Callon Petroleum closes on $245-million Midland basin divestiture
HOUSTON -- Callon Petroleum Company has announced that it closed on the previously announced divestiture of non-core assets in the southern Midland Basin to Sequitur Permian, LLC for net cash proceeds of $245 million, subject to customary post-closing adjustments. Net cash proceeds were adjusted for an effective date of Jan. 1, 2019, and do not include potential contingent consideration payments of up to $60 million, based on West Texas Intermediate average annual pricing over a three-year period.
Joe Gatto, president and CEO commented, "We remain on a clear path to attain the various objectives we have outlined for investors. This transaction is a meaningful step forward on our deleveraging goals, which will also be advanced by our cash flow generation in coming quarters."
