S&P Affirms Ratings on Baytex Energy Following Deal to Buy Ranger Oil
01:38 PM EST, 02/28/2023 (MT Newswires) -- S&P Global Ratings on Tuesday affirmed the long-term issuer credit rating, and BB- senior unsecured debt rating on Baytex Energy (BTE.TO).
The rating affirmation follows Baytex Energy's announcement to buy US exploration and production company, Ranger Oil Corp., total consideration of about C$3.4 billion.
The proposed purchase is expected to help the company expand its light oil-focused Eagle Ford operations, lowering the profitability impact of Baytex's lower-value Canadian heavy oil production.
The stable outlook reflects the rating agency's expectation that Baytex's business risk and financial risk profiles, pro forma its acquisition of Ranger Oil, will continue to support the B+ credit rating.
The company's stock was down 7.7% on last look on Tuesday.
Price: 5.38, Change: -0.45, Percent Change: -7.72