Baytex Energy (BTE) investor relations material

Strategic transformation and portfolio focus

• 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.

• Portfolio now centers on high-return Canadian heavy oil and scalable Pembina Duvernay light oil assets, with over ten years of development inventory.

• Pro forma 2025 production is ~65,000 boe/d, targeting 3-5% annual growth, supported by disciplined capital allocation and operational efficiency.

• Significant portion of asset sale proceeds to be returned to shareholders through dividends and share buybacks.

Financial position and capital allocation

• Net cash position of ($0.8) billion as of December 19, 2025, with market capitalization of $3.3 billion and 768 million shares outstanding.

• 2026 capital budget of $550–$625 million targets 3–5% production growth, with 45% allocated to heavy oil and 55% to light oil.

• Dividend maintained at $0.09 per share (annualized), with a 2.1% yield and a focus on meaningful shareholder returns.

• Share buybacks prioritized, with NCIB authorizing up to 66.2 million shares and a substantial issuer bid under consideration.

Operational performance and growth outlook

• 2026 production guidance of 67,000–69,000 boe/d, with 82% crude oil weighting and strong operating leverage to oil prices.

• Heavy oil portfolio delivers stable cash flow, with 5% organic growth and innovative multi-lateral horizontal development.

• Pembina Duvernay offers >30% production CAGR over three years, with record well results and a transition to a 1-rig program.

• Canadian development program achieves strong production replacement, low F&D costs, and healthy recycle ratios across reserves.