Callon Q4 results — earnings miss, more capex, less production

Callon Q4 results — earnings miss, more capex, less production

mysticenergy/E+ via Getty Images

Callon Petroleum (NYSE:CPE) reported Q4 results after the close, posting an earnings miss, guiding production down, and planning for debt repayments throughout 2022:

  • Earnings – the Company posted adjusted EPS of $2.66 versus Street expectations for $2.72.
  • Production – Management guided to 103kboe/d in 2022 (midpoint) versus Q4 results at 112kboe/d (down ~8% sequentially) (NYSEARCA:USO).
  • Capital – the Company will spend $725m on capex in 2022, versus $508m in 2021 (+43% year on year).

Callon (CPE) expects to generate $500m in free cash flow at $75 WTI in 2022; however, management has no plans to return cash to shareholders, as they hope to de-lever the balance sheet to 1.5x EBITDA by year end.

Laredo (NYSE:LPI) announced a similar strategy on Wednesday, and traded very well on the back of the announcement. However, the earnings miss, paired with a more substantial production decline and larger capex increase could give shareholders pause.

Originally Posted on: https://seekingalpha.com/news/3804798-callon-q4-results-earnings-miss-more-capex-less-production?source=feed_tag_commodities
By:

Written by:

10,049 Posts

View All Posts
Follow Me :

Leave a Reply

%d bloggers like this: