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.