Baytex Energy Corp. (NYSE:BTE) shares soared 13% on Wednesday after the Canadian oil producer announced the sale of its U.S. Eagle Ford assets for US$2.305 billion (about $3.25 billion) in cash — a transformative move that will sharpen its focus on its domestic operations.
The company said the transaction, which is expected to close in late 2025 or early 2026, will allow Baytex to become a net cash company while focusing entirely on its high-return Canadian portfolio. Proceeds from the sale will be used to repay outstanding credit facilities and 2030 Senior Notes, with a substantial portion returned to shareholders through dividends and potential buybacks.
“This transaction positions Baytex as a focused, high-return Canadian energy producer,” said Eric T. Greager, President and Chief Executive Officer. “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.”
After the sale, Baytex will concentrate on its Canadian operations, which averaged 65,000 barrels of oil equivalent per day (boe/d) during the first nine months of 2025, consisting of 89% crude oil and natural gas liquids (NGLs). That output represented a 5% year-over-year increase, excluding non-core asset divestitures.
Looking ahead, Baytex plans to target annual production growth of 3–5% at WTI prices between US$60–65 per barrel, while maintaining flexibility to accelerate growth if prices strengthen. The company also intends to preserve its annualized dividend of $0.09 per share.
The Eagle Ford sale includes all of Baytex’s U.S. operations, which held 401 million boe of proved plus probable reserves as of December 31, 2024. The assets produced an average of 82,765 boe/d in the third quarter of 2025.
Following the transaction, Baytex expects its corporate sustaining break-even oil price to improve by US$8 per barrel to US$52/bbl, bolstering its financial flexibility and long-term resilience.