Great deal on these assetsI just had a chance to finish going through the metrics in detail. I'm a little surprised Ranger agreed to this deal. I think it undervalues their light oil assets with signficant growth in the Eagle Ford selling at a premium to WTI.
A BOE in Canada is not the same as as a BOE in the Eagle Ford. They are far more valuable and BTE gets this acreage and production at a very attractive rate.
It surprises the market and the market hates acquisitions right now, but it's hard to say no to a deal like this especially on a bullish WTI backdrop. I wonder why Ranger was so eager to sell.
There will be some share churn from those who were taken by surprise, but this is great value for BTE with instantantaneous accretive value added to existing shareholders and meaningful increase in free cash flow plus a dividend which would have been a year away or more with the 87,000 BOE heavy oil operation.
Ranger shareholders are pissed. Law firms have been engaged with legal action already being fired up. There is also rumour of invoking US protectionist laws to block the deal. Also several are suggesting there may be a white knight offer in the works. So it remains to be seen if this deal goes through, but I sure hope they can get it done.
https://www.businesswire.com/news/home/20230228005909/en/ROCC-Stock-Alert-Halper-Sadeh-LLC-Is-Investigating-Whether-the-Sale-of-Ranger-Oil-Corporation-Is-Fair-to-Shareholders