|Bid||8.57 x 1100|
|Ask||8.63 x 2200|
|Day's Range||8.54 - 8.94|
|52 Week Range||7.45 - 26.67|
|Beta (3Y Monthly)||2.27|
|PE Ratio (TTM)||1.36|
|Earnings Date||Nov 4, 2019 - Nov 8, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||13.28|
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.
The shakeup within Saudi Arabia’s oil and gas industry has added to bullish sentiment over the past week, but the surprise firing of John Bolton may soon change that
(Bloomberg) -- 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.The New York hedge fund, founded by billionaire John Paulson, said in a letter to Callon’s board Monday it owns a 9.5% stake in the company and plans to vote against the deal. Paulson noted that Callon’s shares had fallen about 36% since the transaction was announced in July, destroying about $530 million for shareholders.After the letter, Callon’s shares rose 15% to $4.71 in New York trading, giving the Houston-based company a market value of about $1.07 billion. Carrizo closed up 12% to $8.94 on Monday, giving it a market value of $827 million.“We believe Callon shareholders would be better off if Callon’s board and management pursued a sale,” Marcelo Kim and Jim Hoffman, partners at Paulson, said in the letter, which was obtained by Bloomberg.Callon could be worth $6.69 per share in a sale, they said. That’s about 64% higher than where it traded at the end of last week.The Carrizo transaction will provide “compelling value” to Callon shareholders, Callon said in a statement.“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.Callon said it expects the deal to close in the fourth quarter.A representatives for Carrizo wasn’t immediately available for comment.‘Unwarranted’ PremiumCallon is overpaying for Carrizo, Kim and Hoffman said.“Callon is offering an unwarranted 25% premium,” they said. “According to the proxy, no other potential buyer of Carrizo was willing to pay such a premium.”The transaction would give Callon “inferior” assets in the Eagle Ford shale that would discourage potential buyers of the company, they said. Companies that mostly operate in the Eagle Ford of south Texas tend to trade at a discount to companies such as Callon that primarily operate in the Permian, the most productive oilfield in the U.S., they said.Permian explorers are worth more because they make more money. Deals including Occidental Petroleum Corp.’s takeover of Anadarko Petroleum Corp. underscore the attractiveness of the Permian, they said.“We believe that there would be many acquirers interested in Callon,” Kim and Hoffman said.(Updates with Callon comment in sixth paragraph.)To contact the reporter on this story: Scott Deveau in New York at email@example.comTo contact the editors responsible for this story: Liana Baker at firstname.lastname@example.org, Christine Buurma, Michael HythaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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.
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%.
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.
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.
NEW YORK, Aug. 29, 2019 -- Bragar Eagel & Squire, P.C. announces to investors that it is investigating potential claims on behalf of stockholders of Monotype Imaging.
NEW YORK , Aug. 29, 2019 /PRNewswire/ -- Moore Kuehn, PLLC, a securities law firm located on Wall Street in downtown New York City , is investigating potential claims involving the directors and officers ...
The South Texas Drilling Permit Roundup is a weekly review of new drilling permit applications filed with the Railroad Commission of Texas for a 67-county area of South Texas.
Carrizo (CRZO) delivered earnings and revenue surprises of 2.90% and 0.46%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
Carrizo Oil & Gas, Inc. today announced the Company’s financial results for the second quarter of 2019 and provided an operational update. Highlights include:
NEW ORLEANS , Aug. 2, 2019 /PRNewswire/ -- Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC ("KSF") are investigating the proposed sale ...
Callon Petroleum (NYSE:CPE), having declined by 58% in the last 12-months, has been a clear under-performer. The acquisition announcement of Carrizo Oil & Gas (NASDAQ:CRZO) has not changed my bearish long-term view on the stock. However, I do believe that there can be a possible trading bounceback in the near-term.Source: Shutterstock The focus of this article will be on the key concerns that make Callon Petroleum stock unattractive for long-term exposure even after a deep correction. CPE's Debt and Cash FlowsOn a standalone basis, Callon Petroleum reported total debt of $1,330 million as of the first quarter of 2019 (1Q19). For the same period, Carrizo Oil & Gas reported debt of $1,715 million. For the combined entity, the total debt therefore stands at $3 billion.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFurther, with LTM EBITDA of $1.2 billion, the leverage currently stands 2.5. With both companies generating negative free cash flow, it is likely that the total debt will continue to increase in the coming quarters. * 8 of the Most Shorted Stocks in the Markets Right Now Therefore, an increase in leverage is a concern for Callon Petroleum and CPE stock. My focus is on debt and debt servicing as the global economy has decelerated. Expansionary monetary policies can ensure that oil does not trend meaningfully lower. However, $50 to $60 oil is unlikely to be enough for Callon Petroleum to generate positive free cash flows. The Permian Concerns for CPE StockCallon Petroleum indicated in the merger presentation that the company expects free cash flow to break even at $50 per barrel of oil. I am of the opinion that the estimates are optimistic.Besides expected oil price weakness, the key reason is the company's Permian assets. The Permian shale-well production has been falling off at a steep rate. It is clear from EIA data that production growth has been relatively muted in the Permian. In addition, legacy oil production change has trended steeply lower.The implication is that shale producers need to invest more to maintain production. Therefore, capital expenditure can be higher than expected which implies a negative impact on free cash flows.Infrastructure bottleneck at the Permian is another challenge that is likely to sustain through 2019 and potentially into 2020. It is worth noting that the company's realized oil price for 1Q18 was $53.3 and declined to $42.18 for 1Q19. Once new pipelines are operational, realized price is likely to trend higher. That is still few quarters away. The Positive Triggers for Callon Petroleum StockIn April 2019, Callon Petroleum entered into an agreement for divestment of non-core asset in the Midland Basin for a consideration of $260 million. Post-acquisition of Carrizo Oil & Gas, the company will be looking at divest other non-core assets. This can be a potential source of cash that can be used to deleverage. However, I believe that the markets will wait for any such positive trigger before CPE stock trends higher.Another obvious trigger for CPE stock trending higher will be upside in oil prices. The company's production is weighted towards oil and higher realization would imply EBITDA margin expansion and free cash flow visibility. However, economic headwind is a near-term concern and it remains to be seen if expansionary policies trigger sharp upside in oil price.It is also important to note that the PV10 for the combined entity is approximately $7 billion. Callon Petroleum and Carrizo Oil & Gas have a current combined market capitalization of nearly $2 billion. Even if total debt of $3 billion is considered, the company is undervalued considering the resource base valuation.This valuation gap will fill only when Callon Petroleum demonstrates the ability to sustain production growth and turn free cash flow positive. Investors need to remain in the sidelines for these triggers to actualize before moving on CPE stock. Concluding Words on CPE StockBefore the acquisition, Callon Petroleum stock was a pure play in the resource-rich Permian Basin. CPE stock still trended lower on Permian-specific concerns that I outlined. With the acquisition of Carrizo Oil & Gas, the company is not more diversified in terms of asset base.Callon Petroleum needs to demonstrate that the acquisition does bring in benefits in terms of size and scale. In addition, the company needs to focus on deleveraging and turning free cash flow positive.Until then, Callon Petroleum stock is a good trading stock and I believe that current levels are attractive for medium-term exposure.As of this writing, Faisal Humayun did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Most Shorted Stocks in the Markets Right Now * 7 Charts That Should Concern Marijuana Stock Investors * 8 Monthly Dividend Stocks to Buy for Consistent Income The post Callon Petroleum Stock: Trade, Wait for Positive Long-Term Triggers appeared first on InvestorPlace.
Carrizo (CRZO) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
NEW YORK , July 26, 2019 /PRNewswire/ -- Anheuser-Busch Companies, LLC (BUD) Lifshitz & Miller announces investigation into possible securities laws violations in connection with Anheuser-Busch's deleveraging ...
The U.S. government’s new holding facility for migrant youth will close as early as this week, less than one month after it was opened in response to the squalid conditions in which children were being detained by the Border Patrol, according to the nonprofit operating the facility. The last children at the camp at Carrizo Springs, Texas, are on track to leave by Thursday, said Kevin Dinnin, the CEO of the nonprofit BCFS. The U.S. Department of Health and Human Services opened the facility in late June.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.