This strategic divestiture significantly strengthens Baytex’s financial position and sharpens its focus on a high-return Canadian energy platform, positioning the company for long-term value creation. With the transaction completed, Baytex is now in a net cash position. The Company intends to use a portion of these proceeds to repay its outstanding credit facilities and redeem its outstanding 8.500% Senior Notes due 2030 (the “2030 Notes”) and has also commenced a cash tender offer for its US$575 million of outstanding 7.375% Senior Notes due 2032 (the “2032 Notes”).
Baytex remains committed to returning a significant portion of net proceeds (after debt repayment) to shareholders and plans to resume purchases at the normal issuer bid level.
Baytex expects to announce its 2026 guidance on December 22, 2025.
Advisory regarding forward-looking statements
Certain statements in this press release are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”). Forward-looking statements in this press release can be identified by words such as “expect,” “intend,” “commit” or similar expressions and contain suggestions of future outcomes, events or performance.
This press release specifically contains forward-looking statements relating to, but not limited to: the effect of the divestiture on Baytex’s financial position, Baytex’s focus on a high-return Canadian energy platform and long-term value creation position; that the net proceeds will be used to repay credit facilities, redeem the 2030 Notes and repurchase the 2032 Notes; that a significant portion of the net proceeds will be returned to shareholders; that Baytex intends to resume purchases under the normal issuer bid; and the expected timing of the publication of Baytex’s 2026 guidance.
Developing forward-looking information involves relying on a number of assumptions and considering 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 risk that Baytex may not realize the expected benefits of the strategic divestiture; the risk that the net proceeds are not used as currently expected; the risk that Baytex may not resume purchases under the issuer’s normal bid; and the risk that Baytex does not announce its 2026 guidance on expected timing.
These assumptions include, among others: that the Company will realize the expected benefits of the strategic divestiture; that the net proceeds will be used as expected, that Baytex will be able to resume its normal bid for the issuer; and that holders of the 2032 Notes will tender their 2032 Notes for redemption.
The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to publicly update or revise 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’s future acquisition of its common shares under any issuer bid in the ordinary course of business, and the level thereof, are uncertain. Any decision to acquire shares of Baytex common stock pursuant to the normal issuer tender offer will be subject to the discretion of Baytex’s board of directors and may depend on a variety of factors, including, without limitation, Baytex’s operating performance, financial condition, financial requirements, growth plans, expected capital requirements and other circumstances existing at such future time, including, but not limited to, contractual restrictions and the satisfaction of solvency tests imposed on Baytex under applicable corporate law. There can be no assurance as to the number of Baytex common shares that the Company will acquire in the future pursuant to its normal issuer tender offer.
Baytex Energy Corp.
Baytex Energy Corp. is a Calgary-based energy company committed to increasing shareholder value through disciplined execution. It operates a high-quality, high-return portfolio in the Western Canadian Sedimentary Basin, including the Pembina Duvernay and heavy oil plays in Alberta and Saskatchewan. These core assets are backed by an extensive drilling inventory and consistently generate strong cash flow. Baytex’s common shares trade on the Toronto Stock Exchange and the New York Stock Exchange under the symbol BTE.
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