Calgary, Alberta–(Newsfile Corp. – June 20, 2023) – Baytex Energy Corp. (TSX: BTE) (NYSE: BTE) (“Baytex”) announces the closing of its acquisition (the “Merger”) of Ranger Oil Corporation (“Ranger”).
“We are excited to close the Ranger acquisition, which materially increases our scale in the Eagle Ford while building quality operating capability in a premier basin. We have emerged from this transaction as a well-capitalized and diversified North American exploration and production company with a portfolio of high-quality oil weighted assets in Western Canada and the Eagle Ford shale in Texas. The transaction enhances our inventory and creates a more resilient and sustainable business with an attractive free cash flow profile. With our strong financial position we intend to increase our direct shareholder returns to 50% of free cash flow and introduce a dividend,” commented Eric T. Greager, President and Chief Executive Officer.
H2/2023 Outlook
- Target average production of 153,000 to 157,000 boe/d (84% oil and NGLs)
- Execute an exploration and development program of $595 to $635 million
- Onstream 34 net wells in the Eagle Ford and 90 net wells in Canada
- Return 50% of free cash flow(1) to shareholders through share buybacks and a dividend
- Introduce a quarterly dividend(2) of $0.0225 per share ($0.09 per share annualized)
- Maintain strong liquidity with 50% undrawn capacity on our US$1.1 billion credit facility
Acquisition Highlights
The total consideration paid by Baytex, including assumption of net debt, was approximately US$2.2 billion (C$2.9 billion). Under the terms of the agreement, Ranger shareholders received 7.49 Baytex shares plus US$13.31 cash for each share of Ranger
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