Baytex Energy Corp. and Raging River Exploration have signed a C$2.8 billion ($2.1 billion) deal to merge in a bid to boost the companies' East Duvernay Shale operations in Alberta, Canada.
The combined company, which will operate under the Baytex name, is expected to have production of approximately 94,000 barrels of oil equivalent per day.
Neil Roszell, executive chairman and CEO of Raging River, will serve as chairman of the combined company, and Edward LaFehr, president and CEO of Baytex, will serve as president and CEO.
For 2019, total exploration and development expenditures are expected to be C$750 to C$850 million ($568 million to $643 million), which is designed to generate average annual production of 100,000 to 105,000 barrels of oil equivalent per day. At the mid-point, this represents production growth of approximately 8 percent over 2018 pro forma average annual production.
The combined company expects to generate adjusted funds flow in 2019 of approximately C$1 billion ($760 million), resulting in a net debt to adjusted funds flow ratio of 1.9x at year-end 2019.
