Callon Petroleum Closes Asset Purchase & Sale Deals, Trims Debt & Authorizes $300M Share Buyback
Portfolio Pulse from Lekha Gupta
Callon Petroleum Co (CPE) has completed its acquisition of Delaware Basin assets and divestiture of Eagle Ford assets. The company bought Delaware Basin assets for $249 million in cash and around 6.3 million of its common shares, and sold Eagle Ford assets for $551 million in cash. The transactions have reduced the company's debt by $300 million and initiated a shareholder return plan. The company also announced a two-year, $300 million share repurchase program, with the first shares expected to be repurchased in Q3 2023.
July 05, 2023 | 1:07 pm
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Callon Petroleum's recent transactions have reduced its debt and initiated a shareholder return plan. The company also announced a $300 million share repurchase program.
The completion of the asset acquisition and divestiture, along with the reduction in debt and initiation of a shareholder return plan, are positive developments for Callon Petroleum. The announcement of a $300 million share repurchase program also indicates the company's confidence in its financial position and could be a positive signal to investors, potentially driving the stock price up in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100