The oil and gas company priced the 12.5 million share public offering at $9 a share. The underwriters of the offering have a 30-day option to buy up to an additional 1.875 million shares.
Callon expects net proceeds of about $106 million from the offering, or about $122 million if the underwriters exercise their option. The company plans to use the net proceed, along with funds from a new secured second lien term loan, to fund its acquisition of oil and gas properties in the Permian Basin.
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TheStreet Ratings team rates CALLON PETROLEUM CO/DE as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CALLON PETROLEUM CO/DE (CPE) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."