Baytex Energy Corp. · TSX:BTE
Baytex Energy — Q2 2026 Earnings Presentation
36 slides from Baytex Energy's earnings presentation, Jul 31, 2026
Slide 1: A Premier Canadian Energy Company
A Premier Canadian Energy Company TECHNICAL LEADERSHIP. FOCUSED GROWTH. COMPELLING RETURNS. August 2026
Slide 2: Advisory
ADVISORY In this presentation, we refer to certain specified financial measures which This presentation should be read in conjunction with the Company’s do not have any standardized meaning prescribed by International consolidated interim unaudited financial statements and Management’s Financial Rep
Slide 3: Baytex Overview
BAYTEX OVERVIEW Focused Corporate Profile Technical leadership and disciplined capital Canadian Oil allocation Producer Shares Outstanding (1) 700 million Commitment to Industry-leading net cash position with Market Capitalization (2) $4.1 billion Shareholder flexibility to invest, grow, and return
Slide 4: Strategic Priorities
STRATEGIC PRIORITIES Committed to technical leadership and long-term value creation Premier Canadian Assets 1. Target 15% annual total shareholder return • Production growth, dividends and share buybacks – at a mid- ALBERTA SASKATCHEWAN cycle WTI price of US$70/bbl Peace River / Peavine • Underpinne
Slide 5: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Capital Allocation Principles 2026 Prioritizes Meaningful Shareholder Returns Maximize asset value through disciplined investment Net cash position • Maintenance capital to sustain production Significant portion to be returned to shareholders • Invest in long-term infra
Slide 6: Disciplined 2026 Capital Budget
DISCIPLINED 2026 CAPITAL BUDGET 2026e Capital Expenditure Capex Breakdown ($MM) Increased production 45% 55% Maintenance 435 Heavy Oil Light Oil guidance driven by strong (100 net wells) (87 net wells) Growth 90 operating performance and planned 2H activity Long-term Infrastructure 50 ~ $625 MM Expl
Slide 7: 2026 Capital Allocation Waterfall
2026 CAPITAL ALLOCATION WATERFALL Enabling growth, returns, and value creation Capital Allocation ($MM) 1,000 900 US$85 WTI Excess Free Cash Flow (3) 800 US$75 WTI available for share buybacks and/or incremental investment 700 50 US$65 WTI 600 50 90 500 60 Investment supports long-term growth and in
Slide 8: 3-Year Outlook
3-YEAR OUTLOOK Sustainable value creation Heavy Oil 3-Year Outlook Duvernay 3-Year Outlook Production Profile (boe/d) 50,000 $700 25,000 $300 $600 85,000 48,000 20,000 $250 8% CAGR $500 80,000 $200 46,000 15,000 6% CAGR $MM $400 boe/d boe/d $MM $150 75,000 Previous 3- 44,000 $300 Year Plan 10,000 $1
Slide 9: Duvernay – Significant Value Creation Opportunity
DUVERNAY – SIGNIFICANT VALUE CREATION OPPORTUNITY Creating long-term value through scalable light oil growth US$45/bbl ADDITIONAL INVENTORY Average Break- Unbooked locations targeting Even WTI Price the Duvernay formation (NPV10) (1) ~ 141 91,500 net acres Strong 2025 Highly concentrated performance
Slide 10: Execution and Performance in the Duvernay
EXECUTION AND PERFORMANCE IN THE DUVERNAY Transition to commercialization with improved well economics 25% Increase in Completed Lateral Length Execution Improvements 11% Improvement in EUR (1) (CLL, feet) (Boe per foot, CLL) • Enhanced drilling assembly • Improved completion uniformity • Tapered cl
Slide 11: Heavy Oil – Stable, Profitable Cash Generation
HEAVY OIL – STABLE, PROFITABLE CASH GENERATION Demonstrated success drives reliable returns Heavy Oil Inventory 750,000 net acres ADDITIONAL INVENTORY PEACE RIVER US$48/bbl Unbooked locations targeting the (BLUESKY) Significant land holdings Average Break-Even Clearwater, Mannville Group and across
Slide 12: Northeast Mannville: Significant Stacked Resource, Demonstrated Growth
NORTHEAST MANNVILLE: SIGNIFICANT STACKED RESOURCE, DEMONSTRATED GROWTH Eight discrete development horizons across >100 sections – delineation continues to expand drilling inventory NE Alberta Production Growth by Horizon Manville Stack – Log Type NE Alberta Land Position 8,000 Lloyd 7,000 Rex Oil Po
Slide 13: Fit-for-Purpose Well Design: Proven, Low-Cost, and Repeatable at Scale
FIT-FOR-PURPOSE WELL DESIGN: PROVEN, LOW-COST, AND REPEATABLE AT SCALE Circulation String Horizontal • Utilized at Lloydminster to target unconsolidated reservoirs • Horizontal well with a slotted liner and circulation string allows oil and sand to flow to surface • Up to 16 wells per section Multi-
Slide 14: Increasing Heavy Oil Exploration Activity
INCREASING HEAVY OIL EXPLORATION ACTIVITY Building on our heavy oil expertise and enhancing prospect inventory Utikuma Land Position Targeting Pekisko mounds (pinnacle reef-like buildups) near our Peace River / Peavine operations Acquired additional 40 sections at Utikuma in Q1 2026, bringing total
Slide 15: Peavine Waterflood Pilots
PEAVINE WATERFLOOD PILOTS Evaluating incremental resource recovery and production duration via waterflood 5-33 Pad 14-36 / 5-9 Pads Low-Cost Multi-lateral Injection Tuning Fork Multi-lateral with Waterflood success has been demonstrated across the Clearwater Conversion Injector in Gap Injector Two p
Slide 16: Gemini SAGD Project Represents Significant Source of Long-Term Value
GEMINI SAGD PROJECT REPRESENTS SIGNIFICANT SOURCE OF LONG-TERM VALUE Advancing planning toward potential final investment decision in 2027 Gemini Land Position Located in the heart of our northeast Alberta Mannville Stack development ~300 million barrels of exploitable oil in place (>10 meters pay t
Slide 17: Strong Well Economics Across Portfolio
STRONG WELL ECONOMICS(1) ACROSS PORTFOLIO Heavy Oil (2) Duvernay (3) Significant Torque to Higher Oil Prices DCET ($MM) (4) $2.0 - $3.0 DCET ($MM) (4) $12.5 200% EUR (Mboe) (5) 100 - 175 (89% - 100% liquids) EUR (Mboe) (5) 900 - 1,000 (76% liquids) 150% IP 365 (boe/d) 100 - 145 (86% - 100% liquids)
Slide 18: Compelling Valuation Upside
COMPELLING VALUATION UPSIDE Potential for equity re-rate with competitive growth and balance sheet Production Growth (2027/2026) (1) 20% 15% Median = 11% Competitive production growth 10% 5% 0% Peer 1 Peer 2 Peer 3 Peer 4 Baytex Baytex Peer 5 Peer 6 Peer 7 Net Debt to Adjusted Funds Flow Ratio (2027
Slide 19: Why Baytex
WHY BAYTEX High-Return Canadian Asset Base Growing 6-8% Annually 10+ years of development inventory across heavy oil and Duvernay – capital efficient and scalable 15% Annual Total Shareholder Return Target Delivered through production growth, dividends and share buybacks Industry-Leading Net Cash Po
Slide 20: Supplementary Information
SUPPLEMENTARY INFORMATION
Slide 21: Strong Operating Leverage to Crude Oil
STRONG OPERATING LEVERAGE TO CRUDE OIL 83% production weighting to crude oil; significant drilling inventory Canada 2025 Production – 65,500 boe/d ~ 1,100 Total Heavy Oil Drilling Locations Natural NGL Gas 11% 5% Included in 2P Reserves Crude Oil Unbooked 83% Canada 2P Reserves (YE 2025) - 282 MMboe
Slide 22: 2025 Reserves Highlights - Canada
2025 RESERVES HIGHLIGHTS - CANADA Solid reserves growth Invested $548 million in capital efficient program Continues strong track record Significant contributions from Duvernay and heavy oil of value creation in Canada Demonstrates long-term resiliency and sustainability YE 2025 YE 2024 Production F
Slide 23: Canadian Development Program Delivers Consistent Results
CANADIAN DEVELOPMENT PROGRAM DELIVERS CONSISTENT RESULTS Strong production replacement, low F&D and healthy recycle ratios across all reserves categories (1) Production Replacement (2) Finding & Development Costs (F&D) (3) Recycle Ratio (4) 3 Year Average (2023-2025) 3 Year Average (2023-2025) 3 Yea
Slide 24: Summary of Canadian Operating and Financial Metrics
SUMMARY OF CANADIAN OPERATING AND FINANCIAL METRICS Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 2025 Q1 2026 Q2 2026 Benchmark Prices WTI crude oil (US$/bbl) $76.96 $80.57 $75.10 $70.27 $75.72 $71.42 $63.74 $63.74 $59.14 $64.81 $71.93 $92.79 NYMEX natural gas (US$/MMbtu) $2.
Slide 25: 2026 Guidance and Cost Assumptions
2026 GUIDANCE AND COST ASSUMPTIONS Exploration and development expenditures ($ millions) ~ $625 Production (boe/d) ~ 71,000 Expenses: Average royalty rate (%) (1) ~ 15% Operating ($/boe) (2) $13.75 - $14.25 Transportation ($/boe) (2) $3.40 - $3.60 Leasing expenditures ($ millions) $7 Asset retiremen
Slide 26: Crude Oil Hedge Portfolio
CRUDE OIL HEDGE PORTFOLIO Managing WTI-WCS basis differential volatility WTI-WCS Basis Differential Hedges (1) 45% of heavy oil basis 25,000 differential exposure Hedged Volumes (bbl/d) 20,000 45% 45% hedged through 2026 15,000 10,000 5,000 0 Q3 2026 Q4 2026 WTI-WCS Differential $13.12 $13.20 (US$/b
Slide 27: 2026 Adjusted Funds Flow Sensitivities
2026 ADJUSTED FUNDS FLOW (1) SENSITIVITIES Unhedged $MM -$30 -$20 -$10 $0 $10 $20 $30 WTI (+/- US$1.00/bbl) WCS diff (+/- US$1.00/bbl) CAD/USD (+/- $0.01) MSW diff (+/- US$1.00/bbl) AECO (+/- $0.25/mcf) 1) Capital management measure. Refer to the Specified Financial Measures Advisory section in this
Slide 28: Forward Looking Statements Advisory
FORWARD LOOKING STATEMENTS ADVISORY In the interest of providing the shareholders of Baytex and potential investors with production growth for 2027 (to 2026), 2027 net debt to adjusted funds flow ratio and information regarding Baytex, including management's assessment of future plans and EV/DACF mu
Slide 29: Forward Looking Statements Advisory (Cont.)
FORWARD LOOKING STATEMENTS ADVISORY (CONT.) Actual results achieved will vary from the information provided herein as a result of numerous known These and additional risk factors are discussed in our Annual Information Form, Annual Report on and unknown risks and uncertainties and other factors. Suc
Slide 30: Forward Looking Statements Advisory (Cont.)
FORWARD LOOKING STATEMENTS ADVISORY (CONT.) Financial Outlook Advisory Share Buyback Advisory This presentation contains information that may be considered a financial outlook under applicable The future acquisition by Baytex of its shares pursuant to a share buyback program, if any, and the securit
Slide 31: Specified Financial Measures Advisory
SPECIFIED FINANCIAL MEASURES ADVISORY In this presentation, we refer to certain specified financial measures (such as free cash flow, directly comparable financial measure for total sales, net of blending and other expense disclosed in operating netback, and total sales, net of blending and other ex
Slide 32: Capital Management Measures Advisory
CAPITAL MANAGEMENT MEASURES ADVISORY This presentation contains the terms "adjusted funds flow“ and "net (cash) debt” which are capital management measures. We believe that the inclusion of these capital management measures provides useful information to financial statement users when evaluating the
Slide 33: 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 locations. In the Viking, Baytex’s net drilling locations include 457 proved and 196 probable locations National Instrument 51-101 -Standards of Disclosure for Oil
Slide 34: Advisory Regarding Oil and Gas Information
ADVISORY REGARDING OIL AND GAS INFORMATION Peer and Industry Data Moreover, Baytex has determined and disclosed estimated future net revenue from its reserves using forecast prices and costs, whereas the SEC rules require that reserves be estimated using a Certain peer and industry data contained in
Slide 35: Notes
NOTES BAYT EX ENERGY / NYSE / T SX BT E 35
Slide 36: Contact Information
CONTACT INFORMATION BAYTEX ENERGY CORP. Suite 2800, Centennial Place 520 – 3rd Avenue S.W. Calgary, Alberta T2P 0R3 TF 1.800.524.5521 T 587.952.3237 Chad E. Lundberg President and Chief Executive Officer Chad L. Kalmakoff Chief Financial Officer Kendall D. Arthur Chief Operating Officer Chris M.P. L