Shares of the Callon Petroleum Company (CPE) stock were falling in the pre-market on August 9, 2021. CPE stock price saw a downtrend of 3.93% to drop at $31.50 a share as of this writing. The stock was gloomy in the previous trade as it went low by 1.86% at closing. Let’s try to understand the reason behind this bearish sentiment.
What’s Happening?
Callon Petroleum Company is an oil and natural gas stock founded in 1950 and is based in Houston, Texas. There is no CPE stock-related news in today’s date to support the current condition of this stock. No analysts’ downgrades or increased targeted per share price of the CPE stock has been in the recent news. On the other hand, the rise of covid-19 cases in the United States and across the globe is spreading confusion among investors in this regard. In such a situation it becomes difficult to decide whether to buy a particular stock or not. For your convenience, let’s discuss some recent events of the CPE stock.
CPE Stock Second Quarter 2021 Financial Results:
CPE stock did announce second-quarter 2021 financial results according to which
- The oil production was 63% in the reported quarter.
- Callon Petroleum stock reported net cash of $175.6 million from the operating activities. Adjusted free cash flow was $6.9 million in the second quarter.
- Callon Petroleum stock suffered a net loss of $11.7 million, or $0.25 per diluted share due to derivative contracts of $190.5 million. Adjusted EBITDA of the stock was $196.8 million and $70.3 million or $1.49 per diluted share was reported in Q2,2021.
- The operating margin of the stock was $37.76 per Boe, 13% higher than the previous quarter.
CPE stock recent developments:
- The stock generated net proceeds of $30.7 million from the divestiture of non-core assets.
- Callon Petroleum stock completed the redemption of previously issued senior unsecured notes due 2023. Stock issued new unsecured senior notes due 2028 worth $650 million.
- The outstanding balance of senior secured facility reduced to $780 million, which means utilization of capacity less than 50%
- CPE stock executed a 29-well Irvin West project for increasing production growth than the average daily production.
Wrap Up:
CPE stock has been gloomy so far without any obvious reason. One thing is to note that the CPE stock has been around since 1950. The management has enough exposure to how to survive even in the worst market conditions. Increasing oil and gas demand would make the stock bullish. Hence it can perform better in the future.
