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Here are a few analogies for Baytex Energy (BTE):

• A ConocoPhillips focused on North American oil and gas production.

• An EOG Resources with significant Canadian oil and gas operations as well.

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Major Products

• Light oil and condensate: These are types of crude oil that are typically less dense and flow more easily than heavier oils.
• Heavy oil: A viscous and dense form of crude oil that requires more energy to extract and refine.
• Natural gas liquids (NGLs): These are hydrocarbons that are separated from natural gas and can be used as fuel or raw materials for petrochemicals.
• Natural gas: A fossil fuel primarily composed of methane, used for heating, electricity generation, and industrial purposes.

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Baytex Energy (BTE) primarily operates in the upstream sector of the oil and gas industry, meaning it is involved in the exploration and production of crude oil, natural gas, and natural gas liquids. As such, it does not sell directly to individual consumers.

Instead, Baytex Energy sells its raw commodity products to a diverse base of industrial customers within the energy supply chain. Its major customers are typically other companies that are involved in further processing, transportation, or consumption of these energy products. These categories of customers include:

• Refiners: Companies that purchase crude oil from Baytex Energy to process it into various petroleum products such as gasoline, diesel, jet fuel, and lubricants.
• Midstream Companies / Pipeline Operators: Companies that acquire natural gas and crude oil for transportation, processing (e.g., removing impurities, separating natural gas liquids), and storage before it reaches end-users or other industrial customers.
• Utilities and Industrial Users: Companies that purchase natural gas for power generation, heating, or as feedstock for various industrial processes (e.g., petrochemical manufacturing).
• Marketing and Trading Companies: Firms that buy and sell crude oil, natural gas, and NGLs on the wholesale market, facilitating their movement from producers to end-users or other intermediaries.

Due to the commodity nature of oil and natural gas markets, Baytex Energy typically sells its products under various short-term and long-term contracts to a broad array of buyers, rather than having a few dominant named customers. Specific customer names are generally not disclosed unless a single customer accounts for a material percentage (e.g., 10% or more) of the company's revenue, which is uncommon for most E&P companies operating in diversified basins.

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Eric T. Greager, Chief Executive Officer

Mr. Greager joined Baytex in November 2022 and is an accomplished energy executive with 30 years of operations and management experience. He previously served as President, Chief Executive Officer, and Director of NYSE-listed Civitas Resources, Inc. (formerly Bonanza Creek Energy, Inc.) from 2018 to 2022. Before that, he was a Vice President and General Manager at Encana Oil & Gas, where he was responsible for a multi-basin portfolio. Mr. Greager also held positions at Dominion Resources and Helmerich & Payne, Inc.

Chad L. Kalmakoff, Chief Financial Officer

Mr. Kalmakoff was appointed Chief Financial Officer of Baytex in November 2022, having joined the company in September 2015 as Vice President, Finance. Prior to Baytex, he held the role of Vice President, Finance and Chief Financial Officer at both Kicking Horse Energy Inc. and Corinthian Exploration Ltd. He also held various positions, including Chief Financial Officer and Vice President, Finance, at Pace Oil & Gas Ltd. and its predecessors. Mr. Kalmakoff is a Chartered Accountant.

Chad E. Lundberg, President and Chief Operating Officer

Mr. Lundberg assumed the role of President and Chief Operating Officer in 2025, after serving as Chief Operating Officer since July 2021. He joined Baytex in August 2018 as Vice President, Light Oil. Prior to joining Baytex, he was Vice President, Operations at Raging River Exploration Inc. from 2016 to 2018, and held progressive technical and management roles at Crescent Point Energy Corporation from 2008 to 2016.

Brian Ector, Senior Vice President of Capital Markets & Investor Relations

Mr. Ector joined Baytex in November 2009. Before that, he spent 15 years as a sell-side research analyst covering energy trusts and exploration and production corporations, including seven years with Scotia Capital.

Kendall Arthur, Senior Vice President & General Manager of Canadian Heavy Oil Operations

Mr. Arthur serves as the Senior Vice President & General Manager of Canadian Heavy Oil Operations.

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1. Commodity Price Fluctuations: As an oil and gas company, Baytex Energy's financial performance is highly sensitive to the volatile prices of crude oil and natural gas. Sustained periods of low commodity prices can significantly impact the company's revenue, profitability, and cash flow, potentially hindering its ability to fund operations, development, and shareholder returns. The company's sustaining breakeven is stated as US$52/bbl WTI, indicating vulnerability to prices below this threshold.
2. Financial Stability and Liquidity Concerns: Baytex Energy faces risks related to its financial health and liquidity. The company's Altman Z-Score, a measure of financial distress, has been in the "distress zone," suggesting a potential risk of financial instability. Additionally, low current and quick ratios indicate potential liquidity constraints. The company also reported a net loss for the full year 2025.
3. Regulatory, Environmental, and ESG Risks: Baytex Energy is exposed to risks associated with evolving environmental regulations and increasing pressure related to climate change. Regulatory changes, such as new emissions standards or carbon pricing, could increase operating costs and reduce demand for fossil fuels. Furthermore, certain financial institutions and investors are increasingly shifting investments and financing away from the oil and gas sector due to environmental, social, and governance (ESG) concerns, which could impact Baytex's access to capital in the future.

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Baytex Energy Corp. (symbol: BTE) operates in the Western Canadian Sedimentary Basin and Texas, producing light oil and condensate, heavy oil, natural gas liquids, and natural gas. Below are the addressable market sizes for these products in their respective operating regions.

Canada (Western Canadian Sedimentary Basin)

• Light Oil and Condensate: Canada exported approximately 0.8 million barrels per day (MMb/d) of light oil in 2023.
• Heavy Oil: Canada exported about 3.2 MMb/d of heavy oil in 2023, which constituted 79% of all crude oil exported from Canada. The production of heavy oil in Canada reached 25.3 million cubic metres in 2023. The total value of Canada's crude oil exports (including light and heavy) in 2023 was over $130 billion.
• Natural Gas Liquids (NGLs): The Canadian natural gas liquids market generated a revenue of USD 814.4 million in 2024, with projections to reach USD 1,401.7 million by 2030. Canada's NGL production was 716.43 thousand barrels per day (Mb/d) in 2023, and is forecast to reach 757.4 Mb/d by 2028. In 2022, Canada's NGL production, excluding condensate and pentanes plus, was 928.2 Mb/d.
• Natural Gas: Canadian natural gas production averaged 18.3 billion cubic feet per day (Bcf/d) in 2024 and 19.2 Bcf/d during the first five months of 2025. The net export value of natural gas from Canada was $10.1 billion in 2023. Canada was the fifth-largest natural gas producer globally in 2023, with Alberta and British Columbia accounting for 98% of the country's total production.

Texas, United States (Eagle Ford property)

• Light Oil and Condensate: Texas was the leading oil producer in the United States, supplying nearly 2.1 billion barrels of oil in 2025. Texas crude oil production remained steady at 5.7 million barrels per day (mb/d) in May 2025. Production of crude oil and lease condensate (a light hydrocarbon) from the Permian Basin, which includes significant portions of West Texas, increased by 1.9 MMb/d between 2020 and 2024. Texas also set records for exports of crude oil and condensate in fiscal year 2025.
• Natural Gas: Texas achieved a new record in natural gas output, producing over 13.5 trillion cubic feet (Tcf) in 2025. Marketed natural gas production in Texas reached a record 34.4 Bcf/d in May 2025. In 2024, Texas was responsible for 28% of the nation's natural gas gross withdrawals.

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Baytex Energy Corp. (BTE) is positioning itself for future revenue growth over the next two to three years primarily through strategic investment in its Canadian asset base, following its divestiture of U.S. Eagle Ford properties. The key drivers of this anticipated growth include:

1. Overall Production Growth from Canadian Assets: Baytex Energy is targeting 3% to 5% annual production growth, aiming to reach approximately 67,000-69,000 barrels of oil equivalent per day (boe/d) in 2026 and about 75,000 boe/d by 2028. This growth is underpinned by a capital budget ranging from $550 million to $625 million allocated for exploration and development, with a significant portion directed towards its Canadian light and heavy oil assets.
2. Accelerated Pembina Duvernay Development: The Pembina Duvernay asset is a key engine for future growth, with Baytex planning significant production increases. The company intends to scale development into a continuous one-rig program in 2026, backed by 212 drilling locations. Baytex aims to grow Pembina volumes to 20,000–25,000 Boe/d by 2029–2030, supported by a compound annual growth rate exceeding 30%.
3. Consistent Heavy Oil Development: Baytex plans to allocate approximately 45% of its 2026 capital budget to its heavy oil assets. The company anticipates bringing 91 heavy oil wells onstream in 2026 and is actively exploring across the Mannville stack, which is expected to deliver strong and consistent performance and contribute to cash flow.
4. Enhanced Financial Flexibility and Capital Reinvestment: Following the divestiture of its U.S. Eagle Ford assets, Baytex has substantially strengthened its balance sheet, ending 2025 with significant cash reserves and an undrawn credit facility. This financial strength provides the company with the flexibility to consistently invest in its Duvernay growth and heavy oil drilling programs, even in varying commodity price environments, thus directly supporting its production targets and future revenue generation.

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Share Repurchases

• Baytex re-initiated share buybacks on December 24, 2025, and by March 5, 2026, had repurchased 30 million shares for $141 million.
• The company renewed its Normal Course Issuer Bid (NCIB) on June 24, 2025, authorizing the repurchase of up to 66,244,464 common shares (representing 10% of its public float) over a 12-month period beginning July 2, 2025, and ending July 1, 2026.
• Through November 30, 2023, Baytex repurchased 39.1 million common shares for $215 million, representing 4.5% of its shares outstanding at an average price of $5.49 per share.

Share Issuance

• In February 2023, Baytex financed 70% of its approximately $2.5 billion (CAN$3.4 billion) acquisition of Ranger Oil Corporation through the issuance of common stock.
• This issuance contributed to a significant increase in shares outstanding, which reached 0.861 billion in September 2023.

Outbound Investments

• In February 2023, Baytex Energy acquired Ranger Oil Corporation for approximately $2.5 billion (CAN$3.4 billion) to strengthen its position in the Eagle Ford shale in Texas.

Capital Expenditures

• Baytex plans exploration and development expenditures of CAD$550 million to CAD$625 million for 2026, primarily focused on its Canadian portfolio, including the Pembina Duvernay and heavy oil fairways, with a target of 3%-5% organic growth.
• In 2025, exploration and development expenditures were approximately CAD$1.21 billion.
• For 2024, exploration and development expenditures were approximately CAD$1.26 billion, with 60-65% directed to Eagle Ford light oil assets in the U.S. and 35-40% to Canadian assets, split equally between light and heavy oil in Canada.