- Baytex Energy Corp. (BTE) has agreed to acquire Ranger Oil Corporation
- The total consideration to be paid by Baytex, including the assumption of net debt, is approximately US$2.5 billion (C$3.4 billion)
- The combined organization will be led by Eric T. Greager, President and Chief Executive Officer of Baytex and the Baytex leadership team
- Baytex Energy Corp. is an energy company based in Calgary, Alberta
- Baytex Energy Corp. opened trading at C$5.83 per share
Baytex Energy Corp. (BTE) has agreed to acquire Ranger Oil Corporation.
The total consideration to be paid by Baytex to acquire the pure-play Eagle Ford company, including the assumption of net debt, is approximately US$2.5 billion (C$3.4 billion).
The transaction has been unanimously approved by the boards of directors of Baytex and Ranger and is expected to close late in the second quarter of 2023.
The terms of the agreement stipulate that Ranger shareholders will receive 7.49 Baytex shares plus US$13.31 cash for each Ranger common share, for total consideration of approximately US$44.36 per share.
“The Ranger acquisition is strategic; we are acquiring a strong operating capability in the Eagle Ford, on-trend with our non-operated position in the Karnes Trough and driving meaningful per-share accretion on all metrics,” noted Eric T. Greager, President and Chief Executive Officer of Baytex.
“The transaction more than doubles our EBITDA and nearly doubles our free cash flow; the Ranger inventory immediately competes for capital in our portfolio and brings 12 to 15 years of quality oil-weighted drilling opportunities,” he added.
“I couldn’t be more proud of the Ranger team and the company we’ve built together,” stated Darrin Henke, Chief Executive Officer of Ranger.
“We expect that combining with the balance sheet strength, deep asset base, and operational excellence of Baytex will create a unique company of scale which will deliver sustained free cash flow growth and differentiated shareholder returns,” he added.
The combined organization will be led by Eric T. Greager, President and Chief Executive Officer of Baytex and the Baytex leadership team.
The cash portion of the acquisition is expected to be funded, in part, through expanded credit facilities and the issuance of debt securities.
Baytex Energy Corp. is an energy company based in Calgary, Alberta.
Baytex Energy Stock opened trading at C$5.83 per share.
