Callon Petroleum Update - Oct 6

[dan_s]

In the last 3 months, 6 ranked analysts set 12-month price targets for CPE. The average price target among the analysts is $17.17. Their valuations range from $14 to $20 per share.

My valuation is $17.00.

Recent update following the acquisition of 28,000 acres from Cimarex Energy (XEC) in Ward County, Texas (Permian Basin):
•Raised the midpoint of annual 2018 production guidance by 1,500 BOE/d as the result of solid year-to-date performance in the Spur area and the impact of production from the acquisition
•Reiterated production target of over 40,000 BOE/d for 4Q18 < Compares to actual production of 28,954 BOE per day in the 2nd quarter (75.7% crude oil).
•Raised the midpoint of net operated horizontal wells placed on production by 9% due to incremental activity on the acquired properties, realized drilling and completion efficiencies, and a sustained increase in non-operated activities on both legacy and acquired properties
•Reduced full year 2018 LOE guidance by 4% as incremental benefits from strategic infrastructure investments are realized

Joe Gatto, President and Chief Executive Officer, commented, "We are excited to get to work on our new combined Spur footprint, and have already started the completion of a previously drilled Lower Wolfcamp A well and commenced drilling of an additional well on the acquired acreage. As previously discussed, this strategic "bolt-on" acquisition is highly contiguous to our legacy footprint and will offer significant advantages from extended lateral lengths and shared infrastructure. Our team has done a great job of preparing for the transition since the transaction announcement in May, and we expect to have a seamless integration into our Spur operations."

[dan_s]

If you are investing for high yield dividends, check out Callon's preferred stock.

NATCHEZ, Miss., Sept. 4, 2018 /PRNewswire/ -- Callon Petroleum Company (NYSE: CPE) ("Callon" or the "Company") today announced that it has declared a cash dividend of $1.25 per share, on its 10.0% Series A Cumulative Preferred Stock ("Series A Preferred Stock"). The dividend will be paid on September 28, 2018 to stockholders of record as of September 14, 2018. The Series A Preferred Stock is currently listed on the New York Stock Exchange under the symbol "CPE.A."