Michael Fitzsimmons
Oil & gas, dividend investing, research analyst

Callon Petroleum: Permian Basin Pure Play's Stock Is A Bargain

Callon Petroleum (NYSE:CPE) is a small-cap energy company that has successfully transitioned from a focus on offshore Gulf of Mexico to a pure-play Permian Basin onshore operator. The company now has several positive catalysts going forward:

  • Lowered risk profile has reduced debt costs.
  • Redeemed half of the 13% Senior Notes due in 2016.
  • Pro-forma debt-to-cap ratio of 15% (9/30/13).
  • Guidance for 2014 Permian Basin production increase of 120%.
  • Undeveloped resource potential >9x current proved reserves

Note: throughout this article, I will refer to slides and information contained in Callon Petroleum's February investor presentation which you can find here. I will also reference material from CEO Fred Callon's recent presentation at the Enercom Oil & Services conference webcast...

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