Baytex Delivers Solid Third Quarter 2025 Results with Record Pembina Duvernay Production and Strong Free Cash Flow

Executive Summary

• Baytex Energy Corp. reported operating and financial results for the three and nine months ended September 30, 2025, highlighting record production in the Pembina Duvernay, strong free cash flow generation, and continued debt reduction.
• The company delivered third-quarter production of 150,950 boe/d (86% oil and NGL), representing a 1% increase in production per basic share compared to Q3 2024.
• Financial performance included $422 million in adjusted funds flow, $143 million in free cash flow, and a net income of $32 million, while net debt decreased by 2% ($50 million) to $2.2 billion.

Key Details

• Production Metrics:
  • Total production averaged 150,950 boe/d (86% oil and NGL).
  • Pembina Duvernay production reached a record 10,185 boe/d (77% oil and NGL), up 53% from Q2 2025.
  • Heavy oil production averaged 47,280 boe/d (96% oil and NGL), up 5% from Q2 2025.
  • Eagle Ford production averaged 82,765 boe/d (82% oil and NGL), with crude oil production averaging 52,330 bbl/d (up 3% from Q2 2025).
  • 69 (61.6 net) wells were brought onstream in Q3 2025.
• Financial Performance (Three Months Ended Sept 30, 2025):
  • Adjusted funds flow: $422 million ($0.55 per basic share).
  • Free cash flow: $143 million ($0.19 per basic share).
  • Cash flows from operating activities: $473 million ($0.62 per basic share).
  • Net income: $32 million ($0.04 per basic share).
  • Dividends declared: $17.3 million ($0.0225 per share).
• Financial Performance (Nine Months Ended Sept 30, 2025):
  • Adjusted funds flow: $1,253 million ($1.63 per basic share).
  • Free cash flow: $198 million ($0.26 per basic share).
  • Cash flows from operating activities: $1,258 million ($1.64 per basic share).
  • Net income: $253 million ($0.33 per basic share).
• Balance Sheet & Capital Allocation:
  • Net debt decreased by 2% ($50 million) to $2.24 billion.
  • Total debt to Bank EBITDA ratio maintained at 1.1x.
  • US$1.1 billion in credit facilities available, with less than 15% drawn.
  • 2025 exploration and development expenditures totaled $1.03 billion (nine months).
  • Full-year 2025 production guidance remains approximately 148,000 boe/d with development expenditures of approximately $1.2 billion.
  • Expected 2025 free cash flow of approximately $300 million, with 100% allocated to debt repayment after dividends.
• Operational Updates:
  • Eagle Ford: Achieved a 12% improvement in drilling and completion costs per completed lateral foot compared to 2024. Successfully completed two refracs in the Lower Eagle Ford; expanded refrac program anticipated in 2026.
  • Pembina Duvernay: Third pad (10-31, 3 wells) brought onstream in September. Two of three wells generated strong 30-day peak production rates averaging 1,380 boe/d per well. One well encountered casing issues and was abandoned. 11% improvement in drilling and completion costs per completed lateral foot compared to 2024.
  • Heavy Oil: Brought onstream 20.0 net wells (10 at Peavine, 4 at Peace River, 6 at Lloydminster). Acquired 40.5 net sections at Peace River and 4.5 net sections in northeast Alberta. Total heavy oil inventory now stands at 1,100 drilling locations.
  • Asset Swap: Completed an asset swap in the Pembina Duvernay post-quarter-end to consolidate southern acreage, enabling efficient development commencing in 2026.
  • Midstream: Commissioned midstream infrastructure in partnership with Gibson Energy, completed on time and under budget.
• Dividend:
  • Board declared a quarterly cash dividend of $0.0225 per share.
  • Payable January 2, 2026, to shareholders of record on December 15, 2025.

Notable Quotes

• "Baytex delivered solid third-quarter results highlighted by record production in the Pembina Duvernay, strong free cash flow generation, and further progress on debt reduction... Our heavy oil business continues to generate reliable returns and, through targeted land acquisitions, we are expanding our long-term inventory. In the Pembina Duvernay, a strategic property swap further consolidates our position, setting the stage for full-scale development." — Eric T. Greager, President and Chief Executive Officer