Oil pumps at the Eagle Ford Shale oil field in Texas in 2020. Baytex Energy says the operations, which it's selling to an undisclosed buyer, represent all of its U.S. business.Jennifer Hiller/Reuters
Baytex Energy Corp. BTE-T says it has signed a deal to sell its U.S. Eagle Ford assets to an undisclosed buyer for about $3.25-billion in a move to focus on its operations in Alberta and Saskatchewan.
The company says the light oil Eagle Ford operations in Texas represent all of its U.S. business.
Baytex chair Mark Bly says by sharpening the company’s focus on its core Canadian assets it has a solid foundation to drive growth and capitalize on new opportunities.
Once the deal is complete, Baytex says it will focus on being a Canadian energy producer with heavy oil operations in the Peavine and Peace River regions in Alberta and the Lloydminster area in Alberta and Saskatchewan.
It also has light oil operations in the Pembina Duvernay region in Alberta and in the Viking area in Saskatchewan and Alberta.
The transaction is expected to close in late 2025 or early 2026, subject to customary closing conditions and regulatory approvals.
Baytex shares were up 37 cents at $4.11 in early trading on the Toronto Stock Exchange.