Baytex Announces Fourth Quarter and Full Year 2025 Results and CEO Succession; Completes Transition to a Focused Canadian Energy Company

Executive Summary

• Baytex Energy Corp. reported its full-year 2025 and Q4 2025 financial results, highlighting a strategic pivot to a focused Canadian producer following the divestiture of its U.S. Eagle Ford assets.
• The company reported a net loss of $604 million for 2025, primarily driven by non-cash, one-time items related to the Eagle Ford divestiture and Viking asset impairments, while generating $1.5 billion in adjusted funds flow and $275 million in free cash flow.
• CEO Eric Greager announced his succession by Chad Lundberg, effective May 7, 2026, while the company re-initiated share buybacks and declared a quarterly dividend of $0.0225 per share.

Key Details

• Divestiture: Completed the sale of U.S. Eagle Ford assets on December 19, 2025, for net proceeds of US$2.2 billion ($3.0 billion CAD). Results are classified as discontinued operations.
• 2025 Financial Performance:
  • Net Loss: $604 million ($0.78 per basic share), driven by non-cash losses on Eagle Ford disposition, deferred tax adjustments, and Viking impairments.
  • Adjusted Funds Flow: $1.5 billion ($1.97 per basic share) for the full year; $261.5 million ($0.34 per basic share) in Q4.
  • Free Cash Flow: $275 million ($0.36 per basic share) for the full year; $76.5 million ($0.10 per basic share) in Q4.
  • Operating Cash Flow: $1.5 billion ($1.93 per basic share) for the full year; $227.7 million ($0.30 per basic share) in Q4.
• 2025 Production:
  • Canadian Production: Averaged 65,528 boe/d (89% oil and NGL), representing 6% organic growth over 2024.
  • Q4 2025 Canadian Production: Averaged 67,295 boe/d (88% oil and NGL).
  • Total Production (incl. Discontinued): Averaged 145,079 boe/d for 2025; 137,087 boe/d in Q4.
• Balance Sheet & Liquidity:
  • Cash Position: $857 million (cash less principal amount of Senior Notes outstanding).
  • Net Cash: $765.8 million as of December 31, 2025.
  • Debt Reduction: Total debt reduced to $97.3 million from $2.3 billion in 2024.
• Shareholder Returns:
  • Dividends: Declared total cash dividends of $0.09 per share for 2025 ($69 million returned).
  • Buybacks: Re-initiated on December 24, 2025. Repurchased 30 million shares (3.9% of outstanding) for $141 million at an average price of $4.72 per share. NCIB allows for up to 66.2 million shares through July 1, 2026.
• CEO Succession: Chad Lundberg (President and COO) will succeed Eric Greager as CEO following the Annual General Meeting on May 7, 2026. Greager will remain CEO and Board member until the AGM.
• 2026 Outlook:
  • Production Guidance: Targeting 67,000–69,000 boe/d (3–5% organic growth). Q1 2026 forecasted at 68,000–69,000 boe/d, exiting 2026 at ~70,000 boe/d.
  • Capital Expenditures: E&D budget of $550–$625 million.
  • Heavy Oil: 750,000 net acres, 1,100 drilling locations. Expecting 91 wells onstream in 2026 with 5 active rigs.
  • Duvernay: 91,500 net acres, ~210 drilling locations. Production expected to increase 35% to ~11,000 boe/d in 2026, exiting at 14,000–15,000 boe/d. One rig active on a four-well pad.
  • Breakeven: Sustaining breakeven of US$52/bbl WTI.

Notable Quotes

• "2025 was a definitive year for Baytex, marked by the successful repositioning of our portfolio into a focused, high-return Canadian producer... With a sustaining breakeven of US$52/bbl WTI, Baytex is well-positioned to navigate market volatility and accelerate shareholder returns." — Eric T. Greager, Chief Executive Officer
• "The Board has been committed to a rigorous succession process to ensure Baytex is led by the right individual for our next chapter... Chad's deep operational expertise and proven leadership make him the right choice to drive our business forward." — Mark Bly, Chair of the Board of Directors