Baytex Energy (BTE) investor relations material

Strategic transformation and asset disposition

• Completed sale of U.S. Eagle Ford assets for net proceeds of US$2.14 billion, enabling a net cash balance sheet and a focus on Canadian operations.

• Proceeds from the sale are being returned to shareholders through dividends and share buybacks, with a 2.2% reduction in share count by January 2026.

• Maintains a disciplined capital allocation strategy prioritizing shareholder returns, balance sheet strength, and targeted growth.

Operational focus and growth platforms

• Concentrates on high-return Canadian assets, particularly heavy oil and the scalable Pembina Duvernay light oil play.

• 2026 production guidance is 67,000–69,000 boe/d, with 3–5% annual growth targeted and over ten years of development inventory.

• Heavy oil portfolio includes ~1,100 drilling locations and 750,000 net acres, while Pembina Duvernay holds 91,500 net acres and 210 locations.

Capital budget and financial outlook

• 2026 capital expenditures are budgeted at $550–$625 million, with 45% allocated to heavy oil and 55% to light oil.

• Maintains a strong net cash position and industry-leading balance sheet, supporting flexibility for growth and shareholder returns.

• Dividend maintained at $0.09 per share (annualized), with a 1.9% yield and substantial free cash flow available for buybacks or reinvestment.