Callon Petroleum (CPE) Price Target - Feb 24

Post Reply
dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

Callon Petroleum (CPE) Price Target - Feb 24

Post by dan_s »

From Neal Dingmann at Truist Financial.

Callon Petroleum Company (CPE, $37.32, Buy) - Stable
Continued Activity Driving Upcoming Shareholder Return Plan

- We forecast Callon to continue with an active co-development
plan that will likely include 6-7 rigs for much of the year. Further,
we anticipate the plan to contain a solid mix of many wells in
the very highest return formations, mixed with slightly lower
return formations to optimize oil recovery in the most efficient
manner and derive the most economic field returns. We have
increased the Price Target to $54 from $52 as the company is
only ~$200MM away from its initial debt/leverage goals, which
should lead to the initiation of its shareholder return plan while
continuing to de-lever/strengthen their balance sheet.
Dan Steffens
Energy Prospectus Group
Post Reply