How Is Callon Petroleum Hedged for 2017?


Jan. 6 2017, Published 12:59 p.m. ET

Callon’s hedge position

Callon Petroleum’s (CPE) 2Q16 earnings release noted that it had hedged 48% of its oil volumes for 2016. The company has hedged its oil (USO) and gas (UGAZ) volumes through 2017, as the chart below shows.

When asked about the company’s 2017 hedging positions at its 2Q16 earnings conference, CPE Chief Financial Officer Joseph Gatto stated: “We’ve added some oil hedges and actually a little bit of gas here recently as well. But historically, we’ve been 50% [or] 60% hedged. We’re about 25%. I think we’ll try to move that up a little bit closer to 35% [or] 40% in the coming months as we get into next year and look to support some cash flows with a three-rig anticipated program.”

Other companies that are hedged in 2017 include Bill Barrett (BBG), Oasis Petroleum (OAS), and Sanchez Energy (SN).

To know more about Bill Barrett Corp, check out Should Bill Barrett Corporation Be on Your Investment Radar? Continue to the next part for a closer look at CPE’s cost efficiencies.

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