Baytex buys rival oil firm for $2.8B

A Canadian oil company with Texas oil holdings is buying another Canadian oil and gas company for $2.8 billion.

Calgary, Alberta-based Baytex Energy Corp. is buying Raging River Exploration Inc. for $2.8 billion in equity. Raging River Exploration shareholders will receive 1.36 shares of Baytex stock per Raging River Exploration share.

The deal includes $2.1 billion in debt, bringing the total value to $4.9 billion.

The purchase adds at least 260,000 acres of Alberta’s East Duvernay Shale to Baytex’s operations.

While both companies are focused on Canadian shale oil plays Baytex also operates in South Texas’ Eagle Ford Shale oil field, where it holds more than 20,000 acres. The company produces more than 36,000 barrels of oil equivalent a day, according to the company’s website.

Production figures can be a mixture of oil, natural gas and other liquids.

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