Baytex Closes U.S. Eagle Ford Sale

Executive Summary

• Baytex Energy Corp. closed the sale of its U.S. Eagle Ford assets for net proceeds of US $2.14 billion (≈ C$2.96 billion).
• Proceeds will be used to repay outstanding credit facilities, redeem 8.500% Senior Notes due 2030, and tender its US $575 million of 7.375% Senior Notes due 2032; any remaining cash will be returned to shareholders via the normal‑course issuer bid (NCIB).
• The transaction places Baytex in a net cash position and is expected to sharpen focus on its high‑return Canadian platform, with 2026 guidance slated for release on December 22, 2025.

Key Details

• Transaction value: Net proceeds of US $2.14 billion (≈ C$2.96 billion) after closing adjustments.
• Use of proceeds:
• Repayment of outstanding credit facilities.
• Redemption of 8.500% Senior Notes due 2030 (“2030 Notes”).
• Commencement of a cash tender offer for the full US $575 million principal amount of 7.375% Senior Notes due 2032 (“2032 Notes”).
• Shareholder return: Remaining proceeds (after debt repayment) will be allocated to shareholders, primarily through resumption of purchases under Baytex’s normal‑course issuer bid.
• Financial position: Post‑transaction, Baytex is in a net cash position.
• Guidance timing: Baytex expects to release its 2026 guidance on December 22, 2025.
• Strategic rationale: Divestiture of non‑core U.S. assets to concentrate on high‑return Canadian oil and gas operations, enhancing long‑term value creation.

Notable Quotes

(No direct quotes were provided in the release.)