Callon Petroleum Co., Natchez, Miss., has closed on the sale of noncore assets in the southern Midland basin to Sequitur Permian LLC for net cash proceeds of $245 million. Proceeds do not include potential contingent consideration payments of up to $60 million based on West Texas Intermediate average annual pricing over 3 years.
Callon Petroleum Co., Natchez, Miss., has closed on the sale of noncore assets in the southern Midland basin to Sequitur Permian LLC for net cash proceeds of $245 million. Proceeds do not include potential contingent consideration payments of up to $60 million based on West Texas Intermediate average annual pricing over 3 years.
Callon is updating its full-year guidance to 38,000-39,500 boe/d from 39,500-41,500 boe/d to account for the impact of this divestiture and a previously announced acreage trade involving producing properties in Midland County.
Management also is lowering its estimates for operational capital expenditures to $495-520 million from $500-525 million to reflect realized efficiencies and cost reductions.
