Callon Petroleum extends revolver to 2022, ups borrowing base by 30%

By Marisa Wong

Morgantown, W.Va., May 31 – Callon Petroleum Co. said it entered into an amended and restated credit agreement to extend the maturity date of its senior secured revolving credit facility.

The amendment extends the maturity date until May 25, 2022 and also increases the borrowing base to $650 million and increases the maximum commitments of the lenders to $2 billion from $500 million, according to a press release.

The 30% increase in the borrowing base amount reflects the significant reserve growth from the company’s existing Midland Basin assets in addition to the contribution from its recently acquired Delaware Basin assets.

In addition, the amended and restated credit agreement allows Callon to choose the amount of aggregate commitments under the facility, up to the borrowing base in effect.

Callon said it has initially elected an aggregate commitment amount of $500 million.

The bank syndicate, co-arranged by JPMorgan Chase Bank, NA, Capital One, NA, Citibank, NA and Bank of Nova Scotia, includes four new lending institutions for a total of 17 participating banks.

The company currently has no outstanding borrowings under the facility.

Callon is a Natchez, Miss.-based independent energy company focused on the acquisition, development, exploration and operation of oil and gas properties in the Permian Basin in West Texas.

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