Ranger Oil to Acquire Strategic Eagle Ford Assets in Accretive Transactions

Ranger Oil Corporation announced the signing of separate agreements to acquire three "bolt-on" oil producing properties in the Eagle Ford shale contiguous to Ranger's existing assets for a total purchase price of approximately $64 million in cash, subject to customary adjustments. The acquisitions are expected to be accretive to key financial metrics, add to the Company's deep, high-quality inventory of well locations and generate significant near-term operational synergies. As a result of higher cash flow, Ranger's leverage ratio should continue to strengthen.

The transactions are expected to close early in the third quarter, subject to customary closing conditions. The Company plans to discuss these transactions on its upcoming first quarter conference call, scheduled for 11 am ET on Thursday, May 5, 2022.

Transaction Highlights:
Strategic fit - The properties are largely contiguous with Ranger's current portfolio and working interests overlap with the Company's existing wells. The assets can be expeditiously integrated with minimal cost or disruption. A map is included within this release.

Growing inventory and enhanced near-term development program - With the addition of approximately 17,000 net acres at closing, Ranger will have more than 155,000 net acres, a greater than 10% increase from year-end 2021. Significant and highly economic near-term development opportunities in the bolt-on acquisitions are coupled with approximately 19 miles of shared leaselines with Ranger's current acreage, enhancing existing development plans through longer-lateral wells and increased working interest. Substantial operational synergies mitigate the need for additional rigs and services, further strengthening capital returns.

Attractive valuation consistent with disciplined strategy to maximize free cash flow and maintain balance sheet strength - Assets acquired are at a discount to management's estimated Proved Developed PV-10 value(1). All cash consideration maximizes accretion to shareholders, while funding from free cash flow will maintain our strong balance sheet with under 1.0x leverage(2).

Legacy oil-weighted, low decline production profile enhances margins and free cash flow outlook - Low decline, stable production of approximately 1,000 BOE/d (65% oil / 87% liquids) creates a solid free cash flow profile, maintains our strong capital structure, and enhances Ranger's framework to return cash to shareholders.

Darrin Henke, Ranger's President and CEO, said, "These strategic and accretive acquisitions of adjacent oil-weighted assets further demonstrate the strength of our business and our strategy of delivering shareholder value through a variety of avenues. We recently announced our achievement of leverage(2) below 1.0x and our plans to begin a fixed dividend and a share repurchase program. As consolidation in the Eagle Ford continues, we see additional attractive opportunities that, at the right valuation, could add both immediate and long-term value to shareholders. We are firmly committed to disciplined capital allocation, the preservation of our strong balance sheet and using internally-generated cash flow to bolster our portfolio and grow shareholder value."