Baytex Energy (BTE) EnerCom Denver – The Energy Investment Conference summary

Strategic vision and portfolio optimization

• Refocused exclusively on Canadian assets after divesting Eagle Ford, enhancing clarity and operational control.

• Maintains a strong oil-weighted portfolio (89% oil), with key assets in Duvernay, Pembina, Viking, Peace River, Clearwater, Peavine, and Lloydminster.

• Achieved a net cash position, enabling flexibility in capital allocation and supporting a cultural shift toward innovation and project execution.

• Board refresh and cost reductions implemented to streamline operations and support growth.

• Multi-year plan targets 7–8% annual production growth, primarily from Duvernay and heavy oil assets.

Capital allocation and shareholder returns

• Three-quarters of net cash from Eagle Ford sale allocated to share buybacks, with 9% of shares repurchased by Q2 and ongoing daily buybacks.

• Remaining cash earmarked for sustainability initiatives and small-scale acquisitions aligned with core assets.

• Maintenance capital set at CAD 435 million, with a $52 WTI break-even, and dividend at CAD 60 million.

• Growth capital increased to CAD 90 million, supporting Duvernay expansion and long-term infrastructure.

• Capital efficiency and long-term returns prioritized, with Duvernay infrastructure leveraging existing third-party gas processing.

Asset performance and growth outlook

• Duvernay production to grow from 8,000 BOE/d in 2025 to 25,000 BOE/d by 2030, supported by strong well results and cost improvements.

• Heavy oil assets underpin cash flow, with 1,100 drilling locations and a decade-long inventory.

• Guidance raised twice in the year due to asset outperformance, notably in Peavine and Duvernay.

• Duvernay well costs reduced from CAD 1,150/ft to CAD 1,000/ft, targeting CAD 900/ft at full scale.

• Exploration and land programs continue to expand inventory and future growth opportunities.