Callon

Permian pure-play Callon Petroleum Co. plans to boost production by more than 20% in 2019, while moving forward with large-scale development projects in the Permian Basin’s Delaware formation.

West Texas pure-play Callon Petroleum Co. is trimming its 2019 capital spending and tightening its rig count, but it still expects to increase production by 20%, the Houston independent said Tuesday.

Permian Basin pure-players Callon Petroleum Co. and Diamondback Energy Inc. continued with divergent strategies in the third quarter, with Callon seeing first production from its so-called “mega-pads” and Diamondback’s new midstream subsidiary grabbing more takeaway capacity.

Permian Basin-focused Callon Petroleum Co. has picked up more West Texas acreage in a $750 million deal with Cimarex Energy Co. that would allow it to drill longer lateral wells.

Brazos Midstream Holdings LLC subsidiaries have purchased Callon Petroleum Co.’s natural gas gathering system in the Permian Basin of West Texas and signed a long-term, fee-based agreement with the producer for gathering and processing services.

Permian Basin independent Callon Petroleum Co. has revised down its third quarter and full-year production guidance in part on issues related to Hurricane Harvey, which came ashore hundreds of miles away. Occidental Petroleum Corp. (Oxy) also has reduced its Permian guidance.

Callon Petroleum Co., already on a tear to expand its Permian Basin inventory, has agreed to pay $615 million to gain entry into the Southern Delaware formation, a 30% boost in acreage to complement the Midland oil and natural gas operations.

Callon Petroleum Co. late Tuesday struck a $327 million deal to acquire more land in the red-hot Permian Basin, which has overtaken every onshore area for merger activity to date.

Permian pure-play Callon Petroleum Co. is planning for growth as it looks ahead to 2017.