Cap | 872.434M |
| Beta (3Y Monthly) | 1.66 |
| PE Ratio (TTM) | 3.93 |
| EPS (TTM) | 0.9730 |
| Earnings Date | Nov 4, 2019 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | 1998-06-26 |
| 1y Target Est | 8.05 |
- TipRanks
3 ‘Strong Buy’ Energy Stocks to Buy Ahead of Earnings
Third quarter earnings season is just ahead, and it’s a cinch that markets are going to react when companies start reporting real results. The regular ritual of revealing actual performance versus the forecast guidelines gives investors the data they need to sort the grain from the chaff. The real trick is to interpret the results correctly.That can depend on many factors, among the most important of which is volatility – and no market segment better shows that than the oil sector. Oil prices peaked five years ago, dropped sharply through 2015, and rose after early 2016. Crude prices gained steadily until Q3 of 2018, and then the bottom dropped out again. Since then, prices have failed to gain traction.However, Jeff Grampp, writing from Northland Securities, sees increasing production as boding well for the third quarter. He writes, anticipating the earnings reports, “We expect the focus during earnings to continue to be on FCF and capital discipline. Sentiment seems likely shaping up to not fully reward good performance but certainly ready to punish underperformance, similar to last quarter. Also, while we do not expect many 2020 guidance releases, we are hopeful to get some high level commentary on strategic direction and balancing growth/FCF in the current environment.”We’ve dipped into TipRanks’ Stock Screener to find three small-cap oil producers from just that region. A look at where they stand now, and what industry analysts are saying about them, may offer some insight into what the Q3 reports have in store.Callon Petroleum (CPE)Callon is a pure-play oil company – the company drills and sells only crude oil. The company has exploration and development rights for assets three counties stretching across the Delaware and Midland Basins of the West Texas Permian formation. It’s the heart of Texas’ most productive oil patch, and Callon is reaping the profits of it.In Q2, the company reported 23 cents EPS compared to the forecast 18 cents, for a beat of 28%. The estimate for the coming quarterly report is, again, 18 cents per share. Callon has a small market cap of just $934 million, and the stock is priced at a low $4.09.Northland’s Grampp says of Callon, “We expect much of the operational focus for CPE to be on success of its recent larger scale projects... We believe that the transaction should enable CPE to pursue an increased proportion of larger scale projects with a larger asset base. Recall, the company recently completed large scale projects in both the Delaware and Midland Basins.” Grampp gives CPE a $7 price target, suggesting a 71% upside potential. (To watch Grampp's track record, click here)Cowen analyst Gabriel Daoud is even more bullish on CPE. The analyst rates the stock an Outperform along with a $12 price target. Daoud’s target implies confidence, as it suggests a whopping high 193% upside potential. (To watch Daoud's track record, click ere)Daoud noted, “Callon's attractive footprint across the Midland and Delaware Basin supports a deep inventory of high-IRR drilling opportunities, among the most economic across the L48, which should drive peer-leading margins, debt-adjusted production / CF growth, and multiple compression, all of which help frame our positive investment case. Operational missteps appear in the rearview as we believe successful infrastructure investment, less non-productive time, and increased familiarity with newer assets leaves the company well placed for improved execution moving forward…”CPE’s Strong Buy analyst consensus is derived from 6 "buy" and 2 "hold" ratings. The stock’s low price offers investors a chance to ‘buy the dip’ on a high-upside opportunity. Shares are priced at $4.09, and the average target of $7.91 indicates potential for 93% growth. (See Callon Petroleum stock analysis on TipRanks)Magnolia Oil & Gas (MGY)Magnolia is a $2.65 billion oil company, based entirely on the Eagle Ford formation of South Texas. This rich petroleum producing area forms the eastern edge of the larger Permian Basin. Magnolia has assets in the Karnes County and Giddings Field regions, with room for up to 1,000 active wells.Northland’s Grampp sees Magnolia hitting production figures of 70 million barrels per day, which would be in line with guidance. He says of the company’s expanding operations, “Other updates we hope to get are on smaller acquisitions, where the company has had strong success in expanding its Karnes County footprint. Additionally, we hope to get an update on its share buyback program as the company authorized a 10MM share buyback last quarter.” A share buyback would be good for investors, as it would support the share price.Grampp rates MGY stock an Outperform along with a $14 price target. With MGY trading at a low $10, Grampp's target makes this oil stock a fine choice for investors seeking an affordable point of entry.Weighing in from Credit Suisse, analyst Betty Jiang takes a cautiously optimistic view of Magnolia. She met with the company’s VP of IR and the CFO in Toronto last week, and came away with a positive view of management’s plans going forward. Of Magnolia’s efforts to expand its drilling footprint and recoverable assets, she notes that the company plans to continue its strategy of purchasing smaller oil producers, and will pursue this strategy while prices remain low. She writes, “Management reiterated that their focus is on small, bolt-on opportunities in the Eagle Ford, funding it primarily through organic FCF.”Looking at the actual production from current operations, Jiang was encouraged by management’s report of the numbers. She noted, “Management seems encouraged by early Giddings performance, repeatedly highlighting shallower decline profile of those wells (~50% first year decline) with peak production generally seen in month 2 or 3… Karnes well costs have already fallen from ~$5.5MM early in the year to ~$5.0MM currently and would likely remain fairly steady going forward.”Given her basically positive view of the company, it’s no wonder that Jiang gives MGY a $13 price target, indicating a 28% upside potential. (To watch Jiang's track record, click here)Overall, MGY gets a Strong Buy on the analyst consensus. Wall Street analysts have given the stock 6 "buy" and only "1" hold ratings in the last three months. Shares sell for $10.19, and the $14.29 average price target suggests a healthy upside of 40%. (See Magnolia stock analysis on TipRanks)Matador Resources (MTDR)Matador’s operations cover much of the Permian’s Eagle Ford formation. The company has active wells in southeastern New Mexico, West and South Texas, and in the northwestern corner of Louisiana. Oil operations pull in over $140 million per quarter, and the company guides on revenue of $540 to $560 million for FY 2019. Matador has beaten the earnings estimates in the last seven reported quarters. EPS grew steadily in the first half of this year, with the Q2 number, 30 cents, beating the forecast by 58%.Grampp’s take on Matador is consonant with the company’s guidance and the conventional wisdom. He writes, “Our 3Q19 Adjusted EBITDA estimate of $146MM is about in-line with consensus of $145MM and our 3Q19 production estimate of 64.0 MBOEPD is within guidance of 63.1 to 64.3 MBOEPD but above consensus of 63.5 MBOEPD.” Grampp gives this stock a $22 target, implying room for a 63% upside.RBC Capital analyst Scott Hanold made a detailed report on MTDR, including meeting with the company president and CFO. He came away impressed, and noted several points that bode well for Matador’s future. First, he points out that the company’s costs are coming down: “Drilling and completions costs dropped rapidly from over $1,500/foot in 2018 to ~$1,250/foot currently but there are more improvements coming.”He then goes on to note that Matador has plenty of new drilling permits in process, and is set to maintain production on its drilling pads: “Permits for the Rodn ey Robinson wells in the Antelope Ridge area were recently secured and two rigs are on location to complete the 6-well pad… The rigs then move to the State Line acreage, which we think is the most prolific portion of its portfolio. Permits for this acreage should come by YE19 and the wells should be online around September 2020.”And finally, Hanold sees the company’s free cash flow improving going forward, as new wells come online and old assets are sold off, reducing the need for loans: “FCF neutrality for the upstream asset could take a couple years as MTDR builds scale toward 100 Mb/d but the outspend continues to narrow… Leverage is currently 2.5x and should stay below 3.0x. Several monetization opportunities are available including more Eagle Ford sales that could happen late this year or in 2020.”Accordingly, Hanold rates MTDR stock an Outperform along with a $28 price target, suggesting an impressive 108% upside. (To watch Hanold's price target, click here)Overall, the word of the Street is an overwhelmingly bullish one for this oil stock, as TipRanks analytics exhibit MTDR as a Strong Buy. Out of 8 analysts polled by TipRanks in the last 3 months, 7 are bullish on the stock, while one remains sidelined. With a return potential of 77%, the stock’s consensus target price stands at $23.83. To find more good ideas for energy stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched feature that unites all of TipRanks’ equity insights.
- Zacks
Are Investors Falling Out of Love With Oil & Gas Mergers?
Investors want the oil and gas companies to reduce costs, improve internal efficiencies, raise share repurchases and increase returns.
- American City Business Journals
Energy co. sets date for $3.2B deal vote, selects board members, announces HQ plans
Since announcing a $3.2 billion all-stock deal in July, two Houston companies have faced investor opposition and made decisions about their combined headquarters and board of directors.
- PR Newswire
Callon Announces Filing of Definitive Proxy Statement in Connection with Proposed Merger with Carrizo
HOUSTON, Oct. 10, 2019 /PRNewswire/ -- Callon Petroleum Company (CPE) today announced that it has filed definitive proxy materials with the U.S. Securities and Exchange Commission in connection with the Company's pending all-stock acquisition of Carrizo Oil & Gas, Inc. (CRZO). Callon will commence mailing the joint proxy statement / prospectus to its shareholders on or about October 11, 2019. The Callon Special Meeting of Shareholders to vote on the transaction is scheduled for November 14, 2019, at 9:00 A.M. Central Time, and will be held in the Advice & Counsel meeting room of the Hotel ZaZa, 9787 Katy Freeway, Houston, Texas.
- PR Newswire
Callon Petroleum Company Schedules Third Quarter 2019 Conference Call for November 5, 2019
HOUSTON , Oct. 7, 2019 /PRNewswire/ -- Callon Petroleum Company (NYSE: CPE) plans to host a conference call to discuss its third quarter 2019 financial and operating results. Webcast and Conference Call: ...
- Simply Wall St.
These 4 Measures Indicate That Callon Petroleum (NYSE:CPE) Is Using Debt Extensively
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
- Zacks
Is Callon Petroleum's Carrizo Buyout Plan a Boon or Bane?
Callon Petroleum (CPE) expects the Carrizo acquisition plan to create large scale development opportunities, and accelerate operational and capital efficiencies.
- PR Newswire
Callon Highlights Compelling Value Proposition of Transaction with Carrizo
HOUSTON, Sept. 26, 2019 /PRNewswire/ -- Callon Petroleum Company (CPE) today posted Investor Materials to the Company's website in connection with its pending all-stock acquisition of Carrizo Oil & Gas, Inc. (CRZO). The Investor Materials detail the benefits of the combined company, which will enable Callon to accelerate its free cash flow, capital efficiency and deleveraging goals through an optimized model of large-scale development. The Investor Materials are now available on the Investor Relations section of Callon's website, as well as www.sec.gov.
- GuruFocus.com
Biggest Hedge Fund Buys of September
Klarman, Paulson and Singer each reports a significant investment Continue reading...
- PR Newswire
NVR Set to Join S&P 500; Jefferies Financial Group, II-VI to Join S&P MidCap 400; Callon Petroleum, PriceSmart to Join S&P SmallCap 600
NEW YORK , Sept. 20, 2019 /PRNewswire/ -- S&P Dow Jones Indices will make the following changes to the S&P 500, S&P MidCap 400, and S&P SmallCap 600 effective prior to the open of trading on Thursday, ...
- Zacks
The Zacks Analyst Blog Highlights: Pioneer Natural Resources, Concho Resources, Callon Petroleum, Parsley Energy and Diamondback Energy
The Zacks Analyst Blog Highlights: Pioneer Natural Resources, Concho Resources, Callon Petroleum, Parsley Energy and Diamondback Energy
- Zacks
Permian Oil Production Growth to Continue: 5 Stocks in Focus
Production from the Permian Basin of Texas and New Mexico is set to climb by 71,000 barrels per day to a record of about 4.485 million barrels per day in October.
- Zacks
Implied Volatility Surging for Callon Petroleum (CPE) Stock Options
Investors need to pay close attention to Callon Petroleum (CPE) stock based on the movements in the options market lately.
- InvestorPlace
5 Cheap Energy Stocks to Buy Now
Energy stocks are cooling somewhat on Tuesday after a dramatic over-the-weekend attack on Saudi oil facilities. The cool down has come after word production capacity could be restored more quickly than originally anticipated. But regardless of what happens to oil production, one thing is clear: The tensions in the Persian Gulf aren't going to go away anytime soon.This is especially true given that Iran is still unhappy with the Trump Administration's super tough economic sanctions. And Iran is likely to lash out further until it gets a response. * 10 Recession-Resistant Services Stocks to Buy As a result, U.S. shale oil looks set to fill in the supply gaps as needed -- providing a meaningful boost to the sector which has been on the defensive since oil prices peaked in 2014. Here are five cheap, small-cap energy stocks that are worth a look:InvestorPlace - Stock Market News, Stock Advice & Trading Tips Energy Stocks to Buy: Whiting Petroleum (WLL)Whiting Petroleum (NYSE:WLL) stock is challenging its 50-day moving average again, threatening to end the downtrend that has been in place since April. A breakout should give way to a run at the 200-day moving average, which would be worth a double from here.The company will next report results on Oct. 30 after the close. Analysts are looking for earnings of 5 cents per share on revenues of roughly $446.4 million. WLL stock was recently upgraded by analysts at KeyBanc. Denbury Resources (DNR)Denbury Resources (NYSE:DNR) stock is rounding nicely from a multi-month consolidation range, setting up a move above its 200-day moving average. Shares of the shale producer fell from a high near $7 in the summer of 2018 before finding support near the lows set in 2016 and 2017 near the $1 mark. * 10 Big IPO Stocks From 2019 to Watch The company will next report results on Nov. 6 before the bell. Analysts are looking for earnings of 10 cents per share on revenues of $329.4 million. Callon Petroleum (CPE)Callon Petroleum (NYSE:CPE) stock has risen up and over its 50-day moving average, setting up a run at its 200-day average, which would be worth a gain of nearly 30% from here. Watch for an eventual run at the late 2018 highs near $12, which would be worth more than a double from here.The company will next report results on Nov. 5 after the close. Analysts are looking for earnings of 19 cents per share on revenues of $161.4 million. Oasis Petroleum (OAS)Oasis Petroleum (NYSE:OAS) stock is also pushing above its 50-day moving average and closing in on its 200-day average. This marks a return to the trading range that was in play throughout much of the year. Shares are trading well off of the levels seen in the summer of 2018 near $14. A return to those heights would be worth a 3x gain from here. * 7 Stocks the Insiders Are Buying on Sale The company will next report results on Nov. 5 after the close. Analysts are looking for a breakeven result on revenues of $512.5 million. Nabors Industries (NBR)Nabors Industries (NYSE:NBR) stock is trying to push up and over its 200-day moving average, looking to return to the highs seen back in April. If it reaches this level, it would be worth nearly a double from here. Shares have double-bottomed near $2 over the past two years, so a solid base of support has been formed that should control it.The company will next report results on Oct. 28 after the close. Analysts are looking for a loss of 21 cents per share on revenues of $800.6 million.As of this writing, William Roth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post 5 Cheap Energy Stocks to Buy Now appeared first on InvestorPlace.
- Barrons.com
First United, Sunrun and Other 13D Filings
Driver Management revealed on Sept. 5 that it holds 360,637 shares of the community bank, equal to nearly 5.1% of the outstanding stock. Driver continued that First United “lacks scale to justify an elevated expense base” and possess a branch network that has been unable to “create sufficient operating leverage due to lackluster organic loan growth.” Driver recommends that a sale to a larger peer would be the best route to enhance shareholder value. It believes that such a move would “unlock the value of [First United’s] high-quality deposit franchise and attractive trust and wealth management businesses,” and also lift shareholder value without the “risk and uncertainty” of First United attempting to scale-up its business on its own.
- PR Newswire
Callon Comments on Paulson & Co. Filing
Callon maintains an open dialogue with all of our shareholders and welcomes constructive input toward the shared goal of maximizing shareholder value. To this end, the Callon Board, with the assistance of outside financial and legal advisors, carefully evaluated the combination with Carrizo and determined that the transaction delivers compelling value to Callon shareholders. The pro forma company will allocate more capital to the Permian Basin than the combined Callon and Carrizo standalone development plans, supported by strong free cash flow from the Eagle Ford Shale.
- GuruFocus.com
John Paulson's Firm Bites Into Callon Petroleum
Merger-arbitrage guru denounces company’s planned merger with Carrizo Continue reading...
- Motley Fool
Why Callon Petroleum Stock Is Soaring Today
An investor is pushing back against the oil company’s plan.
- GuruFocus.com
Will These 2 Falling Knives Bounce Back?
The stocks have a buy recommendation rating Continue reading...
- Reuters
UPDATE 3-Paulson's hedge fund calls on Callon Petroleum to drop merger, sell itself
Billionaire investor John Paulson's hedge fund on Monday urged Callon Petroleum Co to drop its proposed $3.2 billion acquisition of Carrizo Oil & Gas Inc , and instead consider selling itself. Callon replied to the call from the hedge fund by saying it remains confident in the deal with Carrizo. "We remain confident in the strategic and financial benefits of our combination with Carrizo, which will create a leading oil and gas company with scaled development operations focused on the Permian Basin in a transaction that is accretive on all per share metrics", Callon said in a statement.
- MarketWatch
Callon, Carrizo stocks soar after Callon shareholder to vote against merger, urges sale of company
Shares of Carrizo Oil & Gas Inc. surged 6.0% and Callon Petroleum Co. ran up 11% in premarket trading Monday, after Paulson & Co, a large Callong shareholder, said it plans to vote against the acquisition of Carrizo. Paulson also urged Callon to pursue a sales of the company. In a letter to Callon's board of directors, Paulson said Callon's stock has lost 36% since the acquisition deal was announced, Callon would lost its valuation as a "pure play" Permian producer, the premium paid for Carrizo is unjustifiable given its "inferior" assets and Callon's shares could be worth 64% more than current prices through a sale of the company. Callon had announced on July 15 a deal to buy Carrizo in an all-stock deal valued at $3.2 billion. Paulson said Monday it owned 21.6 million Callon shares, or 9.5% of the shares outstanding. Shares of Callon have shed 34.9% and Carrizo have dropped 23.5% over the past three months, while the SPDR Energy Select Sector ETF has slipped 3.7% and the S&P 500 has gained 3.7%.
- PR Newswire
Paulson & Co. Opposes Callon Petroleum's Proposed Acquisition of Carrizo Oil & Gas
Callon's stock price has fallen by 36% since the transaction was announced. Shareholders have lost $530 million in value. Callon is paying Carrizo a 25% premium, which is unjustifiable given the inferior assets of Carrizo, and results in the transfer of $240 million in value from Callon shareholders to Carrizo shareholders.
- Rigzone.com
Paulson Says Callon Should Walk Away from Carrizo Purchase
Paulson & Co. has come out against Callon Petroleum Co.'s $1.2 billion deal to buy Carrizo Oil & Gas Inc., arguing the Permian Basin energy explorer should walk away from the deal and put itself up for sale.
