Callon Petroleum: Debt Maturities Look Quite Manageable

Summary

  • Callon extended its credit facility maturity to October 2027.
  • It also has $508 million in notes maturing in 2025 and 2026.
  • Callon is projected to generate close to $1 billion in positive cash flow in 2H 2022 and 2023 at the current strip.
  • This would reduce its leverage below 1.0x by the end of 2023.
  • Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More »

Fracking Oil Well

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I now expect Callon Petroleum (CPE) to generate close to $1 billion in positive cash flow by the end of 2023 at current strip prices. Callon's projected cash flow has gone down due to weaker commodity prices (with the majority

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This article was written by

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Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game economic models for two mobile apps with over 30 million in combined installs. He is the author of the investing group Distressed Value Investing, which focuses on both value opportunities and distressed plays, with a significant focus on the energy sector. Learn more>>

Analyst’s Disclosure:I/we have a beneficial long position in the shares of CPE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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