BAYTEX ENERGY CORP. TSX BTE | NYSE BTE August 2019 Advisory Forward Looking Statements 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 of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may n ...

Baytex Energy Corp. (NYSE:BTE) Q2 2019 Results Conference Call August 1, 2019 11:00 AM ET Company Participants Brian Ector - VP, Capital Markets Ed LaFehr - President and CEO Rod Gray - EVP and CFO Jason Jaskela - EVP and COO Conference Call Participants Tom Callaghan - RBC Capital Markets Operator Thank you for standing by. This is the conference operator. Welcome to the Baytex Energy Corp. Second Quarter 2019 Conference Call and Webcast. As a reminder, all participants are in listen-only mode and the conf ...

Financial Data and Key Metrics Changes - The company reported adjusted funds flow of $221 million, representing a 100% increase compared to Q4 2018 [5][6] - Production reached 101,000 BOEs per day, exceeding the high end of annual guidance [6] - The corporate level operating netback was $26.56 per BOE, increasing to $28.63 per BOE including hedging [6][7] - Net debt was reduced by $90 million during the quarter [6] Business Line Data and Key Metrics Changes - In the Eagle Ford, production averaged 41,000 BOEs per day, a 7% increase over the previous quarter, marking the highest quarterly production rate for Baytex [9] - Viking production averaged over 23,000 BOEs per day, with 68 net wells drilled [10] - Heavy oil assets in Canada produced a combined 29,000 BOEs per day, up from 28,000 BOEs per day in Q4 2018 [11] Market Data and Key Metrics Changes - The Eagle Ford operating netback was $29 per BOE, while the Canadian operating netback was $25 per BOE [7] - The company has hedged approximately 45% of its net crude oil exposure for the remainder of 2019, up from 30% two months prior [14] Company Strategy and Development Direction - The company is focused on free cash flow generation and has tightened its 2019 production guidance range to 95,000 to 97,000 BOEs per day [15] - The capital expenditures budget for exploration and development is set between $575 million and $625 million [15] - The company aims to reduce debt levels and enhance returns through a combination of share growth strategies and potential dividends or buybacks in the future [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong operating performance and the benefits of the merger with Raging River [4][5] - The forecast for adjusted funds flow for 2019 is approximately $950 million, supporting over $300 million of debt repayment [16] - The company is well-positioned to execute its business plan and is focused on debt repayment in the near term [18] Other Important Information - The company has extended the maturity of its revolving credit facilities to April 2021, with more than $500 million of undrawn capacity [7] - The company is actively managing commodity price risk through a hedging program and has contracted to deliver 11,000 barrels per day of heavy oil by rail [14] Q&A Session Summary Question: What would be your first preference once you get to your 1.5 times debt to cash flow? - Management indicated that the priority is debt repayment, with potential discussions on buybacks or dividends occurring later [18] Question: Any thoughts on the Alberta government's rail potential? - Management stated they are consistently evaluating rail options and have increased rail deliveries from Peace River to the Gulf Coast [19][20]