Canada-based oil and gasoline producer Baytex Power has accomplished the sale of its US Eagle Ford property for a complete of $2.14bn (round C$2.96bn), after changes.
The corporate stated that it’s going to use a part of the proceeds to pay down its excellent credit score amenities and redeem its 8.5% Senior Notes due 2030.
As well as, Baytex has launched a money tender provide for its $575m of excellent 7.37% Senior Notes due 2032.
The strategic sale is predicted to strengthen Baytex’s monetary place and improve its concentrate on a high-return Canadian power platform and long-term worth creation.
Baytex acknowledged that it’s dedicated to returning a considerable share of the online proceeds (following debt reimbursement) to shareholders and plans to restart purchases underneath its common course issuer bid.
Final month, Baytex introduced the settlement to promote its Eagle Ford property to an undisclosed purchaser for $2.305bn in money.
The corporate’s Canadian stock contains greater than 2,200 drilling places, supporting a focused annual manufacturing progress charge of 3-5% at $60-65 per barrel WTI (West Texas Intermediate).
The sale is a part of the corporate’s broader portfolio optimisation technique, which permits it to concentrate on Canadian heavy oil and the Pembina Duvernay place.
Baytex reported manufacturing from its Canadian portfolio of 65,000 barrels of oil equal per day (boepd) for the primary 9 months of 2025, with crude oil and pure gasoline liquids accounting for 89% of the entire. This represents a 5% enhance in manufacturing in comparison with 2024, excluding volumes from non-core asset gross sales.
The corporate’s heavy oil property embody 750,000 web acres and 1,100 recognized drilling places, which may assist round a decade of drilling.
Within the Pembina Duvernay space, Baytex has secured 91,500 web acres and recognized roughly 212 drilling places.
Baytex plans to shift to a single-rig drilling programme within the Pembina Duvernay over the subsequent two years, with an annual goal of 18 to twenty wells.
The corporate goals to realize manufacturing within the vary of 20,000 to 25,000boepd on this space by 2029 to 2030.
In 2023, Baytex Power signed an settlement to amass US-based unbiased oil and gasoline firm Ranger Oil for roughly $2.5bn, together with debt.
“Baytex completes sale of Eagle Ford property for $2.14bn” was initially created and revealed by Offshore Know-how, a GlobalData owned model.
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