S&P Global Ratings upgraded the issuer credit rating of U.S.-based exploration and production company Callon Petroleum Co. to B+ from B and the ratings of its unsecured notes to BB- from B+. The outlook is stable.

The upgrade reflects Ratings' view of Callon's increased scale, scope and diversification following its recently completed $3.2 billion acquisition of Carrizo Oil & Gas Inc., according to a Jan. 10 research update. The rating agency also expects the combined company's production to be weighted toward oil, which will continue to support strong cash flow and profitability measures, the update said.

The stable outlook reflects Ratings' view that the company will maintain a financial policy that supports liquidity and financial measures, while also successfully integrating assets from Carrizo.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.