NEW YORK, Nov. 6, 2019 /PRNewswire/ -- Paulson &
Co. Inc. ("Paulson"), as manager of funds holding 21.6 million
shares, or 9.5% of those outstanding, of Callon Petroleum Company
("Callon" or the "Company") (NYSE: CPE), today voted its Callon
shares against the proposed acquisition of Carrizo Oil & Gas
Inc. ("Carrizo") (NASDAQ: CRZO).
Paulson notes that Institutional Shareholder Services ("ISS")
and Glass Lewis & Co. ("Glass Lewis") both recommend that
Callon shareholders vote against the Company's proposed acquisition
of Carrizo. Both proxy advisors provide valuable, independent
perspectives to constituencies concerning proxy matters.
Callon shareholders and analysts have expressed a strong
interest in our views and have communicated that they share many of
our concerns. The Callon Board, which has to date been
unresponsive to any of our communications, should listen to its
shareholders.
If, on November 14th,
Callon shareholders reject the approval of the proposed
acquisition, Paulson requests that the Callon Board should follow
the will of its shareholders and direct management to focus on:
- Reducing G&A costs, which have risen by over $12 million for the first nine months of 2019
versus 2018;
- Focusing its SIMOPS mega-pad development on its extensive
stand-alone acreage;
- Delivering on generating true corporate-level free cash flow
organically starting in the fourth quarter of this year assuming
$50/bbl, as previously guided (page
14 of its February 26, 2019
presentation); and
- Engaging new, independent advisors to pursue a sale of
Callon.
As ISS states, a standalone Callon would be less risky and,
combined with a reduction in its own operating costs, a shorter
path to shareholder value than an overpriced acquisition. As
Glass Lewis concludes, investors could be pleasantly surprised once
the Company begins to generate positive free cash flow on a
standalone basis, or if the board actively solicited interest from
would-be suitors, which the board didn't do before signing the
merger agreement with Carrizo.
About Paulson & Co. Inc.
Paulson, founded in 1994, is an investment management firm
headquartered in New York.
Contact Details
Marcelo Kim
Paulson & Co. Inc.
212-599-6628
Cautionary Statement
Paulson & Co. Inc. ("Paulson") is not soliciting proxies
in connection with any matter brought before shareholders of the
companies identified in this letter or press release.
Clients, funds and accounts managed by Paulson (the "Paulson
Clients") may from time to time beneficially own, and/or have an
economic interest in, shares of the companies discussed in this
letter and as a result, the Paulson Clients have an economic
interest in the forward-looking statements, estimates and
projections discussed above and their impact on the companies
discussed in this letter. The Paulson Clients are in the business
of trading – buying and selling – securities, and may trade in the
securities of the companies discussed in this letter. You should
also assume that the Paulson Clients may from time to time sell all
or a portion of their holdings of one or more of the companies in
open market transactions or otherwise (including via short sales),
buy additional shares (in open market or privately negotiated
transactions or otherwise), or trade in options, puts, calls, swaps
or other derivative instruments relating to some or all of such
shares, regardless of the views expressed in this letter.
The views contained in this letter and press release
represent the opinions of Paulson as of the date hereof.
Paulson reserves the right to change any of its opinions expressed
herein at any time, but is under no obligation to update the data,
information or opinions contained herein. Under no circumstances is
this letter or press release intended to be, nor should it be
construed as advice or a recommendation to enter into or conclude
any transaction or buy or sell any security (whether on the terms
shown herein or otherwise). This letter should not be construed as
legal, tax, investment, financial or other advice. Additionally,
this letter should not be construed as an offer to buy any
investment in any fund or account managed by Paulson.
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SOURCE Paulson & Co. Inc.