Callon Petroleum Co. is exiting the Eagle Ford Shale and expanding its Permian Basin position through a pair of transactions, management said. 

Callon is selling its Eagle Ford assets to Ridgemar Energy Operating LLC for $655 million in cash and potential contingent payments of up to $45 million.

Separately, Callon has agreed to purchase Permian-based Percussion Petroleum Operating II LLC in a cash-and-stock transaction valued at about $475 million and potential contingent payments of up to $62.5 million.

The transactions, expected to close in July, “strengthen our capital structure, improve our margins and lengthen our top-tier Permian inventory,” said Callon CEO Joe Gatto. “In addition to improving our net asset value proposition, we will achieve our near-term total...