Baytex Energy Corp. · TSX:BTE
Baytex Energy — Investor Presentation (February 2026)
32 slides from Baytex Energy's investor presentation, February 2026
Slide 1: A Streamlined, Higher Return Canadian Energy Company
A Streamlined, Higher Return Canadian Energy Company FOCUSED DISCIPLINE. ENHANCED VALUE. February 2026
Slide 2: Advisory
ADVISORY Baytex Energy Corp. (“Baytex”) announced on November 12, 2025 that it All slides in this presentation should be read in conjunction with “Forward had entered into a definitive purchase and sale agreement to sell its U.S. Looking Statements Advisory”, “Specified Financial Measures Advisory”,
Slide 3: Baytex Overview: Unlocking value through the Eagle Ford disposition
BAYTEX OVERVIEW Unlocking value through the Eagle Ford disposition Corporate Profile Net Cash Industry-leading net cash position Balance Sheet Shares Outstanding (1) 751 million Market Capitalization (2) $3.5 billion Accelerated Significant portion of sale Shareholder proceeds to be returned to Net
Slide 4: A Streamlined, High-Return Canadian Energy Platform
A STREAMLINED, HIGH-RETURN CANADIAN ENERGY PLATFORM Enhanced flexibility to deliver long-term value Premier Canadian Assets ALBERTA SASKATCHEWAN Peace River / Peavine Portfolio Optimization Heavy Oil Focused on high-return Canadian assets for capital efficiency and value creation Lloydminster Heavy
Slide 5: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Capital Allocation Principles 2026 Prioritizes Meaningful Shareholder Returns Maximize asset value through disciplined investment Eagle Ford sale delivers net cash balance sheet • Maintenance capital to sustain production Significant portion of proceeds to be returned t
Slide 6: Disciplined 2026 Capital Budget
DISCIPLINED 2026 CAPITAL BUDGET 2026e Capital Expenditure Capex Breakdown ($MM) (1) Efficient E&D capital 45% 55% Maintenance 435 Heavy Oil Light Oil program with flexibility to (91 net wells) (85 net wells) Growth 50 adapt to market conditions Long-term Infrastructure 50 $550 – $625 MM Exploration
Slide 7: 2026 Capital Allocation Waterfall
2026 CAPITAL ALLOCATION WATERFALL Enabling growth, returns, and value creation Capital Allocation ($MM) (1) 900 800 US$70 WTI Excess Free Cash Flow (3) 700 available for share buybacks and/or incremental investment US$65 WTI 50 600 US$60 WTI 50 50 500 US$55 WTI 60 Investment supports long-term growt
Slide 8: Pembina Duvernay – Significant Value Creation Opportunity
PEMBINA 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 per
Slide 9: Execution and Performance in the Pembina Duvernay
EXECUTION AND PERFORMANCE IN THE PEMBINA 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 • Ta
Slide 10: Heavy Oil – Stable, Profitable Cash Generation
HEAVY OIL – STABLE, PROFITABLE CASH GENERATION Demonstrated success drives reliable returns Heavy Oil Inventory PEACE RIVER ADDITIONAL INVENTORY US$48/bbl Unbooked locations targeting the (BLUESKY) Average Break-Even Clearwater, Mannville Group and WTI Price (NPV10) (1) Bluesky formations PEAVINE (C
Slide 11: Unlocking Upside in the Northeast Alberta Mannville
UNLOCKING UPSIDE IN THE NORTHEAST ALBERTA MANNVILLE Significant resource-in place with up to Mannville Stack - Type Log Scalable development > 100 prospective sections 8 discrete development horizons Demonstrated growth driven by strong economics and capital efficiencies Active 2026 program: ~ 40 we
Slide 12: Strong Well Economics Across Portfolio
STRONG WELL ECONOMICS(1) ACROSS PORTFOLIO Heavy Oil (2) Pembina Duvernay (3) Significant Torque to Higher Oil Prices DCET ($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% l
Slide 13: 3-Year Outlook
3-YEAR OUTLOOK Sustainable value creation at US$60 WTI Heavy Oil 3-Year Outlook Pembina Duvernay 3-Year Outlook Production Profile (boe/d) 60,000 $500 25,000 $250 80,000 50,000 $400 20,000 $200 40,000 75,000 $300 15,000 $150 boe/d boe/d $MM $MM 30,000 70,000 $200 10,000 $100 20,000 65,000 $100 5,000
Slide 14: 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 Pembina Duvernay and heavy oil of value creation in Canada Demonstrates long-term resiliency and sustainability YE 2025 YE 2024 Prod
Slide 15: 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 16: Compelling Valuation Upside
COMPELLING VALUATION UPSIDE Potential for equity re-rate with competitive growth and balance sheet Production Growth (2026/2025) (1) 20% 15% Competitive production growth 10% 5% Median = 4% 0% Peer 1 Peer 2 Peer 3 Baytex Baytex Peer 4 Peer 5 Peer 6 Peer 7 Net Debt to Adjusted Funds Flow Ratio (2026E
Slide 17: Why Baytex
WHY BAYTEX Recapitalization maximizes flexibility and enhances shareholder returns Net Cash Balance Sheet Industry-leading financial position Resilient Portfolio of High-Return Canadian Assets > 10 years development inventory with strong economics Focused on capital-efficient heavy oil and scalable
Slide 18: Supplementary Information
SUPPLEMENTARY INFORMATION
Slide 19: Board of Directors
BOARD OF DIRECTORS Efficient and Independent Board Complementary Skills Suited to Govern the Combined Business 8 board members 7 of which are independent Eric T. Greager Mark R. Bly CEO Chair of the Board Trudy M. Don G. Jennifer A. Dave L. Steve D.L. Jeffrey E. Curran Hrap Maki Pearce Reynish Wojah
Slide 20: Strong Operating Leverage to Crude Oil
STRONG OPERATING LEVERAGE TO CRUDE OIL 88% 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 21: Summary of Canadian Operating and Financial Metrics
SUMMARY OF CANADIAN OPERATING AND FINANCIAL METRICS 9 Months Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Q2 2025 Q3 2025 2025 Benchmark Prices WTI crude oil (US$/bbl) $76.96 $80.57 $75.10 $70.27 $75.72 $71.42 $63.74 $63.74 $66.70 NYMEX natural gas (US$/MMbtu) $2.24 $1.89 $2.16 $2.79 $2.27 $3.65 $3.
Slide 22: 2026 Guidance and Cost Assumptions
2026 GUIDANCE AND COST ASSUMPTIONS Exploration and development expenditures ($ billions) $550 - $625 Production (boe/d) 67,000 - 69,000 Expenses: Average royalty rate (%) (1) ~ 15% Operating ($/boe) (2) $13.75 - $14.25 Transportation ($/boe) (2) $3.40 - $3.60 Leasing expenditures ($ millions) $7 Ass
Slide 23: 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% ~ 45% ~ 45% hedged through 2026 15,000 10,000 5,000 WTI Hedges 0 Q1/2026 29,000 bbl/d (~60%) wi
Slide 24: 2026 Adjusted Funds Flow Sensitivities
2026 ADJUSTED FUNDS FLOW 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) BAYT EX ENERGY / NYSE / T SX BT E 24
Slide 25: Forward Looking Statements Advisory
FORWARD LOOKING STATEMENTS ADVISORY In the interest of providing the shareholders of Baytex and potential investors with information funds flow sensitivities; and expectations for free cash flow at various pricing. In addition, information regarding Baytex, including management's assessment of futur
Slide 26: 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 including changes in market-based factors; the risk that we may not achieve our guidance or three- and unknown risks and uncertainties and other factors. S
Slide 27: 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 28: 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, total sales, net of blending and other expens
Slide 29: Capital Management Measures Advisory
CAPITAL MANAGEMENT MEASURES ADVISORY This presentation contains the terms "adjusted funds flow", "net debt", "net debt to adjusted funds flow (2026E)", "EV/DACF multiple" and "net asset value" which are capital management measures. We believe that the inclusion of these capital management measures p
Slide 30: 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 31: 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 32: 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 Eric T. Greager Chief Executive Officer Chad E. Lundberg President and Chief Operating Officer Chad L. Kalmakoff Chief Financial Officer Brian G. Ector
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