
Callon Petroleum (CPE) Stock Forecast & Price Target
Callon Petroleum (CPE) Analyst Ratings
Bulls say
Callon Petroleum is an independent oil & natural gas company with a strong focus on emerging zones in the Permian Basin, utilizing the latest horizontal production techniques to extract hydrocarbon products. With a new executive compensation framework that includes a quantitative ESG category and ongoing investments in emission reducing initiatives, the company is well-positioned to align with environmental targets. Additionally, their healthy cost structure and efficient maintenance capital program contribute to robust FCF generation, leading to potential stock buybacks. Despite a potential downside scenario in commodity prices, Callon Petroleum's high yield FCF levels and strong balance sheet make it a favorable investment option compared to peers.
Bears say
Callon Petroleum is heavily reliant on the Permian Basin region for its exploration, development, and production activities and is highly dependent on the use of advanced techniques to extract resources. The company has a history of relying on a limited number of marketing and trading companies for the majority of its sales, which could pose a risk in terms of pricing and market access. Additionally, there is a potential for underperformance in its larger development efforts or declining core asset success, and the company's above-average financial leverage and bank debt could impact its ability to refinance and pay off its debt. There is a potential for improvement through ESG initiatives and efforts to lower operational costs, but tangible signs of sustainable improvements and execution are needed to justify a positive outlook on the stock.
This aggregate rating is based on analysts' research of Callon Petroleum and is not a guaranteed prediction by Public.com or investment advice.
Callon Petroleum (CPE) Analyst Forecast & Price Prediction
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