Baytex Energy Corp. has signed a deal to buy U.S. company Ranger Oil Corp. in a deal valued at C$3.4 billion, including assumed debt.
Ranger Oil operates in the Eagle Ford shale region in south Texas, an area where Baytex also has assets.
Under the terms of the agreement, Ranger shareholders will receive 7.49 Baytex shares plus US$13.31 in cash for each Ranger common share.
The companies valued the total consideration at about US$44.36 per Ranger share.
Baytex also says it plans to begin paying a dividend once it closes the Ranger Oil deal and increase share buybacks.
The company says management expects to recommend a quarterly dividend payment of 2.25 cents per share.
This report by The Canadian Press was first published Feb. 28, 2023.
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