Baytex Announces Sale of Kerrobert Thermal Asset
Rhea-AI Summary
Baytex Energy Corp. (TSX: BTE) (NYSE: BTE) has completed the sale of its Kerrobert thermal asset in southwest Saskatchewan for $42 million. The sold asset produced approximately 2,000 bbl/d of heavy oil. Following this non-core disposition, Baytex has updated its 2025 production guidance to 148,000-152,000 boe/d, down from the previous 150,000-154,000 boe/d. The company plans to apply the proceeds toward reducing bank debt. The sale is not expected to significantly impact their 2025 exploration and development expenditures or free cash flow profile.
Positive
- Sale of non-core asset generates $42 million to reduce bank debt
- Minimal impact on 2025 free cash flow profile
- Portfolio streamlining improves operational efficiency
Negative
- Production guidance reduced by 2,000 boe/d for 2025
- Loss of 2,000 bbl/d current heavy oil production capacity
News Market Reaction
On the day this news was published, BTE gained 2.69%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Calgary, Alberta--(Newsfile Corp. - December 20, 2024) - Baytex Energy Corp. (TSX: BTE) (NYSE: BTE) ("Baytex") today announced that it has closed the sale of its Kerrobert thermal asset located in southwest Saskatchewan, for net proceeds of approximately
The non-core disposition further streamlines our portfolio and the net proceeds from the sale will be applied against outstanding bank indebtedness.
To reflect the disposition, we have updated our 2025 production guidance to 148,000 to 152,000 boe/d (150,000 to 154,000 boe/d, previously). The disposition is not expected to meaningfully impact our exploration and development expenditures or free cash flow profile for 2025.
Advisory Regarding Forward-Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). Forward-looking information in this news release is identified by words such as "expected" or similar expressions and includes suggestions of future outcomes, events or performance. The forward-looking statements contained in this press release speak only as of the date thereof and are expressly qualified by this cautionary statement.
Specifically, this press release contains forward-looking statements relating to but not limited to: that net proceeds will be applied against outstanding bank indebtedness; our updated production guidance for 2025 and that the disposition is not expected to meaningfully impact our exploration and development expenditures or free cash flow profile for 2025. Developing forward-looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to Baytex and others that apply to the industry generally. These risks relating to Baytex include, but are not limited to, the satisfaction of all conditions to the completion of the transaction.
The forward-looking statements contained in this press release are made as of the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
Baytex Energy Corp.
Baytex Energy Corp. is an energy company with headquarters based in Calgary, Alberta and offices in Houston, Texas. The company is engaged in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. Baytex's common shares trade on the Toronto Stock Exchange and the New York Stock Exchange under the symbol BTE.
For further information about Baytex, please visit our website at www.baytexenergy.com or contact:
Brian Ector, Senior Vice President, Capital Markets and Investor Relations
Toll Free Number: 1-800-524-5521
Email: investor@baytexenergy.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/234740
FAQ
How much did Baytex Energy (BTE) sell its Kerrobert thermal asset for?
What is the production impact of BTE's Kerrobert asset sale?
What is Baytex Energy's updated 2025 production guidance after the Kerrobert sale?
How will BTE use the proceeds from the Kerrobert asset sale?
Will the Kerrobert sale affect BTE's 2025 free cash flow profile?
