Callon Petroleum (CPE) Misses Q3 EPS by 1c, reiterates guidance

Callon Petroleum (NYSE: CPE) reported Q3 EPS of $1.82, $0.01 worse than the analyst estimate of $1.83. Revenue for the quarter came in at $619.29 million versus the consensus estimate of $590.16 million.

2023 Outlook:

Callon today revised its outlook for fourth quarter and full-year 2023 production and reiterated guidance for full-year 2023 capital expenditures.

For the fourth quarter, the Company expects that its total and oil production will average 100 – 103 MBoe/d (~79% liquids) and 56 – 59 MBbls/d (previous guidance was 104 – 108 MBoe/d and 63 – 65 MBbls/d, respectively). Full year 2023 total and oil production is now expected to average 102 – 104 MBoe/d and 59 – 61 MBbls/d (previous guidance was 103 – 106 MBoe/d and 62 – 64 MBbls/d, respectively).

Adjustments to the production outlook reflect the increased natural gas and NGL content from Delaware West and the ongoing optimization of Callon\'s artificial lift programs. In the third quarter, the Company accelerated a change in its Delaware Basin artificial lift program, previously planned to start in 2024, that will incorporate an increased proportion of gas lift to reduce production downtime, lower workover expense, and enhance longer-term resource recovery.

Guidance for capital expenditures for full-year 2023 is unchanged at $960 – $980 million, despite an increase in previously forecast drilled lateral feet and completion activity into year-end. The Company is currently running five drilling rigs, four in the Delaware Basin and one in the Midland Basin, as well as one completion crew.

For earnings history and earnings-related data on Callon Petroleum (CPE) click here.

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