Each one in plain English, with the numbers worked through for a shareholder.
8 May 2023capital raising announcement▲ GoodMajor
Callon agreed to buy Percussion Petroleum Operating II for $255.0 million ($45.0 million cash, $210.0 million in Callon shares), plus assuming $220.0 million of its debt and earnout obligations of up to $62.5 million tied to oil prices. At the same time it agreed to sell its Eagle Ford subsidiary (the Carrizo-derived Eagle Ford assets, a sale first expected in 2021 but not confirmed) to Ridgemar for $655.0 million cash, with up to $45.0 million more if 2024 WTI averages at least $80. The Percussion deal depends on the Eagle Ford sale closing; both are expected to close July 3, 2023. The board also approved a $300.0 million buyback, effective only once both deals close.
8 Nov 2021capital raising announcement● NeutralMajor
On November 5, 2021 Callon closed the exchange with Kimmeridge: $197.0 million of 9.00% second lien notes were cancelled in return for 5,512,623 new common shares. Callon also agreed to register those shares for public resale within ten business days. This completes the exchange agreed on August 3, 2021, replacing that debt with equity, so existing holders now share the company with more shares outstanding.
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).
3 Nov 2020capital raising announcement● NeutralMajor
On November 2, 2020 Callon agreed to swap $286.0 million of its unsecured notes (2023, 2024, 2025 and 2026 series, including notes inherited from Carrizo) for $158.5 million of new 9.00% second lien notes due 2025, plus about 1.16 million warrants at $5.59646634. Holders could add up to $104.0 million more notes, lifting warrants to about 1.76 million. This continues the September Kimmeridge financing and cuts face-value debt, but the new notes rank ahead of the unsecured notes (inference).
1 Oct 2020capital raising announcement● NeutralMajor
On September 30, 2020, Callon sold $300 million of 9.00% second lien notes due 2025, plus warrants over 7,271,741 shares at $5.59646634 (up to 15% of fully diluted common stock), to a Kimmeridge Energy vehicle for $294 million. It also sold a 2.0% overriding royalty interest on its operated leases to a Kimmeridge affiliate for $140 million, and amended its revolving credit agreement (details truncated). Proceeds are meant to refinance debt and pay fees, and the royalty proceeds are meant to pay down the revolver. Warrants and the royalty sale mean existing shareholders could be diluted and give up some future revenue (inference).
Callon agreed to buy oil and gas properties and undeveloped acreage in the Midland Basin from BSM Energy, Crux Energy and Zaniah Energy (the Big Star deal) for $220 million in cash plus 9,333,333 Callon shares, with a $16.5 million deposit. The deal was expected to close May 26, 2016, and would give Callon an estimated 81% average working interest. It also signed a separate $33 million net cash deal with TRP Midland to jointly buy about 4,745 net acres in western Reagan County (55% Callon) while selling TRP a 27.5% interest in Garrison Draw; this firms up the Reagan County acquisition previously seen only in a press release. Issuing the shares to the sellers will add to the share count (inference).
