Baytex Energy (BTE) investor relations material

Strategic focus and portfolio

• Emphasizes disciplined investment in high-return Canadian oil assets, prioritizing capital efficiency and value creation.

• Core operations in heavy oil and scalable Pembina Duvernay light oil, with over ten years of development inventory.

• 2025 production reached 65,500 boe/d, targeting 3-5% annual growth.

• Maintains a net cash balance sheet, supporting flexibility for shareholder returns and growth.

Capital allocation and shareholder returns

• 2026 capital allocation prioritizes meaningful shareholder returns, with significant share buybacks and a maintained dividend of $0.09 per share (annualized).

• Share count reduced by 4.9% through March 31, 2026; NCIB authorizes up to 66.2 million shares for repurchase.

• Capital expenditures for 2026 guided at $550–$625 million, supporting both maintenance and growth.

• Excess free cash flow available for buybacks, dividends, or incremental investment.

Operational performance and growth drivers

• Heavy oil portfolio delivers stable, profitable cash generation with ~1,100 drilling locations and a $48/bbl average break-even WTI price.

• Pembina Duvernay offers significant value creation, with 91,500 net acres and a $45/bbl average break-even WTI price.

• Execution improvements in the Duvernay led to 11% better well economics and 11% lower well costs year-over-year.

• Northeast Alberta Mannville program targets scalable growth with up to 8 development horizons and ~40 wells in 2026.