Callon Petroleum (CPE) Update - August 13

[dan_s]

IMO this is a is important because Moody's does not upgrade a company's credit rating without taking a hard look. My valuation of CPE is $68/share.

Moody's changes Callon Petroleum's rating outlook to positive, affirms B3 CFR

New York, August 10, 2021 -- Moodyʼs Investors Service (Moodyʼs) changed
Callon Petroleum Companyʼs (Callon) rating outlook to positive from stable and
affirmed its existing ratings, including the B3 Corporate Family Rating (CFR),
the B3-PD Probability of Default Rating (PDR) and the Caa2 ratings on its
senior unsecured notes. The Speculative Grade Liquidity (SGL) rating remains
SGL-3. The rating actions follow Callonʼs announcement it has an agreement to
acquire Primexx Energy Partners and it entered into an agreement to exchange
$197 million of second lien debt for Callon common equity.

"Callonʼs scale in the Delaware Basin, production volumes and cash flow will
benefit from the Primexx acquisition," commented James Wilkins, Moodyʼs Vice
President. "The substantial equity component of the acquisition financing and
exchange of second lien debt to equity are a positive for Callon leverage and
credit metrics."