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Baytex Announces 2025 Budget
BTEBaytex Energy (BTE) Newsfile·2024-12-03 22:00

Core Viewpoint - Baytex Energy Corp. has announced its 2025 budget, focusing on disciplined capital allocation to prioritize free cash flow while maintaining a strong balance sheet in a moderated growth environment [3][4][10]. Financial Overview - The approved budget for 2025 exploration and development expenditures is set between 1.2billionand1.2 billion and 1.3 billion, targeting average annual production of 150,000 to 154,000 boe/d based on a WTI price of US65/bbl[4][11].−Thecompanyexpectstoexit2024producingbetween152,000and153,000boe/d,withafirst−quarterproductionforecastof147,000to149,000boe/d[12].ProductionandOperations−Operatedproductionisprojectedtoincreaseby165/bbl [4][11]. - The company expects to exit 2024 producing between 152,000 and 153,000 boe/d, with a first-quarter production forecast of 147,000 to 149,000 boe/d [12]. Production and Operations - Operated production is projected to increase by 1% in 2025, with approximately 85% of total corporate volumes coming from operated assets [5]. - The capital program will allocate 55% to 60% of expenditures to Eagle Ford light oil assets in the U.S. and 40% to 45% to Canadian assets, with a balanced split between light and heavy oil in Canada [6][9]. Development Plans - In the Eagle Ford, 54 net wells are expected to come online, including 41 net operated wells, while Canadian operations will see nine net wells in Pembina Duvernay and 90 in Viking [7]. - The company plans to run a consistent two rig and one frac crew program throughout most of the year, targeting a 7% improvement in drilling and completion costs per completed lateral foot compared to 2024 [8]. Financial Guidance - Operating expenses are largely unchanged from 2024, with guidance based on an exchange rate of 1.40 CAD/USD [15]. - A 0.05 CAD/USD change in the exchange rate impacts operating expenses by 0.21/boeandtotaldebtby0.21/boe and total debt by 70 million [16]. Five-Year Outlook - The five-year outlook anticipates maintaining annual exploration and development expenditures at 1.2to1.2 to 1.3 billion, generating cumulative free cash flow of 3.1billionandatotalreturnofcapitalofapproximately3.1 billion and a total return of capital of approximately 1.7 billion [20][21]. - Sensitivity analysis indicates that at a constant US65/bblWTIprice,freecashflowisexpectedtobe65/bbl WTI price, free cash flow is expected to be 1.5 billion, increasing to 4.5billionatUS4.5 billion at US85/bbl [23].