Business
Baytex to Acquire Eagle Ford Operator Ranger Oil, Accelerates Shareholder Returns and Introduces a Dividend with Enhanced Free Cash Flow
Calgary, Alberta--(Newsfile Corp. - February 28, 2023) - Baytex Energy Corp. (TSX: BTE) (NYSE: BT...
About this update from Baytex Energy Corp.
[{"type":"text","content":"Baytex to Acquire Eagle Ford Operator Ranger Oil, Accelerates Shareholder Returns and Introduces a Dividend with Enhanced Free Cash FlowCalgary, Alberta--(Newsfile Corp. - February 28, 2023) - Baytex Energy Corp. (TSX: BTE) (NYSE: BTE) (\"Baytex\", the \"Company\" or \"we\") today announced that it has entered into a definitive agreement (the \"Agreement\") to acquire Ranger Oil Corporation (NASDAQ: ROCC) (\"Ranger\"), a pure play Eagle Ford company (the \"Acquisition\"). The total consideration to be paid by Baytex, including assumption of net debt, is approximately US$2.5 billion (C$3.4 billion). The transaction has been unanimously approved by the Boards of Directors of Baytex and Ranger and is expected to close late in the second quarter of 2023. Under the terms of the Agreement, Ranger shareholders will receive 7.49 Baytex shares plus US$13.31 cash, for each Ranger common share, for total consideration of approximately US$44.36 per share. Commenting on the Acquisition, Eric T. Greager, President and Chief Executive Officer of Baytex, said: \"The Ranger acquisition is strategic. 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. We are building quality scale and a more durable business with a lower break-even WTI price.\"\"We are committed to enhancing direct shareholder returns, and through this transaction we are returning more value to our shareholders on a per-share basis. Upon closing of this transaction, we intend to initiate a dividend, which will be a key means of delivering reliable value to shareholders going forward. We are building an even stronger Canadian energy company with a high-quality diversified oil-weighted portfolio across the Western Canadian Sedimentary Basin and the Eagle Ford.\"Key HighlightsAccretive on key per share metrics(1), including adjusted funds flow(2) (24%), free cash flow(3) (20%) and production (12%).Allows immediate step-up in direct shareholder returns to 50% of free cash flow.Supports the introduction of a dividend and increas...