Callon Petroleum (CPE) remained profitable and narrowed its cash flow deficit in the third quarter, even as it faced weak commodity prices, but the company is facing an uncertain future. On a stand-alone basis, Callon Petroleum seems to be heading in the right direction but its acquisition of Carrizo Oil & Gas (CRZO) adds a considerable degree of uncertainty to the company’s outlook and the performance of its shares. Therefore, I think investors should avoid this stock.
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Solid Quarterly Results
Callon Petroleum has reported solid quarterly results.