Baytex Energy Corp. · TSX:BTE
Baytex Energy — Investor Presentation (May 2023)
36 slides from Baytex Energy's investor presentation, May 2023
Slide 1: Investor Presentation May 2023
Investor Presentation May 2023
Slide 2: Advisory
Advisory In this presentation, w e refer to certain specified financial and capital management measures w hich do not have any standardized meaning prescribed by International Financial Reporting Standards (“ IFRS”). While these measures are commonly used in the oil and natural gas industry, our det
Slide 3: Corporate Profile
Corporate Profile Market Summary Ticker Symbol TSX, NYSE | BTE (1) Average Daily Volume Canada: 7 million | US: 2 million (2) Shares Outstanding 546 million Market Capitalization / Enterprise Value (2) $2.8 billion / $3.8 billion Operating Statistics Production (working interest) (3) 86,000 - 89,000
Slide 4: Q1 2023 Highlights
Q1 2023 Highlights Continued Delivery on Operating and Financial Targets ` ▪ Entered into an agreement to acquire Ranger Oil for ~ US$2.5 billion ▪ Building a quality, scaled North American oil-weighted E&P company with a diversified portfolio across the WCSB and Eagle Ford Ranger Oil Acquisition(1)
Slide 5: ESG Highlights
ESG Highlights GHG Emission Reduction Safety 59% reduction in GHG 17% reduction in total emissions intensity through recordable injury frequency in 2022, relative to 2018 5 years baseline; 65% target in place Abandonment & Reclamation Indigenous Relations Reduce 2020 inactive well Recent agreements
Slide 6: Maintaining Capital Discipline and Driving Meaningful Free Cash Flow
Maintaining Capital Discipline and Driving Meaningful Free Cash Flow ▪ Production guidance (at mid-point) of 2023 Guidance 87,500 boe/d represents: E&D Expenditures $575 - 650 million ▪ 4% annual production growth Production 86,000 - 89,000 boe/d ▪ 8% production per share growth(1) Oil and NGLs 85%
Slide 7: Committed to Maintaining Strong Financial Flexibility
Committed to Maintaining Strong Financial Flexibility • Strong liquidity Net Debt(1) (March 31, 2023) $ millions Credit facilities (2) $410 • Credit facilities extended to Long-term notes $554 2026 and increased to US$850 Total debt $964 million Working Capital $31 • Redeemed $90 million of long- Ne
Slide 8: Crude Oil Hedge Portfolio
Crude Oil Hedge Portfolio 9 Months Q2/2023 H2/2023 2023 WTI 3-Way (1) Volumes (bbl/d) 3,167 --- 1,050 Average Sold Put / Put / Sold Call (US$/bbl) $62/$78/$96 --- $62/$78/$96 WTI Collar Volumes (bbl/d) 9,667 14,500 12,900 Average Purchased Put / Sold Call (US$/bbl) $60 / $100 $60 / $100 $60 / $100 W
Slide 9: 2023E Adjusted Funds Flow Sensitivities
2023E Adjusted Funds Flow Sensitivities Estimated Effect on Annual Adjusted Funds Flow(1) ($MM) Sensitivities Excluding Hedges Including Hedges Change of US$1.00/bbl WTI crude oil $28 $26 Change of US$1.00/bbl WCS heavy oil differential $13 $13 Change of US$1.00/bbl MSW light oil differential $7 $7
Slide 10: Asset Overview
= SSS a me cy BAYTEX ENERGY CORP.
Slide 11: Asset Highlights
Asset Highlights Geographic diversification with ~ 10 or more years drilling inventory in each core area Eagle Ford Viking Heavy Oil Pembina Duvernay Production 26,100 boe/d 16,800 boe/d 36,300 boe/d 2,400 boe/d (Q1 2023) Oil and NGLs 79% 88% 94% 82% (Q1 2023) 2P Reserves (1) 182 MMboe 70 MMboe 142
Slide 12: Eagle Ford: Core of Karnes County
Eagle Ford: Core of Karnes County • ~ 25% working interest in 80,000 acres in the core of the Eagle Ford shale in south Texas Wilson • Four AMI’s (Longhorn, Sugarloaf, Ipanema and Excelsior) Karnes • Produced 26,100 boe/d LONGHORN (79% liquids) in Q1/2023 Atascosa • Q1/2023 – 24 gross (6.4 net) well
Slide 13: Eagle Ford: Strong Free Cash Flow and Deep Drilling Inventory
Eagle Ford: Strong Free Cash Flow and Deep Drilling Inventory > 10 year drilling inventory (2) Free Cash Flow (1) (C$ millions) 250 $1.6 billion cumulative asset level ~ 200 net locations 200 free cash flow since 2016 150 $50 100 ~ 18 net wells $441 $441 50 on-stream 0 2023 Program Remaining Undrill
Slide 14: Viking: Light Oil Resource Play
Viking: Light Oil Resource Play • 512 net sections • Shallow (700 m), light oil (36° API) resource play • Produced 16,800 boe/d (88% oil) in Q1/2023 • Strong operating netback(1) ~ $66/boe at US$80 WTI Kerrobert Plenty Esther/Hoosier • $309 million of asset Greater Gleneath Lucky Hills/W hiteside Do
Slide 15: Viking: High Netback Light Oil
Viking: High Netback Light Oil High Operating Netback (1) Light Oil ($/boe) > 10 year drilling inventory (2) Strong price realizations, low cost structure and high free cash flow (1) ~ 1,600 net 1,600 locations 1,400 1,200 1,000 $120.00 800 $250MM 600 ~ 132 $185MM 400 net wells $100.00 200 on-stream
Slide 16: Peace River: Innovative Multi-Lateral Development
Peace River: Innovative Multi-Lateral Development Bluesky • 514 net sections • Produced 12,700 boe/d in Q1/2023 (85% oil) • 7 net multi-lateral wells planned for 2023 • Long life polymer flood at Seal Seal Clearwater • Strategic agreements with Harmon Valley Peavine Métis Settlement cover 80 contigu
Slide 17: Peavine Clearwater: Sections of Top Tier Acreage
Peavine Clearwater: 80 Sections of Top Tier Acreage Peavine • The Clearwater has emerged as one of the most economic plays in North America • Baytex holds > 500 net sections in the NW Clearwater fairway with > 125 prospective for Spirit River (Clearwater equivalent) • 80 net sections at Peavine (50
Slide 18: Peavine Clearwater: Superior Well Performance and Economics
Peavine Clearwater: Superior Well Performance and Economics Top 20 Clearwater Wells (1) Operations Update Peak Calendar Rate No. UWI Operator (bbl/day) • Production increased from zero at the 1 100/01-30-078-15W5 BAYTEX 1,201 beginning of 2021 to 11,800 boe/d in 2 102/01-30-078-15W5 BAYTEX 1,109 Q1/
Slide 19: Lloydminster: Significant Land Position and Drilling Inventory
Lloydminster: Significant Land Position and Drilling Inventory • 516 net sections • Produced 11,900 boe/d in Q1/2023 (98% oil) Ardmore/Cold Lake • Strong capital efficiencies • Applying multi-lateral Lindbergh horizontal drilling and production techniques Lloy dminster Tanglef lags Soda Lake • Long-
Slide 20: Heavy Oil Innovation
Heavy Oil Innovation Peace River Lloydminster Multi-Lateral Horizontal Horizontal Well Economics (1) WTI Oil Price US$70/bbl US$80/bbl US$90/bbl WTI Oil Price US$70/bbl US$80/bbl US$90/bbl Payout: 16 months 12 months 9 months Payout: 13 months 10 months 8 months IRR: 75% 121% 181% IRR: 113% 177% 259
Slide 21: Pembina Area Duvernay Light Oil: Emerging Resource Play
Pembina Area Duvernay Light Oil: Emerging Resource Play Pembina Duvernay • Continue to advance the delineation of the Pembina Duvernay Shale • 176 net sections of ~ 100% WI lands • 14 wells drilled to date have delineated a minimum of 100- 125 sections Black Oil • Produced 2,400 boe/d (82% liquids)
Slide 22: High Quality Oil Development
High Quality Oil Development Eagle Ford Viking Peace River Lloydminster Pembina Duvernay Formation Low er Eagle Ford Viking Bluesky Mannville Group Duvernay Upper Eagle Ford Clearw ater Austin Chalk 550-800 (Bluesky) Depth (metres) 3,300-3,900 700 500-600 (Clearw ater) 350-800 2,200-2,400 Oil API Oi
Slide 23: Environment, Social and Governance (ESG)
Environment, Social and Governance (ESG)
Slide 24: ESG at Baytex
ESG at Baytex As a responsible energy company, we take a sustainable approach to managing and developing our business into the future. We aspire to create an organization that future generations will be proud to be a part of. 24
Slide 25: How Focusing on ESG Creates Value
How Focusing on ESG Creates Value By incorporating environmental, social and governance factors into our business and reporting on our performance, we create value for shareholders and remain focused on advancing a responsible energy future. 25
Slide 26: Our ESG Scorecard
Our ESG Scorecard Continual improvement is an important element of our culture. We set short and long- term targets to address our impact on air, water, land and people. Each year, we report on our progress towards those targets. 26
Slide 27: Supplementary Information
Supplementary Information BAYTEX ENERGY CORP.
Slide 28: 2023 Guidance and Cost Assumptions
2023 Guidance and Cost Assumptions Exploration and development expenditures ($ millions) $575 - $650 Production (boe/d) 86,000 - 89,000 Expenses: Average royalty rate (%) (1) 20.0% - 22.0% Operating ($/boe) (2) $14.00 - $14.75 Transportation ($/boe) (2) $1.90 - $2.10 General and administrative ($ mi
Slide 29: Summary of Operating and Financial Metrics
Summary of Operating and Financial Metrics Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Q1 2023 Benchm ark Prices WTI crude oil (US$/bbl) $57.84 $66.07 $70.56 $77.19 $67.92 $94.29 $108.41 $91.56 $82.64 $94.23 $76.13 NYMEX natural gas (US$/MMbtu) $2.69 $2.83 $4.01 $5.83 $
Slide 30: Forward Looking Statements Advisory
Forward Looking Statements Advisory Any “f inancial outlook” or “f uture oriented f inancial inf ormation” in this presentation as def ined by applicable securities laws, has been approv ed by management of Baytex. Such financial outlook or f uture oriented f inancial inf ormation is prov ided f or
Slide 31: Forward Looking Statements Advisory (Cont.)
Forward Looking Statements Advisory (Cont.) These f orward-looking statements are based on certain key assumptions regarding, among other things: petroleum and natural gas prices and diff erentials between light, medium and heavy oil prices; well production rates and reserv e v olumes; the ability t
Slide 32: Specified Financial Measures Advisory
Specified Financial Measures Advisory In this presentation, we ref er to certain specified f inancial measures (such as f ree cash flow, operating netback, total sales, net of blending and other expense, heav y oil sales, net of blending and other expense, and av erage roy alty rate) which do not ha
Slide 33: Capital Management Measures Advisory
Capital Management Measures Advisory This presentation contains the terms "adjusted funds flow", "net debt“, "net debt to adjusted f unds f low ratio" and “net debt to EBITDA” which are capital management measures. We believ e that inclusion of these specif ied f inancial measures prov ides usef ul
Slide 34: Advisory Regarding Oil and Gas Information
Advisory Regarding Oil and Gas Information The reserv es inf ormation contained in this presentation has been prepared in accordance with National Instrument 51-101 -Standards of Disclosure f or Oil and Gas Activities of the Canadian Securities Administrators ("NI 51-101"). The determination of oil
Slide 35: Notes
Notes BAYTEX ENERGY CORP. TSX | Nyse 35
Slide 36: Contact Information
Contact Information Baytex Energy Corp. Eric T. Greager President and Chief Executive Officer Suite 2800, Centennial Place 520 – 3rd Avenue S.W. Chad L. Kalmakoff Calgary, Alberta T2P 0R3 Chief Financial Officer Toll Free 1.800.524.5521 Chad E. Lundberg Chief Operating and Sustainability Officer www