CPE and CTRA updates - Aug 17

[dan_s]

Notes below are from Truist Financial on 8-17-2022

Neal's updated price targets are $90.00 for CPE and $41.00 for CTRA

Callon Petroleum Company (CPE, $39.07, Buy)
- Set Up Much Too Good for 17% YTD Decline (vs XOP +43%) - We forecast
Callon to lower leverage to ~1.0x by year end as the company
likely continues to run five rigs through the remainder of the year
coupled with half its production exposed to strong oil and gas
prices. CPE's stock recently underperformed the group (-13% vs
XOP's -5%) after its 2Q22 earnings were lower than consensus
largely due to temporary third party and workover issues that we
deem largely transitory in nature. - Neal Dingmann

Coterra Energy Inc. (CTRA, $29.18, Buy)
- Taking Advantage of High Natural Gas Prices By Boosting Production and Accompanying FCF
Coterra will continue to be a material
beneficiary of recent 14-year high natural gas prices as the
company plans to continue to keep its third Marcellus rig and will
continue to be active in the gassy DE and Anadarko areas with
<25% of gas hedged the remainder of this year and virtually no
gas hedged for 2023. - Neal Dingmann