Baytex Energy (BTE) is buying U.S. company Ranger Oil (ROCC) in a deal valued at $3.4 billion.
Ranger Oil is headquartered in Houston, Texas and operates in the Eagle Ford shale region of southern Texas, an area where Baytex Energy also has multiple assets.
Under terms of the deal, Ranger Oil shareholders will receive 7.49 Baytex shares plus $13.31 U.S. in cash for each Ranger common share they own.
The total offer from Calgary-based Baytex Energy is valued at $44.36 U.S. per Ranger Oil share. The deal’s value also includes assumed debt.
Baytex Energy also said it plans to begin paying a dividend once it closes the Ranger Oil deal, and increase its stock repurchase program.
Baytex said the quarterly dividend payment will likely amount to $0.02 per share.
Ranger Oil’s stock has gained 17% over the last 12 months to trade at $41.50 U.S. per share
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