Callon Petroleum (CPE) Price Target - Aug 10

Post Reply
dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

Callon Petroleum (CPE) Price Target - Aug 10

Post by dan_s »

Note below is from Scott Hanold at RBC Capital Markets

Callon Petroleum Company (NYSE: CPE; 36.82)
Published August 9 2022 15:33:58 EDT

Rating: Outperform
Price Target: 72.00 ↓ 75.00

"Quiet Before the Storm"
Our view: Last week, CPE posted a soft 2Q22 print reflecting transitory issues
that have weighed on investor sentiment. Lower oil production was largely an
effort to accelerate workovers that should improve productivity and reliability
moving forward. Initial indications are positive, but the market may need some
confirmation.
The balance sheet is improving and trending to a 1.0x leverage ratio and $2b
of debt by around YE22. These are milestones to initiate shareholder-returns. Our
model update resulted in lower EPS/CFPS estimates accounting for reduced oil
production and higher operating costs. We also reduced our target by $3/share to
$72.
Dan Steffens
Energy Prospectus Group
Cliff_N
Posts: 318
Joined: Sun Jul 24, 2022 4:09 pm
Location: Seabrook, TX
Contact:

Re: Callon Petroleum (CPE) Price Target - Aug 10

Post by Cliff_N »

For the last year, IBD has had Callon at the top of their lists with a composite rating of "99." Suddenly, they have at a "62." Any justification from your vantage point?

Research »

CPE is ranked 38th in group, DEN is ranked 1st in group:

IBD RATINGS FOR CPE
Checklist Rating:
Composite Rating 62 Fail
EPS Rating 91 Pass
RS Rating 22 Fail
Group RS Rating A-Pass
SMR Rating A Pass
Acc/Dis Rating E Fail (more people selling than buying)
dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

Re: Callon Petroleum (CPE) Price Target - Aug 10

Post by dan_s »

I don't understand the IBD rating system.

Callon's Q2 results were good but slightly disappointing compared to my forecast. In a BEAR Market it just takes a slight miss to frighten off some investors. The miss was caused by weather related problems in April. The Company's production should ramp up into year-end.
Dan Steffens
Energy Prospectus Group
marc.wolin@yahoo.com
Posts: 49
Joined: Fri Jan 15, 2016 4:10 pm

Re: Callon Petroleum (CPE) Price Target - Aug 10

Post by marc.wolin@yahoo.com »

I am hearing some criticism of Callon’s CEO. What do you think of him.
dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

Re: Callon Petroleum (CPE) Price Target - Aug 10

Post by dan_s »

There is nothing wrong with Callon's management team. Joe Gatto has been with the Company for many years.

If you are nervous about CPE, sell it and move the money to ESTE. I believe it has a lot more near term upside because the Titus Acquisition should close this month and push production up near 100,000 Boepd. That is close to Callon's production, but Earthstone will be growing faster.
Dan Steffens
Energy Prospectus Group
Post Reply