Baytex Energy closes sale of U.S. Eagle Ford assets

Executive Summary

• Baytex Energy Corp. has closed the sale of its U.S. Eagle Ford assets for net proceeds of $2.14 billion (U.S.), significantly strengthening its financial position and placing the company in a net cash position.
• The company intends to use a portion of the proceeds to repay outstanding credit facilities, redeem its 8.500% senior notes due 2030, and has commenced a cash tender offer for its $575 million (U.S.) of 7.375% senior notes due 2032.
• Baytex plans to return remaining net proceeds to shareholders by resuming purchases under its normal course issuer bid and expects to release 2026 guidance on December 22, 2025.

Key Details

• Transaction: Sale of U.S. Eagle Ford assets.
• Net Proceeds: $2.14 billion (U.S.) (approximately $2.96 billion CAD) after closing adjustments.
• Strategic Impact: Transaction sharpens focus on a high-return Canadian energy platform; company is now in a net cash position.
• Use of Proceeds - Debt Repayment:
  • Repayment of outstanding credit facilities.
  • Redemption of outstanding 8.500% senior notes due 2030.
  • Commencement of a cash tender offer for $575 million (U.S.) of outstanding 7.375% senior notes due 2032.
• Shareholder Returns: Intention to resume purchases under the normal course issuer bid with a significant portion of net proceeds after debt repayment.
• Future Guidance: Expected release of 2026 guidance on December 22, 2025.

Notable Quotes

• "This strategic divestiture significantly strengthens Baytex's financial position and sharpens its focus on a high-return Canadian energy platform, positioning the company for long-term value creation."