APA Corporation (APA) is set to acquire Callon Petroleum Company (NYSE:CPE) in an all-stock transaction valued at approximately $4.5 billion, including the latter’s net debt.
The definitive agreement has gained unanimous approval from the Boards of Directors of both APA and Callon, the two companies said in a press release.
“This transaction is aligned with APA’s overall portfolio strategy and fits all the criteria of our disciplined approach to evaluating external growth opportunities. Callon has built a strong portfolio in the Permian Basin that is complementary to our existing Permian assets and rounds out our opportunity set in the Delaware,” said John J. Christmann IV, APA’s CEO and president
The deal is anticipated to conclude in the second quarter of 2024, pending customary closing conditions.
Joe Gatto, Callon’s president and CEO, commented “This combination with APA now provides for an enhanced value proposition for our shareholders built on their depth of experience and strong execution in the Permian Basin, flexibility for increased capital allocation, and ongoing delineation and optimization efforts.
Citi and Wells Fargo Securities LLC are serving as financial advisors to APA, with legal counsel provided by Wachtell, Lipton, Rosen & Katz.
Meanwhile, Morgan Stanley & Co. LLC leads as the advisor to Callon, supported by RBC Capital Markets, LLC as a financial advisor.