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Callon Petroleum (CPE) Beats on Q3 Earnings and Revenues

Callon Petroleum CompanyCPE posted third-quarter 2018 adjusted earnings of 21 cents per share, beating the Zacks Consensus Estimate by a penny. Moreover, the bottom line improved from the year-ago quarter's tally of 9 cents.

Operating revenues of $161 million beat the Zacks Consensus Estimate of $145 million. Also, the figure surged from $85 million in the year-ago quarter.

Higher oil-equivalent production and increased realized oil price supported the company's third-quarter results.

Callon Petroleum Company Price, Consensus and EPS Surprise

Callon Petroleum Company Price, Consensus and EPS Surprise | Callon Petroleum Company Quote

Production

In the quarter, net production volumes averaged almost 34.9 thousand barrels of oil equivalent per day (MBoe/d) compared with 22.5MBoe/d in the year-ago quarter. Of the total production in the third quarter, 78% was oil and the rest comprised natural gas.

Price Realizations (Without the Impact of Cash-Settled Derivatives)

The average realized price received per barrel of oil equivalent was $50.19. The figure was higher than the year-ago quarter's tally of $40.80 per barrel. Average realized price for oil was $56.57 per barrel compared with $46.10 in the year-ago quarter. The figure beat the Zacks Consensus Estimate of $49.87. Moreover, average realized price for natural gas came in at $4.49 per thousand cubic feet (Mcf), higher than $3.88 per Mcf in the prior-year quarter. The figure beat the Zacks Consensus Estimate of $3.32.

Expenses

Total operating expenses in the quarter amounted to $88.4 million, higher than the year-ago quarter's tally of $53.2 million. General and administrative expenses increased to $9.7 million from $7.3 million in the third quarter of 2017.

However, lease operating costs per barrel of oil equivalent increased to $5.77 from $5.08 in the year-ago quarter.

Capital Expenditure & Balance Sheet

Capital expenditure in the reported quarter was $157 million, higher than the year-ago quarter's tally of $121 million.

As of Sep 30, 2018, the company had total cash and cash equivalents of $12.1 million as well as debt of $989.528 million with a debt-to-capitalization ratio of 30.2%.

Guidance

For 2018, the company estimates production in the range of 32-33MBoe/d, of which 77-78% is expected to be oil.

Operation capital expenditures for 2018 are expected at $560 million, of which $442 million were used in the first nine months of the year.

Zacks Rank & Key Picks

Currently, Natchez, MS-based Callon Petroleum has a Zacks Rank #3 (Hold).

A few better-ranked players in the same sector are Hess Corporation HES , Enterprise Products Partners L.P. EPD and Eni SpA E , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

New York-based Hess is a global integrated energy company. The company delivered an average positive earnings surprise of 230.5% in the last four quarters.

Headquartered in Houston, TX, Enterprise Products Partners is among the leading midstream energy players in North America. It pulled off an average positive earnings surprise of 9.3% in the last four quarters.

Based in Rome, Italy, Eni is among the leading integrated energy players in the world. The partnership witnessed a negative earnings surprise of 0.3% in the preceding four quarters.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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