Oil and gas producer Baytex Energy is exploring a potential exit from its Eagle Ford shale operations in south Texas, US, as it considers refocusing on assets in Canada, Bloomberg reported, citing unnamed people with knowledge of the matter.

After expanding its presence in the Eagle Ford two years ago through its acquisition of Ranger Oil, the Calgary, Canada-based producer has now engaged advisers to gauge interest in the US assets.

The operations could attract bids of up to $3bn, although no final decision has been taken and Baytex may choose to retain the acreage. A company spokesperson refused to comment, reported the media outlet.

An investor presentation this month revealed that Eagle Ford now represents the majority of the company’s output and is expected to produce 82,000 barrels of oil per day (bopd) this year.

The presentation also indicated that the basin will account for around 57% of Baytex’s estimated C$1.2bn ($856.08m) exploration and development expenditure in 2025.

When Baytex completed the Ranger takeover it described the deal as a way to double free cash flow.

The Eagle Ford, however, is a shallower, more mature reservoir than the larger Permian Basin of West Texas and New Mexico, and typically requires continual drilling to offset rapid well decline rates.

That dynamic can leave operators more exposed to oil price volatility, especially when prices are in the lower-to-mid $60 per barrel range, as they have been.

The potential move would mirror recent industry activity, including Ovintiv’s disposals in the Uinta basin last year, while strengthening its position in Canada’s Montney region.