Baytex Delivers Solid Second Quarter 2025 Results with Record Pembina Duvernay Well Performance and Continued Debt Reduction

Executive Summary

• Baytex Energy Corp. reported Q2 2025 operating and financial results, highlighting record well performance in the Pembina Duvernay and successful refracs in the Eagle Ford.

Key Details

• Financial Performance (Q2 2025):
  • Adjusted funds flow: $367 million ($0.48 per basic share).
  • Net income: $152 million ($0.20 per basic share).
  • Cash flows from operating activities: $354 million ($0.46 per basic share).
  • Free cash flow: $3 million.
  • Petroleum and natural gas sales: $886.6 million.
• Balance Sheet & Capital Return:
  • Net debt reduced by 4% ($96 million) to $2.3 billion; total debt to Bank EBITDA ratio of 1.1x.
  • Repurchased and cancelled US$41 million principal amount of 8.5% long-term notes.
  • Returned $21 million to shareholders via share repurchases ($4 million for 1.7 million shares at avg $2.36) and quarterly dividends ($17 million).
  • Declared quarterly dividend of $0.0225 per share, payable October 1, 2025.
• Production & Operations:
  • Average production: 148,095 boe/d (84% oil and NGL), a 2% increase in production per basic share vs Q2/2024.
  • Exploration and development expenditures: $357 million; 74 (66.5 net) wells brought onstream.
  • Heavy oil production: 44,895 boe/d (up 7% from Q1/2025).
  • Eagle Ford production: 83,928 boe/d (up 3% from Q1/2025).
• Pembina Duvernay Results:
  • First pad (07-01, 3 wells) delivered average peak 30-day initial rates of 1,865 boe/d per well (89% oil and NGL).
  • Second pad (08-08, 3 wells) averaged 1,264 boe/d per well over the last 26 days.
  • Third pad (10-31, 3 wells) expected onstream in September.
  • 140 net sections assembled with ~200 drilling locations identified; plan for 18-20 wells/year to reach 20,000-25,000 boe/d by 2029-2030.
• Eagle Ford Refracs:
  • Completed two successful refracs (Moulton A5H and Renee Unit 2H) with average 30-day peak production of 963 boe/d per well.
  • Identified ~300 refrac opportunities; expanded program anticipated in 2026.
• 2025 Outlook:
  • Target annual production: ~148,000 boe/d (avg ~150,000 boe/d in H2 2025).
  • Full-year exploration and development expenditures: ~$1.2 billion.
  • Expected 2025 free cash flow: ~$400 million.
  • Plan to allocate 100% of free cash flow to debt repayment after dividends, targeting net debt of ~$2 billion by year-end.

Notable Quotes

• "Baytex delivered solid operational and financial results in the second quarter, with top-performing wells in the Pembina Duvernay, setting the highest average 30-day peak oil rates in the West Shale Basin," said Eric T. Greager, President and Chief Executive Officer. "Combined with strong results across heavy oil operations and the Eagle Ford, including continued success with refracs, these results demonstrate the resource potential and value creation opportunities within our portfolio."