Houston oil firms Callon Petroleum and Carrizo Oil & Gas merge in $1.2 billion deal

By David Arkin - Director of Digital
David McNew/Getty Images

HOUSTON - Callon Petroleum Co. announced on Monday they have acquired Carrizo Oil & Gas, Inc. in a $1.2 billion merger of two Houston oil producers.

Callon shareholders will own approximately 54 percent of the combined company, while Carrizo shareholders will have 46 percent. The deal will close in the fourth quarter of this year.

The combined company will be based in Houston. Callon moved their headquarters to Houston earlier this year.

"We are excited about this transformational transaction, creating a differentiated oil and gas company by integrating core asset bases in premier basins,” said Joe Gatto, President and Chief Executive Officer of Callon.

S.P. "Chip" Johnson, IV, President and Chief Executive Officer of Carrizo said: "We believe that Callon is the ideal partner for Carrizo. Through our combination, we bring together a strong foundation of Midland Basin and Eagle Ford Shale assets and overlay a substantial Delaware acreage position and value proposition that will be unlocked through an integrated plan of large-scale program development.”

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