Brief: APA Corporation to Buy Callon Petroleum In $4.5 Bln Deal

Callon Petroleum Co

04/01/2024 11:05

Jan 4 (Reuters) - Callon Petroleum Co  CPE.N :
    * APA CORPORATION TO ACQUIRE CALLON PETROLEUM COMPANY IN
ALL-STOCK
TRANSACTION
    * PROPOSED DEAL FOR ALL-STOCK TRANSACTION VALUED AT
APPROXIMATELY
$4.5 BILLION
    * SAYS APA WILL ACQUIRE CALLON IN AN ALL-STOCK TRANSACTION
VALUED
AT APPROXIMATELY $4.5 BILLION, INCLUSIVE OF CALLON'S NET DEBT
    * SAYS EACH SHARE OF CALLON COMMON STOCK WILL BE EXCHANGED
FOR A
FIXED RATIO OF 1.0425 SHARES OF APA COMMON STOCK
    * APA EXPECTS TO RETIRE EXISTING DEBT AT CALLON AND REPLACE
IT
WITH APA TERM LOAN FACILITIES TOTALING $2.0 BILLION
    * : COMPLEMENTS AND ENHANCES APA'S ASSET BASE IN PERMIAN
BASIN;
EXPECTED TO BE ACCRETIVE TO KEY FINANCIAL METRICS
    * UNDER TRANSACTION, EACH SHARE OF CALLON COMMON STOCK WILL
BE
EXCHANGED FOR A FIXED RATIO OF 1.0425 SHARES OF APA COMMON STOCK
    * : ESTIMATED OVERHEAD, OPERATIONAL AND COST-OF-CAPITAL
SYNERGIES
TO EXCEED $150MLN ANNUALLY
    * CALLON PETROLEUM:TRANSACTION EXPECTED TO BE ACCRETIVE TO
ALL KEY
FINANCIAL METRICS & ADD TO APA'S INVENTORY OF HIGH QUALITY,
SHORT-CYCLE OPPORTUNITIES
    * TRANSACTION UNANIMOUSLY APPROVED BY BOARDS OF DIRECTORS OF
BOTH
APA AND CALLON AND IS EXPECTED TO CLOSE DURING Q2 OF 2024
    * DEAL REPRESENTING AN IMPLIED VALUE TO EACH CALLON SHARE OF
$38.31 PER SHARE BASED ON CLOSING PRICE OF APA COMMON STOCK ON
JAN. 3
    * FOLLOWING CLOSING, APA'S WORLDWIDE PRO FORMA PRODUCTION
MIX WILL
BE APPROXIMATELY 64% U.S. / 36% INTERNATIONAL.
    * AFTER CLOSING, EXISTING APA SHAREHOLDERS ARE EXPECTED TO
OWN
APPROXIMATELY 81% OF COMBINED COMPANY

Source text for Eikon:  ID:nGNX24zR2p 
Further company coverage:  CPE.N 

 ((Reuters.Briefs@thomsonreuters.com;))