Callon Petroleum (CPE) Update - June 13

[dan_s]

Fresh analysts' reports dated 6-13-2019
> Gabriele Sorbara at Williams Capital rates CPE a BUY with a $12.00 valuation
> Jeff Grampp at Northland Securities rates CPE a BUY with an $11.00 valuation

HOUSTON, June 13
06/13/2019
By OGJ editors

Callon Petroleum Co., Natchez, Miss., has closed on the sale of noncore assets in the southern Midland basin to Sequitur Permian LLC for net cash proceeds of $245 million. Proceeds do not include potential contingent consideration payments of up to $60 million based on West Texas Intermediate average annual pricing over 3 years.

Callon is updating its full-year guidance to 38,000-39,500 boe/d from 39,500-41,500 boe/d to account for the impact of this divestiture and a previously announced acreage trade involving producing properties in Midland County.

Management also is lowering its estimates for operational capital expenditures to $495-520 million from $500-525 million to reflect realized efficiencies and cost reductions.