Baytex Energy (BTE) investor relations material

Executive summary

• Q2 2026 production averaged 71,243 BOE/d (88% oil and NGL), exceeding guidance and up 11% year-over-year, driven by strong heavy oil and Duvernay well results.

• Full-year production guidance raised to 71,000 BOE/d, with a targeted exit rate of 72,000 BOE/d; capital program remains at CAD 625 million.

• Net cash at quarter-end was CAD 566 million, reflecting robust financial health and operational execution.

• Shareholder returns included $152 million, with 22 million shares repurchased and $16 million in dividends paid.

• Board expanded with two new independent directors, enhancing expertise in resource development and energy finance; two directors stepped down.

Financial highlights

• Adjusted funds flow reached CAD 254 million (CAD 0.35/share) in Q2; operating netback was CAD 55.33/BOE, up from CAD 35.36/BOE in Q1.

• Net income for Q2 was CAD 175 million (CAD 0.24/share); year-to-date net income totaled CAD 108 million (CAD 0.15/share).

• Free cash flow was CAD 128 million (CAD 0.18/share), a significant increase from CAD 2 million in Q1.

• Petroleum and natural gas sales in Q2 were $639.9 million; cash flows from operating activities were $230.9 million.

• Dividend declared at $0.0225/share for Q3 2026; 22 million shares repurchased for $136 million.

Outlook and guidance

• 2026 production guidance increased to 71,000 BOE/d, up 1,000 from prior midpoint; exit rate targeted at 72,000 BOE/d.

• Capital program unchanged at CAD 625 million, reflecting confidence in operational execution.

• 2026 Duvernay program includes 17 wells drilled, 13 onstream in 2026, 4 in 2027.

• Heavy oil program expects 99.3 net wells onstream in 2026, with 58 in H2.

• Targeting 6%-8% annual production growth and a 15% total shareholder return at a mid-cycle price of CAD 70.