- Callon may be able to generate around $233 million in positive cash flow in 2021 at low-$60s WTI oil.
- It would then be able to generate a similar amount of positive cash flow per year at $55 WTI oil in 2022 and 2023.
- This would help it reduce its net debt to around $2.3 billion (or 2.3x EBITDAX) by the end of 2023 at $55 WTI oil and without additional divestitures.
- Callon's unsecured notes now yielding around 8.5% to 9.8% to maturity, indicating the potential for refinancing them properly if oil averages in the mid-$50s to low-$60s.
- Callon appears fairly valued based on longer-term $55 WTI oil (beyond 2021).
For further details see:
Callon Petroleum: Slowly Clawing Its Way Out Of Debt