Callon Petroleum (CPE) Valuation Update - July 21

[dan_s]

TipRanks: "On July 19, 2022 Truist Securities analyst Neal Dingmann raised the price target on Callon Petroleum (NYSE: CPE) to $95.00 (from $94.00) while maintaining a Buy rating. In the last 3 months, 7 ranked analysts set 12-month price targets for CPE. The average price target among the analysts is $78.88."

My current valuation has been adjusted to $121.00. Like Laredo Petroleum (LPI), Callon has a relatively small number of common stock outstanding (61.5 million), so small changes in production and commodity price assumptions do have a significant impact on the per share valuation.

Callon is on pace to generate over $1.1 Billion of FCF this year and at least that much in 2023.

They still have some work to do on the balance sheet, but there is nothing that I can see that justifies this stock trading today at less than 1.5 X operating cash flow per share.