2023-03-09 01:50:49 ET
Summary
- Callon is projected to generate $267 million in free cash flow at current 2023 strip of mid-to-high $70s WTI oil.
- This is lower than what was in Callon's presentation since that presentation used FactSet consensus numbers from mid-February.
- Callon is dealing with cost inflation issues but expects improved cash flow in 2024 to 2027 with increased capital efficiency.
- I estimate Callon's value at around $54 per share in a long-term $70 WTI oil scenario.
For further details see:
Callon Petroleum: Reviewing Its Guidance For 2023