Baytex Energy (BTE) investor relations material

Capital plan and shareholder returns

• 2026 capital budget of ~$625 million supports production guidance of ~71,000 boe/d and ~8% annual growth; 45% allocated to heavy oil and 55% to light oil.

• At US$70/bbl mid-cycle WTI, targets 15% annual total shareholder return through production growth, dividends and buybacks, underpinned by a flexible balance sheet.

• Net cash position supports shareholder returns; prior NCIB reduced share count 11% through September 30, 2026, and renewed NCIB authorizes repurchases of up to 70.9 million shares through July 1, 2027.

• Dividend maintained at $0.09/share annualized, or $0.0225 quarterly; indicated yield 1.4%.

Production outlook and operating plan

• Three-year plan targets 6%-8% production CAGR, maintaining net cash through the plan period and directing free cash flow to buybacks, dividends or incremental investment.

• Duvernay production target of 20,000-25,000 boe/d by 2030, supported by 91,500 net acres and ~210 drilling locations; plan shifts to one rig, with 13 wells onstream in 2026 and ~18 annually thereafter.

• Duvernay execution improvements from 2024 to 2025 included 25% longer completed laterals, 11% higher EUR per foot and 11% lower well cost per foot.

• Heavy oil outlook calls for modest production growth while generating substantial free cash flow; Duvernay production CAGR expected above 30% over three years, with an 80% increase in net operating income.

Growth assets and development opportunities

• Heavy oil portfolio spans 750,000 net acres and ~1,100 risked locations, with average break-even WTI of US$48/bbl; ~10% of production is on water and polymer floods.

• Northeast Mannville development spans eight horizons across more than 100 sections; 2026 activity includes ~46 wells, delineation and new trials across multiple zones.

• Utikuma exploration added 40 sections in Q1 2026, bringing holdings to 109 sections; after a 21-square-mile seismic survey, up to two exploration test wells are planned for early 2027.

• Peavine waterflood pilots began in 2026 to test reservoir repressuring and pressure maintenance, combining multi-lateral development with potential enhanced recovery and moderated declines.

• Gemini thermal SAGD has 44 million barrels of booked probable reserves and an approved 5,000 bbl/d development scheme; planning is advancing toward a potential 2027 FID.