Canada’s Baytex in US$2.5bn deal for Ranger Oil
Canadian oil-weighted producer Baytex Energy said February 28 it had reached a definitive agreement to acquire Eagle Ford pure play producer Ranger Oil in a US$2.5bn (C$3.4bn) cash and share deal.
The acquisition, which includes the assumption of debt, is expected to close late in Q2 2023, with Ranger shareholders receiving US$13.31 and 7.49 Baytex shares for each Ranger share tendered under the arrangement.
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“The Ranger acquisition is strategic,” Baytex CEO Eric Greager said. “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.”
Baytex will add 162,000 net acres to its Eagle Ford portfolio and 67,000-70,000 barrels of oil equivalent (boe)/day of production, comprised 72% by light oil, 15% natural gas liquids and 13% natural gas. That will increase Baytex production to 155,000-160,000 boe/day in the 12 months following the close of the acquisition, Baytex said.