Callon Petroleum Co. priced its underwritten public offering of 22,000,000 common shares to earn estimated gross proceeds of $259.6 million, which the company plans to use to partly fund its recently announced $570 million asset acquisition from Cimarex Energy Co.
The underwriters were given an option to buy up to 3,300,000 additional common shares. The Permian Basin-focused producer agreed to acquire oil and gas production assets in 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 are serving as joint book-running managers for the offering, which is expected to close May 30.
