BTE · Baytex Energy Corp.

Baytex Energy Corp. delivered strong operational performance in Q1/2026, with production of 69,478 boe/d surpassing the high end of guidance at 67,000-69,000 boe/d, driven by outperformance in heavy oil assets (44,908 bbl/d, up 12% YoY) and contributions from Duvernay development. Total liquids represented 88% of production, reflecting the quality of its Western Canadian portfolio focused on Viking, Duvernay light oil, and heavy oil in Peace River and Lloydminster. Despite this, the company reported a net loss of $67.3 million ($0.09 basic EPS) compared to net income of $69.6 million ($0.09 EPS) in Q1/2025, primarily due to a $150.8 million financial derivatives loss and higher expenses including blending ($75.9 million) and depletion ($123.7 million). Revenue net of royalties was stable at $401.4 million versus $394.9 million YoY, with realized prices lower at $60.30/boe net of blending (down from $67.92/boe) amid volatile oil prices and wider WCS differentials (US$14.13/bbl vs WTI). Cash from operations was $122.2 million, supporting $145 million in E&D spending (25.7 net heavy oil wells brought online) and aggressive shareholder returns: $174 million share repurchases (35.1 million shares, 4.6% of outstanding) plus $16.6 million dividends. Net cash strengthened to $591 million from $766 million at year-end. Management raised 2026 guidance to 69,000-71,000 boe/d (exit 71,000-72,000) with ~$625 million capex at the high end, targeting 7% growth via accelerated heavy oil (100 net wells) and Duvernay (17 wells drilled). Three-year outlook upgraded to 6-8% annual production growth at US$70/bbl WTI, maintaining net cash, with Duvernay scaling to 20,000-25,000 boe/d by 2029-2030 and Gemini SAGD FID eyed for 2027. CEO transition to Chad Lundberg underscores continuity in operational discipline amid CEO Greager's certification role.