Callon Petroleum Co. closed on July 3 its previously announced Delaware Basin acquisition of Percussion Petroleum Operating II LLC and exited the Eagle Ford in a sale to Ridgemar Energy Operating LLC.

Collectively, the A&D was valued at about $1.13 billion.

Callon paid for the Percussion’s Delaware assets with a combination of $249 million in cash and approximately 6.3 million shares of Callon common stock.

In the Eagle Ford, Callon received $551 million in cash for its sale to Ridgemar, which is backed by Carnelian Energy Capital Management LP. The transactions are still subject to post-closing adjustments and reflect an effective date of Jan. 1, 2023, the company said in a July 5 press release.

"The bolt-on Percussion transaction improves our Delaware inventory depth and also lowers our cost structure,” Joe Gatto said, president and CEO of Callon.

RELATED: Analysts: Callon’s $1.1 Billion A&D Aids Debt Reduction, Investor Returns

Now a Permian Basin pure-play, the E&P also used the two transactions to reduce its debt position and start a shareholder return plan. At closing, Callon’s outstanding debt went down by approximately $300 million, with gross debt now at less than $2 billion.

In conjunction with the transactions, Callon’s board of directors also announced a two-year, $300 million stock repurchase program, effective July 3. First shares under the program will be repurchased in third quarter 2023.

Callon also submitted a notice of redemption for $187.2 million of 8.25% senior notes maturing in July 2025, to be complete in early August and funded using the company’s revolving credit facility.

RBC Capital Markets is serving as the sole financial adviser to Callon on the acquisition of Percussion. JP Morgan Securities LLC is serving as the sole financial adviser to Callon for the Eagle Ford divestiture. Haynes and Boone LLP and Kirkland & Ellis LLP are serving as legal advisers to Callon for the transactions.