Callon Snags Permian Producer

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Independent producer Callon Petroleum has agreed to acquire Primexx Energy Partners for around $788 million in cash and stock in the latest public-private merger in the Permian Basin. Primexx is focused on the Delaware side of the Permian and holds 35,000 contiguous net acres in Reeves County, Texas, with production of around 18,000 boe/d. It is currently running two rigs with some 300 identified drilling locations, two-thirds of which can be drilled with two-mile laterals. That supports Callon’s “continued shift to larger, more capital-efficient development projects,” the company said. The latest deal includes $440 million in cash and 9.19 million shares of Callon stock. Consolidation in the Permian has been ramping up this year as oil and gas prices have strengthened, creating what many view as a seller’s market. Private players are also consolidating in order to scale operations. Primexx itself merged with fellow Blackstone portfolio company Jetta Permian last August.

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