Energy Prospectus

Carrizo Oil & Gas, Inc. has added a new press release to its website:

Callon and Carrizo Shareholders Approve Merger
HOUSTON, Dec. 20, 2019 /PRNewswire/ -- Callon Petroleum Company (NYSE: CPE) ("Callon") and Carrizo Oil & Gas, Inc. (NASDAQ: CRZO) ("Carrizo") today announced that both companies' common shareholders voted to approve all proposals necessary for the parties' pending all-stock transaction at today's respective special meetings held by each company. The merger is expected to close by end of business today, December 20, 2019. Under the terms of the merger agreement, Carrizo shareholders will receive 1.75 shares of Callon common stock for each share of Carrizo common stock they own.

"We appreciate the strong support we received for our combination," said Joe Gatto, President and Chief Executive Officer of Callon. "Together with Carrizo, we are creating a leading oil and gas company that is positioned to accelerate the achievement of our stated goals regarding increasing returns on capital and sustainable free cash flow generation. As a larger enterprise, we will employ a more efficient scaled development model that will drive a lower cost of supply and underpin resilient performance over time. We look forward to delivering to our shareholders and other stakeholders the significant benefits we believe this combination provides."

About Callon

Callon is an independent energy company focused on the acquisition and development of unconventional onshore oil and natural gas reserves in the Permian Basin in West Texas. This news release is posted on Callon's website at www.callon.com, and will be archived for subsequent review under the "News" link on the top of the homepage.

About Carrizo

Carrizo Oil & Gas, Inc. is a Houston-based energy company actively engaged in the exploration, development, and production of oil and gas from resource plays located in the United States. Our current operations are principally focused on proven, producing oil and gas plays in the Eagle Ford Shale in South Texas and the Permian Basin in West Texas.

This is good news.

My Pro Forma forecast/valuation model for Callon Petroleum (CPE) is on the EPG website under the Sweet 16 tab. It is based on the assumption that their merger with Carrizo closed by year-end. I have been following both companies for many years, so I have a HIGH level of confidence in the model.

Proforma Results on a combined basis:
2018 Actual: $1.71 EPS and $2.54 operating cash flow per share with production of 93,202 Boepd (69.5% crude oil)
2019 Forecast: $1.44 EPS and $2.78 operating cash flow per share with production of 106,685 Boepd (70.2% crude oil)
2020 Forecast: $1.49 EPS and $3.41 operating cash flow per share with production of 120,000 Boepd (69.2% crude oil)

An upstream company of this size with 10% to 15% production growth locked in for many more years s/b trading for 6X operating CFPS.

In the last 3 months, 8 ranked analysts set 12-month price targets for CPE. The average price target among the analysts is $6.62.

Stifel's price target for CPE was $8.30 as of December 16.

Lots more upside if WTI goes to $65/bbl, which I'm expecting shortly after the Phase One Trade Agreement with China is signed.

The merger has officially closed.

HOUSTON, Dec. 20, 2019 /PRNewswire/ -- Callon Petroleum Company (NYSE: CPE) ("Callon") today announced that it has completed its acquisition of Carrizo Oil & Gas, Inc. ("Carrizo").

As previously announced, current Carrizo shareholders will receive 1.75 shares of Callon common stock for each share of Carrizo common stock they own. After the close of trading today, Carrizo common stock will no longer be listed for trading on the NASDAQ. In addition, Carrizo intends to request that its reporting obligations under the Securities Exchange Act of 1934 be suspended.

Callon Leadership Team

Callon also announced the officer slate of the combined company. As previously announced, the Callon senior leadership team will continue with the company:

Joseph C. Gatto, Jr., President, Chief Executive Officer and Director;
James P. Ulm, II, Senior Vice President and Chief Financial Officer;
Dr. Jeff Balmer, Senior Vice President and Chief Operating Officer; and
Michol L. Ecklund, Senior Vice President and General Counsel.

The Callon leadership team also includes:

Rex Bigler, Vice President – Asset Development, previously with Carrizo;
Gregory F. Conaway, Vice President and Chief Accounting Officer, previously with Carrizo;
J. Michael Hastings, Vice President – Marketing;
Scott Hudson, Vice President – Drilling and Completions, previously with Carrizo;
Liam Kelly, Vice President – Corporate Development;
Jamin B. McNeil, Vice President - Production; and
Michael J. O'Connor, Vice President – Permian.