An Aug. 24 research report noted ROTH Capital Partners increased its anticipated financial numbers for Callon Petroleum (CPE:NYSE), "primarily due to slightly lower lease operating expense and slightly lower general and administrative expense," explained White.
ROTH's new Q3 numbers for Callon include "estimates for EPS/CFPS/EBITDA [at] $0.11/$0.31/$64.6M compared to our previous $0.09/$0.30/$61.1M," White wrote.
The company is an "onshore operator with an asset base concentrated exclusively in the Midland Basin, a sub-basin contained in the broader Permian Basin," White states. "In 2013, the company completed its strategic repositioning that began in 2009, shifting its operations from the offshore Gulf of Mexico to the onshore Permian Basin in Texas."
Today, Callon "operates 100% of its Permian properties and acreage, which provides operational control and flexibility regarding the pace of drilling and capital expenditures," noted White.
ROTH Capital has a rating of Buy and a 12-month target price of $16.50 per share on Callon Petroleum. The valuation "is based on a net asset value analysis," White indicated. Currently, the stock is trading at about $10.43 per share.
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1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
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Disclosures from ROTH Capital Partners, Callon Petroleum Company, Company Note, Aug. 24, 2017
Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
ROTH makes a market in shares of Callon Petroleum Company and as such, buys and sells from customers on a principal basis.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.