Explosive Surge! Callon Petroleum (CPE) Sparks Frenzy with 5% Gain Amidst Takeover Buzz – What’s Next for this Oil Giant?
Shares of Callon Petroleum Company (NYSE: CPE) rose by 5.0% on Friday following reports of the oil and gas company attracting takeover interest. Anonymous sources informed Bloomberg that Callon Petroleum is currently working with an advisor to explore strategic options, including a potential sale.
Despite the market-beating results reported for its fiscal third quarter over a month ago, Callon has not yet responded to this recent stock market news. The New York-listed firm did experience a decrease in revenue compared to the previous year, attributed to lower production volumes and oil-equivalent prices.
Callon Petroleum
Currently trading more than 20% below its year-to-date high in late January, Callon, with a market cap exceeding $2.2 billion, is still evaluating its options. The possibility of choosing to remain independent is also mentioned in the Bloomberg report.
The company, which acquired Delaware Basin assets from Percussion Petroleum Operating and sold its Eagle Ford assets to Ridgemar Energy Operating earlier this year, has not finalized its decision on the available options.
In late November, Devin Ryan, a Morgan Stanley analyst, reiterated his “equal-weight” rating on Callon Petroleum shares, lowering the price target to $40, suggesting a potential 20% upside from the current levels.
