Canada-based oil and gas producer Baytex Energy has completed the sale of its US Eagle Ford assets for a total of $2.14bn (around C$2.96bn), after adjustments.
The company said that it will use part of the proceeds to pay down its outstanding credit facilities and redeem its 8.5% Senior Notes due 2030.
In addition, Baytex has launched a cash tender offer for its $575m of outstanding 7.37% Senior Notes due 2032.
The strategic sale is expected to strengthen Baytex’s financial position and enhance its focus on a high-return Canadian energy platform and long-term value creation.
Baytex stated that it is committed to returning a substantial share of the net proceeds (following debt repayment) to shareholders and plans to restart purchases under its regular course issuer bid.
Last month, Baytex announced the agreement to sell its Eagle Ford assets to an undisclosed buyer for $2.305bn in cash.
The company’s Canadian inventory includes more than 2,200 drilling locations, supporting a targeted annual production growth rate of 3-5% at $60-65 per barrel WTI (West Texas Intermediate).
The sale is part of the company’s broader portfolio optimisation strategy, which allows it to focus on Canadian heavy oil and the Pembina Duvernay position.
Baytex reported production from its Canadian portfolio of 65,000 barrels of oil equivalent per day (boepd) for the first nine months of 2025, with crude oil and natural gas liquids accounting for 89% of the total. This represents a 5% increase in production compared to 2024, excluding volumes from non-core asset sales.
The company’s heavy oil assets include 750,000 net acres and 1,100 identified drilling locations, which could support around a decade of drilling.
In the Pembina Duvernay area, Baytex has secured 91,500 net acres and identified approximately 212 drilling locations.
Baytex plans to shift to a single-rig drilling programme in the Pembina Duvernay over the next two years, with an annual target of 18 to 20 wells.
The company aims to achieve production in the range of 20,000 to 25,000boepd in this area by 2029 to 2030.
In 2023, Baytex Energy signed an agreement to acquire US-based independent oil and gas company Ranger Oil for approximately $2.5bn, including debt.
“Baytex completes sale of Eagle Ford assets for $2.14bn” was originally created and published by Offshore Technology, a GlobalData owned brand.
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