Callan JMB Expands into Energy with $252M Williston Basin Drilling Program
Event summary
- Callan JMB's subsidiary Callan Power to acquire Reger Oil's Williston Basin assets, including a 23-well Red River drilling program.
- Michael Reger, former CEO of Northern Oil and Gas, named President of Callan Power and joins Callan JMB's board.
- Program projected to generate $252M in cumulative net operating cash flow, with $42M annual run-rate by 2029.
- Drilling scheduled to begin May 2027, with one well per month through March 2029.
- Callan Power holds 75% working interest, Chandler Energy 25%.
The big picture
This acquisition marks Callan JMB's entry into domestic energy development, complementing its critical infrastructure strategy. The move comes as diversified logistics firms increasingly integrate energy assets to secure supply chains. With $252M in projected cash flows, the program could become a meaningful revenue driver, though success hinges on maintaining $75/bbl oil prices and operational efficiency. Reger's industry expertise suggests strategic intent, but integration risks remain.
What we're watching
- Execution Risk
- Whether Callan Power can deliver on projected $252M cash flow given volatile oil prices and operational challenges.
- Strategic Fit
- How energy development integrates with Callan JMB's core logistics and infrastructure businesses.
- Regulatory Dynamics
- Potential permitting delays or policy shifts affecting Williston Basin development.
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