Baytex Energy to sell U.S. Eagle Ford assets for $2.305B

Baytex Energy (BTE) announced it has entered into a definitive purchase and sale agreement to sell its U.S. Eagle Ford assets to an undisclosed buyer for $2.305B in cash. The purchase price will be subject to adjustments based on an effective date of September 1. The transaction is expected to close in late 2025 or early 2026, subject to customary closing conditions and regulatory approvals, including approval under the Hart-Scott-Rodino Antitrust Improvements Act. The purchase and sale agreement provides for a $200M deposit by the buyer, which deposit may be forfeited by the buyer to Baytex in certain circumstances set out in the purchase and sale agreement. “This Transaction positions Baytex as a focused, high-return Canadian energy producer. Consistent with our disciplined approach to portfolio management, we continually review our asset base to maximize long-term value. Monetizing our U.S. Eagle Ford assets strengthens our balance sheet, supports capital allocation to our highest-return opportunities and positions us to deliver meaningful shareholder returns,” said Eric Greager, President and Chief Executive Officer. “This Transaction provides Baytex with the financial strength and flexibility to pursue our strategic priorities. By sharpening our focus on core Canadian assets, we have a solid foundation to drive disciplined growth, capitalize on new opportunities, and deliver long-term value for our shareholders,” added Mark Bly, Chair of the Board of Directors.