Baytex Energy Corp. · TSX:BTE
Baytex Energy — Investor Presentation (March 2023)
36 slides from Baytex Energy's investor presentation, March 2023
Slide 1: Investor Presentation March 2023
Investor Presentation March 2023
Slide 2: Advisory
Advisory In this presentation, we refer to certain specified financial and capital management measures which 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 determ
Slide 3: Corporate Profile
Corporate Profile Market Summary Ticker Symbol TSX, NYSE | BTE Average Daily Volume (1) 6 million Shares Outstanding (2) 545 million Market Capitalization / Enterprise Value (2) $3.1 billion / $4.1 billion Operating Statistics Production (working interest) (3) 86,000 - 89,000 boe/d PEACE RIVER/ PEAV
Slide 4: 2022 Highlights
2022 Highlights Meaningful Free Cash Flow, Strong Clearwater Drilling and Share Buy-Back Program Initiated 2022 Highlights ▪ Generated record free cash flow(1) of $622 million ($1.11 per basic Meaningful Free Cash Flow and share) Debt Reduction ▪ Reduced net debt(2) by 30% to $987 million, from $1.4
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) (December 31, 2022) $ millions Credit facilities (2) $385 • Credit facilities extended to Long-term notes $555 2026 and increased to US$850 Total debt $940 million Working Capital $47 • Redeemed $90 million of long-
Slide 8: Crude Oil Hedge Portfolio
Crude Oil Hedge Portfolio Full-Year H1/2023 H2/2023 2023 WTI Fixed Volumes (bbl/d) --- --- --- Fixed Price (US$/bbl) --- --- --- WTI 3-Way (1) Volumes (bbl/d) 9,500 9,500 9,500 Average Sold Put / Put / Sold Call (US$/bbl) $62/$78/$96 $62/$78/$96 $62/$78/$96 Total Hedge Volumes (bbl/d) 9,500 9,500 9,
Slide 9: 2023E Adjusted Funds Flow Sensitivities
2023E Adjusted Funds Flow Sensitivities Estimated Effect on Annual Adjusted Funds Flow (1) ($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 $7
Slide 10: Asset Overview
= SSS a me cy BAYTEX ENERGY CORP.
Slide 11: Asset Highlights
Asset Highlights Geographic diversification with ~ 10 or more years drilling inventory in each core area Eagle Ford Viking Heavy Oil Pembina Duvernay Production 28,200 boe/d 16,200 boe/d 31,300 boe/d 2,600 boe/d (Full Year 2022) Oil and NGLs 80% 88% 93% 82% (Full Year 2022) 2P Reserves (1) 182 MMboe
Slide 12: Eagle Ford: Core of Karnes County
Eagle Ford: Core of Karnes County • ~ 25% working interest in 80,000 acres in the core of the Eagle Ford shale in south Texas Wilson • Four AMI’s (Longhorn, Sugarloaf, Ipanema and Excelsior) Karnes • Produced 28,200 boe/d LONGHORN (81% liquids) in 2022 Atascosa • 2022 - 68 gross (16.8 net) wells est
Slide 13: Eagle Ford: Strong Free Cash Flow and Deep Drilling Inventory
Eagle Ford: Strong Free Cash Flow and Deep Drilling Inventory > 10 year drilling inventory (2) Free Cash Flow (1) (C$ millions) 250 $1.6 billion cumulative asset level ~ 200 net locations free cash flow since 2016 200 150 100 ~ 15 net wells $441 50 on-stream 0 2023 Program Remaining Undrilled Invent
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 16,200 boe/d (88% oil) in 2022 • Strong operating netback(1) ~ $66/boe at US$80 WTI Kerrobert Plenty Esther/Hoosier • $309 million of asset Greater Gleneath Lucky Hills/Whiteside Dodsla
Slide 15: Viking: High Netback Light Oil
Viking: High Netback Light Oil High Operating Netback (1) Light Oil ($/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 $250MM 800 600 ~ 144 $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 12,800 boe/d in 2022 (84% oil) • 10 net multi-lateral wells planned for 2023 • Long life polymer flood at Seal Seal Clearwater Harmon Valley • Strategic agreements with Peavine Métis Settlement cover 80 contiguou
Slide 17: Peavine Clearwater: 80 Sections of Top Tier Acreage
Peavine Clearwater: 80 Sections of Top Tier Acreage Peavine • > 500 net sections in the NW Clearwater fairway with > 125 prospective for Spirit River (Clearwater equivalent) • 80 net sections at Peavine (50 net sections de-risked) • 9 stratigraphic test wells planned for 2023 across our greater Peac
Slide 18: Peavine Clearwater: Superior Well Performance and Economics
Peavine Clearwater: Superior Well Performance and Economics Top 15 Clearwater Wells (1) Operations Update Peak Calendar Rate • Production increased from zero at the No. UWI Current Operator (bbl/day) beginning of 2021 to 11,000 boe/d in Q4/2022 from 28 producing wells 1 100/01-30-078-15W5 BAYTEX 1,2
Slide 19: Lloydminster: Significant Land Position and Drilling Inventory
Lloydminster: Significant Land Position and Drilling Inventory • 516 net sections • Produced 11,100 boe/d in 2022 (97% oil) Ardmore/Cold Lake • Strong capital efficiencies • Applying multi-lateral Lindbergh horizontal drilling and production techniques Lloydminster Tangleflags Soda Lake • Long-life
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$90/bbl Payout: 16 months 12 months 9 months Payout: 13 months 10 months 8 months IRR: 75% 121% 181% IRR: 113% 177% 259
Slide 21: Pembina Area Duvernay Light Oil: Emerging Resource Play
Pembina Area Duvernay Light Oil: Emerging Resource Play Pembina Duvernay • Continue to advance the delineation of the Pembina Duvernay Shale • 176 net sections of ~ 100% WI lands • 14 wells drilled to date have delineated a minimum of 100- 125 sections • Black Oil Produced 2,400 boe/d (83% liquids)
Slide 22: High Quality Oil Development
High Quality Oil Development Eagle Ford Viking Peace River Lloydminster Pembina Duvernay Formation Lower Eagle Ford Viking Bluesky Mannville Group Duvernay Upper Eagle Ford Clearwater Austin Chalk 550-800 (Bluesky) Depth (metres) 3,300-3,900 700 500-600 (Clearwater) 350-800 2,200-2,400 Oil API Oil:
Slide 23: Environment, Social and Governance (ESG)
Environment, Social and Governance (ESG)
Slide 24: ESG at Baytex
ESG at Baytex As a responsible energy company, we take a sustainable approach to managing and developing our business into the future. We aspire to create an organization that future generations will be proud to be a part of. 24
Slide 25: How Focusing on ESG Creates Value
How Focusing on ESG Creates Value By incorporating environmental, social and governance factors into our business and reporting on our performance, we create value for shareholders and remain focused on advancing a responsible energy future. 25
Slide 26: Our ESG Scorecard
Our ESG Scorecard Continual improvement is an important element of our culture. We set short and long- term targets to address our impact on air, water, land and people. Each year, we report on our progress towards those targets. 26
Slide 27: Supplementary Information
Supplementary Information BAYTEX ENERGY CORP.
Slide 28: 2023 Guidance and Cost Assumptions
2023 Guidance and Cost Assumptions Exploration and development expenditures ($ 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 Benchmark Prices WTI crude oil (US$/bbl) $57.84 $66.07 $70.56 $77.19 $67.92 $94.29 $108.41 $91.56 $82.64 $94.23 NYMEX natural gas (US$/mmbtu) $2.69 $2.83 $4.01 $5.83 $3.84 $4.95 $7.17
Slide 30: Forward Looking Statements Advisory
Forward Looking Statements Advisory Any “financial outlook” or “future oriented financial information” in this presentation as defined by applicable securities laws, has been approved by management of Baytex. Such financial outlook or future oriented financial information is provided for the purpose
Slide 31: Forward Looking Statements Advisory (Cont.)
Forward Looking Statements Advisory (Cont.) These forward-looking statements are based on certain key assumptions regarding, among other things: petroleum and natural gas prices and differentials between light, medium and heavy oil prices; well production rates and reserve volumes; the ability to ad
Slide 32: Specified Financial Measures Advisory
Specified Financial Measures Advisory In this presentation, we refer to certain specified financial measures (such as free cash flow, operating netback, total sales, net of blending and other expense, heavy oil sales, net of blending and other expense, and average royalty rate) which do not have any
Slide 33: Capital Management Measures Advisory
Capital Management Measures Advisory This presentation contains the terms "adjusted funds flow", "net debt“, "net debt to adjusted funds flow ratio" and “net debt to EBITDA” which are capital management measures. We believe that inclusion of these specified financial measures provides useful informa
Slide 34: Advisory Regarding Oil and Gas Information
Advisory Regarding Oil and Gas Information The reserves information contained in this presentation has been prepared in accordance with National Instrument 51-101 -Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators ("NI 51-101"). The determination of oil and
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