Callon Petroleum will acquire Carrizo in an all-stock transaction valued at $3.2 billion. J.P. Morgan and Bank of America Merrill Lynch provided underwritten financing to Callon to support the transaction.
This highly complementary combination will create a leading oil and gas company with scaled development operations across a portfolio of core oil-weighted assets in both the Permian Basin and Eagle Ford Shale.
“We are excited about this transformational transaction, creating a differentiated oil and gas company by integrating core asset bases in premier basins. Together with Carrizo, we will accelerate our free cash flow, capital efficiency and deleveraging goals through an optimized model of large-scale development across the portfolio,” said Joe Gatto, president and CEO of Callon.
Kirkland & Ellis is serving as legal advisor to Callon. RBC Capital Markets and Lazard are serving as financial advisors to Carrizo, and Baker Botts is serving as legal advisor to Carrizo.