|Bid||3.6600 x 28000|
|Ask||3.6700 x 29200|
|Day's Range||3.6050 - 3.8550|
|52 Week Range||3.6050 - 9.5300|
|Beta (3Y Monthly)||1.45|
|PE Ratio (TTM)||3.55|
|Earnings Date||Nov 4, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||7.57|
With oil prices low, what M&A; has happened occurs amid expectations of a tough 2020 for oil and gas companies.
HOUSTON, Nov. 20, 2019 /PRNewswire/ -- Callon Petroleum Company (CPE) ("Callon" or the "Company") and Carrizo Oil & Gas, Inc. (CRZO) ("Carrizo") today announced that proxy advisory firm Institutional Shareholder Services ("ISS"), upon review of Callon's revised offer, now recommends that Callon shareholders vote "FOR" the acquisition of Carrizo and related proposals, as put forth in the proxy supplement filed on November 18, 2019. Additionally, ISS maintained its recommendation that Carrizo common shareholders vote "FOR" the acquisition by Callon.
Hedge fund Paulson & Co, a top shareholder in Callon Petroleum Co, said on Monday it would not oppose the U.S. shale producer's reduced buyout offer for Carrizo Oil & Gas Inc, while cutting its stake in the company. Billionaire investor John Paulson's hedge fund, which did not give any details on its latest shareholding, had a 9.5% stake in Callon as of Nov. 6. Paulson had earlier opposed the deal saying that a 25% premium for the acquisition was too steep and that Callon would lose its position as a Permian pure play by acquiring a company with holdings in the Eagle Ford shale region of South Texas.
NEW YORK, Nov. 18, 2019 /PRNewswire/ -- Paulson & Co. Inc. ("Paulson"), as manager of funds holding shares of Callon Petroleum Company ("Callon" or the "Company") (CPE), announced it no longer opposes the proposed acquisition of Carrizo Oil & Gas Inc. ("Carrizo") (CRZO) and will vote its shares in favor of the transaction. While Paulson believes that a pure Permian focused producer would be a more attractive alternative, Paulson respects that different shareholders might have different viewpoints on this matter. As such, although Paulson no longer opposes the transaction, it has reduced its investment position in Callon.
Carrizo Oil & Gas, Inc. (CRZO) and Callon Petroleum Company (CPE) today made announcements regarding the record dates for their respective reconvened special meetings of shareholders to consider and vote on matters relating to the Agreement and Plan of Merger, as amended, by and between Callon and Carrizo. Callon and Carrizo also announced that they will file later today supplemental proxy materials reflecting the amended terms of the merger agreement with the U.S. Securities and Exchange Commission (the “SEC”). In addition, Callon announced that it will file an updated investor presentation later today, which will also be available on the Investor Relations section of Callon’s website at https://ir.callon.com/.
Hedge fund Paulson & Co. Inc. is dropping its opposition to U.S. shale producer Callon Petroleum Company's buyout of rival Permian player Carrizo Oil & Gas.
Both OPEC and the IEA released key reports this week, both of which pointed to some major worries for the oil cartel, yet oil markets seem not to have noticed
(Bloomberg Opinion) -- Here’s a company that really wants to get bought:As you can see, that wasn’t the case with Carrizo Oil & Gas Inc. up until quite recently. Back in early 2018, when it was trading at about $17 a share, the exploration and production company rejected activist Kimmeridge Energy Management Co.’s calls to either sell the whole company or a big slug of assets. It then capitalized on the summer’s upswing in oil prices — how long ago that seems — to sell a slug of new stock instead, at $23 apiece. By this summer, its confidence had waned and it agreed to an all-stock takeover by Callon Petroleum Co. valuing it at $13 and change — a deal so well-received that the one-day drop in Callon’s stock all but wiped out the 25% premium.Callon picked up an activist of its own a few months ago when Paulson & Co. said it was overpaying for Carrizo. So on Thursday, amended terms were announced. Carrizo has now agreed to an offer that gives it 42% of the combined company — versus 45% before — at a value of just $7.81 per share. That is barely a third of what investors paid for new stock in August 2018. It is, in fact, much lower than the price of every one of the 10 secondary stock sales Carrizo has carried out in the past 12 years, according to figures compiled by Bloomberg. Remarkably, the implied market value for Carrizo of $723 million is below the $850 million value the companies estimated back in July for the cost savings and efficiencies arising from the deal.This puts the “pit” in capitulation. Along with the revised share ratio, Callon’s executives will also forgo the special bonuses they would have received and which came under particular fire from Paulson. Callon also agreed to cap the authorized share count of the combined group.Carrizo’s past 18 months or so captures perfectly the broader shift in sentiment toward frackers. Kimmeridge’s original tilt at Carrizo was predicated on the notion that, like many of its peers, it lacked sufficient scale to operate efficiently and incentives for management needed an overhaul. The 2018 rally in oil prices let Carrizo shrug that off. The subsequent drop and associated derating of E&P stocks, as investors gave up on the oil option notionally embedded in them, forced a quick rethink on Carrizo’s part. But the lingering expectations that recovery just had to be around the corner, along with the ever-present skewed compensation practices embedded in Callon’s offer, were also behind the times.As of now, it’s unclear if Paulson backs the revised deal terms, though the pointed lack of any statement to that effect in Thursday’s announcement suggests it isn’t nailed down. Meanwhile, the shareholder vote has been pushed back a month. Consolidation in shale-land has been needed for a while, but management teams have resisted. The Carrizo-Callon saga shows it will ultimately happen anyway, just from a position of weakness rather than strength.To contact the author of this story: Liam Denning at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Gongloff at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
In the wake of investor pressure, two Houston-based energy companies have revised the terms of their multibillion-dollar deal the same day shareholders were scheduled to vote on the acquisition.
U.S. shale producer Callon Petroleum on Thursday cut its buyout offer for rival Carrizo Oil & Gas and postponed a shareholder vote in a last ditch effort to win support for the deal. The first major shale merger since Occidental Petroleum Corp's purchase of Anadarko sent Callon's shares tumbling. Its bid was seen as a test of whether investors who have opposed shale mergers would accept an all-stock deal that promised higher earnings and cash flow.
HOUSTON, Nov. 14, 2019 /PRNewswire/ -- Callon Petroleum Company (CPE) and Carrizo Oil & Gas, Inc. (CRZO) today announced an amendment to the existing terms of their agreement for Callon to acquire Carrizo in an all-stock transaction. Under the amended terms, Carrizo shareholders will receive 1.75 shares of Callon common stock for each share of Carrizo common stock they own. With the amended exchange ratio, Callon shareholders will own approximately 58% of the combined company and Carrizo shareholders will own approximately 42% on a fully diluted basis.
Following months of opposition from one of its largest shareholders, Callon Petroleum Company has lowered its acquisition offer for rival Permian player Carrizo Oil & Gas, Inc.
Callon Petroleum's (CPE) third-quarter results are supported by a surge in oil equivalent production volumes, partially offset by lower price realizations of commodities.
13Ds are filed with the Securities and Exchange Commission within 10 days of an entity’s attaining a greater than 5% position in any class of a company’s securities. Impactive Capital disclosed on Nov. 1 that it had purchased 44,744 shares of the audio- and video-content maker and distributor, lifting its stake to 3,700,000 shares. The purchases were executed at prices ranging from $5.94 to $6 per share from Sept. 25 through Oct. 10 and now give Impactive an 8.6% interest in Avid Technology.
Has the energy sector been reinvigorated? Judging by the XLE Energy ETF’s 6% rally over the last month, some investors think that this might just be the case.That being said, the Street’s experienced pros remind investors that not all of the names in the space are clear winners. Given the industry’s resurgence, what’s the best way to scope out the energy stocks poised to outperform?Upon first glance, it can be tempting to only look at a single factor like fundamentals to try and gauge the strength of an investment. However, this is just one piece of the puzzle. To see the bigger picture, we turned to TipRanks’ Best Stocks to Buy tool.The tool helped us zero in on 3 energy stocks that have earned a “Perfect 10” Smart Score, a single number that combines 8 metrics measured by TipRanks’ algorithm, with 10 being the highest. This score is generated by weighing hedge fund activity, analyst consensus and price targets, insider trades, as well as several other key factors.ConocoPhillips (COP)Despite seeing its shares struggle year-to-date, the largest independent crude producer in the U.S. is staging a noteworthy turnaround.According to the oil company’s Q3 earnings release, COP has a lot to brag about. While some had originally expressed concerns regarding the impact of lower crude prices and increased exploration costs, the company was able to post an earnings beat. Quarterly profits surpassed the consensus estimate thanks to strong shale production as well as asset sales gains.Total production, before factoring in its Libyan assets, increased by 98,000 barrels of oil equivalent per day (boe/d) and U.S. shale basin output gained 21% in the quarter. The shale regions include Eagle Ford, Bakken and the Permian Basins.The company has also made a significant effort to divest from assets in the U.K., with this move generating $2.2 billion.Nonetheless, Mizuho analyst Paul Sankey’s key takeaway from COP’s earnings results is its ability to remain a high dividend payer. With the company upping the quarterly payout by 38%, the analyst believes that COP is “uniquely positioned to deliver on it right now."Taking this into consideration, Sankey maintains his bullish approach. Additionally, his $80 price target indicates 39% upside potential. (To watch Sankey’s track record, click here)Similarly, the rest of the Street likes what it’s seeing. With 6 Buy recommendations and 1 Hold issued in the last three months, COP is a ‘Strong Buy.' Share prices could also surge 27% based on the $75 average price target. (See ConocoPhillips stock analysis on TipRanks) Matador Resources (MTDR)Matador Resources is an independent energy company focusing on oil and natural gas exploration in the Delaware Basin as well as the Eagle Ford, Cotton Valley and Haynesville shale plays. With shares climbing 8% higher following a solid third quarter performance, it’s easy to see why MTDR is on the Street’s radar.The company reported on October 30 that average daily oil equivalent production reached an all-time quarterly high. We’re talking 69,600 boe/d or a 14% sequential increase. This accomplishment comes as a result of strong initial performance from certain wells in the Antelope Ridge and Rustler Breaks regions as well as the completion of several new wells. If that wasn’t promising enough, average daily natural gas production also broke MTDR’s record.Not to mention MTDR is right on track to meet its free cash flow targets thanks to its operations, E&P and midstream segments, according to Stephens analyst Gail Nicholson. He adds that Matador is a compelling investment due to its exposure to the Delaware Basin and “compelling rate of change story.”All of the above factors prompted Nicholson to give the company a ratings boost. Along with the upgrade, his $24 price target conveys his confidence in MTDR’s ability to soar 60% over the next twelve months. (To watch Nicholson’s track record, click here)In general, other Wall Street analysts are optimistic when it comes to MTDR. The stock has a ‘Strong Buy’ Street consensus due to the 5 Buy ratings and 1 Hold it racked up over the last three months. Its $24 average price target implies upside potential of 58%. (See Matador Resources stock analysis on TipRanks)Callon Petroleum (CPE)Callon Petroleum specializes in the exploration and development of sites in the Permian Basin. Coming on the heels of its third quarter earnings release, several Wall Street analysts think a recovery is on the horizon.Even though CPE has struggled year-to-date, its efforts in its most recent quarter to drive a turnaround haven’t gone unnoticed by investors. Overall production came in at 37.8 Mboe/d, up 8% year-over-year. In addition, the company saw an operating margin of $35.58 per Boe.It doesn’t hurt that CPE was able to cut operational capital spending by 13%, with this figure landing at $116.4 million. This allowed it to maintain full year capital targets even though management had originally lowered the guidance range.“Our successful mega-pad development projects are not only generating significant and durable cost savings but have exhibited solid productivity. In addition, the continued efforts to optimize previously acquired assets have resulted in incremental value to shareholders as our team has made noteworthy progress on well productivity and operational costs across our expanded asset base,” CEO Joe Gatto stated.These developments have led Citigroup analyst Brian Downey to believe that CPE looks like a long-term winner. Despite reducing the price target from $10 to $8.50, he still sees a potential twelve month gain of 101%. (To watch Downey’s track record, click here)Looking at the consensus breakdown, Wall Street takes a bullish stance on CPE. 6 Buys and 1 Hold issued over the previous three months make the stock a ‘Strong Buy.' It should also be noted that its $7.14 average stock-price forecast suggests 61% upside from the current share price. (See Callon stock analysis on TipRanks)
NEW YORK, Nov. 6, 2019 /PRNewswire/ -- Paulson & Co. Inc. ("Paulson"), as manager of funds holding 21.6 million shares, or 9.5% of those outstanding, of Callon Petroleum Company ("Callon" or the "Company") (CPE), today voted its Callon shares against the proposed acquisition of Carrizo Oil & Gas Inc. ("Carrizo") (CRZO). Paulson notes that Institutional Shareholder Services ("ISS") and Glass Lewis & Co. ("Glass Lewis") both recommend that Callon shareholders vote against the Company's proposed acquisition of Carrizo.
Callon (CPE) delivered earnings and revenue surprises of 5.56% and 1.98%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
HOUSTON , Nov. 4, 2019 /PRNewswire/ -- Callon Petroleum Company (NYSE: CPE) ("Callon" or the "Company") today reported results of operations for the three and nine months ended September 30, ...
HOUSTON, Nov. 4, 2019 /PRNewswire/ -- Callon Petroleum Company (CPE) ("Callon" or the "Company") issued the following statement in response to a report by Institutional Shareholder Services ("ISS") regarding Callon's all-stock acquisition of Carrizo Oil & Gas, Inc. (CRZO). Callon's stated strategy remains unchanged: As we have articulated in numerous quarterly investor calls, and on slide 20 of our recently filed investor presentation, Callon has been pursuing four strategic financial objectives: increase cash return on invested capital, generate free cash flow, reduce leverage and maintain a long-term focus. This transaction clearly advances each point of Callon's strategy.