Core Viewpoint - Baytex Energy Corp. has announced its 2026 budget, a three-year outlook, and changes in executive leadership, emphasizing disciplined growth, shareholder returns, and a strong focus on its Canadian oil and gas portfolio [1][3][12]. 2026 Budget and Production Outlook - The Board approved exploration and development expenditures of CAD 550 to 625 million, targeting average annual production of 67,000 to 69,000 boe/d, based on a WTI price of USD 60/bbl [4][12]. - Production in Q1 2026 is forecasted to average 68,000 to 69,000 boe/d, with an exit production rate of approximately 70,000 boe/d by the end of 2026 [6][12]. - The production mix is expected to be 89% liquids (82% crude oil, 7% NGLs) and 11% natural gas [6]. Capital Allocation - Approximately 55% of the capital expenditures will be directed to light oil assets, while 45% will be allocated to heavy oil assets, allowing for flexibility in response to commodity price movements [5][12]. - The capital program includes 91 wells for heavy oil production, with an average production of 43,000 to 44,000 bbl/d expected in 2026 [8][12]. Pembina Duvernay Development - Baytex plans to bring 12 wells onstream in the Pembina Duvernay in 2026, with production expected to increase by 35% to an average of approximately 11,000 boe/d [7][12]. - About 35% of the 2026 capital program is allocated to the Pembina Duvernay, focusing on infrastructure investments to support long-term development [8][12]. Shareholder Returns and Financial Position - The company intends to return a significant portion of excess proceeds from the Eagle Ford sale to shareholders, resuming its normal course issuer bid and maintaining an annual dividend of CAD 0.09 per share [18][12]. - Baytex has secured a $750 million credit facility, extending maturity to 2030, reflecting strong financial support from its lending syndicate [19][12]. Executive Changes - Chad E. Lundberg has been appointed as President and Chief Operating Officer, effective December 22, 2025, to enhance leadership continuity and execution of the company's strategy [24][12]. - The Board of Directors will consist of 8 members, with 7 being independent, following the departure of two directors [25][12]. Three-Year Outlook - The three-year outlook (2026 to 2028) anticipates 3% to 5% annual production growth, reaching approximately 75,000 boe/d by 2028, with a focus on maintaining a net cash position [20][12]. - The heavy oil portfolio is expected to provide stable production and free cash flow to support growth in the Pembina Duvernay [22][12].

Core Viewpoint - Baytex Energy has successfully completed the sale of its US Eagle Ford assets for $2.14 billion, which will enhance its financial position and allow for a greater focus on its Canadian energy operations [1][2]. Financial Impact - The proceeds from the sale will be used to pay down outstanding credit facilities and redeem 8.5% Senior Notes due 2030, as well as fund a cash tender offer for $575 million of 7.37% Senior Notes due 2032 [1][2]. Strategic Focus - The sale is part of Baytex's broader strategy to optimize its portfolio, allowing the company to concentrate on high-return Canadian energy projects, particularly in heavy oil and the Pembina Duvernay area [2][3]. Production and Growth - Baytex's Canadian portfolio includes over 2,200 drilling locations, supporting an annual production growth target of 3-5% at $60-65 per barrel WTI [3]. - The company reported production of 65,000 barrels of oil equivalent per day (boepd) for the first nine months of 2025, marking a 5% increase compared to 2024, excluding non-core asset sales [4]. Pembina Duvernay Development - In the Pembina Duvernay area, Baytex has secured 91,500 net acres and identified approximately 212 drilling locations, with plans to implement a single-rig drilling program targeting 18 to 20 wells annually [5]. - The company aims to achieve production levels of 20,000 to 25,000 boepd in this area by 2029 to 2030 [5]. Recent Acquisitions - In 2023, Baytex Energy signed an agreement to acquire US-based Ranger Oil for approximately $2.5 billion, including debt, further expanding its operational footprint [6].

Core Viewpoint - The article highlights three stocks with strong income characteristics and a buy rank, suggesting potential investment opportunities for investors. Group 1: Kimbell Royalty Partners, LP (KRP) - Kimbell Royalty Partners, LP is an oil and gas royalty company with a Zacks Rank of 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 41.7% over the last 60 days [1] - The company offers a dividend yield of 12.3%, significantly higher than the industry average of 6.9% [1] Group 2: Macy's, Inc. (M) - Macy's, Inc. is an omnichannel retail company with a Zacks Rank of 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 10.2% over the last 60 days [2] - The company has a dividend yield of 3.1%, compared to the industry average of 2.2% [2] Group 3: Baytex Energy Corp. (BTE) - Baytex Energy Corp. is an energy company with a Zacks Rank of 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 64.3% over the last 60 days [2]

Core Viewpoint - Baytex Energy Corp. has strategically sold its U.S. Eagle Ford assets for net proceeds of $2.14 billion USD, enhancing its financial position and allowing a focus on its Canadian energy operations [1][6] Financial Strategy - The proceeds from the asset sale will be utilized to repay outstanding credit facilities and redeem 8.50% Senior Notes due 2030, as well as to initiate a cash tender offer for $575 million USD of 7.37% Senior Notes due 2032, aiming to reduce debt and improve liquidity [2][6] - Baytex is now in a net cash position following the asset sale, which strengthens its financial flexibility [2][6] Shareholder Returns - The company is committed to returning a substantial portion of the net proceeds to shareholders by resuming share purchases under its normal course issuer bid, reflecting confidence in its financial health and future prospects [3][6] Operational Strength - Baytex operates in the Western Canadian Sedimentary Basin, including high-quality oil plays in Pembina Duvernay and heavy oil plays in Alberta and Saskatchewan, which consistently generate strong cash flow, positioning the company for long-term value creation [4] Future Outlook - Baytex is expected to release its 2026 guidance on December 22, 2025, which will provide insights into its future plans and financial outlook as it continues to focus on sustainable growth and value for shareholders [5]

Core Viewpoint - Baytex Energy Corp. has successfully closed the sale of its U.S. Eagle Ford Assets for net proceeds of US$2.14 billion (approximately CAD 2.96 billion), significantly enhancing its financial position and allowing for a focused strategy on a high-return Canadian energy platform [1][2]. Financial Position - The divestiture strengthens Baytex's financial standing, resulting in a net cash position for the company [2]. - A portion of the proceeds will be allocated to repay outstanding credit facilities and redeem the 8.500% Senior Notes due 2030, along with a cash tender offer for the US$575 million of 7.375% Senior Notes due 2032 [2]. Shareholder Returns - Baytex is committed to returning a significant portion of the net proceeds (after debt repayment) to shareholders and plans to resume purchases under its normal course issuer bid [3][5]. Future Guidance - The company is expected to release its 2026 guidance on December 22, 2025 [3]. Company Overview - Baytex Energy Corp. is based in Calgary and focuses on creating shareholder value through disciplined execution, operating a high-quality portfolio in the Western Canadian Sedimentary Basin, including the Pembina Duvernay and heavy oil plays in Alberta and Saskatchewan [10].

Core Insights - Baytex Energy Corp. (BTE) has sold its Eagle Ford assets for $2.3 billion, significantly altering its capital structure and allowing for debt repayment and simplification of its balance sheet [1][7] - The company plans to use the proceeds primarily to reduce bank debt and retire senior notes, which will enhance shareholder returns by maintaining dividends and resuming share repurchases [1][7] - A lower debt load improves the company's valuation and reduces risk, particularly in light of unpredictable free cash flow [1] Financial Performance - The outlook for 2025 free cash flow has been revised down to approximately C$300 million due to lower oil prices, especially with conservative fourth-quarter pricing assumptions [2] - Despite the challenges, Baytex's recent asset sales have positioned it to break even at lower oil prices, aided by reduced interest costs and more efficient spending [2] - The company's heavy oil assets, particularly Clearwater, generate solid cash flow even at lower oil prices, making them competitive within the industry [3] Investment Case - Baytex's heavy oil assets are central to its investment appeal, with lower balance-sheet risk and improving cash flow durability contributing to a favorable outlook [3] - The company has received a Zacks Rank 1 (Strong Buy), indicating strong market confidence despite near-term challenges [3] - Year-to-date, Baytex shares have increased by over 22%, outperforming the broader industry [6]

Company Overview - Baytex Energy (BTE) is a notable stock within the Oils-Energy sector, currently ranked 10 in the Zacks Sector Rank, which includes 242 companies [2] - The company has a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperforming the market [3] Performance Metrics - Year-to-date, Baytex Energy has gained approximately 16.7%, significantly outperforming the Oils-Energy sector's average return of 5.1% [4] - The Zacks Consensus Estimate for Baytex Energy's full-year earnings has increased by 64.3% over the past quarter, reflecting improved analyst sentiment [4] Industry Context - Baytex Energy operates in the Oil and Gas - Exploration and Production - Canadian industry, which consists of 10 companies and is currently ranked 157 in the Zacks Industry Rank [6] - The average return for this industry group is only 0.3% year-to-date, further highlighting Baytex Energy's superior performance [6] Comparison with Peers - Another stock in the Oils-Energy sector, Warrior Met Coal (HCC), has also outperformed, with a year-to-date increase of 54% and a Zacks Rank of 1 (Strong Buy) [5] - The Coal industry, to which Warrior Met Coal belongs, has seen an average increase of 12.4% since the beginning of the year, ranking 157 among 8 stocks [7]

Calgary, Alberta--(Newsfile Corp. - December 15, 2025) - Baytex Energy Corp. (TSX: BTE) (NYSE: BTE) ("Baytex" or the "Company") today announced that it expects to close the previously announced sale of its U.S. Eagle Ford assets (the "Eagle Ford Asset Sale") on December 19, 2025.Baytex also announced the early results of the previously announced tender offer (the "Tender Offer") to purchase for cash, upon the terms and conditions set forth in the Offer to Purchase dated December 1, 2025 (as it may be amend ...

Core Insights - Baytex Energy has experienced a significant increase of over 60% in the past six months, reaching a 52-week high of $3.32, driven by confidence in its post-sale strategy focusing on high-return Canadian assets [1][6] - The company has undergone a transformational simplification of its portfolio by selling Eagle Ford assets for C$3.25 billion, allowing it to concentrate on Canadian heavy oil and reduce exposure to U.S. interest costs [3][4] - Baytex's financial position has strengthened, with an estimated net cash position of approximately C$900 million and a pro forma net asset value of C$3.99 billion, positioning it as one of the financially strongest companies among its peers [4][7] Financial Performance - The sale of U.S. assets has led to a lower corporate breakeven, providing Baytex with greater flexibility in various pricing environments and enhancing its capacity for reinvestment and shareholder returns [4][6] - The company generated C$143 million in free cash flow in Q3 2025, with expectations for continued contributions despite softer commodity prices [15][16] - By year-end, net debt is projected to decline to about C$2.1 billion, indicating ongoing balance sheet improvement [16] Growth Potential - Baytex's heavy oil and Pembina Duvernay assets are expected to drive growth, with over 1,300 drilling locations and a strong production outlook [6][10] - Pembina Duvernay is anticipated to become the largest source of long-term growth, with production reaching a record 10,185 barrels of oil-equivalent per day in Q3, up 53% sequentially [10][11] - The company plans to scale development in Pembina Duvernay to achieve production volumes of 20,000–25,000 Boe/d by 2029–2030, supported by a robust well performance [11] Strategic Positioning - Baytex's strategic shift back to heavy oil, combined with modern drilling efficiencies, positions it to extract consistent value from a historically cyclical segment [9][10] - The company controls approximately 1,100 heavy oil drilling locations, providing more than a decade of future development runway, which enhances production stability and cash flow generation [9] - Baytex's leaner, more cash-efficient structure is increasingly competitive compared to larger Canadian producers like Suncor Energy and Canadian Natural Resources [2][4]

Core Insights - The article emphasizes the importance of the Zacks Rank system in identifying winning stocks through earnings estimates and revisions [1] - Value investing is highlighted as a favored strategy that seeks to find undervalued companies using fundamental analysis and traditional valuation metrics [2] Company Analysis - Baytex Energy (BTE) is identified as a stock to watch, currently holding a Zacks Rank of 1 (Strong Buy) and an A grade for Value [3] - BTE has a Price-to-Sales (P/S) ratio of 0.9, significantly lower than the industry average P/S of 1.47, indicating potential undervaluation [4] - The strong Value grade of BTE suggests it is likely undervalued, especially when considering its positive earnings outlook [5]