Callon closes public offering

Callon Petroleum Co.

Callon Petroleum Co. (NYSE: CPE) has closed its public offering of 12,500,000 shares of the company's common stock at a price to the public of $9.00 per share, before underwriting discounts, and the exercise in full by the underwriters of their option to purchase 1,875,000 additional shares of common stock at $9.00 per share, which also closed Sept. 15.

Net proceeds to Callon from the sale of the 14,375,000 shares of its common stock, after the underwriting discount and estimated offering expenses, were $122 million. Callon intends to use the net proceeds from this offering, together with borrowings under a planned new secured second lien term loan, to fund its pending acquisition of oil and gas properties in the Permian Basin.

To the extent the pending acquisition is not consummated, the company intends to use the net proceeds to fund a portion of its exploration and development activities and for general corporate purposes, which may include leasehold interest and property acquisitions, repayment of indebtedness and working capital. 

Johnson Rice & Company LLC and Scotiabank/Howard Weil acted as joint book-running managers for the offering.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...