Callon Petroleum acquires Primexx Energy

Callon Petroleum acquires Primexx Energy Partners and its affiliates for US $788 million, paying US $440 million in cash and issuing 9.19 million shares.

This acquisition represents a "significant step" forward in Callon's strategy to scale its life-of-field development model, said the company in a statement on Wednesday.

"The Primexx transaction checks every operational and financial box on the list of compelling attributes of consolidation. The asset base adds substantial current oil production and a top-tier inventory to our Delaware portfolio, and fits squarely into our model of scaled, co-development of a multi-zone resource base," said Callon President and Chief Executive Officer Joe Gatto in the statement.

Joe added that they expect to generate approximately 30 percent more adjusted free cash flow  from the third quarter of 2021 through year-end 2023.