Callon Petroleum Company (NYSE:CPE)’s wholly-owned subsidiary Callon Petroleum Operating Company recently closed its Cimarex Energy Co. acquired southern Delaware basin assets of oil and natural gas. The subsidiary acquired the Delaware Basin assets in approximately $538.6 million cash.
As per the deal Callon Petroleum deposited the payment on August 31, 2018 at the time of signing and adjustments in the customary purchase price. As per a report, through this acquisition the company acquired a net surface area of 28,000 acres located adjacent to the Spur operating area of the Callon Company in Ward country. The company also unveiled some update on its 2018 revised outlook for the entire year.
Key highlights of Callon Petroleum Company 2018
The company showed a solid performance in the Spur area this year raising its annual 2018 midpoint production guidance to 1500 BOE/d. The acquisition of Delaware basin also impacted the production. Callon Petroleum Company managed to reiterate its production target of more than 40,000 BOE/d for the fourth quarter of 2018.
The Chief Executive Officer and President of the company, Joe Gatto said, “ We are excited to get to work on our new combined Spur footprint, and have already started the completion of a previously drilled Lower Wolfcamp A well and commenced drilling of an additional well on the acquired acreage.”
Gatto further added that the “bolt-on” strategic acquisition’s nearness to its legacy footprint will provide significant advantages including shared infrastructure and extended lateral lengths. Gatto applauded his team saying that the team members did a good job by preparing efficiently for the transition immediately after the announcement made in May. The company expects the Spur operations to continue seamlessly.
Callon’s mean sales predicted to reach $583.73 million
More than 13 trading experts from different companies predicted that the publicly traded Callon Petroleum Company’s mean sales will be around $583.73 million. The data from Thomson Reuter states that out of all analysts covering the analysis, 8 recommended a BUY, 11 recommended OUTPERFORM, 0 gave a Sell recommendation, whereas 5 asked the investors to HOLD.