Each one in plain English, with the numbers worked through for a shareholder.
15 Nov 2022substantial holder notice● Neutral
Primexx Energy Partners, Ltd, Primexx Energy Corporation, BPP Energy Partners LLC, BPP HoldCo LLC, BX Primexx Topco LLC, BCP VII/BEP II Holdings Manager L.L.C, Blackstone Energy Management Associates II L.L.C, Blackstone Management Associates VII L.L.C, BMA VII L.L.C, Blackstone EMA II L.L.C, Blackstone Holdings III L.P, Blackstone Holdings III GP L.P, Blackstone Holdings III GP Management L.L.C, Blackstone Inc, Blackstone Group Management L.L.C, Stephen A. Schwarzman reported a Callon Petroleum Co shareholding of 5,832,824 shares (9.50% of votes) in a periodic institutional filing.
Callon amended and restated its senior secured revolving credit facility with JPMorgan Chase as agent, extending maturity to October 19, 2027. It has a $2.0 billion borrowing base and a $1.5 billion elected commitment, secured by substantially all oil and gas properties, with a maximum 3.50x debt to EBITDAX covenant. The CEO called it the last transactional step of the financial repositioning plan begun two years earlier.
Callon closed the $600 million 7.50% senior unsecured notes due June 15, 2030, receiving about $588 million net, guaranteed by its subsidiaries. It deposited funds with the trustee to pay off the 2024 notes (at 101.531% of principal) and the second lien notes (with the applicable premium) and discharged both indentures. This completes the refinancing announced June 9 and resolves the open question of the second lien notes balance, which was $319.7 million per the June 9 filing.
Primexx Energy Partners, Ltd, Primexx Energy Corporation, BPP Energy Partners LLC, BPP HoldCo LLC, BX Primexx Topco LLC, BCP VII/BEP II Holdings Manager L.L.C, Blackstone Energy Management Associates II L.L.C, Blackstone Management Associates VII L.L.C, BMA VII L.L.C, Blackstone EMA II L.L.C, Blackstone Holdings III L.P, Blackstone Holdings III GP L.P, Blackstone Holdings III GP Management L.L.C, Blackstone Inc, Blackstone Group Management L.L.C, Stephen A. Schwarzman reported a Callon Petroleum Co shareholding of 6,019,974 shares (9.80% of votes) in a periodic institutional filing.
Callon priced $600 million of 7.500% senior unsecured notes due 2030 and issued redemption notices for all $460.2 million of its 6.125% notes due 2024 and all $319.7 million of its 9.00% second lien notes due 2025. The new notes' proceeds plus revolver borrowings are to fund the redemptions, set for July 9, 2022 (settling July 11). This continues the debt refinancing and would retire the second lien notes tied to the earlier Kimmeridge deals.
Callon raised its 2022 operational capital budget to $790-$810 million from $725 million, citing service cost inflation of about 20% on key drilling and completion items versus 2021. It kept production guidance at 101-105 MBoe/d, raised its adjusted free cash flow outlook to over $900 million, and expects a credit facility balance of about $550 million at June 30, 2022. It also signed firm gas transportation for about 75,000 MMBtu/d to the Gulf Coast starting mid-2023.
Kimmeridge Energy Management Company, LLC reported a Callon Petroleum Co shareholding of 5,200,780 shares (8.40% of votes) in a periodic institutional filing.
