|Bid||0.0000 x 27000|
|Ask||0.0000 x 1000|
|Day's Range||4.4050 - 4.5900|
|52 Week Range||3.6900 - 10.1200|
|Beta (3Y Monthly)||1.45|
|PE Ratio (TTM)||4.35|
|Earnings Date||Nov 4, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||7.71|
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.
Since crude accounts for majority of Pioneer Natural's (PXD) production volumes, a year-over-year rise in production is likely to have favored the company's third-quarter earnings.
Improving cost structure is likely to have boosted Crescent Point Energy (CPG) in Q3. However, lower production and realized commodity prices are expected to have hurt its bottom line.
Callon (CPE) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Callon (CPE) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Reputable billionaire investors such as Jim Simons, Cliff Asness and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won't accept your savings unless you commit at least $5 million) by pinpointing […]
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Callon Petroleum Company and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
HOUSTON, Oct. 23, 2019 /PRNewswire/ -- Callon Petroleum Company (CPE) ("Callon" or the "Company") today issued the following statement regarding its previously announced pending all-stock acquisition of Carrizo Oil & Gas, Inc. (CRZO) ("Carrizo"). Yesterday, Callon filed an investor presentation highlighting the benefits of the Carrizo transaction. As the presentation makes clear, Callon is led by an experienced Board of Directors and management team with a track record of successful value-enhancing acquisitions, significant cost savings, and productivity improvements.
Callon Petroleum's (CPE) higher third-quarter 2019 production is expected to partially offset the negative effects of lower commodity prices.
HOUSTON, Oct. 22, 2019 Callon Petroleum Company (CPE) ("Callon" or the "Company") today announced that it has filed an investor presentation with the Securities and Exchange Commission (the "SEC") in connection with its previously announced pending all-stock acquisition of Carrizo Oil & Gas, Inc. (CRZO). The investor presentation is available on the Investor Relations section of the Company's website at https://ir.callon.com/ as well as on https://www.sec.gov/. Combines Complementary High-Quality Assets to Create a Self-Funded, High-Margin Oil Growth Company.
1) The Carrizo transaction has already destroyed substantial shareholder value and if consummated will permanently impair Callon's value proposition. Since the deal was announced, Callon's stock price has declined by 42%, with shareholders losing $614 million in value. This is due to the unjustified 25% premium offered to buy Carrizo and the proposed dilutive Callon share issuance of over 86%. Even accounting for the general decline in the E&P sector, Callon's shares have severely underperformed. Callon is clearly better off without this deal, in which case this decline should be reversed. 2) The transaction enriches management, not shareholders. We are shocked that, as part of this transaction, Callon shareholders will entitle up to a $10.7 million golden parachute or "success fee" to Joseph Gatto, James Ulm, Michol Ecklund and Mitzi Conn for structuring a deal in which Callon shareholders have lost over half a billion dollars. As if this weren't enough, Callon's shareholders must pay Carrizo management an additional $29 million in change-in-control payments. When added to financial advisory fees of $30 million, shareholders are being asked to entitle not one, but two, management teams and their bankers nearly $70 million for the massive destruction of shareholder value. If the transaction closes, shareholders will not only suffer steep losses, they will be paying fees to the parties responsible for causing the destruction in value.
Paulson & Co. reiterated its opposition to Callon Petroleum's planned takeover of rival Permian Basin crude producer Carrizo Oil & Gas, this time targeting management compensation.
HOUSTON, Oct. 21, 2019 /PRNewswire/ -- Callon Petroleum Company (CPE) today provided an interim operational update for the third quarter of 2019 including expected ranges for production, capital expenses, lease operating expenses and commodity pricing. INVESTORS AND SECURITY HOLDERS OF CALLON AND CARRIZO ARE URGED TO READ THE REGISTRATION STATEMENT AND JOINT PROXY STATEMENT/PROSPECTUS, AS EACH MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, AND OTHER RELEVANT DOCUMENTS FILED BY CALLON AND CARRIZO WITH THE SEC CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT CALLON, CARRIZO AND THE PROPOSED TRANSACTION.
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.