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Callon Petroleum +6% after Q1 earnings beat, Brean Capital Buy rating

  • Callon Petroleum (CPE +6.2%) moves sharply higher after Q1 earnings and revenues beat expectations, prompting Brean Capital to assume coverage of CPE with a Buy rating with a $12 price target.
  • Brean notes the transition to a Permian pure-play appears to have taken hold for CPE, as indicated by its increased 2014 production guidance to 5.1M-5.4M boe/day from a prior range of 4.75M-5.1M boe/day (Briefing.com).
  • While CPE took a G&A hit in Q1 on executive severance, Brean says unit cash costs should commence a downward trajectory in response to increasing production.
Comments (3)
  • anarchist
    , contributor
    Comments (1368) | Send Message
     
    CPE preferred A up nicely also >1%
    9 May, 11:52 AM Reply Like
  • Daniel5150
    , contributor
    Comments (140) | Send Message
     
    $12 PT?..Hmmm i would think after next earnings report they will be at 12
    9 May, 12:04 PM Reply Like
  • harball
    , contributor
    Comments (259) | Send Message
     
    Fundamentally, yes, but there's quite a bit of froth in oil e&p stocks now which could weigh on the stock. Did you see MTDR pull back after what looked like a solid set of earnings and guidance? I sold my shares at 9.90 y'day looking to get back in around 9. I am sure we will revisit this level over the next month or so.
    10 May, 06:03 AM Reply Like
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