Baytex completes sale of Eagle Ford assets for $2.14bn

Canada-based lipid and state shaper Baytex Energy has completed the merchantability of its US Eagle Ford assets for a full of $2.14bn (around C$2.96bn), aft adjustments.

The institution said that it volition usage portion of the proceeds to wage down its outstanding recognition facilities and redeem its 8.5% Senior Notes owed 2030.

In addition, Baytex has launched a currency tender connection for its $575m of outstanding 7.37% Senior Notes owed 2032.

The strategical merchantability is expected to fortify Baytex's fiscal presumption and heighten its absorption connected a high-return Canadian vigor level and semipermanent worth creation.

Baytex stated that it is committed to returning a important stock of the nett proceeds (following indebtedness repayment) to shareholders and plans to restart purchases nether its regular people issuer bid.

Last month, Baytex announced the statement to merchantability its Eagle Ford assets to an undisclosed purchaser for $2.305bn successful cash.

The company’s Canadian inventory includes much than 2,200 drilling locations, supporting a targeted yearly accumulation maturation complaint of 3-5% astatine $60-65 per tube WTI (West Texas Intermediate).

The merchantability is portion of the company’s broader portfolio optimisation strategy, which allows it to absorption connected Canadian dense lipid and the Pembina Duvernay position.

Baytex reported accumulation from its Canadian portfolio of 65,000 barrels of lipid equivalent per time (boepd) for the archetypal 9 months of 2025, with crude lipid and earthy state liquids accounting for 89% of the total. This represents a 5% summation successful accumulation compared to 2024, excluding volumes from non-core plus sales.

The company’s dense lipid assets see 750,000 nett acres and 1,100 identified drilling locations, which could enactment astir a decennary of drilling.

In the Pembina Duvernay area, Baytex has secured 91,500 nett acres and identified astir 212 drilling locations.

Baytex plans to displacement to a single-rig drilling programme successful the Pembina Duvernay implicit the adjacent 2 years, with an yearly people of 18 to 20 wells.

The institution aims to execute accumulation successful the scope of 20,000 to 25,000boepd successful this country by 2029 to 2030.

In 2023, Baytex Energy signed an statement to get US-based autarkic lipid and state institution Ranger Oil for astir $2.5bn, including debt.

"Baytex completes merchantability of Eagle Ford assets for $2.14bn" was primitively created and published by Offshore Technology, a GlobalData owned brand.

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