Baytex Energy Corp. has completed the sale of its U.S. Eagle Ford assets for US$2.14 billion (≈C$2.96 billion), marking a major strategic pivot for the company.
The divestiture moves Baytex into a net cash position, materially strengthening its balance sheet and financial flexibility. Proceeds are being used to repay credit facilities, redeem its 8.500% Senior Notes due 2030, and fund a tender offer for its 7.375% Senior Notes due 2032—significantly reducing future interest costs.
With its U.S. exposure exited, Baytex is sharpening its focus on a high-return Canadian energy platform, simplifying operations and aligning capital with its strongest assets. Importantly for investors, the company has reaffirmed its commitment to returning a significant portion of excess capital to shareholders, including the resumption of share buybacks under its normal course issuer bid.
Eagle Ford 2025 Drilling Snapshot (Divested Assets)
An analysis of Baytex’s 2025 U.S. drilling activity highlights the scale and concentration of the divested Eagle Ford program:
Total wells drilled (2025): 44 wells
Wells by County (Eagle Ford):
- Lavaca County: 22 wells
- Gonzales County: 17 wells
- Karnes County: 3 wells
- La Salle County: 2 wells
This activity underscores a core focus in Lavaca and Gonzales counties, with limited step-out drilling elsewhere.
Top Contractors & Rigs (2025):
- H&P Rig 505 – 26 wells
- H&P Rig 501 – 12 wells
- H&P Rig 536 – 6 wells
The data reflects a highly concentrated, pad-driven drilling program, dominated by a small number of Helmerich & Payne rigs—typical of a mature, efficiency-focused Eagle Ford development model.
Bottom Line
The Eagle Ford sale closes the chapter on a steady but capital-intensive U.S. program, freeing Baytex to redeploy capital toward Canadian core assets, balance-sheet strength, and shareholder returns. With drilling activity already tightly optimized in 2025, the divestiture represents a clean exit at scale and a clear shift toward capital discipline over growth.
