Ring Energy, Inc. press release

Baytex Delivers Solid Third Quarter 2025 Results with Record Pembina Duvernay Production and Strong Free Cash Flow

2025-10-30

NYSE - New York Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · United States · Corporate Finance

Calgary, Alberta--(Newsfile Corp. - October 30, 2025) - Baytex Energy Corp. (TSX: BTE) (NYSE: BTE) ("Baytex" or the "Company") reports its operating and financial results for the three and nine months ended September 30, 2025 (all amounts are in Canadian dollars unless otherwise noted).

"Baytex delivered solid third-quarter results highlighted by record production in the Pembina Duvernay, strong free cash flow generation, and further progress on debt reduction," said Eric T. Greager, President and Chief Executive Officer. "Our heavy oil business continues to generate reliable returns and, through targeted land acquisitions, we are expanding our long-term inventory. In the Pembina Duvernay, a strategic property swap further consolidates our position, setting the stage for full-scale development. These results reinforce our focus on disciplined capital allocation and demonstrate the quality and value creation potential of our asset base as we work to drive sustainable value for shareholders."

Third Quarter 2025 Highlights

Delivered production of 150,950 boe/d (86% oil and NGL), a 1% increase in production per basic share compared to Q3/2024. Generated free cash flow(1)of $143 million ($0.19 per basic share). Achieved record Pembina Duvernay production of 10,185 boe/d (77% oil and NGL), up 53% compared to Q2/2025. Increased heavy oil production 5% over Q2/2025 with continued strong performance. Brought 15.6 net wells to sales in the Eagle Ford with strong execution, achieving a 12% improvement in drilling and completion costs, compared to 2024. Expanded our heavy oil development fairway and consolidated Pembina Duvernay acreage through targeted land acquisitions and a property swap. Reported cash flows from operating activities of $473 million ($0.62 per basic share). Generated net income of $32 million ($0.04 per basic share). Delivered adjusted funds flow(2)of $422 million ($0.55 per basic share). Reduced net debt(2)by 2% ($50 million) and maintained balance sheet strength with a total debt(3)to Bank EBITDA(3)ratio of 1.1x.

2025 Outlook

We remain committed to disciplined capital allocation, prioritizing free cash flow and strengthening our balance sheet. We continue to execute our 2025 plan and anticipate full-year production of approximately 148,000 boe/d with exploration and development expenditures of approximately $1.2 billion.

Based on year-to-date actual results and the forward strip for the balance of 2025(4) we expect to generate free cash flow(2)of approximately $300 million in 2025. We continue to allocate 100% of free cash flow to debt repayment after funding quarterly dividend payments, targeting net debt of approximately $2.1 billion by year-end.

Our 2026 capital budget will be released in January following approval by our Board of Directors.

(1) Specified financial measure that does not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and may not be comparable with the calculation of similar measures presented by other entities. Refer to the Specified Financial Measures section in this press release for further information. (2) Capital management measure. Refer to the Specified Financial Measures section in this press release for further information. (3) Ratio is calculated as total debt on September 30, 2025 divided by EBITDA for the twelve months ended September 30, 2025. Total debt and EBITDA are calculated in accordance with our amended credit facilities agreement which is available on SEDAR+ at www.sedarplus.ca. (4) Q4/2025 commodity prices: WTI - US$60/bbl; WCS differential - US$12/bbl; NYMEX Gas - US$3.40/MMbtu; Exchange Rate (CAD/USD) - 1.39.

| | | | Three Months Ended | | | Nine Months Ended | | | | | | | | | | | | | | September 30, 2025 | | | June 30, 2025 | | | September 30, 2024 | | | September 30, 2025 | | | September 30, 2024 | | FINANCIAL (thousands of Canadian dollars, except per common share amounts) | | | | | | | | | | | | | | | | | Petroleum and natural gas sales | | $ | 927,648 | | $ | 886,579 | | $ | 1,074,623 | | $ | 2,813,357 | | $ | 3,191,938 | | Adjusted funds flow(1) | | | 422,232 | | | 366,919 | | | 537,947 | | | 1,253,021 | | | 1,494,632 | | Per share - basic | | | 0.55 | | | 0.48 | | | 0.68 | | | 1.63 | | | 1.84 | | Per share - diluted | | | 0.55 | | | 0.48 | | | 0.67 | | | 1.62 | | | 1.84 | | Free cash flow (2) | | | 142,688 | | | 3,188 | | | 220,159 | | | 198,405 | | | 400,744 | | Per share - basic | | | 0.19 | | | — | | | 0.28 | | | 0.26 | | | 0.49 | | Per share - diluted | | | 0.18 | | | — | | | 0.28 | | | 0.26 | | | 0.49 | | Cash flows from operating activities | | | 472,676 | | | 354,312 | | | 550,042 | | | 1,258,305 | | | 1,439,399 | | Per share - basic | | | 0.62 | | | 0.46 | | | 0.69 | | | 1.64 | | | 1.78 | | Per share - diluted | | | 0.61 | | | 0.46 | | | 0.69 | | | 1.63 | | | 1.77 | | Net income | | | 31,968 | | | 151,549 | | | 185,219 | | | 253,108 | | | 275,074 | | Per share - basic | | | 0.04 | | | 0.20 | | | 0.23 | | | 0.33 | | | 0.34 | | Per share - diluted | | | 0.04 | | | 0.20 | | | 0.23 | | | 0.33 | | | 0.34 | | Dividends declared | | | 17,326 | | | 17,304 | | | 17,732 | | | 51,919 | | | 54,387 | | Per share | | | 0.0225 | | | 0.0225 | | | 0.0225 | | | 0.0675 | | | 0.0675 | | | | | | | | | | | | | | | | | | | Capital Expenditures | | | | | | | | | | | | | | | | | Exploration and development expenditures | | $ | 270,364 | | $ | 356,532 | | $ | 306,332 | | $ | 1,031,993 | | $ | 1,058,456 | | Acquisitions and divestitures | | | 15,770 | | | 468 | | | (394) | | | 15,229 | | | 35,638 | | Total oil and natural gas capital expenditures | | $ | 286,134 | | $ | 357,000 | | $ | 305,938 | | $ | 1,047,222 | | $ | 1,094,094 | | | | | | | | | | | | | | | | | | | Net Debt | | | | | | | | | | | | | | | | | Credit facilities | | $ | 182,345 | | $ | 333,516 | | $ | 466,108 | | $ | 182,345 | | $ | 466,108 | | Long-term notes | | | 1,855,605 | | | 1,817,707 | | | 1,856,869 | | | 1,855,605 | | | 1,856,869 | | Total debt (3) | | | 2,037,950 | | | 2,151,223 | | | 2,322,977 | | | 2,037,950 | | | 2,322,977 | | Working capital deficiency (2) | | | 206,408 | | | 142,717 | | | 170,292 | | | 206,408 | | | 170,292 | | Net debt(1) | | $ | 2,244,358 | | $ | 2,293,940 | | $ | 2,493,269 | | $ | 2,244,358 | | $ | 2,493,269 | | | | | | | | | | | | | | | | | | | Shares Outstanding - basic(thousands) | | | | | | | | | | | | | | | | | Weighted average | | | 768,317 | | | 768,717 | | | 796,064 | | | 769,481 | | | 810,589 | | End of period | | | 768,317 | | | 768,317 | | | 787,328 | | | 768,317 | | | 787,328 | | | | | | | | | | | | | | | | | | | BENCHMARK PRICES | | | | | | | | | | | | | | | | | Crude oil | | | | | | | | | | | | | | | | | WTI (US$/bbl) | | $ | 64.93 | | $ | 63.74 | | | 75.10 | | $ | 66.70 | | $ | 77.54 | | MEH oil (US$/bbl) | | | 67.03 | | | 65.56 | | | 77.50 | | | 68.65 | | | 79.85 | | MEH oil differential to WTI (US$/bbl) | | | 2.10 | | | 1.82 | | | 2.40 | | | 1.95 | | | 2.31 | | Edmonton par ($/bbl) | | | 86.20 | | | 84.15 | | | 97.91 | | | 88.54 | | | 98.46 | | Edmonton par differential to WTI (US$/bbl) | | | (2.35) | | | (2.94) | | | (3.30) | | | (3.40) | | | (5.16) | | WCS heavy oil ($/bbl) | | | 75.14 | | | 74.10 | | | 83.98 | | | 77.80 | | | 84.45 | | WCS differential to WTI (US$/bbl) | | | (10.38) | | | (10.20) | | | (13.51) | | | (11.08) | | | (15.46) | | Natural gas | | | | | | | | | | | | | | | | | NYMEX (US$/MMbtu) | | $ | 3.07 | | $ | 3.44 | | | 2.16 | | $ | 3.39 | | $ | 2.10 | | AECO ($/Mcf) | | | 1.00 | | | 2.07 | | | 0.81 | | | 1.70 | | | 1.43 | | | | | | | | | | | | | | | | | | | CAD/USD average exchange rate | | | 1.3774 | | | 1.3840 | | | 1.3636 | | | 1.3988 | | | 1.3603 |

Notes:

(1) Capital management measure. Refer to the Specified Financial Measures section in this press release for further information. (2) Specified financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable with the calculation of similar measures presented by other entities. Refer to the Specified Financial Measures section in this press release for further information. (3) Calculated in accordance with our amended credit facilities agreement which is available on SEDAR+ at www.sedarplus.ca.

| | | | Three Months Ended | | | Nine Months Ended | | | | | | | | | | | | | | September 30, 2025 | | | June 30, 2025 | | | September 30, 2024 | | | September 30, 2025 | | | September 30, 2024 | | OPERATING | | | | | | | | | | | | | | | | | Daily Production | | | | | | | | | | | | | | | | | Light oil and condensate (bbl/d) | | | 64,935 | | | 62,108 | | | 69,843 | | | 63,136 | | | 67,645 | | Heavy oil (bbl/d) | | | 45,269 | | | 42,959 | | | 42,759 | | | 42,825 | | | 42,342 | | NGL (bbl/d) | | | 19,067 | | | 19,948 | | | 19,836 | | | 19,353 | | | 19,767 | | Total liquids (bbl/d) | | | 129,271 | | | 125,015 | | | 132,438 | | | 125,314 | | | 129,754 | | Natural gas (Mcf/d) | | | 130,076 | | | 138,482 | | | 132,175 | | | 134,742 | | | 140,069 | | Oil equivalent (boe/d @ 6:1) (1) | | | 150,950 | | | 148,095 | | | 154,468 | | | 147,771 | | | 153,099 | | | | | | | | | | | | | | | | | | | Adjusted Funds Flow (thousands of Canadian dollars) | | | | | | | | | | | | | | | | | Total sales, net of blending and other expense (2) | | $ | 877,898 | | $ | 824,198 | | $ | 1,022,721 | | $ | 2,628,406 | | $ | 3,008,143 | | Royalties | | | (181,230) | | | (177,390) | | | (223,800) | | | (566,557) | | | (673,411) | | Operating expense | | | (160,284) | | | (161,020) | | | (167,119) | | | (469,007) | | | (508,259) | | Transportation expense | | | (35,295) | | | (32,907) | | | (36,883) | | | (98,714 | | | (100,032) | | Operating netback(2) | | $ | 501,089 | | $ | 452,881 | | $ | 594,919 | | $ | 1,494,128) | | $ | 1,726,441 | | General and administrative expense | | | (20,736) | | | (22,220) | | | (17,895) | | | (68,562) | | | (61,313 | | Cash interest | | | (43,873) | | | (44,875) | | | (50,109) | | | (135,535) | | | (157,335) | | Realized financial derivatives (loss) gain | | | (8,580) | | | (11,874) | | | 331 | | | (20,648) | | | 3,562 | | Other (3) | | | (5,668) | | | (6,993) | | | 10,701 | | | (16,362) | | | (16,723) | | Adjusted funds flow (4) | | $ | 422,232 | | $ | 366,919 | | $ | 537,947 | | $ | 1,253,021 | | $ | 1,494,632 | | | | | | | | | | | | | | | | | | | Adjusted Funds Flow (per boe) | | | | | | | | | | | | | | | | | Total sales, net of blending and other expense (2) | | $ | 63.22 | | $ | 61.16 | | $ | 71.97 | | $ | 65.15 | | $ | 71.71 | | Royalties (5) | | | (13.05) | | | (13.16) | | | (15.75) | | | (14.04) | | | (16.05) | | Operating expense (5) | | | (11.54) | | | (11.95) | | | (11.76) | | | (11.63) | | | (12.12) | | Transportation expense (5) | | | (2.54) | | | (2.44) | | | (2.60) | | | (2.45) | | | (2.38) | | Operating netback (2) | | $ | 36.09 | | $ | 33.61 | | $ | 41.86 | | $ | 37.03 | | $ | 41.16 | | General and administrative expense (5) | | | (1.49) | | | (1.65) | | | (1.26) | | | (1.70) | | | (1.46) | | Cash interest (5) | | | (3.16) | | | (3.33) | | | (3.53) | | | (3.36 | | | (3.75) | | Realized financial derivatives (loss) gain (5) | | | (0.62) | | | (0.88) | | | 0.02 | | | (0.51) | | | 0.08 | | Other (3)(5) | | | (0.42) | | | (0.52) | | | 0.76 | | | (0.40) | | | (0.40) | | Adjusted funds flow | | $ | 30.40 | | $ | 27.23 | | $ | 37.85 | | $ | 31.06 | | $ | 35.63 |

Notes:

(1) Barrel of oil equivalent ("boe") amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil. The use of boe amounts may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. (2) Specified financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable with the calculation of similar measures presented by other entities. Refer to the Specified Financial Measures section in this press release for further information. (3) Other is comprised of realized foreign exchange gain or loss, other income or expense, current income tax recovery or expense and cash share-based compensation. Refer to the Q3/2025 MD&A for further information on these amounts. (4) Capital management measure. Refer to the Specified Financial Measures section in this press release for further information. (5) Calculated as royalties, operating expense, transportation expense, general and administrative expense, cash interest, realized financial derivatives gain or loss, or other, divided by barrels of oil equivalent production volume for the applicable period.

Financial Results

During the third quarter, we delivered operating and financial results in line with our full-year plan. Adjusted funds flow(1)was $422 million ($0.55 per basic share) and net income was $32 million ($0.04 per basic share).

We generated free cash flow(2)of $143 million and returned $17 million to shareholders through our quarterly dividend.

Net debt(1)decreased 2% ($50 million) to $2.2 billion, driven by strong free cash flow, partially offset by an unrealized foreign exchange loss from a weakening Canadian dollar on our U.S. dollar-denominated debt.

We maintain strong financial flexibility with US$1.1 billion in credit facilities that mature in June 2029 and are less than 15% drawn, positioning us well across various commodity price cycles.

Operations

Production averaged 150,950 boe/d (86% oil and NGL) in the third quarter, representing a 1% increase in production per basic share compared to Q3/2024. Consistent with our full-year plan, exploration and development expenditures for Q3/2025 totaled $270 million and we brought 69 (61.6 net) wells onstream.

Oil-Focused Eagle Ford Development

Eagle Ford production averaged 82,765 boe/d (82% oil and NGL), relatively unchanged from Q2/2025. Crude oil production averaged 52,330 bbl/d, up 3% from Q2/2025.

Our 2025 development program has largely focused on the black oil to condensate windows of our acreage. We brought 15.6 net wells onstream while achieving a 12% improvement in operated drilling and completion costs per completed lateral foot compared to 2024.

During the second quarter we successfully completed two refracs in the Lower Eagle Ford. The wells continue to deliver results comparable to our broader development program with improved capital efficiencies and returns. We anticipate an expanded refrac program in 2026.

Record Pembina Duvernay Production

Production from our Canadian light oil business averaged 19,589 boe/d (80% oil and NGL), up 20% from Q2/2025. The Pembina Duvernay represents our largest growth asset and accounted for approximately 50% of Canadian light oil production during the quarter.

We achieved record Pembina Duvernay production of 10,185 boe/d (77% oil and NGL) in Q3/2025, up 53% from Q2/2025. The third pad (10-31, 3 wells) from our 2025 program was brought onstream in September with two of three wells generating strong 30-day peak production rates averaging 1,380 boe/d per well (830 bbl/d of crude oil, 355 bbl/d of NGLs, 1,172 Mcf/d of natural gas). The third well encountered casing issues during completion and was subsequently abandoned.

Our 2025 program (3 pads, 8 producing wells) exceeded initial rate expectations and sets the stage for full commercialization. Strong production, combined with an 11% improvement in drilling and completion costs per completed lateral foot compared to 2024, has significantly improved well economics.

We have assembled 140 net sections of highly prospective lands and identified approximately 200 drilling locations. Over the next two years, we expect to transition to a one-rig drilling program with 18 to 20 wells per year, targeting production of 20,000-25,000 boe/d by 2029-2030.

Subsequent to quarter-end, we completed an asset swap in the Pembina Duvernay consolidating our southern acreage. This enables more efficient development of these lands commencing in 2026. In addition, in support of our ongoing development, we commissioned midstream infrastructure associated with our partnership with Gibson Energy. Construction of the infrastructure was completed on time and under budget.

(1) Capital management measure. Refer to the Specified Financial Measures section in this press release for further information. (2) Specified financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable with the calculation of similar measures presented by other entities. Refer to the Specified Financial Measures section in this press release for further information.

Organic Heavy Oil Growth and Inventory Expansion

Heavy oil production averaged 47,280 boe/d (96% oil and NGL), up 5% from Q2/2025. Strong operating results reflect continued performance at Peavine, Peace River, and across the broader Mannville group in Lloydminster. We brought onstream 20.0 net wells during the quarter: 10 Clearwater wells at Peavine, 4 wells at Peace River, and 6 wells at Lloydminster.

We continue to build on our heavy oil expertise and enhance our long-term inventory of development prospects. During the quarter, we acquired 40.5 net sections of highly prospective lands at Peace River, and 4.5 net sections in northeast Alberta targeting the broader Mannville group.

To-date in 2025, through organic development and land acquisitions, we have added 200 drilling locations to our inventory count, bringing our heavy oil portfolio to 1,100 drilling locations. This supports approximately 10 years of drilling at our current pace of development.

Our heavy oil operations continue to deliver the strongest economic returns across our portfolio, supported by our extensive acreage, capital-efficient development, and the continued strength in Western Canadian Select pricing.

Quarterly Dividend

The Board of Directors has declared a quarterly cash dividend of $0.0225 per share, payable January 2, 2026 to shareholders of record on December 15, 2025.

Additional Information

Our condensed consolidated interim unaudited financial statements for the three and nine months ended September 30, 2025 and the related Management's Discussion and Analysis of the operating and financial results can be accessed on our website at www.baytexenergy.comand will be available shortly through SEDAR+ at www.sedarplus.caand EDGAR at www.sec.gov/edgar.shtml.

| Conference Call Tomorrow 9:00 a.m. MT (11:00 a.m. ET) | | Baytex will host a conference call tomorrow, October 31, 2025, starting at 9:00am MT (11:00am ET). To participate, please dial toll free in North America 1-833-821-2925 or international 1-647-846-2449. Alternatively, to listen to the conference call online, please enter https://event.choruscall.com/mediaframe/webcast.html?webcastid=HLPnYJ02in your web browser. To register, visit our website at https://www.baytexenergy.com/investors/events-presentations.

An archived recording of the conference call will be available shortly after the event by accessing the webcast link above. The conference call will also be archived on the Baytex website at www.baytexenergy.com. |

Advisory Regarding Forward-Looking Statements In the interest of providing Baytex's shareholders and potential investors with information regarding Baytex, including management's assessment of Baytex's future plans and operations, certain statements in this press release are "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). In some cases, forward-looking statements can be identified by terminology such as "believe", "continue", "estimate", "expect", "forecast", "intend", "may", "objective", "ongoing", "outlook", "potential", "project", "plan", "should", "target", "would", "will" or similar words suggesting future outcomes, events or performance. The forward-looking statements contained in this press release speak only as of the date thereof and are expressly qualified by this cautionary statement.