Ranger - cheap acerageThis is an excerpt from a seeking alpha article I just read. First time I've seen that low pricing analysis. That kind of makes me double down on my belief we should sell the EF acerage. It looks like we might be able to book a considerable profit on it if we can get average pricing. Actually should be able to really improve on the pric given the refrac opportunities that are in play today versus two years ago
In 2022 BTE made quite a splash with its decision to expand in the U.S. Eagle Ford-EF, basin, with the acquisition of Ranger Oil for $2.5 bn. For years the company had held a small non-operated position in the EF in a JV with Marathon Oil. Ranger brought their EF position to 269K gross acres, with 70% operated, say 162K acres give or take a few. On an acreage/price basis, that puts the deal at roughly $15K per acre, well below what some deals have fetched.
For example, a year earlier Devon Energy, (DVN) paid $42K per acre for Validus. So kudos to BTE management for sharpening their pencils before writing the check. More importantly, these acres were solidly in the light oil band of the play, with current production yielding 81% liquids. At ~89K BOEPD the EF is a little more than half BTE’s daily output.