Each one in plain English, with the numbers worked through for a shareholder.
5 Oct 2021asset acquisition disposition▲ GoodMajor
Callon completed the Primexx and BPP acquisitions (called the Peak Acquisition) on October 1, 2021. It paid about $362.2 million cash and 6.42 million shares for Primexx assets, and $91.5 million cash and 2.42 million shares for BPP assets, subject to adjustments. The press release also announces a deal to sell non-core Eagle Ford acreage (about 22,000 net acres) for roughly $100 million, expected to close in November 2021, and raised production guidance. Final cash and share amounts came in different from the August terms: Primexx cash rose and shares fell, while BPP cash fell and shares rose.
On August 3, 2021 Callon agreed to buy Delaware Basin oil and gas properties, undeveloped acreage and infrastructure from Primexx ($337.3 million cash plus 7.04 million shares) and BPP ($102.7 million cash plus 2.15 million shares), with an effective date of July 1, 2021. Both deals were expected to close October 1, 2021, each conditional on the other, with deposits of $46.1 million and $14.0 million. The press release says the Primexx assets are about 35,000 net acres in Reeves County producing roughly 18,000 Boe/d in Q2 2021. Callon had 46,290,613 shares outstanding at that date, so the share consideration is a meaningful addition.
5 Aug 2021capital raising announcement● NeutralMajor
On August 3, 2021 Callon agreed with Kimmeridge (Chambers Investments) to swap $197.0 million of its 9.00% second lien notes for about $223.1 million of new common stock. Closing depends on the Primexx and BPP Delaware Basin acquisitions closing, a stockholder vote, NYSE listing approval and antitrust clearance. This continues the Kimmeridge relationship that began with the 2020 second lien notes and would cut debt but add new shares for existing holders (dilution is an inference).
Callon closed its $650 million offering of 8.00% senior unsecured notes due 2028 on July 6, 2021, with net proceeds of about $639 million. It will use the money to redeem all of the 6.25% notes due 2023 (on July 21, 2021) and put the rest toward partly repaying the revolving credit facility without cancelling it. The 2023 notes' indenture has been discharged, so this completes the refinancing announced on June 21.
On June 21, 2021 Callon agreed to sell $650 million of 8.00% senior unsecured notes due 2028 and issued a notice to redeem all $542.7 million of its 6.25% notes due 2023 on July 21, 2021. It plans to fund the redemption from the offering proceeds and cash on hand. This retires the 2023 notes inherited from Carrizo (part of which had been exchanged in the November 2020 swap) and pushes out that maturity.
JB Investments Management, LLC, JB Investments Fund III, L.P, JB Investments Parallel Fund III, L.P, JB Investments Fund III GP, LLC, Brian J. Riley disclosed a new substantial Callon Petroleum Co shareholding (6.60% of votes).
