Market Overview

UPDATE: Global Hunter Securities Downgrades Callon Petroleum to Accumulate on Liquidity Concerns

Related CPE
Benzinga's Top Initiations
All Of Imperial Capital's Best Ideas For June

Global Hunter Securities reduced its rating on Callon Petroleum (NYSE: CPE) from Buy to Accumulate and reduced its price target from $8 to $6.

Global Hunter Securities said, "W[]e're dropping our Buy rating to Accumulate until CPE addresses its current liquidity situation. After Q3's hurricane downtime the company is left with just $36MM on the revolver and we estimate an outspend of approximately $19MM in Q4. CPE has plenty of options (refinance and upsize its 2016 notes, sell non-core assets, sit back and bank on its borrowing base being revised higher as additional Permian wells come online, etc), and with a net debt-to-cap of 46%, were not talking a ATPG-type liquidity problem by any stretch. However, the market despises uncertainty, and we think this puts a damper on CPE's short-term performance."

Callon Petroleum closed at $4.62 on Monday.

Latest Ratings for CPE

Jun 2016CitigroupInitiates Coverage onNeutral
May 2016WunderlichMaintainsBuy
May 2016Credit SuisseInitiates Coverage onOutperform

View More Analyst Ratings for CPE
View the Latest Analyst Ratings

Posted-In: Global Hunter SecuritiesAnalyst Color Downgrades Intraday Update Analyst Ratings


Related Articles (CPE)

View Comments and Join the Discussion!