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Callon Petroleum (CPE) Q4 Earnings Top Estimates, Reserves Fall
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Callon Petroleum Company reported fourth-quarter 2020 adjusted earnings of $1 per share, beating the Zacks Consensus Estimate of 41 cents. However, the bottom line fell from earnings of $2.30 per share a year ago.
Operating revenues of $296 million beat the Zacks Consensus Estimate of $262 million. Also, the top line increased from the year-ago quarter’s $196 million.
The better-than-expected results can be attributed to higher oil equivalent production volumes as well as decreased per unit lease operating expenses, partially offset by lower oil price realization.
Callon Petroleum Company Price, Consensus and EPS Surprise
For the quarter, net production volumes averaged 94,914 barrels of oil equivalent per day (Boe/d), significantly up from the year-ago period’s 46,641 Boe/d. The improved volumes were supported by operations in the Permian and Eagle Ford. Of the total fourth-quarter production, 62% was oil.
Oil production for the quarter was 5,425 thousand barrels (MBbls), higher than the year-ago level of 3,234 MBbls. Natural gas production rose to 9,738 million cubic feet (MMcf) from 5,530 MMcf in fourth-quarter 2019. Also, NGLs production for the quarter under review was recorded at 1,684 MBbls, up from the year-ago 135 MBbls.
Price Realizations (Without the Impact of Cash-Settled Derivatives)
The average realized price per barrel of oil equivalent was $30.57. The figure declined from the year-ago quarter’s $45.70 a barrel. Average realized price for oil was $41.06 per barrel compared with $56.61 a year ago. Meanwhile, average realized price for natural gas came in at $1.91 per thousand cubic feet, down from $1.98 in the prior-year quarter. Notably, average realized price per barrel for NGLs was $15.24.
Total Expenses
Total operating expenses of $809.3 million surged from the year-ago level of $177.7 million. Gathering, transportation and processing costs were recorded at $20.7 million versus no charges in the year-ago period.
However, per unit lease operating expenses decreased to $5.15 per Boe for the reported quarter from $5.90 a year ago.
Capital Expenditure & Balance Sheet
Capital expenditure for the reported quarter was $109.4 million. It generated adjusted free cash flow of $24.4 million.
As of Dec 31, 2020, the company’s total cash and cash equivalents amounted to $20.2 million while long-term debt totaled $2.9 billion. It had a total debt to capitalization of 80.7%.
Proved Reserves Decline
The company reported proved reserves as of Dec 31, 2020, at 475,879 MBoe. This represents a decline from 540,012 MBoe as of Dec 31, 2019.
Guidance for 2020
For 2021, Callon Petroleum expects total production in the range of 90-92 MBoe/d. The company projects total operational capital expenditure for this year at $430 million. Moreover, the upstream firm expects gross operated completed wells for this year in the band of 90 to 100.
Zacks Rank & Key Picks
Callon Petroleum currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include Matador Resources Company (MTDR - Free Report) , Antero Resources Corporation (AR - Free Report) and Diamondback Energy, Inc. (FANG - Free Report) . While Diamondback and Antero Resources carry a Zacks Rank #2 (Buy), Matadorsports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador is likely to see earnings growth of 201.3% in 2021.
Antero Resources has seen upward estimate revisions for 2021 earnings in the past 30 days.
Diamondback is likely to see earnings growth of 55% in 2021.
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Callon Petroleum (CPE) Q4 Earnings Top Estimates, Reserves Fall
Callon Petroleum Company reported fourth-quarter 2020 adjusted earnings of $1 per share, beating the Zacks Consensus Estimate of 41 cents. However, the bottom line fell from earnings of $2.30 per share a year ago.
Operating revenues of $296 million beat the Zacks Consensus Estimate of $262 million. Also, the top line increased from the year-ago quarter’s $196 million.
The better-than-expected results can be attributed to higher oil equivalent production volumes as well as decreased per unit lease operating expenses, partially offset by lower oil price realization.
Callon Petroleum Company Price, Consensus and EPS Surprise
Callon Petroleum Company price-consensus-eps-surprise-chart | Callon Petroleum Company Quote
Production
For the quarter, net production volumes averaged 94,914 barrels of oil equivalent per day (Boe/d), significantly up from the year-ago period’s 46,641 Boe/d. The improved volumes were supported by operations in the Permian and Eagle Ford. Of the total fourth-quarter production, 62% was oil.
Oil production for the quarter was 5,425 thousand barrels (MBbls), higher than the year-ago level of 3,234 MBbls. Natural gas production rose to 9,738 million cubic feet (MMcf) from 5,530 MMcf in fourth-quarter 2019. Also, NGLs production for the quarter under review was recorded at 1,684 MBbls, up from the year-ago 135 MBbls.
Price Realizations (Without the Impact of Cash-Settled Derivatives)
The average realized price per barrel of oil equivalent was $30.57. The figure declined from the year-ago quarter’s $45.70 a barrel. Average realized price for oil was $41.06 per barrel compared with $56.61 a year ago. Meanwhile, average realized price for natural gas came in at $1.91 per thousand cubic feet, down from $1.98 in the prior-year quarter. Notably, average realized price per barrel for NGLs was $15.24.
Total Expenses
Total operating expenses of $809.3 million surged from the year-ago level of $177.7 million. Gathering, transportation and processing costs were recorded at $20.7 million versus no charges in the year-ago period.
However, per unit lease operating expenses decreased to $5.15 per Boe for the reported quarter from $5.90 a year ago.
Capital Expenditure & Balance Sheet
Capital expenditure for the reported quarter was $109.4 million. It generated adjusted free cash flow of $24.4 million.
As of Dec 31, 2020, the company’s total cash and cash equivalents amounted to $20.2 million while long-term debt totaled $2.9 billion. It had a total debt to capitalization of 80.7%.
Proved Reserves Decline
The company reported proved reserves as of Dec 31, 2020, at 475,879 MBoe. This represents a decline from 540,012 MBoe as of Dec 31, 2019.
Guidance for 2020
For 2021, Callon Petroleum expects total production in the range of 90-92 MBoe/d. The company projects total operational capital expenditure for this year at $430 million. Moreover, the upstream firm expects gross operated completed wells for this year in the band of 90 to 100.
Zacks Rank & Key Picks
Callon Petroleum currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include Matador Resources Company (MTDR - Free Report) , Antero Resources Corporation (AR - Free Report) and Diamondback Energy, Inc. (FANG - Free Report) . While Diamondback and Antero Resources carry a Zacks Rank #2 (Buy), Matadorsports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador is likely to see earnings growth of 201.3% in 2021.
Antero Resources has seen upward estimate revisions for 2021 earnings in the past 30 days.
Diamondback is likely to see earnings growth of 55% in 2021.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>