Baytex Energy (BTE) investor relations material

Executive summary

• Q1 2026 production averaged 69,500 BOE/d (88% liquids), exceeding guidance, driven by heavy oil outperformance and technical leadership.

• Net cash at quarter-end was CAD 591 million; 35 million shares repurchased for CAD 174 million (4.6% of shares outstanding).

• 2026 production guidance raised to 69,000–71,000 BOE/d, targeting 7% annual growth at midpoint.

• Three-year outlook targets 6%–8% annual production growth through 2028, maintaining net cash and aiming for 15% annual total shareholder return at US$70 WTI.

• Strategy focuses on production growth, Duvernay and heavy oil advancement, and disciplined capital allocation for shareholder returns.

Financial highlights

• Adjusted funds flow was CAD 152 million (CAD 0.20 per share) in Q1 2026; net loss of $67 million due to unrealized derivative losses.

• Operating netback improved to CAD 35.36/BOE from CAD 29.30/BOE in Q4 2025.

• Quarterly dividend maintained at CAD 0.0225 per share, yielding 1.3% annually.

• Free cash flow expected to reach CAD 250 million for 2026 at CAD 80 WTI.

• 2026 capital expenditure budget set at $625 million, with 45% allocated to heavy oil and 55% to light oil.

Outlook and guidance

• 2026 production guidance increased to 69,000–71,000 BOE/d, with 7% annual growth and exit rate targeted at 71,000–72,000 BOE/d.

• Three-year plan targets 6%–8% annual production growth, with Duvernay as a key driver.

• Capital expenditures at high end of guidance, CAD 625 million, including incremental Duvernay and heavy oil projects.

• Duvernay expected to deliver 35% production growth in 2026, with 13 wells to be on stream.

• Long-term sustaining breakeven target under CAD 50/BOE.