Business
Baytex Announces Second Quarter 2022 Results, Record Quarterly Free Cash Flow, Updated Shareholder Return Framework and Planned CEO Retirement
Calgary, Alberta--(Newsfile Corp. - July 27, 2022) - Baytex Energy Corp. (TSX: BTE) ("Baytex")...
About this update from Baytex Energy Corp.
[{"type":"text","content":"Baytex Announces Second Quarter 2022 Results, Record Quarterly Free Cash Flow, Updated Shareholder Return Framework and Planned CEO RetirementCalgary, Alberta--(Newsfile Corp. - July 27, 2022) - Baytex Energy Corp. (TSX: BTE) (\"Baytex\") reports its operating and financial results for the three and six months ended June 30, 2022 (all amounts are in Canadian dollars unless otherwise noted).\"During the second quarter, we delivered strong operating results which included significant production growth from our Clearwater assets and record quarterly free cash flow of $245 million. Given the strength of our balance sheet and consistent with our desire to offer direct shareholder returns, we launched our share buyback program in May and repurchased 9.1 million shares during the quarter. I am also excited to announce that upon hitting our $800 million net debt target in late 2022 or early 2023, we anticipate increasing direct shareholder returns to 50% of our free cash flow and accelerating our share buyback program. We continue to view our shares as undervalued in relation to our current operations,\" commented Ed LaFehr, President and Chief Executive Officer. Q2 2022 HighlightsGenerated production of 83,090 boe/d (83% oil and NGL) in Q2/2022, a 2% increase over Q2/2021.Delivered adjusted funds flow(1) of $346 million ($0.61 per basic share) in Q2/2022, a 97% increase compared to $176 million ($0.31 per basic share) in Q2/2021.Generated free cash flow(2) of $245 million ($0.43 per basic share) in Q2/2022, a 118% increase compared to $112 million ($0.20 per basic share) in Q2/2021.Cash flows from operating activities of $360 million ($0.63 per basic share) in Q2/2022, a 109% increase compared to $172 million ($0.30 per basic share) in Q2/2021.Reduced net debt(1) by 20% to $1.12 billion, from $1.41 billion at year-end 2021. Redeemed the remaining US$200 million principal amount of 5.625% long-term notes at par on June 1, 2022.Repurchased 9.1 million common shares, representing 1.6% of our shares outstanding, at an average price of $6.88 per share.Generated production from our Clearwater play at Peavine of 7,319 bbl/d in Q2/2022, up from 3,154 bbl/d in Q1/2022. Production during the month of June averaged 9,088 bbl/d from 18 producing wells and we have 14 Clearwater wells to drill during the second half of 2022.2022 OutlookWe remain int...