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

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

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.