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Callon (CPE) Q1 Earnings Miss Estimates, Revenues Declines Y/Y

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Callon Petroleum Company  reported first-quarter 2023 adjusted earnings of $1.94 per share, missing the Zacks Consensus Estimate of $1.96. The bottom line declined from earnings of $3.43 per share reported a year ago.

Operating revenues of $560 million beat the Zacks Consensus Estimate of $529 million. However, the top line declined from the year-ago quarter’s $777 million.

Weak quarterly earnings were driven by lower oil-equivalent production volumes and realized oil-equivalent prices.

Callon Petroleum Company Price, Consensus and EPS Surprise

 

Callon Petroleum Company Price, Consensus and EPS Surprise

Callon Petroleum Company price-consensus-eps-surprise-chart | Callon Petroleum Company Quote

Production

In the first quarter, CPE’s net production volumes averaged 99,768 barrels of oil-equivalent per day (Boe/d), down from the year-ago period’s 102,655 Boe/d. Production volumes increased in the Permian Basin, while the same in Eagle Ford declined from the year-ago quarter. Of the total first-quarter production, 60% was oil.

Callon’s oil production in the quarter was 5,414 thousand barrels (MBbls), down from the year-ago level of 5,846 MBbls. However, natural gas production increased to 10,624 million cubic feet (MMcf) from 10,115 MMcf. Natural gas liquids (NGLs) production in the quarter under review was 1,794 MBbls, up from the year-ago figure of 1,707 MBbls.

Price Realizations (Without Cash-Settled Derivative Impacts)

The average realized price per barrel of oil-equivalent was $53.07. The figure declined from the year-ago quarter’s $71.97 a barrel. The average realized price for oil was $75.65 per barrel compared with $94.64 a year ago. The average realized price for natural gas was $2.22 per thousand cubic feet, down from $4.35. The average realized price per barrel for NGLs was $24.18, lower than the year-ago level of $39.61.

Total Expenses

Callon’s total operating expenses of $375.9 million declined from the year-ago level of $380.4 million.

Total lease operating costs increased to $75.1 million from the year-ago level of $67.3 million. Also, the company’s per-unit lease operating expenses increased to $8.36 per barrel of oil equivalent (Boe) in the reported quarter from $7.29 a year ago.

Capital Expenditure & Balance Sheet

The capital expenditure in the reported quarter was $204.9 million. Callon generated an adjusted free cash flow of $7.2 million, significantly down from $183 million a year ago.

As of Mar 31, 2023, the company’s total cash and cash equivalents amounted to $3.4 million. The long-term debt totaled $2,204.5 million.

Guidance

For the second quarter, Callon expects to produce 105-108 thousand barrels of oil-equivalent per day (MBoe/d), including oil volumes of 63-65 MBbls/d. The company gave an operational capital budget of $285-$300 million for the second quarter.

Zacks Rank & Stocks to Consider

Callon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Gevo, Inc. (GEVO - Free Report) has an Earnings ESP of +45.46% and a Zacks Rank #3.

Gevo is expected to post an earnings surprise on May 10. The Zacks Consensus Estimate for Gevo’s first-quarter sales is pegged at $2.28 million. This implies a year-over-year improvement of 889.1% from the prior-year reported figure.

Ormat Technologies, Inc. (ORA - Free Report) currently has an Earnings ESP of +4.62% and a Zacks Rank #3.

Ormat is expected to post an earnings surprise on May 9. The Zacks Consensus Estimate for Ormat’s first-quarter earnings is pegged at 49 cents per share. This indicates an improvement of 40% from the prior-year reported figure.

The Zacks Consensus Estimate for Maxeon’s first-quarter 2023 bottom line, pegged at a loss of 51 cents, suggests an improvement from a loss of $1.45 reported in the first quarter of 2022.

Permian Resources Corporation (PR - Free Report) is likely to come up with an earnings beat when it reports first-quarter results on May 8. It has an Earnings ESP of +2.33% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for PR’s first-quarter earnings is pegged at 39 cents. This implies a year-over-year improvement of 5.4% from the prior-year reported figure.


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