- Callon's share price has gone up by close to 80% since the beginning of February, although its total enterprise value has only gone up 15%.
- Callon's high amount of leverage makes its share price quite sensitive to changes in oil prices.
- A $1 change in longer-term oil prices results in Callon's share price changing by around $2.
- Callon's benefit from increased 2021 oil prices is limited by its hedges. 2022 prices have also increased though, potentially allowing Callon to add hedges in the low-to-mid $50s.
- Callon will still need to focus on deleveraging over the next couple years, with stable mid-$50s oil over that time making it feasible to address its debt issues.
For further details see:
Callon Petroleum: High Leverage Makes Its Share Price Sensitive To Oil Price Changes