Callon Petroleum Co. on Jan. 5 announced the resignation of S.P. “Chip” Johnson IV from its board of directors, effective immediately.

Johnson, former president, CEO and co-founder of Carrizo Oil and Gas, joined the board in December 2019 upon the completion of Callon’s merger with Carrizo.

“I am confident in the strategic direction of the company and look forward to watching Callon’s committed board and management team continue to execute a disciplined strategy,” Johnson commented in a company release from Callon.

Since the multibillion-dollar merger, which included the assumption of $1.96 billion of net debt and preferred stock, Callon has worked to accelerate the deleverageing of its balance sheet including through the monetization of noncore assets. For example, in 2020, the company agreed to sell an overriding royalty interest in substantially all Callon-operated oil and gas leaseholds to a private investment vehicle managed by private equity firm Kimmeridge Energy.

Kimmeridge later agreed to convert their remaining portion of the Callon second lien senior notes that were issued in 2020 into common shares at the close of Callon’s acquisition of privately held Permian operator Primexx Energy Partners in October 2021. The equitization was set to advance Callon’s deleveraging timetable and save nearly $20 million per year in interest costs, according to a company release at the time of the deal’s announcement.

“It’s been a pleasure to play a part in the successful integration of Callon and Carrizo following the completion of the combination two years ago,” Johnson added in the Jan. 5 release.

Headquartered in Houston, Callon operates in the Permian Basin and Eagle Ford Shale in Texas, where, as of Sept. 30, the company had 1,562 gross (1,382.8 net) wells producing from established flow units. The company’s net daily production for the third quarter of 2021 was 99,700 boe/d (64% oil).

With the resignation of Johnson and the recent appointment of Mary Shafer-Malicki, Callon’s board of directors now comprises 11 directors, 10 of whom are independent, with three board members scheduled to retire over the next three years starting in May.

“On behalf of the entire Board and management team, I want to thank Chip for his dedication and valuable contributions to Callon,” Board Chairman Richard Flury commented in the company release.

“We wish him continued good fortune in the years to come with both his personal and professional interests,” Flurry continued. “His departure, along with the recent appointment of Mary Shafer-Malicki to the board, position us well in our continued focus on thoughtful board refreshment.”

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