Name: Callon acquires 29,000 Delaware Permian acres from Cimarex for US$570 million
Brand: Wood Mackenzie
SKU: 88435
Price: 1650 USD
Availability: OnlineOnly
Author: Wood Mackenzie

Deal Insight 30 May 2018

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Report summary

Callon is buying 29,000 net acres in the Permian's Delaware Basin from Cimarex for US$570million. This asset boasts flowing production of roughly 6,800 boe/d. The vast majority of acquired acreage is adjacent to Callon's Spur operating area in Ward County, Texas, with the rest in Loving and Winkler counties, Texas. Callon builds contiguous, held-by-production acreage in its core operating area while Cimarex sells what it considers to be a non-core asset in its portfolio. Callon's pro-forma Permian position spans over 86,000 net acres, putting the company on the same scale as Jagged Peak, Centennial, and RSP Permian.

Executive summary
Transaction details
Upstream assets
Deal analysis
Upsides and risks
Strategic rationale
- Callon
- Cimarex
Oil & gas pricing and assumptions

Tables and charts

This report includes the following images and tables:

Executive summary: Table 1Upstream assets: Table 1Deal analysis: Table 1

Deal analysis: Table 2Deal analysis: Table 3Deal analysis: Table 4Deal analysis: Table 5Callon's operated wells with newly acquired assetOil & gas pricing and assumptions: Table 1Oil & gas pricing and assumptions: Table 2