Callon Petroleum Plans Reverse Stock Split Following NYSE Listing Warning

In addition to dealing with the current economic and operating environment, Callon Petroleum is still digesting its multibillion-dollar acquisition of fellow shale producer Carrizo Oil & Gas that closed in December.

Callon Petroleum Co. said April 16 it now plans to propose a reverse stock split after was notified by the New York Stock Exchange (NYSE) notified of noncompliance with continued listing standards.

The Houston-based shale producer said it received formal notice from the NYSE on April 10 that its stock’s average trading price over a 30-day period was below the required $1 per share. Callon now has a six-month grace period to pull up the stock price.

In addition to though economic and operating conditions, Callon is still digesting its multibillion-dollar acquisition of Carrizo Oil & Gas, which boosted its footprint in the Permian Basin as well as added a position in the Eagle Ford Shale. The all-stock transaction, valued at $2.7 billion when including the assumption of $1.96 billion of net debt and preferred stock, closed in December. 

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.