Why Callon Petroleum Stock Rallied 16% at the Open Today
Shares of U.S. exploration and production (E&P) company Callon Petroleum (NYSE: CPE) rose as much as 16% or so in the first hour of trading on Nov. 4. The company's third-quarter earnings update, which came after the market closed on Nov. 3, was one of two catalysts here.
With a market cap of around $3.3 billion, Callon Petroleum is a fairly small energy company. That was a major problem in 2020 when oil and natural gas prices were plunging due to the economic shutdowns used to slow the spread of the coronavirus. However, now that energy prices are on the rise again, with the world economy starting to come back to life, Callon's performance has improved dramatically. For example, third-quarter 2021 sales came in at $552.6 million, up from $290 million in the same quarter last year. Adjusted income per share was $2.93 per share, up from $0.64 in the third quarter of 2020. So it was a pretty good quarter, helped materially by the fact that Callon's average realized sales price per barrel of oil equivalent increased from $28.14 in the third quarter of 2020 to $42.84 this year.
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Source Fool.com
