The Orioles made their first major move of the offseason Saturday night when they agreed to a contract with free agent outfielder Tyler O’Neill, a source with direct knowledge confirmed to The Baltimore Banner. The deal, which is pending a physical, is worth $49.5 million over three years, the source said, although there’s an opt-out O’Neill can trigger after the 2025 season.

O’Neill provides the Orioles with the right-handed outfield bat they sought this winter, and it likely rules out a return for free agent outfielder Anthony Santander, given the competition for playing time. The New York Post first reported the deal.

O’Neill, 29, hit .241 with the Boston Red Sox last season but provided thump. He launched 31 homers with an .847 on-base-plus-slugging percentage. He is mainly a corner outfielder but has played center field.

O’Neill will be in the outfield mix along with Cedric Mullins, Colton Cowser and Heston Kjerstad.

Although there is an opt-out in O’Neill’s deal (which would allow the outfielder to hit the open market again in a year), this is the first time general manager Mike Elias has doled out a multiyear contract to a free agent.

The decision to move the left-field wall back in at Camden Yards comes at a good time; O’Neill has pull-side power, with just three of his 31 homers in 2024 going to right-center or right field.

He also excels against left-handed pitching, which was an area the Orioles wanted to improve. Mullins, Cowser and Kjerstad are left-handed hitters. O’Neill, meanwhile, hit .313 with a 1.180 OPS against left-handed pitching.

”I look at our current outfield mix with guys that we know are returning for sure, and it’s a very left-handed mix,” Elias said last month. “We’ll be seeking some right-handed players to balance that out.”

Santander produced greater numbers than O’Neill in 2024, but the latter wasn’t far off from the Orioles All-Star. O’Neill’s OPS of .847 bested Santander’s .814 OPS. Santander, however, managed 2.9 wins above replacement compared to O’Neill’s 2.6 bWAR, and Santander played 42 more games.

Santander declined Baltimore’s qualifying offer in lieu of a chance to hit the open market for the first time in his career. Although Elias and manager Brandon Hyde lauded Santander’s leadership ability — on top of what he does on the field — a return to Baltimore was always in question because of the expected high-value deal over several years. O’Neill’s signing, with an average annual value of $16.5 million, is below what is expected for Santander.

O’Neill has struggled with strikeouts. He struck out 159 times in 473 plate appearances for the Red Sox last year. With the St. Louis Cardinals earlier in his career, he was a two-time Gold Glover but only twice finished with a plus-100 OPS+ (100 is league average for offensive production) in six seasons.

Still, the Orioles have apparently solved one of their major areas of need before the winter meetings begin Monday in Dallas. It shouldn’t be the last of Baltimore’s activity this winter, with a starting pitcher, reliever and backup catcher all on the wish list.