Critical Review: EV Energy Partners (EVEP) & Callon Petroleum (CPE)

EV Energy Partners (NASDAQ: EVEP) and Callon Petroleum (NYSE:CPE) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Earnings and Valuation

This table compares EV Energy Partners and Callon Petroleum’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EV Energy Partners $184.89 million 0.14 -$242.89 million ($5.17) -0.10
Callon Petroleum $200.85 million 12.45 -$91.81 million $0.44 28.16

Callon Petroleum has higher revenue and earnings than EV Energy Partners. EV Energy Partners is trading at a lower price-to-earnings ratio than Callon Petroleum, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

EV Energy Partners has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500. Comparatively, Callon Petroleum has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.

Insider & Institutional Ownership

8.8% of EV Energy Partners shares are owned by institutional investors. 10.2% of EV Energy Partners shares are owned by insiders. Comparatively, 0.8% of Callon Petroleum shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares EV Energy Partners and Callon Petroleum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EV Energy Partners -118.99% -7.91% -3.64%
Callon Petroleum 20.19% 3.35% 2.64%

Analyst Ratings

This is a summary of recent ratings and target prices for EV Energy Partners and Callon Petroleum, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EV Energy Partners 1 1 0 0 1.50
Callon Petroleum 0 3 19 0 2.86

EV Energy Partners currently has a consensus price target of $1.00, indicating a potential upside of 93.35%. Callon Petroleum has a consensus price target of $16.81, indicating a potential upside of 35.67%. Given EV Energy Partners’ higher possible upside, equities research analysts clearly believe EV Energy Partners is more favorable than Callon Petroleum.

Summary

Callon Petroleum beats EV Energy Partners on 10 of the 14 factors compared between the two stocks.

About EV Energy Partners

EV Energy Partners, L.P. is engaged in the acquisition, development and production of oil and natural gas properties and all of its operations are located in the United States. The Company’s oil and natural gas properties are located in the Appalachian Basin, which includes the Utica Shale; the San Juan Basin; Michigan; Central Texas, which includes the Austin Chalk area; the Mid-Continent areas in Oklahoma, Texas, Arkansas, Kansas and Louisiana; the Monroe Field in Northern Louisiana, and the Permian Basin. Its activities are concentrated in the Ohio and West Virginia areas of the Appalachian Basin. Its properties are located in Rio Arriba County, New Mexico and La Plata County in Colorado. It owns Eagle Ford oil and natural gas properties in Karnes County, including Eagle Ford and Austin Chalk reserves. It holds interest in approximately 9,150 acres in Karnes County. Its properties are located in the Antrim Shale reservoir in Otsego and Montmorency counties in northern Michigan.

About Callon Petroleum

Callon Petroleum Company is an independent oil and natural gas company. The Company is engaged in the exploration, development, acquisition and production of oil and natural gas properties. The Company focuses on the acquisition and development of unconventional oil and natural gas reserves in the Permian Basin. The Permian Basin is located in West Texas and southeastern New Mexico and consisted of three primary sub-basins: the Midland Basin, the Delaware Basin, and the Central Basin Platform as of December 31, 2016. The Company’s drilling activity focuses on the horizontal development of various prospective intervals in the Midland Basin, including multiple levels of the Wolfcamp formation and the Lower Spraberry shale. It owns additional immaterial properties in Louisiana. As of December 31, 2016, the Company had owned leaseholds in 39,570 net acres in the Permian Basin, all of which was located in the Midland Basin.

What are top analysts saying about EV Energy Partners? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for EV Energy Partners and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit