Baytex Announces Third Quarter 2022 Results and Continued Strong Clearwater Drilling Results

Calgary, Alberta–(Newsfile Corp. – November 3, 2022) – Baytex Energy Corp. (TSX: BTE) (“Baytex”) reports its operating and financial results for the three and nine months ended September 30, 2022 (all amounts are in Canadian dollars unless otherwise noted).

“We continue to deliver on our commitments with a much-improved balance sheet (0.9x net debt to trailing 12 month EBITDA ratio), substantial free cash flow generation ($478 million through nine months) and a shareholder return framework that is driving real value for our shareholders (3.8% of shares repurchased to-date). We are building operational momentum as we approach 2023 with current Clearwater production of 10,000 bbl/d driving an expected corporate exit rate production of 87,000 to 88,000 boe/d. Our first four Clearwater wells this quarter generated 30 day initial production rates of 1,100 bbl/d per well and we have initiated down-spacing (moving to 5 wells per section) which offers a potential 20% increase in our future Peavine Clearwater drilling inventory,” commented Ed LaFehr, President and Chief Executive Officer.

Highlights

• Generated production of 83,194 boe/d (84% oil and NGL) in Q3/2022, a 4% increase over Q3/2021. Production in October increased to over 87,000 boe/d.
• Delivered adjusted funds flow(1) of $284 million ($0.51 per basic share) in Q3/2022, a 43% increase compared to $198 million ($0.35 per basic share) in Q3/2021.
• Generated free cash flow(2) of $112 million ($0.20 per basic share) in Q3/2022, an 11% increase compared to $101 million ($0.18 per basic share) in Q3/2021.
• Reported cash flows from operating activities of $310 million ($0.56 per basic share) in Q3/2022, a 73% increase compared to $179 million ($0.32 per basic share) in Q3/2021.
• Reduced net debt(1) by 21% to $1.1 billion, from $1.4 billion at year-end 2021.
• Repurchased 21.6 million common shares year-to-date, representing 3.8% of our shares outstanding, at an average price of $6.53 per share.
• Divested of non-core natural gas assets in west central Alberta for net proceeds of $26 million. Production associated with the divestiture was approximately 600 boe/d.
• Generated production from our Clearwater play at Peavine of 8,191 bbl/d in Q3/2022. Production during the month of October averaged 10,000 bbl/d from 24 producing wells.

CEO Transition

As previously announced, the Board of Directors appointed Mr. Eric Greager to the position of President and Chief Executive Officer and as a Director effective November 4, 2022. Mr. Greager succeeds Mr. LaFehr who announced his intention to retire earlier this year. In keeping with this transition, Mr. LaFehr has also stepped down from the Board of Directors, he will remain in an advisory capacity until January 2023.

2022 Outlook

We remain intensely focused on maintaining capital discipline and driving meaningful free cash flow in our business. We continue to execute our 2022 plan and anticipate full-year production of approximately 84,000 boe/d (mid-point of previous guidance range of 83,000 to 85,000 boe/d) with a targeted exit rate of 87,000 to 88,000 boe/d. Based on the forward strip for the balance of 2022(3) we expect to generate approximately $650 million of free cash flow this year.

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