Callon Petroleum (CPE) Update - May 10

[dan_s]

Note below is from Neal Dingmann at Truist Financial

Callon Petroleum Company (CPE, $41.12, Hold) - Solid Ops
Making Notable Leverage Progress -

Though we forecast Callon to continue to have >3x leverage likely until later next year, bond and equity investors continue to be pleased with the financial
progress as judged by the bond prices that are now $0.90+ even for the longest term maturity and the stock price that is +212% YTD (vs peer performance of 83%). We appreciate the fully regional diverse operations unlike a number of peers who have more recently been focused on smaller core areas. We believe monetizations are likely on top of continued organic FCF, though some leverage work is still needed to get to peer average multiples.
- Neal Dingmann at Truist Financial

My valuation of CPE is $63.00