Deal Insight

Callon Petroleum acquires Carrizo Oil & Gas for US$3.3 billion

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17 July 2019

Callon Petroleum acquires Carrizo Oil & Gas for US$3.3 billion

Report summary

On July 15th, Callon Petroleum announced that it is attempting to purchase Carrizo Oil & Gas in an all-stock deal, valued at US$3.3 billion. The deal is certainly notable because the total consideration, including Carrizo's full enterprise value, would make it the third-largest M&A transaction of the year. Post completion, shareholders of Callon and Carrizo will own 54% and 46% of the combined entity respectively. This makes the deal more of a merger of peers. Carrizo currently produces approximately 66,000 boe/d across 76,500 net acres in the Eagle Ford and 46,000 net acres in the Delaware basin. The Eagle Ford asset generates roughly US$200 million of cash flow, which was cited as a self-funding mechanism for the pro-forma company's new Permian program. This will help the pro forma company deliver on its plans to develop its acreage with a more capital-intensive tank or cube style development.

Table of contents

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

Tables and charts

This report includes 8 images and tables including:

  • Executive summary: Table 1
  • Callon and Carrizo Delaware Basin Activity (Wolfcamp A Total Organic Carbon)
  • Upstream assets: Table 1
  • Deal analysis: Table 1
  • Deal analysis: Table 2
  • Deal analysis: Table 3
  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2

What's included

This report contains:

  • Document

    Callon Petroleum acquires Carrizo Oil & Gas for US$3.3 billion

    PDF 951.96 KB

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