Callon Petroleum Company Upgraded to Outperform at RBC Capital
<p>RBC Capital upgraded <a href='https://financialmodelingprep.com/financial-summary/CPE'> Callon Petroleum Company (NYSE:CPE) </a> to outperform from sector perform given the current low relative valuation to its peers (significantly underperforming over the last year) and confidence in the company’s operational and financial plans. </p>
<p>According to the analysts, the company’s performance from Primexx acquisition has outperformed their expectations and de-leveraging continues to occur faster than anticipated. </p>
<p>The analysts believe investors were primarily focused on shareholder returns and low balance sheet leverage. The analysts anticipate the company to move into a shareholder return position by 2022 with leverage dropping to 1.0x from 4.2x in 2020. </p>
<p>The analysts raised their EPS/CFPS estimates by 8%/6% in 2022 and 30%/21% in 2023 given their new commodity price forecast. The analysts now expect WTI oil price to be $107/bbl from (vs. $100/bbl prior) in 2022, and $114/bbl (vs. $96/bbl prior) in 2023. Their natural gas price forecast increased to $5.65/ Mcf in 2022 and to $4.65/Mcf in 2023, from $5.00 and $4.25, respectively. </p>
NYSE:CPE