Permian Basin small-cap O&G producer Callon Petroleum (NYSE:CPE) was one of the best performing stocks of the entire E&P sector during 2015: up 53% even as oil and gas prices crashed. YTD the shares are down 17%, but off their lows. An investor presentation on February 1st was quite bullish and shows why Callon rightly deserves a 'Permian Premium'. It all starts with quality rock in the core of the Midland Basin and the ability to improve technology, steadily grow production, reduce costs, and hedge production.
I'll start with a review of the 2015 year-end reserves report:
(click to enlarge)
Source: February 2016 Investor presentation (available here).
As shown by the graphic above and the 2015 year-end
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