Baytex Energy (US:BTE) Newsfileยท2025-07-31 21:02Core Viewpoint - Baytex Energy Corp. reported solid operational and financial results for Q2 2025, highlighting record well performance in the Pembina Duvernay and a continued focus on debt reduction and disciplined capital allocation [2][6][17]. Financial Performance - Total petroleum and natural gas sales for Q2 2025 were CAD 886.6 million, a decrease from CAD 1.1 billion in Q2 2024 [10]. - Adjusted funds flow was CAD 367 million (CAD 0.48 per basic share), while net income reached CAD 152 million (CAD 0.20 per basic share) [10][17]. - Free cash flow generated was CAD 3 million, with CAD 21 million returned to shareholders through share repurchases and dividends [17][18]. - Net debt decreased by 4% (CAD 96 million) to CAD 2.3 billion, supported by unrealized foreign exchange gains [18]. Production and Operations - Average production for Q2 2025 was 148,095 boe/d (84% oil and NGL), marking a 2% increase in production per basic share compared to Q2 2024 [6][19]. - Heavy oil production averaged 44,895 boe/d (96% oil and NGL), up 7% from Q1 2025 [28]. - The Pembina Duvernay wells achieved average peak 30-day production rates of 1,865 boe/d per well, with the first pad exceeding initial rate expectations [24][25]. Capital Expenditures and Future Outlook - Exploration and development expenditures for Q2 2025 totaled CAD 357 million, with a full-year target of approximately CAD 1.2 billion [4][19]. - The company plans to allocate 100% of free cash flow to debt repayment after funding quarterly dividends, targeting net debt of approximately CAD 2 billion by year-end [7][18]. - For the second half of 2025, production is expected to average approximately 150,000 boe/d [4]. Dividend and Shareholder Returns - A quarterly cash dividend of CAD 0.0225 per share has been declared, payable on October 1, 2025 [30].