According to reports, Canadian oil and gas company Baytex Energy (BTE.US) will buy US oil and gas producer Ranger oil (ROCC.US) for about $2.5 billion (including debt), and the transaction will be announced as soon as tomorrow. It is reported that Baytex will pay a combination of cash and stock to acquire Ranger oil at a small premium below the current market value of $1.8 billion, and assume its total debt of $603 million as of September 30, 2022.
The deal will significantly increase Baytex's production presence in Texas, which currently accounts for about 30% of its total production. It was reported in November 2022 that Ranger was considering selling the company.
In terms of financial reports, Baytex Energy announced last week that Q4 2022 adjusted earnings were C$0.64 per share, and oil production increased by 7.5% year-on-year to approximately 86,900 bbl/day.