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white perch
Northwestern St. Fan
the bright, happy side of hell
Member since Apr 2012
5496 posts

CPE - Callon Petroleum - is it dead in the water or poised for a rebound?
Or a take over?

Anybody got any insights? I’ve never seen it this low before.


thegreatboudini
McNeese State Fan
Member since Oct 2008
4257 posts
 Online 

re: CPE - Callon Petroleum - is it dead in the water or poised for a rebound?
Honestly I don’t know what they’re doing over there. They’re doing decent in the Permian in terms of economics, but they took over Carrizo who’s healthier in the Eagle Ford than they are in the Permian, and want to divest the Eagle Ford.

It’s as if they wanted to just get in the news with some kind of merger/acquisition, and they randomly selected one of the many sub par operators to do it with.


EveryoneGetsATrophy
LSU Fan
Member since Nov 2017
968 posts
 Online 

re: CPE - Callon Petroleum - is it dead in the water or poised for a rebound?
Never knew they still existed. Used to do a bunch of work with them in the Black Bay/Main Pass area.


Jp1LSU
LSU Fan
Key West
Member since Oct 2005
1491 posts

re: CPE - Callon Petroleum - is it dead in the water or poised for a rebound?
The old man (Fred) died a few years ago. They moved the company from Natchez to Texas. The acquisitions they’ve made haven’t been great IMO, but I’ve bought and sold this name more than a dozen times in the last 7 years. I think it’s worth it at this number if you think the price of oil will improve.


EveryoneGetsATrophy
LSU Fan
Member since Nov 2017
968 posts
 Online 

re: CPE - Callon Petroleum - is it dead in the water or poised for a rebound?
I remember Mr Fred. I used to deal with Joe Gamberi. That was in the late 90's.


Paul Allen
Notre Dame Fan
Montauk, NY
Member since Nov 2007
57761 posts

re: CPE - Callon Petroleum - is it dead in the water or poised for a rebound?
I wanna say around 2009 or so, their stock was around $13-$15 a share. Never saw it hit $20. They’re below $5 now. Wow


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LesterFreamon
LSU Fan
HOU
Member since May 2017
163 posts

re: CPE - Callon Petroleum - is it dead in the water or poised for a rebound?
Stock has been beaten down after the announcement of the CRZO deal. The deal isn't getting much public support. Paulson & Co. (holding ~10% of stock) came out with a letter over the past several days expressing concern over mixing in the EF properties and possibly using cash flow from those to fund Permian development. The transaction proxy has really good information about how CRZO went to several parties but couldn't settle on a favorable price for CRZO, almost makes you think CPE is suffering from winner's curse. If the CRZO deal doesn't close, I think CPE becomes a buyout candidate.


Double Oh
Louisiana
Member since Sep 2008
8927 posts
 Online 

re: CPE - Callon Petroleum - is it dead in the water or poised for a rebound?
They still have an office in Natchez.


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cave canem
Mississippi St. Fan
pullarius dominus
Member since Oct 2012
9848 posts

re: CPE - Callon Petroleum - is it dead in the water or poised for a rebound?
quote:

I remember Mr Fred. I used to deal with Joe Gamberi. That was in the late 90's.



Must be a Natchez unite meeting up in here.


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Enfuego
Tulane Fan
Nola
Member since Mar 2009
9424 posts

re: CPE - Callon Petroleum - is it dead in the water or poised for a rebound?
Good company. Will take awhile to digest Carrizo but I don’t see any reason to buy given the current state of energy sentiment. They also really aren’t differentiated versus their Permian-focused peers. If you’re betting on them, might as well bet on the entire Permian-focused midcap universe (SM, XEC, WPX, MTDR, JAG, CDEV, QEP, etc). I could see Callon getting taken out down the road but recall that takeout premiums have been pretty weak as of late.
This post was edited on 9/17 at 10:24 pm


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MadtownTiger
LSU Fan
Texas
Member since Sep 2010
3586 posts
 Online 

re: CPE - Callon Petroleum - is it dead in the water or poised for a rebound?
Really didn't need to spend the money on CRZO...they owned mid tier properties in W.TX and the Eagle Ford. They would have been filing bankruptcy by the end of the year possibly mid-next year, due to there completion plans, economics and mid-level asset holdings.


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