Callon underperformance

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timweber
Posts: 4
Joined: Tue Jan 18, 2022 6:49 pm

Callon underperformance

Post by timweber »

Where can I find info on the amount of hedging CPE has currently and going forward? Is there any reason for its significant underperformance over the last 6 months?
Fraser921
Posts: 3240
Joined: Mon Mar 22, 2021 11:48 am

Re: Callon underperformance

Post by Fraser921 »

dan_s
Posts: 37318
Joined: Fri Apr 23, 2010 8:22 am

Re: Callon underperformance

Post by dan_s »

CPE was the top performing stock in the Sweet 16 in 2021, gaining 259%.
At $55.87 at the time of this post, it is up 18.2% YTD.

Are you sure you are looking at the right company? CPE has been a fantastic stock for us.
Dan Steffens
Energy Prospectus Group
timweber
Posts: 4
Joined: Tue Jan 18, 2022 6:49 pm

Re: Callon underperformance

Post by timweber »

On July 20, 2021, CL was $70.30, today it is $89.49
On July 20, 2021, CPE was $59.32/share, today it is $51.96.

CPE has lost 15% of its value while CL has gone up ~$20.

Are you sure you are looking at the right company?
Fraser921
Posts: 3240
Joined: Mon Mar 22, 2021 11:48 am

Re: Callon underperformance

Post by Fraser921 »

It was 25 in August, up 100 % in 5 months!

They have 65 % of their oil hedged at 51, Why should they be rewarded for 90 oil when they pre-sold
65 % of it at 51?

If you are bullish on oil and NG buy the unhedged ones. More risk but more profits.

CLR has no crude hedges

EQT had to pay 2.0 BILLION for their crap hedges and that name is going nowhere too
timweber
Posts: 4
Joined: Tue Jan 18, 2022 6:49 pm

Re: Callon underperformance

Post by timweber »

Fraser921 makes an excellent point. Thank you.
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