NYSE:CPE

Stock Analysis Report

Executive Summary

Callon Petroleum Company, an independent oil and natural gas company, focuses on the acquisition, development, exploration, and exploitation of unconventional onshore oil and natural gas reserves in the Permian Basin in West Texas and southeastern New Mexico.

Snowflake

Fundamentals

Very undervalued with high growth potential.


Similar Companies

Share Price & News

How has Callon Petroleum's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.8%

CPE

1.0%

US Oil and Gas

0.07%

US Market


1 Year Return

-64.9%

CPE

-16.7%

US Oil and Gas

8.9%

US Market

Return vs Industry: CPE underperformed the US Oil and Gas industry which returned -16.7% over the past year.

Return vs Market: CPE underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

CPEIndustryMarket
7 Day-2.8%1.0%0.07%
30 Day-15.9%-4.3%-0.3%
90 Day-27.3%-7.3%-1.6%
1 Year-64.9%-64.9%-13.5%-16.7%11.3%8.9%
3 Year-73.3%-73.3%-5.8%-14.4%46.3%36.8%
5 Year-39.7%-39.7%-23.1%-34.1%62.1%44.3%

Price Volatility Vs. Market

How volatile is Callon Petroleum's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Callon Petroleum undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CPE ($3.81) is trading below our estimate of fair value ($40.86)

Significantly Below Fair Value: CPE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CPE is good value based on its PE Ratio (3.9x) compared to the Oil and Gas industry average (9.9x).

PE vs Market: CPE is good value based on its PE Ratio (3.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: CPE is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: CPE is good value based on its PB Ratio (0.4x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Callon Petroleum forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

36.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPE's forecast earnings growth (36.2% per year) is above the savings rate (2.7%).

Earnings vs Market: CPE's earnings (36.2% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CPE's revenue (29.8% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: CPE's revenue (29.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CPE's Return on Equity is forecast to be low in 3 years time (15.2%).


Next Steps

Past Performance

How has Callon Petroleum performed over the past 5 years?

49.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CPE's earnings have grown significantly by 49% per year over the past 5 years.

Accelerating Growth: CPE's earnings growth over the past year (60.2%) exceeds its 5-year average (49% per year).

Earnings vs Industry: CPE earnings growth over the past year (60.2%) exceeded the Oil and Gas industry 20.6%.


Return on Equity

High ROE: CPE's Return on Equity (9.3%) is considered low.


Return on Assets

ROA vs Industry: CPE's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: CPE has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Callon Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: CPE's short term assets ($138.1M) do not cover its short term liabilities ($291.9M)

Long Term Liabilities: CPE's short term assets (138.1M) do not cover its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: CPE's debt to equity ratio (44.1%) is considered high

Reducing Debt: CPE's debt to equity ratio has reduced from 58.4% to 44.1% over the past 5 years.

Debt Coverage: CPE's debt is well covered by operating cash flow (45%).

Interest Coverage: CPE's interest payments on its debt are well covered by EBIT (86.9x coverage).


Balance Sheet

Inventory Level: CPE has a high level of physical assets or inventory.

Debt Coverage by Assets: CPE's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Callon Petroleum's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate CPE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CPE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if CPE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CPE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CPE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Callon Petroleum's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Joe Gatto (48yo)

2.4yrs

Tenure

US$5,577,766

Compensation

Mr. Joseph C. Gatto, Jr., also known as Joe, has been the President of Callon Petroleum Company since August 24, 2016 and its Chief Executive Officer since May 2017 and served as its Treasurer March 31, 20 ...


CEO Compensation Analysis

Compensation vs. Market: Joe has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Joe's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.9yrs

Average Tenure

50yo

Average Age

Experienced Management: CPE's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

5.0yrs

Average Tenure

65yo

Average Age

Experienced Board: CPE's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: CPE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$123,698,49709 Sep 19
Paulson & Co. Inc.
EntityCompany
Shares21,593,523
Max PriceUS$5.73
BuyUS$10,03927 Aug 19
Barbara Faulkenberry
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,415
Max PriceUS$4.16
BuyUS$4,98111 Dec 18
Barbara Faulkenberry
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares625
Max PriceUS$7.97

Ownership Breakdown


Management Team

  • James Ulm (55yo)

    Senior VP & CFO

    • Tenure: 1.8yrs
    • Compensation: US$2.15m
  • Joe Gatto (48yo)

    President

    • Tenure: 2.4yrs
    • Compensation: US$5.58m
  • Mitzi Conn (50yo)

    VP, Chief Accounting Officer & Corporate Controller

    • Tenure: 3.2yrs
    • Compensation: US$841.69k
  • Mark Brewer

    Director of Investor Relations

    • Tenure: 0yrs
  • Clay Bland

    Assistant Corporate Secretary & Risk Manager

    • Tenure: 0yrs
  • Michol Ecklund (44yo)

    Senior VP

    • Tenure: 1.9yrs
    • Compensation: US$1.42m
  • Jeff Balmer (54yo)

    Senior VP & COO

    • Tenure: 0.8yrs
  • Liam Kelly

    Vice President of Corporate Development

    • Tenure: 0.7yrs

Board Members

  • Joe Gatto (48yo)

    President

    • Tenure: 2.4yrs
    • Compensation: US$5.58m
  • L. Flury (71yo)

    Non-Executive Chairman

    • Tenure: 2.4yrs
    • Compensation: US$365.00k
  • James Trimble (70yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$255.00k
  • Michael Finch (63yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$245.00k
  • Larry McVay (71yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$255.00k
  • Tony Nocchiero (67yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$265.00k
  • Matt Bob (62yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$260.00k
  • Barbara Faulkenberry (59yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$245.00k

Company Information

Callon Petroleum Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Callon Petroleum Company
  • Ticker: CPE
  • Exchange: NYSE
  • Founded: 1950
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$869.840m
  • Shares outstanding: 228.30m
  • Website: https://www.callon.com

Number of Employees


Location

  • Callon Petroleum Company
  • 1401 Enclave Parkway
  • Suite 600
  • Houston
  • Texas
  • 77077
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPENYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1994
CE5DB (Deutsche Boerse AG)YesCommon StockDEEURSep 1994

Biography

Callon Petroleum Company, an independent oil and natural gas company, focuses on the acquisition, development, exploration, and exploitation of unconventional onshore oil and natural gas reserves in the Pe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:33
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.