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CPE

Callon PetroleumNYSE:CPE Stock Report

Market Cap

US$2.9b

7D

-7.8%

1Y

1,068.0%

Updated

18 Oct, 2021

Data

Company Financials +
CPE fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
Dividends0/6

CPE Overview

Callon Petroleum Company, an independent oil and natural gas company, focuses on the acquisition, exploration, and development of oil and natural gas properties in Permian Basin in West Texas.

Callon Petroleum Competitors

Diamondback Energy

NasdaqGS:FANG

US$19.8b

Continental Resources

NYSE:CLR

US$18.9b

Cimarex Energy

NYSE:XEC

US$8.7b

Range Resources

NYSE:RRC

US$5.7b

Price History & Performance

Summary of all time highs, changes and price drops for Callon Petroleum
Historical stock prices
Current Share PriceUS$52.91
52 Week HighUS$4.50
52 Week LowUS$61.49
Beta3.17
1 Month Change39.72%
3 Month Change31.32%
1 Year Change1,067.99%
3 Year Change-53.91%
5 Year Change-64.44%
Change since IPO-60.07%

Recent News & Updates

Oct 09

Callon Petroleum: Potential For Near $700 Million In 2022 Cash Flow At Mid-$70s Oil

Callon may generate close to $700 million in positive cash flow in 2022 at current strip of mid-$70s oil. This would help significantly with getting its leverage to more ideal levels. Callon's recent production levels have been stronger than expected due to good Permian Basin well performance. With its recent share price rise, it appears fairly valued for longer-term mid-to-high $60s WTI oil.

Sep 22

Callon Petroleum: $60s Oil Will Help It Deleverage Effectively

Callon may now be able to generate around $550 million in positive cash flow at current 2022 strip prices (including $66 to $67 WTI oil). It is mostly unhedged for 2022, and its 2022 hedges are at higher prices compared to 2021. Callon's shares have decent upside in a long-term $60s oil environment. It remains vulnerable to lower oil prices though, with $50s oil potentially leaving its leverage higher than ideal.

Sep 14
Is Callon Petroleum (NYSE:CPE) Using Too Much Debt?

Is Callon Petroleum (NYSE:CPE) Using Too Much Debt?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Aug 09
Industry Analysts Just Made A Substantial Upgrade To Their Callon Petroleum Company (NYSE:CPE) Revenue Forecasts

Industry Analysts Just Made A Substantial Upgrade To Their Callon Petroleum Company (NYSE:CPE) Revenue Forecasts

Callon Petroleum Company ( NYSE:CPE ) shareholders will have a reason to smile today, with the analysts making...

Shareholder Returns

CPEUS Oil and GasUS Market
7D-7.8%1.0%2.0%
1Y1,068.0%87.9%27.6%

Return vs Industry: CPE exceeded the US Oil and Gas industry which returned 87.9% over the past year.

Return vs Market: CPE exceeded the US Market which returned 27.6% over the past year.

Price Volatility

Is CPE's price volatile compared to industry and market?
CPE volatility
CPE Beta3.17
Industry Beta1.74
Market Beta1

Stable Share Price: CPE is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: CPE's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
1950303Joe Gattohttps://www.callon.com

Callon Petroleum Company, an independent oil and natural gas company, focuses on the acquisition, exploration, and development of oil and natural gas properties in Permian Basin in West Texas. As of December 31, 2020, its estimated net proved reserves totaled approximately 475.9 million barrel of oil equivalent, including 289.5 MMBbls oil, 541.6 Bcf of natural gas, and 96.1 MMBbls of natural gas liquids. The company was founded in 1950 and is headquartered in Houston, Texas.

Callon Petroleum Fundamentals Summary

How do Callon Petroleum's earnings and revenue compare to its market cap?
CPE fundamental statistics
Market CapUS$2.92b
Earnings (TTM)-US$1.28b
Revenue (TTM)US$1.39b

2.1x

P/S Ratio

-2.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CPE income statement (TTM)
RevenueUS$1.39b
Cost of RevenueUS$473.63m
Gross ProfitUS$912.65m
ExpensesUS$2.19b
Earnings-US$1.28b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 03, 2021

Earnings per share (EPS)-23.17
Gross Margin65.83%
Net Profit Margin-92.16%
Debt/Equity Ratio378.3%

How did CPE perform over the long term?

See historical performance and comparison

Valuation

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

44.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CPE ($52.32) is trading below our estimate of fair value ($99.23)

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


Price To Earnings Ratio

PE vs Industry: CPE is unprofitable, so we can't compare its PE Ratio to the US Oil and Gas industry average.

PE vs Market: CPE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CPE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CPE is overvalued based on its PB Ratio (3.8x) compared to the US Oil and Gas industry average (2.1x).


Future Growth

How is Callon Petroleum forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

35.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: CPE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CPE's is expected to become profitable in the next 3 years.

Revenue vs Market: CPE's revenue (5.6% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: CPE's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CPE's Return on Equity is forecast to be high in 3 years time (39.8%)


Past Performance

How has Callon Petroleum performed over the past 5 years?

-63.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPE is currently unprofitable.

Growing Profit Margin: CPE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CPE is unprofitable, and losses have increased over the past 5 years at a rate of 63.4% per year.

Accelerating Growth: Unable to compare CPE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CPE is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-18.6%).


Return on Equity

High ROE: CPE has a negative Return on Equity (-168.7%), as it is currently unprofitable.


Financial Health

How is Callon Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: CPE's short term assets ($243.9M) do not cover its short term liabilities ($813.8M).

Long Term Liabilities: CPE's short term assets ($243.9M) do not cover its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: CPE's debt to equity ratio (378.3%) is considered high.

Reducing Debt: CPE's debt to equity ratio has increased from 49.6% to 378.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable CPE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CPE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 2% per year.


Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Joe Gatto (50 yo)

4.42yrs

Tenure

US$6,128,525

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 since March...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD6.13M) is about average for companies of similar size in the US market ($USD5.19M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CPE's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: CPE's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 38.7%.


Top Shareholders

Company Information

Callon Petroleum Company's 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$2.917b
  • Shares outstanding: 55.13m
  • Website: https://www.callon.com

Number of Employees


Location

  • Callon Petroleum Company
  • One Briarlake Plaza
  • 2000 West Sam Houston Parkway South
  • Houston
  • Texas
  • 77042
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 22:54
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.