Callon Petroleum Lowers Its Asking Price For Carrizo Oil & Gas

Callon Petroleum agreed to a lower premium in its acquisition of Carrizo Oil & Gas as part of amended deal terms.

Emily

Patsy

HartEnergy.com

Thu, 11/14/2019 - 09:35 AM

Callon Petroleum Sweetens Deal Price For Carrizo Oil & Gas Merger

Phillips Johnston, an analyst with Capital One Securities Inc., estimates the amended terms lower the total transaction value to $2.7 billion from the original $3.2 billion deal value. (Source: Hart Energy)

In response to shareholder opposition, Callon Petroleum Co. and Carrizo Oil & Gas Inc. on Nov. 14 they unsweetened the terms of the merger between the two Houston-based independents.

Callon's initial proposal offered Carrizo a 25% premium. Under new merger terms, the premium slips into the single digits and the overall transaction value would fall by about half a billion dollars.

Despite clamoring for consolidation for the past year, investors have largely punished stocks of merging companies, with few exceptions. For example, shares of Callon have fallen roughly 30% since the transaction with Carrizo was first announced in July.

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Texas/La Gulf Coast

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.

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