Baytex Energy Corp.

Baytex Energy Corp. is a leading North American oil and gas exploration and production company with a diversified portfolio spanning both Canada and the United States. With a strong focus on delivering shareholder value, Baytex operates an extensive portfolio of high-quality assets, producing approximately 153,000 barrels of oil equivalent per day (boe/d), with a production mix comprising 84% liquids. The company’s asset base includes light oil, heavy oil, and natural gas production from premier plays such as the Eagle Ford in Texas, as well as Viking, Duvernay, and Clearwater in Canada.

Guided by a disciplined approach to capital allocation, Baytex prioritizes sustainable free cash flow generation and has established a clear commitment to both financial strength and shareholder returns. In 2024, Baytex plans to allocate 50% of its free cash flow to debt reduction and 50% to shareholder returns, including share buybacks and dividends. This balanced strategy allows Baytex to pursue growth through efficient reinvestment, while consistently enhancing shareholder value.

Listed on the Toronto Stock Exchange (TSX: BTE) and the New York Stock Exchange (NYSE: BTE), Baytex is well-positioned to weather commodity price cycles through prudent capital management and an extensive hedge program. The company’s focus on operational efficiency and targeted growth across its asset portfolio underscores its commitment to maximizing returns in both the short and long term.

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Baytex Energy Corp. presents a compelling opportunity for investors seeking exposure to a diversified, oil-weighted portfolio across top-tier North American plays. With its well-established operations in the Eagle Ford, Viking, Duvernay, and Clearwater formations, Baytex benefits from more than 10 years of drilling inventory, offering sustained production growth and strong project economics. The company’s robust portfolio positions it to deliver substantial long-term value, leveraging high-margin assets to generate consistent free cash flow and resilient performance through commodity price cycles.

In 2024, Baytex expects production levels of approximately 153,000 boe/d and an exploration and development budget of $1.25 billion, balancing growth and returns with disciplined capital deployment. In the first nine months of 2024 alone, Baytex returned $220 million to shareholders through dividends and share buybacks, exemplifying its commitment to direct returns.

Strategically, Baytex is advancing major growth initiatives within the Eagle Ford and Duvernay, capitalizing on its existing infrastructure and improved operational efficiencies to lower costs and increase productivity. Additionally, Baytex’s position in heavy oil assets such as Clearwater and Lloydminster offers substantial upside, as these assets are expected to contribute meaningfully to production and cash flow.

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Baytex Energy Corp. is led by a highly experienced management team with deep expertise in oil and gas operations, capital markets, and corporate finance, bringing a strategic vision that has guided the company through changing industry dynamics.

At the helm is Eric T. Greager, President and Chief Executive Officer, He is an accomplished energy executive with 30 years of operations and management experience. He is the former President, Chief Executive Officer and Director of NYSE-listed Civitas Resources, Inc. (formerly Bonanza Creek Energy, Inc.), a position he held from 2018 to 2022.

Supporting this vision, Chad L. Kalmakoff, Chief Financial Officer, Appointed CFO in November 2022, he joined Baytex in September 2015 as Vice President, Finance, Prior to joining Baytex, Mr. Kalmakoff served as the Vice President, Finance and Chief Financial Officer at Kicking Horse Energy Inc. and Vice President, Finance and Chief Financial Officer at Corinthian Exploration Ltd.

Chad E. Lundberg, Chief Operating Officer joined Baytex in August 2018. Prior to joining Baytex as Vice President, Light Oil, Mr. Lundberg was Vice President, Operations with Raging River Exploration Inc. from 2016 to 2018 and held a variety of technical and management roles with Crescent Point Energy Corporation, Husky Energy and as an independent consultant.

Together, Baytex’s management team is complemented by a Board of Directors with substantial backgrounds in energy, finance, and governance, ensuring strong oversight and alignment with long-term shareholder value.

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Baytex Energy Corp. is executing a focused growth strategy centered on maximizing cash flow, enhancing operational efficiencies, and delivering sustainable shareholder returns. The company’s diversified asset portfolio across premier North American oil plays—including Eagle Ford, Viking, Duvernay, and Clearwater—provides Baytex with a strategic foundation for production growth, low-cost development, and long-term resilience.

In 2024, Baytex has committed to an exploration and development budget of approximately $1.25 billion, aiming to advance high-return projects while targeting 1-2% production growth. Baytex’s disciplined capital allocation approach ensures that 50% of free cash flow is directed toward shareholder returns via dividends and share buybacks, while the remaining 50% strengthens the balance sheet through debt reduction. This approach supports a sustainable growth trajectory and positions Baytex to scale production efficiently, even amidst fluctuating commodity prices.

A key component of Baytex’s strategy is the expansion and optimization of its light oil production in the Eagle Ford and Duvernay plays, where improvements in well performance, drilling efficiency, and completion design have significantly reduced costs. Additionally, Baytex is focused on enhancing its heavy oil production from Clearwater and Lloydminster through innovative multilateral drilling techniques, boosting both production levels and economic returns.

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Baytex Energy Corp. is positioned for financial resilience and growth, supported by a solid balance sheet and a disciplined approach to capital management. With a current market capitalization of approximately $3.1 billion and an enterprise value of $5.6 billion, Baytex operates with a focus on maximizing free cash flow and maintaining financial strength. The company’s prudent capital allocation strategy, targeting a 50/50 split of free cash flow between shareholder returns and debt reduction, has bolstered its financial flexibility and shareholder value.

Baytex’s debt reduction strategy is a core element of its financial framework, with a target debt-to-EBITDA ratio of 0.7x at a WTI price of US$70/bbl. As of September 30, 2024, Baytex had reduced net debt by 12% over the prior year, reinforcing its ability to weather market volatility and maintain robust liquidity. The company’s debt profile includes long-term notes with extended maturities, providing substantial credit capacity and resilience through commodity price cycles.

In line with its shareholder value focus, Baytex returned $220 million to shareholders in the first nine months of 2024 through dividends and share buybacks. With its strong capital structure and commitment to sustainable cash flow generation, Baytex Energy Corp. remains well-positioned to achieve both near-term financial objectives and long-term growth.

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Baytex Energy Corp. stands as a resilient, growth-oriented leader in the North American oil and gas industry, with a well-balanced portfolio of high-quality assets across top-tier plays in Canada and the United States. With a disciplined approach to capital allocation and a commitment to shareholder returns, Baytex combines operational excellence with financial strength to create sustainable value.

The company’s focus on free cash flow generation, debt reduction, and direct shareholder returns underscores its strategy of delivering both immediate and long-term benefits to investors. Baytex’s diversified asset base, extensive drilling inventory, and targeted reinvestment plan position it to capitalize on growth opportunities while navigating commodity price cycles effectively.

As Baytex continues to optimize its portfolio through efficiency gains, prudent capital management, and adherence to environmental, social, and governance (ESG) principles, it is well-equipped to thrive in an evolving energy landscape. For investors seeking a robust and responsible energy company with a clear path to growth and sustainable returns, Baytex Energy Corp. represents a compelling investment opportunity.

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