Shares of Baytex Energy Corp. and Raging River Exploration Inc. dropped after the intermediate oil and gas producers announced a $2.8-billion deal to merge Monday.
The combined company, which will operate under the Baytex name, is expected to have production of approximately 94,000 barrels of oil Nike Air Max 95 Femme equivalent per day from a diverse portfolio of oil assets that includes the Viking, Peace River, Lloydminster and East Duvernay Nike Air Max Thea Damen Shale regions in Canada and the Eagle Ford region in Texas.“This is a truly compelling combination that creates an even stronger Adidas Nmd Dames company,” said Neil Roszell, executive chairman and chief executive of Raging River, in a call announcing the deal. “It is a better position for value creation that is well beyond what either of our companies could do on a stand-alone basis.”
Roszell will become chairman of the merged company and Baytex chief executive Edward LaFehr will be CEO.
Raging River said they consider the merger to be a “win-win combination” because it expects the deal to be a boon for providing scale to advance East Duvernay Shale operations, diversifying its asset portfolio to include a free cash flow generating asset in the Eagle Ford and to enhance the company’s size and trading liquidity
Meanwhile, Baytex said it adds a free cash Nike Air Pegasus 83 Womens flow generating asset in the Viking, increases operatorship, and gives the company exposure to emerging East Duvernay Shale oil Adidas ZX 10000 Womens activity.
Investors weren’t so keen on the deal though. Baytex shares were down 62 cents or 12.16 per cent to $4.48 in mid-afternoon trading, while Raging River was down 61 cents or 9.71 per cent to $5.67.
Under the agreement, Raging River shareholders will receive 1.36 common shares of Baytex for each Raging River share owned. A statement from the companies puts the market capitalization of the new entity at $2.8 billion.