Canada's Baytex Energy nears $2.5 bln deal for U.S. peer Ranger Oil -sources

Baytex Energy

28/02/2023 24:20

By David French
       Feb 27 (Reuters) - Canadian oil and gas producer Baytex
Energy Corp  BTE.TO  is nearing a deal to acquire U.S. peer
Ranger Oil Corp  ROCC.O  for around $2.5 billion including debt,
people familiar with the matter said on Monday.
    Calgary, Alberta-based Baytex will pay a mixture of cash and
stock to buy Ranger at a small premium to its current market
value of $1.8 billion. It will also assume Ranger's debt pile,
which stood at $603 million as of Sept. 30.
    The transaction will significantly boost Baytex's presence
in South Texas' Eagle Ford shale basin, which currently
represents around 30% of its total production, according to its
website.
    An agreement between Baytex and Ranger could be announced as
soon as Tuesday, barring any last-minute hitches, added the
sources, who spoke on condition of anonymity to discuss
confidential information.
    Baytex and Ranger did not immediately reply to requests for
comment.
    Reuters reported in November that Houston-headquartered
Ranger was considering a sale. The Eagle Ford basin has
witnessed a flurry of merger and acquisition activity in recent
months, with buyers lured by its proximity to major energy hubs,
including export and refining facilities on the U.S. Gulf coast.
    Baytex's deal would add to the run of Canadian energy
operators seeking to boost the amount they produce south of the
border. Ovintiv Inc  OVV.N  moved its headquarters to Denver,
from Calgary, at the start of 2020 as it prioritized its U.S.
assets. Enerplus Corp  ERF.TO  completed in December the sale of
its Canadian operations, leaving it with assets in North Dakota
and Pennsylvania.

 (Reporting by David French in New York
Editing by Matthew Lewis)
 ((davidj.french@thomsonreuters.com;))