Imperial Capital Adjusts Estimates Following Callon Petroleum's (CPE) Announced Acquisition Agreement

September 30, 2016 7:17 AM EDT
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Price: $13.88 -2.6%

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Imperial Capital reiterated an Outperform rating on Callon Petroleum (NYSE: CPE), and raised the price target to $18.00 (from $16.00), following the company's announced agreement to acquire additional leasehold in Howard County. Imperial increased FY16 production estimates to 15.9mboe/d from 15.4mboe/d. At the time of the announcement on 9/6/16, the target acquisition properties were producing 2,300boe/d.

Analyst Kim Pacanovsky commented, "We are maintaining our Outperform rating on CPE shares and our one-year price target of $18, about 20% above the recent share price. On 9/6/16, Callon announced a definitive agreement to acquire additional leasehold in Howard County for $327mn in cash. It simultaneously announced a common stock offering and then on 9/12/16 it commenced a $350mn placement of Senior Unsecured Notes. Both capital raising efforts were upsized. In all, the company placed $400mn of Senior Notes and 29.9mn of shares. Net (after expenses) proceeds to the company were $801.7mn."

For an analyst ratings summary and ratings history on Callon Petroleum click here. For more ratings news on Callon Petroleum click here.

Shares of Callon Petroleum closed at $14.98 yesterday.

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