Published on 5 Jan 2024 on Zacks via Yahoo Finance
APA (APA) to Buy Callon Petroleum in a $4.5 Billion Deal
APA Corporation APA announced that it will acquire Callon Petroleum Company CPE through an all-stock deal valued at approximately $4.5 billion, including Callon's net debt. This tremulous development is poised to reshape the dynamics of the industry, bringing together two formidable entities to create a powerhouse with unparalleled scale and operational prowess.
Transaction Overview
In this all-stock transaction, each outstanding share of Callon common stock will be exchanged for 1.0425 shares of APA common stock, translating to an implied value of $38.31 per Callon share based on the closing price of APA common stock on Jan 3, 2024. The strategic move is anticipated to be accretive to all key financial metrics, significantly enhancing APA's inventory of high-quality, short-cycle opportunities.