Callon Petroleum (CPE)

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Callon Petroleum: A 2018 Story?
Jan.25.18 | About: Callon Petroleum (CPE)
Michael Fitzsimmons
Michael Fitzsimmons
Renewable energy, oil & gas, dividend investing, gold
(7,871 followers)
Summary

Compared to its Permian shale producer peer group, Callon had a very disappointing 2017.

Part of the reason for the under-performance was a greatly expanded share count and substantial investment in surface infrastructure.

Now that much of the infrastructure has been built out, is 2018 the year for expanded production and share price appreciation?

Over the past 12-months the stock of Permian operator Callon Petroleum (CPE) has dropped over 20% despite WTI rising by about 20%. As I reported in my last article on CPE, that is partly due to a significant rise in the number of shares as well as significant spending on surface infrastructure in order to exploit its new acreage position in Howard County (see Callon Petroluem: Did You Take Some Profits?).

Source: Yahoo Finance

In its latest presentation, Callon reported on the progress it has made with respect to infrastructure projects across its four major Permian plays in order to prepare for full asset development. These include salt-water disposal wells, electrical power assets, and oil storage tanks: