Reduces Outstanding Debt by Approximately
$300 Million
Will Commence
Share Buyback Program in the Third Quarter
HOUSTON, July 5, 2023
/PRNewswire/ -- Callon Petroleum Company (NYSE: CPE) ("Callon" or
the "Company") today announced that it closed its previously
announced acquisition of Delaware
Basin assets from Percussion Petroleum Operating II, LLC
("Percussion") and the sale of its Eagle Ford assets to Ridgemar
Energy Operating, LLC ("Ridgemar") on July
3, 2023.
"We are excited to announce the completion of another important
strategic move for Callon and its shareholders. Through these two
transactions, we have created a singular focus on the Permian
Basin, reduced our absolute debt position, and kicked off a
shareholder return plan," said Joe
Gatto, President and CEO. "The bolt-on Percussion
transaction improves our Delaware
inventory depth and also lowers our cost structure. I would like to
thank everyone at Callon, Percussion, and Ridgemar for their
efforts to close these transactions."
Financial Impact of Transactions
The consideration
paid at closing for the Percussion transaction consisted of
$249 million in cash and
approximately 6.3 million shares of Callon common stock, subject to
customary post-closing adjustments. Callon received $551 million in cash at closing for the sale of
its Eagle Ford assets to Ridgemar, subject to customary
post-closing adjustments. Both transactions reflect an effective
date of January 1, 2023, and exclude
transaction expenses.
Stock Repurchase Program
As previously announced, the
Board of Directors authorized a two-year, $300 million stock repurchase program in
conjunction with the transactions that became effective upon their
closing on July 3rd.
Callon intends to repurchase its first shares under this program in
the third quarter of 2023.
Balance Sheet Update
At closing, Callon's outstanding
debt was reduced by approximately $300
million and gross debt is now less than $2.0 billion. Subsequently, Callon submitted a
notice of redemption for the $187.2
million of 8.25% Senior Notes maturing July 2025 and expects to complete the redemption
in early August. These notes are callable at par and will be funded
using the Company's revolving credit facility.
About Callon Petroleum
Callon Petroleum Company
is an independent oil and natural gas company focused on the
acquisition, exploration and sustainable development of
high-quality assets in the Permian Basin in West Texas. For more information about
Callon Petroleum, please visit
www.callon.com.
Cautionary Statement Regarding Forward-Looking
Information
This news release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements include all statements regarding future
operations, financial position, estimated revenues and losses,
projected costs, prospects, inventory, plans and objectives of
management, and the implementation of the Company's business plans
and strategy, as well as statements including the words "believe,"
"expect," "plans," "may," "will," "should," "could," and words of
similar meaning. These statements reflect the Company's current
views with respect to future events and financial performance based
on management's experience and perception of historical trends,
current conditions, anticipated future developments and other
factors believed to be appropriate. No assurances can be given,
however, that these events will occur or that these projections
will be achieved, and actual results could differ materially from
those projected as a result of certain factors. Any forward-looking
statement speaks only as of the date on which such statement is
made and the Company undertakes no obligation to correct or update
any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by
applicable law. Some of the factors which could affect our future
results and could cause results to differ materially from those
expressed in our forward-looking statements include the volatility
of oil and natural gas prices; changes in the supply of and demand
for oil and natural gas, including as a result general economic
conditions or as a result of actions by, or disputes among members
of OPEC and other oil and natural gas producing countries with
respect to production levels or other matters related to the price
of oil; our ability to drill and complete wells; operational,
regulatory and environment risks; the cost and availability of
equipment and labor; our ability to finance our development
activities at expected costs or at expected times or at all; rising
interest rates and inflation; our inability to realize the benefits
of recent transactions; currently unknown risks and liabilities
relating to the newly acquired assets and operations; adverse
actions by third parties involved with the transactions; risks that
are not yet known or material to us; and other risks more fully
discussed in our filings with the U.S. Securities and Exchange
Commission (the "SEC"), including our most recent Annual Reports on
Form 10-K and subsequent Quarterly Reports on Form 10-Q, available
on our website or the SEC's website at www.sec.gov. Any
forward-looking statement speaks only as of the date on which such
statement is made, and the Company undertakes no obligation to
correct or update any forward-looking statement, whether as a
result of new information, future events or otherwise, except as
required by applicable law.
Contact:
Kevin Smith
Director of Investor Relations
Callon Petroleum Company
ir@callon.com
(281) 589-5200
View original
content:https://www.prnewswire.com/news-releases/callon-petroleum-company-announces-the-closing-of-delaware-basin-acquisition-and-eagle-ford-divestiture-301869464.html
SOURCE Callon Petroleum Company