Callon Petroleum +9% after Howard Weil upgrade on rising oil production

|About: Callon Petroleum Co. (CPE)|By:, SA News Editor

Callon Petroleum (CPE +8.9%) is upgraded to Sector Outperform from Sector Perform with an $11 price target, up from $10, at Howard Weil, as CPE's Q4 results showed it beat estimates on oil production by ~9% but was a little lighter than expected on natural gas production and realized pricing.

The firm says it is not concerned about the non-disclosure of production rates for three Wolfcamp B wells that have been flowing back under natural pressure for some time now and are just now being placed on artificial lift; this could be a positive sign, because CPE likely would not continue to flow back the wells naturally unless the wells were performing up to or beyond expectations.