S&P puts Ranger Oil on positive watch

S&P said it placed all its Ranger Oil Corp. ratings, including the B+ issue-level rating, on CreditWatch with positive implications.

The positive watch follows the news that Baytex Energy Corp. plans to acquire Ranger, the agency said.

“We placed our ratings on Ranger on CreditWatch positive to reflect the likelihood that we will raise our ratings one notch, to those of Baytex, following the close of the transaction, given the combined entity's improved scale and supportive financial measures. The total consideration values Ranger at approximately $2.5 billion, to be funded through a combination of cash and Baytex common shares, as well as the assumption of Ranger's existing debt,” S&P said in a press release.

The deal is expected to close late in the second quarter of 2023.

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