as yet, mostly thanks to U.S. domestic inventories having gained ~60 mm bbls in the last few months. We think current oil prices in the $ 70s will continue higher as the year progresses, consistent with the inventory and supply projections, and create a lift for BTE shares from current levels.OilPrice article
The terms of the deal don't appear particularly onerous. The deal price of $44.36 USD is a modest 7.6% premium to the Feb 24th closing price. Consisting of mostly stock and debt assumptions results in a very attractive EV/EBITDA multiple of 2.88X. Baytex leadership will remain in place.The Ranger acreage lies almost entirely in the Tier I black oil strata of the Eagle Ford in Gonzales and Lavaca counties.
with some from the Ensign pickup making IP: 30's of 2,500 BOPD. If BTE can match performance like that from their acreage , this will turn out to be a very good deal indeed.BTE cash flow as a standalone was on a positive track that is enhanced by about 23% with the assets of the merged company. With breakeven in the low $40's and without the WCS discount, the Eagle Ford assets put new money in BTE's pocket from day one.