Calgary, Alberta--(Newsfile Corp. - December 19, 2025) - Baytex Energy Corp. (TSX: BTE) (NYSE: BTE) ("Baytex" or the "Company") today announced that it has closed the sale of its U.S. Eagle Ford Assets for net proceeds of US$2.14 billion (approximately $2.96 billion in Canadian dollars) after closing adjustments.
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. With the closing of the transaction, Baytex is now in a net cash position. The Company intends to use a portion of these proceeds to repay its outstanding credit facilities and redeem its outstanding 8.500% Senior Notes due 2030 (the "2030 Notes") and has also commenced a cash tender offer for its US$575 million of outstanding 7.375% Senior Notes due 2032 (the "2032 Notes"). < Baytex will be effectively debt free after the dust settles.
Baytex remains committed to returning a significant portion of the net proceeds (after debt repayment) to shareholders and intends to resume purchases under its normal course issuer bid.
Baytex expects to release its 2026 guidance on December 22, 2025.
BTE.TO closed at $4.29Cdn on December 19 ($3.09US) < As of today the $Cdn to $US dollar exchange rate is 0.72.
TipRanks: Since the South Texas Sale was announced on November 12th, five energy sector analysts have submitted updated forecasts to TipRanks range from $4.75 to $6.00 Canadian with an average of $5.30Cdn.
As of today, my updated valuation is $5.90Cdn ($4.25US).
After Baytex announces guidance for 2026 on Monday, December 22nd a lot of the energy sector analysts will update their price targets.
My current forecast/valuation model has been posted to the EPG website. It is based on Baytex's production averaging 70,000 Boepd in 2026 and 75,000 Boepd in 2027. Production mix is expected to be 18% Light Oil & Condensate, 66% heavy oil, 5% NGLs, and 11% natural gas.
Baytex's realized prices in Q3 2025, including cash settlements on their hedges, were:
$Cdn Dollars
> $87.52/bbl for Light Oil & Condensate
> $78.99/bbl for Heavy Oil
> $23.60/bbl for NGLs
> $2.16/mcf for natural gas < Much lower for their Canadian gas
Dan Steffens
Energy Prospectus Group |
