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Callon (CPE) Shares Gain 5.5% Since Q3 Earnings Beat Estimates
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Callon Petroleum Company’s shares have gained 5.5% since it reported strong earnings for the third quarter of 2022.
The company reported third-quarter adjusted earnings of $4.04 per share, beating the Zacks Consensus Estimate of $4. The bottom line surged from earnings of $2.93 per share reported a year ago.
Operating revenues of $835.9 million beat the Zacks Consensus Estimate of $700 million. The top line increased from the year-ago quarter’s $552.6 million.
Stronger-than-expected quarterly earnings were driven by higher production and commodity price realizations.
Callon Petroleum Company Price, Consensus and EPS Surprise
In the third quarter, CPE’s net production volumes averaged 107,316 barrels of oil equivalent per day (Boe/d), up from the year-ago period’s 99,703 Boe/d. Production volumes increased in the Permian Basin, while the same in Eagle Ford declined from the year-ago quarter. Of the total third-quarter production, 62% was oil.
Callon’s oil production for the quarter was 6,112 thousand barrels (MBbls), up from the year-ago level of 5,875 MBbls. Natural gas production increased to 10,657 million cubic feet (MMcf) from 9,395 MMcf in the third quarter of 2021. Also, natural gas liquids (NGLs) production for the quarter under review was 1,985 MBbls, up from the year-ago figure of 1,732 MBbls.
Price Realizations (Without the Impacts of Cash-Settled Derivatives)
The average realized price per barrel of oil equivalent was $73.37. The figure increased from the year-ago quarter’s $54.93 a barrel. The average realized price for oil was $94.22 per barrel compared with $69.67 a year ago. Meanwhile, the average realized price for natural gas was $7.60 per thousand cubic feet, up from $3.89 in the prior-year quarter. The average realized price per barrel for NGLs was $34.03, higher than the year-ago level of $33.54.
Total Expenses
Callon’s total operating expenses of $395.3 million increased from the year-ago level of $241.5 million.
Total lease operating costs increased to $76.1 million from the year-ago level of $42.7 million. Also, the company’s per-unit lease operating expenses increased to $7.71 per barrel of oil equivalent (Boe) for the reported quarter from $4.66 a year ago.
Capital Expenditure & Balance Sheet
The capital expenditure for the reported quarter was $340.3 million. Callon generated an adjusted free cash flow of $148.4 million, up from $119.5 million a year ago.
As of Sept 30, 2022, the company’s total cash and cash equivalents amounted to $4.4 million, declining from $6.1 million at the second-quarter end. The long-term debt totaled $2,373.4 million, down from $2,516.3 million in the previous quarter. It had a total debt to capitalization of 45.8%.
Outlook
For 2022, CPE revised its total production guidance upward to 103-105 thousand barrels of oil equivalent per day (MBoe/d) from the prior stated 102-105 MBoe/d. Of the total, 62.5% will likely be crude oil. The company stated its operational capital budget of $830-$845 million for the year.
For the fourth quarter, the company expects to produce 105 to 108 MBoe/d, of which 63% is likely to be oil. Callon projects operational capital spending of $180-$195 million on an accrual basis. Also, it expects to generate an adjusted free cash flow of more than $200 million in the fourth quarter of this year.
W&T Offshore, Inc. (WTI - Free Report) reported third-quarter 2022 adjusted earnings (excluding one-time items) of 33 cents per share, beating the Zacks Consensus Estimate of 28 cents. The strong quarterly results were driven by higher production and the realization of commodity prices.
W&T Offshore is expected to see earnings growth of 747.8% for 2022. For 2022, WTI reduced its capital spending budget to $65-$75 million from the prior stated $70-$90 million.
RPC Inc. (RES - Free Report) reported adjusted earnings of 32 cents per share in the third quarter, beating the Zacks Consensus Estimate of 25 cents. The strong quarterly results were backed by higher activity levels in all the service lines and improved pricing.
With no debt load, RPC had cash and cash equivalents of $35.9 million at the third-quarter end. This reflects the company’s strong balance sheet that provides it with massive financial flexibility. It allows RPC to remain afloat during tough times.
Halliburton Company (HAL - Free Report) reported a third-quarter 2022 adjusted net income per share of 60 cents, surpassing the Zacks Consensus Estimate of 56 cents. The outperformance reflected stronger-than-expected profit from its divisions.
Halliburton anticipates international activity to gain momentum throughout the globe. The company’s state-of-the-art portfolio, selective contract wins and balanced geographic mix will help maximize profit from the upcycle. As far as North America is concerned, HAL sees continued revenue growth in a tight market.
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Callon (CPE) Shares Gain 5.5% Since Q3 Earnings Beat Estimates
Callon Petroleum Company’s shares have gained 5.5% since it reported strong earnings for the third quarter of 2022.
The company reported third-quarter adjusted earnings of $4.04 per share, beating the Zacks Consensus Estimate of $4. The bottom line surged from earnings of $2.93 per share reported a year ago.
Operating revenues of $835.9 million beat the Zacks Consensus Estimate of $700 million. The top line increased from the year-ago quarter’s $552.6 million.
Stronger-than-expected quarterly earnings were driven by higher production and commodity price realizations.
Callon Petroleum Company Price, Consensus and EPS Surprise
Callon Petroleum Company price-consensus-eps-surprise-chart | Callon Petroleum Company Quote
Production
In the third quarter, CPE’s net production volumes averaged 107,316 barrels of oil equivalent per day (Boe/d), up from the year-ago period’s 99,703 Boe/d. Production volumes increased in the Permian Basin, while the same in Eagle Ford declined from the year-ago quarter. Of the total third-quarter production, 62% was oil.
Callon’s oil production for the quarter was 6,112 thousand barrels (MBbls), up from the year-ago level of 5,875 MBbls. Natural gas production increased to 10,657 million cubic feet (MMcf) from 9,395 MMcf in the third quarter of 2021. Also, natural gas liquids (NGLs) production for the quarter under review was 1,985 MBbls, up from the year-ago figure of 1,732 MBbls.
Price Realizations (Without the Impacts of Cash-Settled Derivatives)
The average realized price per barrel of oil equivalent was $73.37. The figure increased from the year-ago quarter’s $54.93 a barrel. The average realized price for oil was $94.22 per barrel compared with $69.67 a year ago. Meanwhile, the average realized price for natural gas was $7.60 per thousand cubic feet, up from $3.89 in the prior-year quarter. The average realized price per barrel for NGLs was $34.03, higher than the year-ago level of $33.54.
Total Expenses
Callon’s total operating expenses of $395.3 million increased from the year-ago level of $241.5 million.
Total lease operating costs increased to $76.1 million from the year-ago level of $42.7 million. Also, the company’s per-unit lease operating expenses increased to $7.71 per barrel of oil equivalent (Boe) for the reported quarter from $4.66 a year ago.
Capital Expenditure & Balance Sheet
The capital expenditure for the reported quarter was $340.3 million. Callon generated an adjusted free cash flow of $148.4 million, up from $119.5 million a year ago.
As of Sept 30, 2022, the company’s total cash and cash equivalents amounted to $4.4 million, declining from $6.1 million at the second-quarter end. The long-term debt totaled $2,373.4 million, down from $2,516.3 million in the previous quarter. It had a total debt to capitalization of 45.8%.
Outlook
For 2022, CPE revised its total production guidance upward to 103-105 thousand barrels of oil equivalent per day (MBoe/d) from the prior stated 102-105 MBoe/d. Of the total, 62.5% will likely be crude oil. The company stated its operational capital budget of $830-$845 million for the year.
For the fourth quarter, the company expects to produce 105 to 108 MBoe/d, of which 63% is likely to be oil. Callon projects operational capital spending of $180-$195 million on an accrual basis. Also, it expects to generate an adjusted free cash flow of more than $200 million in the fourth quarter of this year.
Zacks Rank & Stocks to Consider
Callon currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
W&T Offshore, Inc. (WTI - Free Report) reported third-quarter 2022 adjusted earnings (excluding one-time items) of 33 cents per share, beating the Zacks Consensus Estimate of 28 cents. The strong quarterly results were driven by higher production and the realization of commodity prices.
W&T Offshore is expected to see earnings growth of 747.8% for 2022. For 2022, WTI reduced its capital spending budget to $65-$75 million from the prior stated $70-$90 million.
RPC Inc. (RES - Free Report) reported adjusted earnings of 32 cents per share in the third quarter, beating the Zacks Consensus Estimate of 25 cents. The strong quarterly results were backed by higher activity levels in all the service lines and improved pricing.
With no debt load, RPC had cash and cash equivalents of $35.9 million at the third-quarter end. This reflects the company’s strong balance sheet that provides it with massive financial flexibility. It allows RPC to remain afloat during tough times.
Halliburton Company (HAL - Free Report) reported a third-quarter 2022 adjusted net income per share of 60 cents, surpassing the Zacks Consensus Estimate of 56 cents. The outperformance reflected stronger-than-expected profit from its divisions.
Halliburton anticipates international activity to gain momentum throughout the globe. The company’s state-of-the-art portfolio, selective contract wins and balanced geographic mix will help maximize profit from the upcycle. As far as North America is concerned, HAL sees continued revenue growth in a tight market.