Baytex Announces 2026 Budget, Three-Year Outlook, Executive Appointment, and Board of Director Changes

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].