Callon Going All-In on Houston in Carrizo Merger

October 6, 2019

Mississippi’s Callon Petroleum is moving to Houston as part of its up-to-$3.2 billion merger with Houston-based Carrizo but in a change of plans is closing its Natchez offices.

Callon has been in Mississippi for 70 years but last year announced the move to Texas, with a plan to keep its original offices open — but in a cost-cutting move the company said Friday it’s going all-in on Houston.

Between 25 and 40 employees at the Natchez, MS office, most of them in the account services department, will likely be laid off, the company said, because in the “merger-of-equals” Callon stockholders will wind up with a 54% stake and Carrizo investors with 46%.

The merged company will focus on the Delaware Basin in a move toward manufacturing with more repeatable drilling efforts, Callong CEO Joe Gatto told the Midland Reporter Telegram in July.