$CPE $CRZO Two small upstream players are merging to form a midsized E&P company with operations centered around the Permian Basin in West Texas and the Eagle Ford play down in South Texas. Callon Petroleum Company (CPE) announced on July 15 that it will acquire Carrizo Oil & Gas, Inc. (CRZO) through an all-stock transaction valued at $3.2 billion according to the company. Shares of CPE tumbled ~16% on July 15, dragging down shares of CRZO from their initial highs and ultimately leading to CRZO trading just 2% higher on July 15. The 18% premium Callon Petroleum offered Carrizo Oil & Gas shareholders was nearly obliterated in just one day, highlighting the risks involved with all-equity deals (that premium was based on CPE’s volume-weighted 60-day average price). In this piece, we will cover why we still aren't fans of either company.

Callon Petroleum Buys Carrizo Oil & Gas But We Still Aren't Fans $CPE https://seekingalpha.com/article/4276316