Baytex Enerfy ( NYSE: BTE ) said Tuesday it agreed to acquire Ranger Oil ( NASDAQ: ROCC ) in a deal valued at ~US$2.5B (C$3.4B) including debt.
Under the deal terms, Ranger ( ROCC ) shareholders will receive 7.49 Baytex ( BTE ) shares plus $13.31/share in cash for each Ranger common share, for total consideration of ~$44.36/share.
Baytex ( BTE ) shareholders will own ~63% of the combined company, and Ranger ( ROCC ) shareholders will own ~37%.
"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 ( BTE ) President and CEO Eric Greager said, adding the deal more than doubles the company's EBITDA and nearly doubles its free cash flow.
The company said it expects to initiate a dividend upon the deal's closing.
Baytex Energy ( BTE ) last week reported Q4 adjusted earnings of C$0.64/share, with production rising 7.5% Y/Y to 86,864 boe/day .
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Baytex Energy confirms Ranger Oil deal for $44.36/share