|6 Months Ended|
Jun. 30, 2019
|Subsequent Events [Abstract]|
|Carrizo Acquisition||Carrizo Acquisition
On July 14, 2019, Callon and Carrizo Oil & Gas, Inc. (“Carrizo”) entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which, upon the terms and subject to the conditions set forth therein, Carrizo will merge with and into Callon, with Callon as the surviving corporation (the “Merger” or the “Carrizo Acquisition”). The combination will result in a portfolio of core oil-weighted assets in both the Permian Basin and Eagle Ford Shale.
Subject to the terms and conditions of the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each outstanding share of Carrizo Common Stock, will be converted into the right to receive 2.05 shares of Callon Common Stock. Following the closing of the Merger, Callon’s existing shareholders and Carrizo’s existing shareholders will own approximately 54% and 46%, respectively, of the outstanding shares of the combined company.
The Merger Agreement provides that, upon consummation of the Merger, the board of directors of Callon will consist of the eight members of the board of directors of Callon immediately prior to the Effective Time and three members of the board of directors of Carrizo, two of such directors to be chosen by Carrizo and one such director to be chosen by Callon. Additionally, the Merger Agreement provides that, upon consummation of the Merger, the officers of Callon immediately prior to the Effective Time shall be the officers of the combined company. Callon will continue to be headquartered in Houston, Texas, where both companies are currently based. Callon expects that the acquisition will close during the fourth quarter of 2019, subject to the approval of both shareholder bases, the satisfaction of certain regulatory approvals and other closing conditions.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef