Callon Petroleum Co. closed a previously announced underwritten public offering of 25,300,000 common shares, receiving net proceeds of about $288.6 million to help fund its $570 million asset acquisition from Cimarex Energy Co.
The total shares included 3,300,000 shares under the underwriters' overallotment option, which was exercised in full, according to a May 30 news release. The Permian Basin-focused producer agreed to acquire oil and gas production assets in the Delaware Basin of West Texas from Cimarex, a deal scheduled to close in the third quarter.
If the transaction does not materialize, Callon would use the net proceeds from the offering to fund exploration and development activities, redeem its preferred stock, and for general corporate purposes.
J.P. Morgan and Morgan Stanley acted as joint book-running managers for the offering.
