Callon Petroleum rises after APA Corp's buyout offer

Callon Petroleum Co

04/01/2024 16:29

(Updates)
    ** Shares of oil firm Callon Petroleum  CPE.N  rise 3.5% to
$34.83, while APA  APA.O  drops 7.3% to $34.08
    ** APA Corp offers to buy Callon in an all-stock deal
valuing each Callon share at $38.31 based on APA's last close,
with the deal valued at $4.5 bln including debt
    ** Callon's assets expected to increase APA's acreage in the
Permian basin in Texas and New Mexico by 50%
    ** "We believe the acquisition is positive for APA, as it
goes a long way to addressing investor concerns surrounding
inventory depth," Siebert Williams Shank analysts write 
    ** Deal expected to close by Q2
    ** "Don't think the market will embrace this transaction
given the premium paid, slight increase in leverage and concerns
about CPE asset quality" - analyst Leo Mariani, Roth MKM    
    ** In 2023, CPE fell 12.6%, while APA dropped 23.1%

 (Reporting by Kabir Dweit and Sourasis Bose)
 ((Kabir.Dweit@thomsonreuters.com))