KLR Group Raises Price Target on Callon Petroleum (CPE) Following Announced Acquisition
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
KLR Group reiterated a Buy rating on Callon Petroleum (NYSE: CPE), and raised the price target to $21.00 (from $18.00), following the company's announced agreement to acquire ~5,667 and an overriding royalty interest in three 480 acre units offsetting the acreage net acres in Howard County for ~$327 million.
Analyst Gail Nicholson commented, "Callon announced it agreed to acquire ~5,667 net acres (75%+ offsetting current position in NW Howard County) and an overriding royalty interest in three 480 acre units offsetting the acreage (one unit operated by CPE) in Howard County for ~$327 million. Estimated current net production is ~2,300 Boepd (~86% oil). Assuming $40k per flowing Boe on production, the transaction equates to ~ $41.5k per acre or an incremental ~$2.1 million per drilling location. To fund the acquisition, CPE priced an upsized offering of 29.9 million shares (including overallotment), representing ~23% of shares outstanding, at ~$14.60 for total gross proceeds of ~$436.5 million. The transaction is expected to close on or before October 20, 2016."
Shares of Callon Petroleum closed at $15.54 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- KLA-Tencor (KLAC) PT Raised to $85 at Cowen
- SunTrust Raises Price Target on E*TRADE Financial (ETFC) to $31 Following Solid 3Q
- PayPal (PYPL) PT Lifted to $48 at Mizuho Following Solid Q3
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change, Mergers and Acquisitions
Related EntitiesDefinitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!