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Baytex Energy of Canada (New York Stock Exchange:BTE) is close to a deal to acquire US oil and gas producer Ranger Oil (NASDAQ: ROCC) for ~$2.5B including debt, in a deal that could be announced as soon as tomorrow, Reuters reported on Monday night.
Baytex (BTE) would reportedly pay a mix of cash and stock to buy Ranger (ROCC) at a small premium over its current market capitalization of $1.8 billion and assume Ranger’s debt, which stood at $603 million as of September 30. .
The deal would significantly boost Baytex’s (BTE) presence in Texas’ Eagle Ford shale basin, which currently comprises ~30% of its total production.
Reuters reported in November that Ranger (ROCC) was considering a sale.
Baytex Energy (BTE) last week reported fourth-quarter adjusted earnings of C$0.64 per share, with production up 7.5% year-on-year to 86,864 boe/day.