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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