CPE - Callon Petroleum to buy Permian Basin assets while exiting Eagle Ford

2023-05-03 16:59:23 ET

• Callon Petroleum ( NYSE: CPE ) +7.5% post-market Wednesday after agreeing to acquire core assets in the Delaware Basin while selling all assets in the Eagle Ford Shale, which it says will strengthen its balance sheet with total debt expected to drop below $1.9B at closing.
• Callon ( CPE ) said it would buy Permian-based Percussion Petroleum Operating II in a cash and stock deal valued at ~$475M and potential contingent payments of as much as $62.5M.Under the deal terms, Percussion will receive $265M in cash and a maximum of 6.46M Callon common shares.
• The acquisition will add ~18K net acres in& Ward, Winkler and Loving counties and ~70 high-return well locations in the 3rd Bone Spring, Wolfcamp A and Wolfcamp B with an average lateral length of nearly 10K ft.
• In a separate deal, Callon ( CPE ) agreed to sell all its assets in the Eagle Ford Shale to Ridgemar Energy Operating LLC for $655M in cash and potential contingent payments of as much as $45M.
• Callon's Eagle Ford assets are comprised of 52K net acres, with current estimated average production of 16.3K boe/day (71% oil).

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