Page 9 - NorthAmOil Week 43 2022

NorthAmOil NEWS IN BRIEF NorthAmOil

Callon Petroleum certain of his family members and their
UPSTREAM other than: (i) Shares owned by Mr. Hamm,
Surge Energy America announces extension of affiliated entities (collectively, the “Hamm
family”); and (ii) Shares underlying unvested
announces full repayment revolving credit facility company restricted stock awards (such shares,
together with the shares referred to in clause
of revolving credit facility Callon Petroleum today announced that (i), the “rollover shares”), for $74.28 per
share, in cash, without interest and subject to
the company entered into an amended and
Surge Energy US Holdings announces a full restated senior secured revolving credit deduction for any required withholding taxes.
repayment in October of the Company’s facility, which extends the maturity to The offer is being made pursuant to the
revolving credit facility. October 19, 2027. The credit facility will have previously announced agreement and plan
The primary usage of the outstanding debt a borrowing base of $2.0bn with an elected of merger, dated as of October 16, 2022,
on the credit facility was for two acquisitions commitment of $1.5bn. between the company and the purchaser and
in 2021 that resulted in increased acreage of Joe Gatto, president and chief executive is scheduled to expire at one minute after
approximately 22,000 acres, added over 100 officer commented: “This extension represents 11:59 p.m., New York City time, on November
drilling locations, added cash flow generating the last transactional step in our financial 21, 2022.
production, and increased the company’s repositioning plan that started two years ago. The consummation of the offer and the
scope and scale. The total acquisition From here, we will remain focused on further merger of the purchaser with and into the
consideration was $457.5mn at the time of reducing our absolute debt balances with free company is subject to certain conditions
each closing. The outstanding debt on the cash flow and achieving our near-term goals set forth in the merger agreement. If these
credit facility at year-end 2021 was $355mn. on this front. I also want to thank our bank conditions are satisfied or waived (to the
Additionally, the company has further syndicate for their support and continued extent waivable), the offer and, promptly
reduced debt via partial repurchases of the long-standing relationships.” thereafter, the merger will be consummated,
company’s senior notes due 2026 and senior CALLON PETROLEUM, October 24, 2022 with the company continuing as the surviving
notes due 2027. Through October 24, 2022, corporation, which will be wholly owned by
the company has repurchased $69mn of face- Omega Acquisition the Hamm Family. At the effective time of the
value bonds, resulting in a total debt reduction merger, any shares not purchased pursuant
of $424mn in 2022. commences cash tender to the offer (subject to certain exceptions,
As a result of the debt reduction, the including (i) the rollover shares and (ii) shares
company’s trailing twelve-month leverage offer for shares of held by a holder who is entitled to demand
ratio has also improved and is expected to be and properly demands appraisal for such
approximately 1.0x by year-end 2022. Continental Resources shares in accordance with Section 1091 of
“The quick pay down of the revolver the Oklahoma General Corporation Act (the
following the acquisitions in 2021 is a result Omega Acquisition, an Oklahoma “OGCA”)), will be automatically converted
of Surge’s strong assets, commitment to corporation, 100% of the capital stock of into the right to receive the offer price, in cash
discipline, and the quality of our people,” which is owned by Harold G. Hamm, the and without interest, subject to deduction for
stated chief financial officer James Welch. founder and chairman of the board of any required withholding taxes. As a result
“This paydown once again positions Surge for directors of Continental Resources, today of the merger, the shares will cease to be
additional growth in the future.” commenced a tender offer to acquire all of listed on the New York Stock Exchange and
SURGE ENERGY US HOLDINGS, October 25, the outstanding shares of common stock, will subsequently be deregistered under the
2022 par value $0.01 per share of the company, Securities Exchange Act of 1934, as amended.
OMEGA ACQUISITION, October 24, 2022

DOWNSTREAM
Valero Energy reports third-

quarter 2022 results

Valero Energy today reported net income
attributable to Valero stockholders of $2.8bn,
or $7.19 per share, for the third quarter of
2022, compared to $463mn, or $1.13 per
share, for the third quarter of 2021. Excluding
the adjustments shown in the accompanying
earnings release tables, adjusted net income
attributable to Valero stockholders was
$2.8bn, or $7.14 per share, for the third
quarter of 2022, compared to $545mn, or
$1.33 per share, for the third quarter of 2021.
“Refining fundamentals remain strong

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