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You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources , and more. Learn More After debt reductions and shareholder returns, energy companies are increasingly focusing on inorganic growth. The sector has started seeing an uptick in merger and acquisition activities of late. Canadian mid-cap energy producer Baytex Energy ( TSX:BTE ) announced its plans to acquire Ranger Oil ( NASDAQ:ROCC ) in February. The total transaction value is US$2.5 billion, assuming debt and is expected to close in the current quarter. Ranger shareholders will receive 7.49 BTE shares along with US$13.3 in cash, valuing it for a total of US$44.36 apiece. While Ranger Oil stock saw a surge after the announcement, Baytex has been trading subdued for a while now. It has lost 15% in the last 12 months but has returned a massive 2,000% since the pandemic. Let’s see how the deal could benefit Baytex. Baytex Energy-Ranger Oil acquisition: The positives Baytex already has its presence in the U.S. Eagle Ford and pumps out almost 30% of its total oil production. […]
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