Callon Petroleum (CPE) Update - Sept 19
Posted: Sun Sep 19, 2021 6:18 pm
CPE closed at $37.87 on Sept 17. First Call's price target is $45.60. TipRanks price target is $49.14. < TipRanks only includes analysts price targets dated in the last three months. The most recent price target submitted to TipRanks is dated 8-23-2021, so they do not include the recent spikes in natural gas and NGL prices.
My current valuation increases $3 to $69 primarily because of the increase in natural gas and NGL prices.
> Callon is expected to close the Primexx Acquisition in October. It will put them on pace to exit 2021 with over 115,000 Boepd of production, which compares to their Q2 2021 production of 88,981 Boepd.
> Callon's 2021 production mix is approximately 64% crude oil, 17% natural gas an 19% NGLs.
> My 2022 forecast assumes 120,000 Boepd of production, which is probable too conservative.
> Callon is on pace to generate $18 of operating cash flow per share in 2021 and over $23 per share in 2022.
> If the acquisition closes as planned and commodity price hold near current levels a 12-month price target of $100/share is reasonable.
I believe the Wall Street Gang is way behind the curve on this one.
My current valuation increases $3 to $69 primarily because of the increase in natural gas and NGL prices.
> Callon is expected to close the Primexx Acquisition in October. It will put them on pace to exit 2021 with over 115,000 Boepd of production, which compares to their Q2 2021 production of 88,981 Boepd.
> Callon's 2021 production mix is approximately 64% crude oil, 17% natural gas an 19% NGLs.
> My 2022 forecast assumes 120,000 Boepd of production, which is probable too conservative.
> Callon is on pace to generate $18 of operating cash flow per share in 2021 and over $23 per share in 2022.
> If the acquisition closes as planned and commodity price hold near current levels a 12-month price target of $100/share is reasonable.
I believe the Wall Street Gang is way behind the curve on this one.