Shares of Baytex Energy Corp. (NYSE: BTE) slid by more than 8% in pre-market trading on Tuesday as the oil and gas company based out of Calgary, Canada announced the acquisition of Ranger Oil Corp. (ROCC) for around $2.5 billion.
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The acquisition is expected to close late in the second quarter of this year and as a part of this agreement, Ranger shareholders will receive 7.49 Baytex shares in addition to a cash payment of $13.31 per share, for total consideration of around $44.36 per share.
Eric T. Greager, President and CEO of Baytex commented, “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. 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.”
Ranger Oil is an oil and gas exploration company that is primarily focused on the Eagle Ford Shale in South Texas for its oil exploration activities.
ROCC stock has gained more than 22% in the past year.
