Callon Petroleum: Some Risks But Incredible Valuation

Sep. 09, 2022 5:43 PM ETCallon Petroleum Company (CPE)CLR, FANG, MTDR, PXD9 Comments

Summary

  • Callon Petroleum is an independent E&P producing primarily crude oil in the rich Permian Basin.
  • The company's oil-focused nature is a bit of a turn-off for me given that crude oil's fundamentals are not as good as many other fuels.
  • The company is using hedges to protect itself against fluctuations in oil prices, although many of them are locked in at prices well below today's.
  • The company is significantly levered compared to many of its peers, which creates risks that the company is working to address.
  • Callon Petroleum's valuation is so compelling that it overcomes its weaknesses and makes the company worth considering as an investment.
  • Looking for more investing ideas like this one? Get them exclusively at Energy Profits in Dividends. Learn More »

Fracking Oil Well

grandriver

Callon Petroleum Company (NYSE:CPE) is an independent exploration and production company that is focused on the acquisition, exploration, and development of various assets in the oil plays of West and South Texas. Admittedly, this alone does not tell us very much, as

CPE Overview

Callon Petroleum

CPE Reserve Summary

Callon Petroleum

CPE Hedges

Callon Petroleum

IEA Demand Projections by Fuel

Pembina Pipeline/Data from IEA 2021 World Energy Outlook

CPE Leverage Ratio Over Time

Callon Petroleum

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