The big oil production curtailment in the U.S. shale patch continues as more companies announced on Monday output reductions to protect their balance sheets in the face of unsustainably low oil prices
Callon Petroleum Company ("Callon" or the "Company") (NYSE: CPE) today announced it has commenced a private exchange offer (the "Exchange Offer") to each Eligible Holder (as defined below) of its 6.25% Senior Notes due 2023 (the "2023 Notes"), its 8.25% Senior Notes due 2025 (the "2025 Senior Notes" and, together with the 2023 Notes, the "Carrizo Notes"), its 6.125% Senior Notes due 2024 (the "2024 Notes") and its 6.375% Senior Notes due 2026 (the "2026 Notes" and, together with the 2024 Notes, the "Callon Notes" and, together with the Carrizo Notes, the "Old Notes") to exchange their Old Notes for up to $300,000,000 aggregate principal amount (the "Maximum Exchange Amount") of newly issued 8.00% Second Lien Senior Secured Notes due 2025 (the "New Notes"), in each case upon the terms and subject to the conditions set forth in the confidential offering memorandum and consent solicitation statement, dated May 11, 2020 (the "Offering Memorandum").
Callon Petroleum Company ("Callon" or the "Company") (NYSE: CPE) today announced that it terminated its previously announced private exchange offer (the "Exchange Offer") to holders of its outstanding 6.25% Senior Notes due 2023 (the "2023 Notes"), 8.25% Senior Notes due 2025 (the "2025 Notes" and, together with the 2023 Notes, the "Carrizo Notes"), 6.125% Senior Notes due 2024 (the "2024 Notes") and 6.375% Senior Notes due 2026 (the "2026 Notes" and, together with the 2024 Notes, the "Callon Notes" and, together with the Carrizo Notes, the "Old Notes") to exchange their Old Notes for up to $300,000,000 aggregate principal amount of newly issued 8.00% Second Lien Senior Secured Notes due 2025 (the "New Notes"). All Old Notes previously tendered in the Exchange Offer and not validly withdrawn will be promptly returned to their respective holders. No Old Notes will be accepted for exchange and no New Notes will be issued.
Today, our president and CEO, Joe Gatto, will provide a brief discussion of our quarterly results and a summary of recent actions and the current outlook. During these prepared remarks, we'll be referencing the earnings results presentation we posted this morning to our website. You can find the slides on our events and presentations page, located within the investors section of our website at www.callon.com.
Lower natural gas and oil price realizations hurt Callon's (CPE) Q1 earnings.
(Bloomberg) -- Shale driller Continental Resources Inc. expects an imminent recovery in crude prices even as it undertakes some of the most aggressive production cuts in an industry crippled by tumbling oil prices.The Oklahoma City-based company founded by billionaire wildcatter Harold Hamm is forecasting a rebalancing of crude supply and demand around the middle of the year, executives said during a conference call on Monday. The comments came just hours after Continental discarded its full-year financial guidance and said it was turning off some drilling rigs.Continental is waiting for the oil market to recover before reopening wells it shut in response to an unprecedented slump in prices. “We’re preserving the production capacity for what we believe will be a imminently better commodity price for us,” Chief Financial Officer John Hart said during the call.The company also reported a $1.13 billion draw on its credit facilities and bought back 8.1 million shares during the quarter, according to a regulatory filing. When asked about the drawdown, the company said it was worried about bankers working from home and wanted to avoid “hiccups in the system.”“We decided to go ahead and have a little bit of a cash on hand just ahead of time,” Hart said. Continental shares fell 2.9% to $14.66 at 1:57 p.m. in New York trading.Shutting WellsThree weeks after U.S. oil prices went negative for the first time, oil producers are moving beyond drilling hiatuses and taking the once-rare step of scaling back existing output.Rystad Energy said last week that U.S. producers have announced plans to halt more than 600,000 barrels of daily output this month and next. Continental initially had plans to cut output by 30% to mirror the collapse in demand caused by the Covid-19 pandemic but has since doubled down on those efforts.Callon Petroleum Co., which closed on its $737 million acquisition of rival Carrizo Oil & Gas Inc. less than five months ago, said Monday it’s shutting off more than 3,000 barrels of daily output. The shale explorer also halted all fracking as of last month and will have just one rig active by the middle of this month.Callon said in a federal filing that for now it has sufficient liquidity, but it may be forced to issue a “going concern” warning if lenders reduce its borrowing base too much. The company also canceled its quarterly earnings conference call with analysts and investors.EOG Resources Inc., the world’s second-largest independent oil explorer by market value, said last week that it’s curtailing about one-fourth of its production and canceling almost 40% of new wells it had planned to bring online this year.Producers say much of that output will return once prices pick up, though some have cautioned that turning wells back on is more complicated than shutting them in. They’re also creating a backlog of wells that are drilled but not yet fracked that can be revisited if and when oil prices recover.Still, Hamm said that U.S. oil production won’t grow in the future at the same pace that it did before the pandemic.“The market share capture-rate that the U.S. was pursuing in the past was probably not sustainable,” Hamm said. “I would expect to see those growth rates attenuate in the U.S. over the next few years.”(Updates with comments from Continental’s conference call beginning in first paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
One thing we could say about the analysts on Callon Petroleum Company (NYSE:CPE) - they aren't optimistic, having just...
Callon (CPE) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Hedge funds don't get the respect they used to get. Nowadays investors prefer passive funds over actively managed funds. One thing they don't realize is that 100% of the passive funds didn't see the coronavirus recession coming, but a lot of hedge funds did. Even we published an article near the end of February and […]
Bonds of hard-hit oil and gas companies such as Occidental Petroleum, Antero Resources , WPX Energy, HighPoint Resources and Western Midstream Partners rose in price on Thursday after the Federal Reserve announced it would expand its Main Street Lending Facility to larger and riskier companies affected by the coronavirus pandemic. In afternoon trade, seven of the 10 biggest upward movers in the U.S. corporate bond market were oil and gas companies, according to MarketAxess data. WPX Energy's 5.75% June 2026 bond was up 6.7% on the day, last trading at 88 cents on the dollar.
KlaymanToskes ("KT"), www.klaymantoskes.com, announced today that it is investigating the damages sustained during the Coronavirus ("COVID-19") pandemic by employees and investors who held large positions in Callon Petroleum (NYSE:CPE) stock at full-service brokerage firms. Investment portfolios holding large positions can carry significant downside risks. The investigation focuses on full-service brokerage firms’ negligence and mismanagement of large positions that resulted in employees and investors suffering substantial losses.
An increase in oil and gas production is likely to reflect on Callon Petroleum's (CPE) first-quarter results. Lower commodity price realizations are likely to have offset the positives.
Investors need to pay close attention to Callon (CPE) stock based on the movements in the options market lately.
Shares of hard-hit oil and gas exploration and production companies (E&Ps) Callon Petroleum (NYSE: CPE), Diamondback Energy (NASDAQ: FANG), and EOG Resources (NYSE: EOG) soared in April, according to data provided by S&P Global Market Intelligence. EOG's shares were up 32.3%, Diamondback's shares jumped 66.2%, and Callon's shares rocketed up 71.5% during the month. Year to date, EOG shares are down 38.3%, Diamondback's shares are down 54.4%, and Callon's stock has fallen a jaw-dropping 83.3%.
Shares of Callon Petroleum (NYSE:CPE) rose 2.5% in pre-market trading after the company reported Q1 results.Quarterly Results Earnings per share fell 25.00% year over year to $0.12, which missed the estimate of $0.13.Revenue of $315,045,000 higher by 106.24% year over year, which missed the estimate of $337,740,000.Looking Ahead Callon Petroleum hasn't issued any earnings guidance for the time being.Revenue guidance hasn't been issued by the company for now.Details Of The Call Date: May 11, 2020View more earnings on CPETime: 08:00 PM ETWebcast URL: https://www.webcaster4.com/Webcast/Page/976/34696Recent Stock Performance Company's 52-week high was at $8.4752-week low: $0.38Price action over last quarter: down 57.84%Company Profile Callon Petroleum Company engages in exploration, development, acquisition, and production of oil and natural gas. Activities are primarily conducted in the Permian Basin region of the west Texas and southeastern New Mexico. Callon relies heavily on the latest horizontal production techniques to extract hydrocarbon products from its assets, with crude oil accounting for over half of production. Historically, a handful of marketing and trading companies have accounted for the majority of the sales for Callon's oil and gas production. Assets are acquired through drilling of emerging zones on existing acreage but also by acquiring additional locations through leasehold purchases, leasing programs, joint ventures, and asset swaps.See more from Benzinga * 12 Energy Stocks Moving In Friday's Pre-Market Session * 11 Energy Stocks Moving In Wednesday's Pre-Market Session * 13 Energy Stocks Moving In Tuesday's Pre-Market Session(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Oil prices started this week with a bang. WTI, the primary U.S. oil price benchmark, had rallied more than 10% by 10:30 a.m. EDT on Monday, to around $32.50 a barrel, while Brent, the global oil price benchmark, jumped more than 7% to nearly $35 a barrel. The surge in crude prices buoyed most oil stocks.
The New York Stock Exchange informed Houston-based Callon Petroleum Co. (NYSE: CPE) that its shares have fallen outside the acceptable bounds for a listed company. Callon’s 30-day moving average stock price has fallen below $1 per share, the minimum price allowed under NYSE listing standards, according to an April 16 press release. Callon said it has already responded to the NYSE with its plan — the company intends to get shareholder approval for a reverse stock split at its upcoming annual meeting.
Callon (CPE) delivered earnings and revenue surprises of -20.00% and -15.91%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?
Let's see if Callon Petroleum Company (CPE) stock is a good choice for value-oriented investors right now from multiple angles.
Callon Petroleum Company (NYSE: CPE) ("Callon") today announced that on April 10, 2020, it received formal notice from the New York Stock Exchange ("NYSE") that the average closing price of Callon's shares of common stock had fallen below $1.00 per share over a period of 30 consecutive trading days, which is the minimum average share price for continued listing on the NYSE.