The transaction consideration includes a combination of cash and stock, and Ranger’s debt amounting to $603m as of 30 September 2022, at a small premium to its current market value of $1.8bn
Canadian oil and gas company Baytex Energy is reportedly to acquire US-based Ranger Oil in a potential deal worth around $2.5bn, including debt.
Baytex to acquire Ranger Oil. (Credit: Brad Weaver on Unsplash)
The transaction consideration includes a mix of cash and stock, and will also include Ranger’s debt, which stands at $603m as of 30 September 2022, reported Reuters.
Baytex will acquire Ranger Oil at a small premium to its current market value of $1.8bn, and an agreement between the two parties is expected soon, said the publication.
The transaction is expected to strengthen Baytex’s presence in the Eagle Ford shale basin in South Texas, which currently accounts for around 30% of the company’s total production.
In November last year, Reuters reported that Ranger Oil is considering a sale.
Baytex joins Canadian companies, Ovintiv and Enerplus, which seek to enhance their production operations in the US.
Ovintiv shifted its headquarters from Calgary to Denver in early 2020, and Enerplus completed the sale of its Canadian operations, said the publication.
In 2018, Baytex signed a C$2.8bn ($2.13bn) agreement to merge with its rival oil producer Raging River Exploration to create a top-tier North American oil producer.
With an enterprise value of about $5bn, the combined company will be a well-capitalised, oil-weighted company operating under the Baytex name.