Callon Petroleum Closes Asset Purchase & Sale Deals, Trims Debt & Authorizes $300M Share Buyback

Callon Petroleum Co CPE disclosed the closure of its previously announced acquisition of Delaware Basin assets and divestiture of Eagle Ford assets.

The company bought Delaware Basin assets from Percussion Petroleum Operating II, LLC for $249 million in cash and around 6.3 million of its common shares.

Apart from that, Callon received $551 million in cash from the sale of Eagle Ford assets to Ridgemar Energy Operating, LLC.

"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. The bolt-on Percussion transaction improves our Delaware inventory depth and also lowers our cost structure," said Joe Gatto, President and CEO. 

With transaction closure, the company's outstanding debt declined by around $300 million, and gross debt is currently below $2.0 billion. Also, the company submitted a notice of redemption for the $187.2 million of 8.25% Senior Notes maturing in July 2025.

Also, the Board of Directors authorized the previously announced two-year, $300 million worth share repurchase program effective July 3rd. Callon expects to repurchase its first shares under this program in Q3 2023.

Price Action: CPE shares are trading higher by 2.05% at $35.87 premarket on the last check Wednesday.