Baytex Vitality Corp has closed the sale of its Kerrobert thermal asset in southwest Saskatchewan for internet proceeds of roughly $42 million to an undisclosed purchaser.
Manufacturing from the asset is roughly 2,000 barrels per day (bpd) consisting of 100% heavy oil, Baytex stated in a information launch.
“The non-core disposition additional streamlines our portfolio and the online proceeds from the sale might be utilized in opposition to excellent financial institution indebtedness,” the corporate famous.
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Baytex stated it has up to date its 2025 manufacturing steerage to 148,000 to 152,000 barrels of oil equal per day (boepd) from 150,000 to 154,000 boepd. The corporate added that the divestment is just not anticipated to meaningfully influence its exploration and growth expenditures or free money movement profile for 2025.
Earlier within the month, the corporate’s board of administrators accepted a funds for 2025 exploration and growth expenditures of $1.2 billion to $1.3 billion, focusing on to generate common annual manufacturing of 150,000 to 154,000 boepd.
Baytex’s operated manufacturing represents roughly 85 p.c of whole company volumes, and is forecast to extend 1 p.c in 2025 12 months over 12 months, it stated, including that the corporate’s manufacturing profile for 2025 will replicate a discount in non-operated Eagle Ford volumes as a consequence of diminished exercise in late 2024 and early 2025.
In response to a separate assertion, Baytex plans to direct 55 to 60 p.c of its exploration and growth expenditures to its Eagle Ford gentle oil belongings within the USA, whereas 40 to 45 p.c might be allotted to its Canadian belongings, equally break up between gentle oil and heavy oil.
Within the Eagle Ford, the corporate expects to convey 54 internet wells onstream, together with 41 internet operated wells. In its Canadian gentle oil enterprise unit, it plans to convey onstream 9 internet wells within the Pembina Duvernay and 90 internet wells within the Viking. In the meantime, within the heavy oil enterprise unit, it expects to convey onstream 112 internet wells, together with 33 internet Clearwater wells at Peavine.
Primarily based on the midpoint of Baytex’s manufacturing steerage of 152,000 boepd, roughly 56 p.c of its manufacturing is within the Eagle Ford with the remaining 44 p.c in Canada. The manufacturing combine is projected to be 15 p.c pure fuel and 85 p.c liquids, consisting of 44 p.c gentle oil and condensate, 28 p.c heavy oil and 13 p.c pure fuel liquids (NGLs).
“Our 2025 funds demonstrates the power of our oil-weighted portfolio as we goal continued sturdy efficiency within the Eagle Ford, additional development of the Pembina Duvernay and capital environment friendly heavy oil growth. We’re centered on disciplined capital allocation to prioritize free money movement whereas sustaining a powerful steadiness sheet. Within the present commodity worth surroundings this implies moderating our progress profile and delivering steady crude oil manufacturing,” Baytex President and CEO Eric Greager stated.
Within the third quarter, Baytex generated manufacturing of 154,468 boepd, consisting of 86 p.c oil and NGLs, up 3 p.c 12 months over 12 months. Crude oil manufacturing elevated 12 months over 12 months by 2 p.c within the quarter to common 112,602 bpd.
“Our third-quarter outcomes exhibit continued stable operational efficiency in addition to our dedication to producing significant free money movement and the supply of sturdy shareholder returns,” Greager stated within the firm’s most up-to-date earnings launch. “We anticipate to launch our 2025 funds in early December. We’re dedicated to prioritizing free money movement and within the present commodity worth surroundings, this implies moderating our progress profile and delivering steady crude oil manufacturing”.
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