Core Viewpoint - Baytex Energy Corp. has announced the sale of its U.S. Eagle Ford assets for US$2.305 billion to focus on its higher-return Canadian operations, enhancing its financial position and shareholder returns [1][2][5]. Transaction Details - The transaction is valued at approximately $3.25 billion in cash and is expected to close in late 2025 or early 2026, pending regulatory approvals [1][5]. - A US$200 million deposit will be made by the buyer, which may be forfeited under certain conditions [5]. Strategic Focus - The divestiture allows Baytex to concentrate on its Canadian assets, particularly in heavy oil development and the Pembina Duvernay, which are expected to drive long-term value creation [6][8]. - The company aims to maintain a disciplined growth strategy with an annual production growth target of 3-5% at WTI prices of US$60-65 per barrel [11]. Financial Position - Post-transaction, Baytex will have a net cash position and plans to repay outstanding credit facilities and senior notes, resulting in an industry-leading financial position [6][8]. - The company intends to return a significant portion of the proceeds to shareholders, potentially through share buybacks and maintaining its current dividend of $0.09 per share [6][8]. Production and Reserves - The Canadian portfolio produced 65,000 boe/d in the first nine months of 2025, reflecting a 5% growth compared to 2024 [9]. - The Eagle Ford assets being sold had proved plus probable reserves of 401 million boe as of December 31, 2024, with Q3 2025 production averaging 82,765 boe/d [13]. Future Outlook - Baytex plans to provide detailed guidance for 2026 and a three-year outlook following the transaction's completion, highlighting its streamlined Canadian asset base [12]. - The company has identified approximately 212 drilling locations in the Pembina Duvernay and expects to transition to a one-rig drilling program targeting production of 20,000-25,000 boe/d by 2029-2030 [10].

Core Insights - Baytex Energy Corp. reported strong Q3 2025 results, with a 5% increase in oil production quarter-over-quarter, indicating robust operational performance [2]. Group 1: Company Performance - Baytex Energy Corp. is on track to meet its full-year production guidance of 148,000 BOEPD despite facing some operational challenges with one of its assets [2]. Group 2: Analyst Background - Aaron Chow, known as Elephant Analytics, has over 15 years of analytical experience and is recognized as a top-rated analyst on TipRanks, contributing to the insights on Baytex Energy [2].

Core Insights - Baytex Energy Corp. reported strong Q3 2025 results, with a 5% increase in oil production quarter-over-quarter [2] - The company is on track to meet its full-year guidance of 148,000 BOEPD in total production despite facing some operational challenges [2] Company Performance - Baytex Energy Corp. achieved a 5% increase in oil production compared to the previous quarter [2] - The company is expected to fulfill its annual production target of 148,000 BOEPD, indicating robust operational performance [2] Analyst Background - Aaron Chow, known as Elephant Analytics, has over 15 years of analytical experience and is recognized as a top-rated analyst on TipRanks [2] - Chow co-founded a mobile gaming company that was acquired by PENN Entertainment, showcasing his diverse experience in both gaming and energy sectors [2]

Group 1 - The article discusses the analysis of oil and gas companies, specifically focusing on identifying undervalued firms within the sector [1][2] - The author emphasizes the cyclical nature of the oil and gas industry, highlighting the importance of patience and experience in navigating this market [2] - The investing group, Oil & Gas Value Research, seeks out under-followed oil companies and midstream firms that present attractive investment opportunities [2] Group 2 - The article mentions that the analysis includes a comprehensive breakdown of companies' balance sheets, competitive positions, and development prospects [1] - The investing group provides an active chat room for investors to discuss recent information and share investment ideas [2]

Financial Data and Key Metrics Changes - Baytex Energy Corp. reported adjusted funds flow of CAD 422 million, or CAD 0.55 per basic share, with net income for the quarter at CAD 32 million [5] - The company generated CAD 143 million in free cash flow after CAD 270 million in exploration and development expenditures, and reduced net debt by CAD 50 million to CAD 2.2 billion [5][6] - The company expects to generate approximately CAD 300 million in free cash flow for 2025, a decrease from the previous forecast of CAD 400 million due to lower commodity prices [6] Business Line Data and Key Metrics Changes - Pembina Dubernet achieved record production, averaging just over 10,000 BOE per day, driven by strong well performance [3] - Heavy oil production grew by 5% quarter over quarter, averaging 47,300 BOE per day, while Eagleford production remained steady at 82,800 BOE per day, with a 3% increase [8] Market Data and Key Metrics Changes - Commodity prices remained soft, with WTI averaging approximately CAD 65 per barrel during the third quarter [4] Company Strategy and Development Direction - The company is focused on capital discipline and operational execution, with 100% of free cash flow directed to debt repayment after funding dividends [5][11] - Baytex aims to accelerate full commercialization of the Pembina Dubernet asset, targeting 18 to 20 wells per year by 2027 and ramping production to 20,000 BOE per day by 2029 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to create value across commodity price cycles, highlighting strong operational execution and cash flow generation [11] - The company remains focused on maximizing value and consistent operational execution despite speculation regarding U.S. Eagleford assets [12] Other Important Information - The company has significant financial liquidity with over CAD 1.3 billion in undrawn credit capacity and no maturing notes until April 2030 [5] Q&A Session Summary Question: Regarding the CAD 24 million acquisitions in Q3 - The acquisitions were focused on undeveloped land in the Ardmore area and Peace River Oil Sands, with no material production coming from these transactions [14] Question: On heavy oil production growth - The growth in heavy oil production is attributed to steady execution of the 2025 plan and improved performance across all assets [15] Question: Expectations for asset performance over the next three to five years - Future performance will depend on commodity pricing, with a conservative plan expected if prices remain low, while higher prices would allow for more aggressive growth [18] Question: Details on Dubernet well performance and issues - An isolated casing issue was encountered with one well, but management believes it will be resolved for future programs [21]

INVESTOR PRESENTATION CREATING ENERGY | CREATING VALUE NOVEMBER 2025 ADVISORY In this presentation, we refer to certain specified financial 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 determination of these measures may not be comparable with calculations of similar measures presented by other reporting issuers. This presentation also contains oil and ga ...

Core Insights - Baytex Energy (BTE) reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of $0.01 per share, but down from $0.17 per share a year ago, resulting in an earnings surprise of +200.00% [1] - The company generated revenues of $633.85 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 17.88%, but down from $787.77 million year-over-year [2] - Baytex has outperformed consensus EPS estimates two times over the last four quarters and has topped consensus revenue estimates four times during the same period [2] Earnings Outlook - The sustainability of Baytex's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is breakeven on revenues of $538.96 million, while the estimate for the current fiscal year is $0.18 on revenues of $2.48 billion [7] Industry Context - The Oil and Gas - Exploration and Production - Canadian industry, to which Baytex belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Insights - Baytex Energy Corp. reported solid third-quarter results for 2025, showcasing record production in the Pembina Duvernay and strong free cash flow generation, alongside continued debt reduction efforts [2][18][19] Financial Performance - Total petroleum and natural gas sales reached CAD 927.6 million in Q3 2025, compared to CAD 886.6 million in Q2 2025 and CAD 1.1 billion in Q3 2024 [10] - Adjusted funds flow was CAD 422 million (CAD 0.55 per basic share) for Q3 2025, down from CAD 537.9 million (CAD 0.68 per basic share) in Q3 2024 [10][18] - Free cash flow generated was CAD 143 million (CAD 0.19 per basic share), a significant increase from CAD 3.2 million in Q2 2025 [10][18] - Net income for the quarter was CAD 32 million (CAD 0.04 per basic share), a decrease from CAD 151.5 million in Q2 2025 and CAD 185.2 million in Q3 2024 [10][18] Production Highlights - Average production was 150,950 boe/d (86% oil and NGL), reflecting a 1% increase in production per basic share compared to Q3 2024 [7][20] - Pembina Duvernay production reached a record 10,185 boe/d (77% oil and NGL), up 53% from Q2 2025 [7][25] - Heavy oil production averaged 47,280 boe/d (96% oil and NGL), a 5% increase from Q2 2025 [30] Capital Expenditures and Debt Management - Exploration and development expenditures for Q3 2025 totaled CAD 270 million, with a full-year plan anticipating approximately CAD 1.2 billion [4][20] - Net debt decreased by 2% (CAD 50 million) to CAD 2.2 billion, supported by strong free cash flow [19][20] - The company plans to allocate 100% of free cash flow to debt repayment after funding quarterly dividends, targeting net debt of approximately CAD 2.1 billion by year-end [5][19] Strategic Developments - A strategic property swap in the Pembina Duvernay has consolidated the company's position, facilitating full-scale development [2][28] - The company has expanded its heavy oil development fairway and consolidated acreage through targeted land acquisitions [7][30] Dividend Declaration - The Board of Directors declared a quarterly cash dividend of CAD 0.0225 per share, payable on January 2, 2026 [33]

Group 1 - Baytex Energy Corp. has declared a quarterly cash dividend of CDN$0.0225 per share, payable on January 2, 2026, to shareholders of record on December 15, 2025 [1] - The U.S. dollar equivalent of the dividend is approximately US$0.0161 per share, based on a foreign exchange rate of 1.40 CAD/US [2] - The dividend is classified as an "eligible dividend" for Canadian tax purposes and a "qualified dividend" for U.S. income tax purposes [2] Group 2 - Baytex Energy Corp. is headquartered in Calgary, Alberta, with additional offices in Houston, Texas, and is involved in the acquisition, development, and production of crude oil and natural gas [3] - The company operates primarily in the Western Canadian Sedimentary Basin and the Eagle Ford region in the United States [3] - Baytex's common shares are traded on both the Toronto Stock Exchange and the New York Stock Exchange under the symbol BTE [3]

Core Viewpoint - Baytex Energy Corp. is set to release its third quarter 2025 financial and operating results on October 30, 2025, followed by a conference call and webcast on October 31, 2025 to discuss these results [1]. Company Overview - Baytex Energy Corp. is an energy company headquartered in Calgary, Alberta, with additional offices in Houston, Texas. The company focuses on the acquisition, development, and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and the Eagle Ford in the United States [3]. - The company's common shares are traded on both the Toronto Stock Exchange and the New York Stock Exchange under the symbol BTE [3]. Event Details - The conference call and webcast will take place on October 31, 2025, at 9:00 a.m. MDT (11:00 a.m. EDT) [1]. - An archived recording of the conference call will be available shortly after the event via the provided webcast link and will also be accessible on the Baytex website for three months [2]. - For those preferring to speak with an operator, dial-in options are available for both international and North American participants [4].