After closing a $2.2 billion deal this summer to add significant scale in the Eagle Ford, Calgary-based Baytex Energy is shedding some of its assets in southwestern Saskatchewan. (Source: Shutterstock.com)
Baytex Energy is divesting some of its crude oil assets in Western Canada, the company announced on Nov. 27.
Calgary-based Baytex Energy Corp. agreed to sell a portion of its Viking assets, located at Forgan and Plato in southwestern Saskatchewan, for nearly US$113 million (CA$153.8 million).
Production from the assets is approximately 4,000 boe/d (100% light and medium crude oil).
The transaction is expected to close before the end of the year. The buyer was not disclosed.
Proceeds from the sale are expected to be applied toward repaying Baytex’s outstanding bank debt, the company said.
Baytex had total debt of US$1.98 billion (CA$2.7 billion) and a debt-to-EBITDA ratio of 1.1x as of Sept. 30, the company reported in third-quarter earnings.
Baytex has a $1.1 billion revolving credit facility with a maturation date of April 1, 2026. The company repaid a $150 million term loan during the third quarter.
Scale in South Texas
The third quarter was also Baytex’s first full quarter of combined operations after closing its acquisition of Eagle Ford Shale E&P Ranger Oil Corp.
The $2.2 billion acquisition added 162,000 net acres and 741 undeveloped drilling locations in the crude oil window of the Eagle Ford—which complemented Baytex’s existing non-operated position in the Karnes Trough.
Third-quarter production in the Eagle Ford averaged 87,311 boe/d (85% oil and NGL).
Baytex’s companywide production averaged 150,600 boe/d during the third quarter, up 81% from an average of 83,194 boe/d during the same quarter a year ago.
RELATED: Baytex Closes $2.2 Billion Acquisition of Eagle Ford’s Ranger Oil
Recommended Reading
Venture Global LNG Pares IPO Hopes by 15% to $2.2B
2025-01-22 - LNG exporter Venture Global nearly halved the price per share, while increasing the number of shares it expects to offer.
USD Partners Expects to Sell Final Asset by Mid-April
2025-01-22 - USD Partners was obligated to sell the Hardisty terminal after entering a forbearance agreement with its lenders in June 2024.
Berry Announces Jeff Magids as New CFO
2025-01-21 - Jeff Magids was appointed as Berry Corp.’s new CFO on Jan. 21 in replacement of Mike Helm, effective immediately.
Independence Contract Drilling Emerges from Chapter 11 Bankruptcy
2025-01-21 - Independence Contract Drilling eliminated more than $197 million of convertible debt in the restructuring process.
Utica’s Infinity Natural Resources Seeks $1.2B Valuation with IPO
2025-01-21 - Appalachian Basin oil and gas producer Infinity Natural Resources plans to sell 13.25 million shares at a public purchase price between $18 and $21 per share—the latest in a flurry of energy-focused IPOs.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.