Callon Petroleum Co. agreed July 15 to acquire Carrizo Oil & Gas Inc. in an all-stock transaction valued at $3.2 billion, gaining oil-weighted positions in the Permian Basin and Eagle Ford Shale.

The companies, both based in Houston, said in a joint release that the combination will create a premier oil-weighted mid-cap with peer-leading capital efficiency and cash margins. Callon, currently a Permian pure play, is set to have over 100,000 boe/d of pro forma production and 200,000 net acres in the Permian Basin and Eagle Ford Shale through its combination with Carrizo.

“We believe that Callon is the ideal partner for Carrizo,” S.P. “Chip” Johnson, president and CEO of Carrizo, said in a statement on July 15. “Through our combination, we bring together a strong foundation of Midland Basin and Eagle Ford Shale assets and overlay a substantial Delaware acreage position and value proposition that will be unlocked through an integrated plan of large-scale program development.”

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