Business
Baytex Announces 2024 Budget and Five-Year Outlook with Continued Focus on Free Cash Flow Generation and Shareholder Returns
Calgary, Alberta--(Newsfile Corp. - December 6, 2023) - Baytex Energy Corp. (TSX: BTE) (NYSE: BTE...
About this update from Baytex Energy Corp.
[{"type":"text","content":"Baytex Announces 2024 Budget and Five-Year Outlook with Continued Focus on Free Cash Flow Generation and Shareholder ReturnsCalgary, Alberta--(Newsfile Corp. - December 6, 2023) - Baytex Energy Corp. (TSX: BTE) (NYSE: BTE) (\"Baytex\") announces that its Board of Directors has approved a budget for 2024 exploration and development expenditures of $1.2 to $1.3 billion, which is designed to generate average annual production of 150,000 to 156,000 boe/d.\"Our 2024 budget and five-year outlook demonstrates the strength of our diversified oil-weighted portfolio in western Canada and the Eagle Ford shale in Texas. In 2024, we intend to progress the Pembina Duvernay, further delineate our Clearwater and Mannville heavy oil position, and deliver strong drilling and completion performance in the Eagle Ford. Our business is underpinned by strong drilling economics and greater than ten years inventory across our portfolio, and our commitment to shareholder returns is expected to drive meaningful per-share growth in production and free cash flow,\" commented Eric T. Greager, President and Chief Executive Officer.Highlights of the 2024 BudgetFree Cash Flow(4) Based on the forward strip(2), we expect to generate approximately $530 million of free cash flow in 2024. Reinvestment Rate(1) Exploration and development expenditures represent approximately 60% of forecast EBITDA(2)(3). Production Growth. Our 2024 production guidance (at the mid-point) represents a 1% to 2% increase from forecast H2/2023 production guidance (7% increase on a per-share basis(6)), adjusted for the previously announced sale of our Forgan and Plato assets in the Viking. Capital Efficiency(7) Our capital program is expected to generate capital efficiencies of approximately $22,000 per boe/d across the portfolio. Capital Allocation. We plan to direct 60% to 65% of our exploration and development expenditures to our Eagle Ford light oil assets in the United States and 35% to 40% to our Canadian assets. In Canada, our capital program is expected to be equally split between light oil and heavy oil. Shareholder Returns. We intend to allocate 50% of free cash flow to share buybacks and our base dividend and 50% of free cash flow to further strengthen the balance sheet. Tax Reassessment Update On November 13, 2023 we provided an update with respect to certain tax reassessments r...