APA Corp to acquire Callon Petroleum in $4.5 bln deal (updated)

Callon Petroleum Co

04/01/2024 11:19

(Adds details throughout)
       Jan 4 (Reuters) - U.S. oil producer APA  APA.O  said on
Thursday it would acquire Permian Basin producer Callon
Petroleum  CPE.N  in a $4.5 billion all-stock deal, inclusive of
debt, as dealmaking accelerates in the largest U.S. oilfield.  
    Callon's assets would provide scale to APA's operations in
the Permian Basin, and increase the company's acreage by 50%.
    Under terms of the deal, each outstanding share of Callon
will be exchanged for 1.0425 shares of APA, representing an
implied value to each Callon share of $38.31 per share, the
companies said.
    Shares of Callon, which has a market value of $2.28 billion
as of last closing, rose 6.1% in premarket trading.
    Callon entered the Permian basin in 2009 with the
acquisition of about 8,800 net acres for $16 million. In 2019,
Callon completed the merger with Carrizo Oil & Gas expanding its
footprint across the Permian Basin.
    The deal with APA is expected to close during the second
quarter of 2024. 



 (Reporting by Seher Dareen in Bengaluru; Editing by Dhanya Ann
Thoppil and Shilpi Majumdar)
 ((Seher.Dareen@thomsonreuters.com; If in India call +91 74832
70128, if within U.S. call +1 646 223 8780;))