Following a collapse in energy prices, Callon Petroleum Co. has tapped the services of debt restructuring advisers in a bid to refinance more than $3 billion in debt, Reuters reported April 1, citing people familiar with the matter.
Reuters said the oil and gas producer is working with debt restructuring lawyers and has retained the services of an unnamed investment bank. The sources told Reuters that a decision on the specific course of debt was not imminent.
At the end of 2019, Callon had $3.2 billion of long term debt and $700 million of liquidity as of the end of February, according to regulatory filings cited by Reuters.
In December 2019, the producer closed on its acquisition of fellow producer Carrizo Oil & Gas, a transaction that was opposed by shareholders and investor advisory groups.
Amid a low price environment, the company previously cut its capital plan for the full year 2020 to a range of $700 million to $725 million, from $975 million initially, and disclosed plans to reduce activity.