Baytex Energy (BTE) investor relations material

Strategic priorities and growth targets

• Aims for 15% annual total shareholder return through production growth, dividends, and share buybacks at a mid-cycle WTI price of US$70/bbl.

• Targets 6–8% annual production growth and continuous improvement in cash costs and capital efficiencies, with a long-term sustaining break-even price under US$50/bbl WTI.

• Focuses on full-scale development in the Duvernay (20,000–25,000 boe/d by 2029–2030) and expanding heavy oil opportunities, including new exploration and waterflood pilots.

• Maintains a strong, flexible balance sheet with an industry-leading net cash position, supporting investment and shareholder returns.

Capital allocation and shareholder returns

• Prioritizes disciplined investment to maximize asset value, with maintenance capital, infrastructure, and targeted exploration.

• Significant portion of net cash to be returned to shareholders, with share buybacks reducing share count by 7.7% through June 2026 and a renewed NCIB authorizing up to 70.9 million shares repurchased by July 2027.

• Maintains annualized dividend at $0.09 per share.

Operational performance and production outlook

• 2026 capital budget of ~$625 million supports ~7% annual production growth, with 69,000–71,000 boe/d guided for the year.

• Production mix is 82% crude oil, 7% NGLs, and 11% natural gas; 89% of production is oil and NGLs.

• Heavy oil and Pembina Duvernay assets drive growth, with 45% of capex to heavy oil and 55% to light oil.

• Three-year outlook projects 6–8% production CAGR, with Pembina Duvernay delivering >30% CAGR and heavy oil generating substantial free cash flow.