Callon Petroleum Gets the $40 Million Reimbursement from MMS!

Callon Petroleum Company (CPE) today announced it has received $44.7 million from the U.S. Department of the Interior’s Minerals Management Service (MMS) to reimburse the company for the overpayment of royalties at its Medusa Field in the Deepwater Region of the Gulf of Mexico.

This was something we were hoping for when we bought the notes.

Although the notes were already trading close to par, this is nice news. For one thing, it reduces the chance that the value of the bonds gets hit by bad Q4 earnings or a market selloff.