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Why Hold Strategy is Apt for Callon Petroleum (CPE) Stock Now
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Callon Petroleum Company has witnessed upward earnings estimate revisions for its 2023 and 2024 earnings in the past 30 days. The Zacks Consensus Estimate for this year is pegged at $7.52 per share.
What’s Favoring the Stock?
West Texas Intermediate crude price, trading at more than $90 per barrel, is highly favorable for exploration and production activities.
Being a leading exploration and production company, Callon Petroleum is well-positioned to capitalize on handsome crude prices. The firm, carrying a Zacks Rank #3 (Hold), has a strong footprint in Permian, the most prolific basin in the United States. Callon Petroleum has identified decade-long high-return drilling inventory in the Permian portfolio, brightening its production outlook.
CPE is also focused on greenhouse gas emissions and lowering routine flaring. Its new targets comprise strengthening its financials while deleveraging the balance sheet.
What’s Hurting it?
Compared with the 2.05% dividend yield of the composite stocks belonging to the industry, Callon Petroleum’s yield is 0%. Also, CPE is highly exposed to extreme volatility in commodity prices.
With its operating interests in oil and gas pipeline networks spread across 83,000 miles, Kinder Morgan is a leading energy infrastructure company in North America. It derives most of its earnings from take-or-pay contracts, generating stable fee-based revenues.
Profire Energy is mainly focused on the oil and gas industry’s upstream, midstream and downstream transmission segments. PFIE has boasted that its legacy business is doing extremely well, thanks to the resumption of maintenance work of exploration and production players.
Pioneer Natural has a strong presence in the low-cost, oil-rich Midland basin — a sub-basin of the broader Permian. The upstream energy player has a massive inventory of premium wells that will likely generate significant returns for the company.
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Why Hold Strategy is Apt for Callon Petroleum (CPE) Stock Now
Callon Petroleum Company has witnessed upward earnings estimate revisions for its 2023 and 2024 earnings in the past 30 days. The Zacks Consensus Estimate for this year is pegged at $7.52 per share.
What’s Favoring the Stock?
West Texas Intermediate crude price, trading at more than $90 per barrel, is highly favorable for exploration and production activities.
Being a leading exploration and production company, Callon Petroleum is well-positioned to capitalize on handsome crude prices. The firm, carrying a Zacks Rank #3 (Hold), has a strong footprint in Permian, the most prolific basin in the United States. Callon Petroleum has identified decade-long high-return drilling inventory in the Permian portfolio, brightening its production outlook.
CPE is also focused on greenhouse gas emissions and lowering routine flaring. Its new targets comprise strengthening its financials while deleveraging the balance sheet.
What’s Hurting it?
Compared with the 2.05% dividend yield of the composite stocks belonging to the industry, Callon Petroleum’s yield is 0%. Also, CPE is highly exposed to extreme volatility in commodity prices.
Stocks to Consider
Better-ranked players in the energy space include Kinder Morgan, Inc. (KMI - Free Report) , Profire Energy, Inc. (PFIE - Free Report) and Pioneer Natural Resources Company (PXD - Free Report) . While Kinder Morgan and Profire Energy carry a Zacks Rank #2 (Buy), Pioneer Natural sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
With its operating interests in oil and gas pipeline networks spread across 83,000 miles, Kinder Morgan is a leading energy infrastructure company in North America. It derives most of its earnings from take-or-pay contracts, generating stable fee-based revenues.
Profire Energy is mainly focused on the oil and gas industry’s upstream, midstream and downstream transmission segments. PFIE has boasted that its legacy business is doing extremely well, thanks to the resumption of maintenance work of exploration and production players.
Pioneer Natural has a strong presence in the low-cost, oil-rich Midland basin — a sub-basin of the broader Permian. The upstream energy player has a massive inventory of premium wells that will likely generate significant returns for the company.