Understanding Callon Petroleum’s Earnings Trend

Callon Petroleum’s (CPE) earnings have been coming in better than analysts’ expectations since 3Q15. The company’s adjusted net income in 3Q16 was $12.9 million, as compared to $3.1 million in 3Q15.

Callon posted adjusted 3Q16 EPS (earnings per share) of $0.09, as compared to an EPS of $0.05 in 3Q15. The Wall Street analyst consensus estimate was ~$0.08.

By comparison, peers Oasis Petroleum (OAS), Whiting Petroleum (WLL), and Sanchez Energy (SN) reported 3Q16 earnings of -$0.17, -$0.47, and -$0.49, respectively.

Notably, WLL and OAS make up ~0.84% of the iShares US Oil & Gas Exploration & Production ETF (IEO).