Baytex Announces First Quarter 2025 Results

Core Viewpoint - Baytex Energy Corp. reported its first quarter 2025 results, demonstrating resilience in a challenging operating environment marked by macroeconomic uncertainty and volatile commodity prices, while maintaining a focus on free cash flow and disciplined capital allocation [2][4][17]. Financial Performance - Total petroleum and natural gas sales for Q1 2025 were CAD 999.13 million, compared to CAD 984.19 million in Q1 2024, reflecting a slight increase [11]. - Adjusted funds flow was CAD 464 million or CAD 0.60 per basic share, up from CAD 423.85 million in Q1 2024 [10][19]. - Free cash flow generated was CAD 53 million (CAD 0.07 per basic share), with CAD 30 million returned to shareholders through share repurchases and dividends [10][19]. - Net income for the quarter was CAD 70 million (CAD 0.09 per basic share), a significant improvement from a loss of CAD 14.04 million in Q1 2024 [10][11]. Production and Operations - Average production for Q1 2025 was 144,194 boe/d, with 84% being oil and NGL, representing a 2% increase in production per basic share compared to Q1 2024 [10][18]. - Exploration and development expenditures totaled CAD 405 million, consistent with the full-year plan, and 105 wells were brought onstream [10][18]. - The company maintained a total debt to Bank EBITDA ratio of 1.0x as of March 31, 2025, indicating strong balance sheet management [10][21]. Market Outlook - The global crude oil market remains under pressure due to economic uncertainties, with WTI prices trading between USD 55 to USD 60 per barrel, down from USD 80 per barrel earlier in the year [4][5]. - For 2025, the exploration and development budget is set at CAD 1.2 to CAD 1.3 billion, supporting an annual production target of 148,000 to 152,000 boe/d [5][6]. Shareholder Returns - The company plans to allocate 100% of its free cash flow to debt repayment after funding quarterly dividends, reflecting a commitment to strengthening its balance sheet [7][21]. - Over the past seven quarters, Baytex has returned CAD 580 million to shareholders through share repurchases and dividends [20]. Operational Highlights - In the Eagle Ford region, production averaged 81,814 boe/d, with a focus on high-efficiency drilling and completion techniques [23]. - In the Canadian light oil business, production averaged 16,685 boe/d, with ongoing development in the Pembina Duvernay and Viking areas [24]. - Heavy oil production averaged 41,119 boe/d, with significant contributions from the Peavine area [25].