Sintana Energy Inc. press release
Baytex Announces Fourth Quarter and Full Year 2025 Results and CEO Succession; Completes Transition to a Focused Canadian Energy Company
TSXV - TSX Venture Exchange · Oil · Natural Gas · Canada
Calgary, Alberta--(Newsfile Corp. - March 4, 2026) - Baytex Energy Corp. (TSX: BTE) (NYSE: BTE) ("Baytex") reports its operating and financial results for the three months and year ended December 31, 2025 (all amounts are in Canadian dollars unless otherwise noted).
"2025 was a definitive year for Baytex, marked by the successful repositioning of our portfolio into a focused, high-return Canadian oil producer," said Eric T. Greager, Chief Executive Officer. "We strengthened our financial position and reinforced our potential for long-term value creation. With a sustaining breakeven of US$52/bbl WTI, Baytex is well-positioned to navigate market volatility and accelerate shareholder returns. Our 2026 plan is already delivering operational momentum across our core Pembina Duvernay and heavy oil fairways, and I am confident the company is set up for a seamless leadership transition."
2025 Highlights
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Completed the divestiture of U.S. Eagle Ford assets for net proceeds of $3.0 billion on December 19, 2025, successfully transitioning Baytex to a focused Canadian producer.
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Significantly strengthened financial position with cash of $857 million (cash less principal amount of Senior Notes that remain outstanding).
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Delivered 2025 Canadian production of 65,528 boe/d (89% oil and NGL), representing 6% organic growth over 2024. Q4/2025 Canadian production averaged 67,295 boe/d (88% oil and NGL).
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Reported a 2025 net loss of $604 million ($0.78 per basic share) due to non-cash, one-time items associated with the Eagle Ford divestiture and a Viking impairment, with no impact to cash flow.
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Reported cash flows from operating activities of $1.5 billion ($1.93 per basic share) for 2025, including $228 million ($0.30 per basic share) in the fourth quarter.
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Delivered full-year adjusted funds flow(1) of $1.5 billion ($1.97 per basic share) with $262 million ($0.34 per basic share) generated in Q4/2025.
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Realized free cash flow(2)of $275 million ($0.36 per basic share) for the full-year, including $76 million ($0.10 per basic share) in Q4/2025.
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Re-initiated share buybacks on December 24, 2025. To-date, Baytex has repurchased 30 million shares (3.9% of shares outstanding) for $141 million.
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Declared total cash dividends of $0.09 per share in 2025, representing $69 million returned to shareholders.
CEO Succession
Chad Lundberg, President and Chief Operating Officer, will succeed Eric Greager as Chief Executive Officer following the Annual General Meeting ("AGM") on May 7, 2026. Mr. Lundberg joined Baytex in 2018 and has played an instrumental role in the strategic development and operational expansion of the Company's portfolio. To ensure a seamless transition, Mr. Greager will remain as CEO and a member of the Board until the AGM, at which time Mr. Lundberg will be nominated for election as a Director.
"The Board has been committed to a rigorous succession process to ensure Baytex is led by the right individual for our next chapter," said Mark Bly, Chair of the Board of Directors. "As we sharpen our focus on our core Canadian assets, Chad's deep operational expertise and proven leadership make him the right choice to drive our business forward. We are confident that his strategic vision and commitment to financial discipline will drive continued value creation. On behalf of the Board, I thank Eric for positioning the company for success and establishing the strong foundation from which Chad will now lead."
(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 International Financial Reporting Standard ("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.
| | | Three Months Ended | | | Twelve Months Ended | | | | | | | | | | | | | | December 31, 2025 | | | September 30, 2025 | | | December 31, 2024 | | | December 31, 2025 | | | December 31, 2024 | | | FINANCIAL (thousands of Canadian dollars, except per common share amounts) | | | | | | | | | | | | | | | | | Petroleum and natural gas sales | $ | 759,815 | | $ | 927,648 | | $ | 1,017,017 | | $ | 3,573,172 | | $ | 4,208,955 | | | Adjusted funds flow (1) | | 261,531 | | | 422,232 | | | 461,886 | | | 1,514,552 | | | 1,956,518 | | | Per share - basic | | 0.34 | | | 0.55 | | | 0.59 | | | 1.97 | | | 2.44 | | | Per share - diluted | | 0.34 | | | 0.55 | | | 0.59 | | | 1.97 | | | 2.42 | | | Free cash flow (2) | | 76,486 | | | 142,688 | | | 254,838 | | | 274,891 | | | 655,582 | | | Per share - basic | | 0.10 | | | 0.19 | | | 0.33 | | | 0.36 | | | 0.82 | | | Per share - diluted | | 0.10 | | | 0.18 | | | 0.33 | | | 0.36 | | | 0.81 | | | Cash flows from operating activities | | 227,657 | | | 472,676 | | | 468,865 | | | 1,485,962 | | | 1,908,264 | | | Per share - basic | | 0.30 | | | 0.62 | | | 0.60 | | | 1.93 | | | 2.38 | | | Per share - diluted | | 0.30 | | | 0.61 | | | 0.60 | | | 1.93 | | | 2.36 | | | Net (loss) income | | (856,887 | ) | | 31,968 | | | (38,477 | ) | | (603,779 | ) | | 236,597 | | | Per share - basic | | (1.12 | ) | | 0.04 | | | (0.05 | ) | | (0.78 | ) | | 0.29 | | | Per share - diluted | | (1.12 | ) | | 0.04 | | | (0.05 | ) | | (0.78 | ) | | 0.29 | | | Dividends declared | | 17,268 | | | 17,326 | | | 17,598 | | | 69,187 | | | 71,985 | | | Per share | | 0.0225 | | | 0.0225 | | | 0.0225 | | | 0.090 | | | 0.090 | | | | | | | | | | | | | | | | | | | | Capital Expenditures | | | | | | | | | | | | | | | | | Exploration and development expenditures | $ | 174,078 | | $ | 270,364 | | $ | 198,177 | | $ | 1,206,071 | | $ | 1,256,633 | | | Acquisitions and (divestitures) | | (3,006,514 | ) | | 15,770 | | | (29,718 | ) | | (2,991,285 | ) | | 5,920 | | | Total oil and natural gas capital expenditures | $ | (2,832,436 | ) | $ | 286,134 | | $ | 168,459 | | $ | (1,785,214 | ) | $ | 1,262,553 | | | | | | | | | | | | | | | | | | | | Net (Cash) Debt | | | | | | | | | | | | | | | | | Credit facilities | $ | 1,400 | | $ | 182,345 | | $ | 341,207 | | $ | 1,400 | | $ | 341,207 | | | Long-term notes | | 95,947 | | | 1,855,605 | | | 1,980,619 | | | 95,947 | | | 1,980,619 | | | Total debt (3) | | 97,347 | | | 2,037,950 | | | 2,321,826 | | | 97,347 | | | 2,321,826 | | | Working capital (surplus) deficiency (2) | | (863,132 | ) | | 206,408 | | | 95,346 | | | (863,132 | ) | | 95,346 | | | Net (cash) debt(1) | $ | (765,785 | ) | $ | 2,244,358 | | $ | 2,417,172 | | $ | (765,785 | ) | $ | 2,417,172 | | | | | | | | | | | | | | | | | | | | Shares Outstanding - basic(thousands) | | | | | | | | | | | | | | | | | Weighted average | | 768,287 | | | 768,317 | | | 782,131 | | | 769,180 | | | 803,435 | | | End of period | | 765,568 | | | 768,317 | | | 773,590 | | | 765,568 | | | 773,590 | | | | | | | | | | | | | | | | | | | | BENCHMARK PRICES | | | | | | | | | | | | | | | | | Crude oil | | | | | | | | | | | | | | | | | WTI (US$/bbl) | $ | 59.14 | | $ | 64.93 | | $ | 70.27 | | $ | 64.81 | | $ | 75.72 | | | MEH oil (US$/bbl) | | 60.70 | | | 67.03 | | | 72.40 | | | 66.66 | | | 77.99 | | | MEH oil differential to WTI (US$/bbl) | | 1.56 | | | 2.10 | | | 2.13 | | | 1.85 | | | 2.27 | | | Edmonton par ($/bbl) | | 76.49 | | | 86.20 | | | 94.98 | | | 85.53 | | | 97.59 | | | Edmonton par differential to WTI (US$/bbl) | | (4.30 | ) | | (2.35 | ) | | (2.39 | ) | | (3.62 | ) | | (4.49 | ) | | WCS heavy oil ($/bbl) | | 66.88 | | | 75.14 | | | 80.77 | | | 75.06 | | | 83.56 | | | WCS differential to WTI (US$/bbl) | | (11.19 | ) | | (10.38 | ) | | (12.54 | ) | | (11.11 | ) | | (14.73 | ) | | Natural gas | | | | | | | | | | | | | | | | | NYMEX (US$/mmbtu) | $ | 3.55 | | $ | 3.07 | | $ | 2.79 | | $ | 3.43 | | $ | 2.27 | | | AECO ($/mcf) | | 2.34 | | | 1.00 | | | 1.46 | | | 1.86 | | | 1.44 | | | | | | | | | | | | | | | | | | | | CAD/USD average exchange rate | | 1.3949 | | | 1.3774 | | | 1.3992 | | | 1.3978 | | | 1.3700 | |
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 | | | Twelve Months Ended | | | | | | | | | | | | | | December 31, 2025 | | | September 30, 2025 | | | December 31, 2024 | | | December 31, 2025 | | | December 31, 2024 | | | OPERATING | | | | | | | | | | | | | | | | | Daily Production | | | | | | | | | | | | | | | | | Light oil and condensate (bbl/d) | | 12,031 | | | 12,605 | | | 11,568 | | | 11,897 | | | 11,983 | | | Heavy oil (bbl/d) | | 42,628 | | | 45,269 | | | 42,227 | | | 42,775 | | | 42,313 | | | NGL (bbl/d) | | 4,488 | | | 3,485 | | | 3,519 | | | 3,524 | | | 2,749 | | | Total liquids (bbl/d) | | 59,147 | | | 61,359 | | | 57,314 | | | 58,196 | | | 57,045 | | | Natural gas (mcf/d) | | 48,895 | | | 40,961 | | | 48,113 | | | 43,988 | | | 41,412 | | | Total Canada (boe/d) (1) | | 67,295 | | | 68,185 | | | 65,332 | | | 65,528 | | | 63,948 | | | Discontinued operations (boe/d) (1) | | 69,792 | | | 82,765 | | | 87,562 | | | 79,551 | | | 89,100 | | | Oil equivalent (boe/d) (1) | | 137,087 | | | 150,950 | | | 152,894 | | | 145,079 | | | 153,048 | | | | | | | | | | | | | | | | | | | | Adjusted Funds Flow (thousands of Canadian dollars) | | | | | | | | | | | | | | | | | Total sales, net of blending and other expense (2) | $ | 331,517 | | $ | 388,155 | | $ | 386,558 | | $ | 1,449,658 | | $ | 1,610,103 | | | Royalties | | (43,132 | ) | | (53,645 | ) | | (60,396 | ) | | (203,833 | ) | | (261,205 | ) | | Operating expense | | (85,708 | ) | | (84,994 | ) | | (78,878 | ) | | (334,317 | ) | | (336,069 | ) | | Transportation expense | | (21,314 | ) | | (23,060 | ) | | (21,595 | ) | | (83,697 | ) | | (84,211 | ) | | Operating netback - Canada(2) | $ | 181,363 | | $ | 226,456 | | $ | 225,689 | | $ | 827,811 | | $ | 928,618 | | | General and administrative | | (16,918 | ) | | (15,824 | ) | | (14,719 | ) | | (67,903 | ) | | (58,363 | ) | | Cash interest | | (36,455 | ) | | (39,906 | ) | | (46,277 | ) | | (161,432 | ) | | (188,632 | ) | | Realized financial derivatives gain (loss) | | 1,013 | | | (8,580 | ) | | (2,115 | ) | | (19,635 | ) | | 1,447 | | | Other (3) | | (12,789 | ) | | (10,300 | ) | | (14,516 | ) | | (36,251 | ) | | (26,516 | ) | | Adjusted funds flow - Canada (4) | $ | 116,214 | | $ | 151,846 | | $ | 148,062 | | $ | 542,590 | | $ | 656,554 | | | Adjusted funds flow - Discontinued operations (4) | $ | 145,317 | | $ | 270,386 | | $ | 313,824 | | $ | 971,962 | | $ | 1,299,964 | | | Adjusted funds flow (4) | $ | 261,531 | | $ | 422,232 | | $ | 461,886 | | $ | 1,514,552 | | $ | 1,956,518 | | | | | | | | | | | | | | | | | | | | Adjusted Funds Flow(per boe) | | | | | | | | | | | | | | | | | Total sales, net of blending and other expense (2) | $ | 53.55 | | $ | 61.88 | | $ | 64.31 | | $ | 60.61 | | $ | 68.79 | | | Royalties (5) | | (6.97 | ) | | (8.55 | ) | | (10.05 | ) | | (8.52 | ) | | (11.16 | ) | | Operating expense (5) | | (13.84 | ) | | (13.55 | ) | | (13.12 | ) | | (13.98 | ) | | (14.36 | ) | | Transportation expense (5) | | (3.44 | ) | | (3.68 | ) | | (3.59 | ) | | (3.50 | ) | | (3.60 | ) | | Operating netback - Canada (2) | $ | 29.30 | | $ | 36.10 | | $ | 37.55 | | $ | 34.61 | | $ | 39.67 | | | General and administrative (5) | | (2.73 | ) | | (2.52 | ) | | (2.45 | ) | | (2.84 | ) | | (2.49 | ) | | Cash interest (5) | | (5.89 | ) | | (6.36 | ) | | (7.70 | ) | | (6.75 | ) | | (8.06 | ) | | Realized financial derivatives gain (loss) (5) | | 0.16 | | | (1.37 | ) | | (0.35 | ) | | (0.82 | ) | | 0.06 | | | Other (3) | | (2.07 | ) | | (1.64 | ) | | (2.42 | ) | | (1.52 | ) | | (1.13 | ) | | Adjusted funds flow - Canada (4) | $ | 18.77 | | $ | 24.21 | | $ | 24.63 | | $ | 22.68 | | $ | 28.05 | | | Adjusted funds flow - Discontinued operations (4) | $ | 22.63 | | $ | 35.51 | | $ | 38.96 | | $ | 33.47 | | $ | 39.86 | | | Adjusted funds flow (4) | $ | 20.74 | | $ | 30.40 | | $ | 32.84 | | $ | 28.60 | | $ | 34.93 | |
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 expense or recovery and share-based compensation. Refer to the 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 expense or realized financial derivatives gain or loss divided by barrels of oil equivalent production volume for the applicable period for Canada.
2026 Outlook: Focused Canadian Operations
Baytex enters 2026 as a focused Canadian producer with a high-quality asset base centered on heavy oil operations and an attractive position in the Pembina Duvernay.
Our 2026 budget, released in December 2025, targets annual production of 67,000 to 69,000 boe/d, representing 3% to 5% organic growth year-over-year, with E&D expenditures of $550 to $625 million. This plan is designed to deliver disciplined growth while investing in the long-term infrastructure and exploration to support future value creation. We have significant inventory depth and optionality across our portfolio to support our current plan and potentially accelerate growth beyond these levels.
We are efficiently executing our first quarter capital program with seven rigs currently active across our portfolio. Production in Q1/2026 is forecast to average 68,000 to 69,000 boe/d, with production increasing to approximately 70,000 boe/d as we exit 2026.
Our heavy oil assets comprise 750,000 net acres and 1,100 drilling locations, supporting approximately 12 years of drilling at our current pace of development. We currently have five drilling rigs active across our heavy oil fairway targeting the Clearwater at Peavine and the broader Mannville stack in Lloydminster. We expect to bring 91 heavy oil wells onstream in 2026.
Our 2026 program will see increased exploration activity, including stratigraphic tests, step-out wells and 3-D seismic, to expand our development inventory and test new play concepts across our extensive heavy oil fairway. In addition, we are advancing two waterflood pilot projects at Peavine, blending the attractive capital efficiencies of multi-lateral primary development with the potential for enhanced recovery and moderated decline rates.
In the Duvernay, we have assembled 91,500 net acres and identified approximately 210 drilling locations. Production is expected to increase 35% to average approximately 11,000 boe/d in 2026, with a target year-end exit rate of 14,000 to 15,000 boe/d. We currently have one rig drilling a four-well pad on our southern acreage. Completion operations are scheduled for the second quarter with the wells expected to be onstream by mid-year. The remaining two pads are expected onstream during the third and fourth quarters.
2025 Results
On December 19, 2025, Baytex completed the divestiture of its U.S. Eagle Ford assets for net proceeds of US$2.2 billion ($3.0 billion in Canadian dollars) after closing adjustments. As a result of the disposition, results from the operated and non-operated Eagle Ford properties have been classified as discontinued operations for the current and comparative periods.
For the full-year 2025, adjusted funds flow(1)totaled $1.5 billion ($1.97 per basic share) and we generated free cash flow(2)of $275 million ($0.36 per basic share). In the fourth quarter, we incurred non-recurring, one-time cash tax and severance costs associated with the Eagle Ford divestiture. These expensed items reduced adjusted funds flow by $37 million ($0.05 per basic share). In addition, we reported a net loss of $604 million ($0.78 per basic share), primarily driven by non-cash, one-time items associated with the strategic repositioning of the portfolio. These include a loss on the Eagle Ford disposition, a deferred tax adjustment related to the transaction structure, and an impairment on Viking assets.
Canadian production averaged 65,528 boe/d (89% oil and NGL) in 2025, representing 6% organic growth over 2024 (excluding non-core divestitures). Fourth quarter Canadian production averaged 67,295 boe/d (88% oil and NGL). Exploration and development expenditures in Canada totaled $548 million for the full-year, including $93 million in the fourth quarter, reflecting a highly capital-efficient program.
Accelerated Shareholder Returns
Baytex entered 2026 with a cash position of $857 million (cash less principal amount of Senior Notes that remain outstanding), providing significant financial flexibility to support our commitment to shareholder returns. We intend to prioritize share buybacks while maintaining our current annual dividend of $0.09 per share.
Following the close of the Eagle Ford sale, we re-initiated our share buyback program on December 24, 2025. To date (through March 3, 2026), we have repurchased 30 million shares for $141 million, representing 3.9% of our shares outstanding at an average price of $4.72 per share. Our current Normal Course Issuer Bid ("NCIB") allows for the purchase of up to 66.2 million shares through the 12-month period ending July 1, 2026.
(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.
Quarterly Dividend
The Board of Directors has declared a quarterly cash dividend of $0.0225 per share to be paid on April 1, 2026 for shareholders of record on March 13, 2026.
Additional Information
Our audited consolidated financial statements for the year ended December 31, 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.
| Conference Call Tomorrow 9:00 a.m. MST (11:00 a.m. EST) | | Baytex will host a conference call tomorrow, March 5, 2026, starting at 9:00am MST (11:00am EST). To participate, please dial toll free in North America 1-844-763-8274 or international 1-647-484-8814. Alternatively, to listen to the conference call online, please enter https://event.choruscall.com/mediaframe/webcast.html?webcastid=SuCq95hlin your web browser.
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