Kirkland & Ellis advised Callon Petroleum Co. (NYSE: CPE) on a definitive agreement to be sold to APA Corp. (NASDAQ: APA) in an all-stock transaction valued at approximately $4.5 billion, inclusive of Callon’s net debt. Under the terms of the transaction, each share of Callon common stock will be exchanged for a fixed ratio of 1.0425 shares of APA common stock. The transaction is expected to be accretive to key financial metrics and add to APA’s inventory of high quality, short-cycle opportunities. Callon’s assets provide additional scale to APA’s operations across the Permian Basin, most notably in the Delaware Basin. On a pro forma basis, total company production exceeds 500,000 BOE per day and enterprise value increases to more than $21 billion.
The Kirkland team was led by corporate partners Sean Wheeler, Debbie Yee and Camille Walker; executive compensation partner Rob Fowler; debt finance partner Mary Kogut; capital markets partner Michael Rigdon; and tax partners David Wheat and Joe Tobias.
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