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Here are 1-2 analogies to describe Baytex Energy (BTE):

• A smaller, North American version of an oil and gas producer like Chevron or ConocoPhillips.
• Like a mid-sized Occidental Petroleum, but primarily focused on Canadian and Eagle Ford oil and gas assets.

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• Crude Oil: Baytex produces various grades of crude oil, a fossil fuel refined into fuels like gasoline and diesel, and other petroleum products.
• Natural Gas: Baytex extracts natural gas, a clean-burning fossil fuel used primarily for heating, electricity generation, and industrial processes.
• Natural Gas Liquids (NGLs): Baytex produces NGLs, such as ethane, propane, and butane, which are co-products of natural gas processing used as feedstocks and fuels.

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Baytex Energy (symbol: BTE) is an oil and gas exploration and production company. As such, it sells crude oil and natural gas primarily to other companies rather than directly to individuals.

Due to the competitive nature of the commodity markets, Baytex Energy, like most upstream producers, does not publicly disclose the specific names of its individual major customer companies. Instead, it typically sells its production to a diversified base of purchasers through various marketing agreements at market-based prices.

The primary categories of customers that purchase crude oil and natural gas from companies like Baytex Energy typically include:

• Refining Companies: These companies purchase crude oil to process it into various refined products such as gasoline, diesel, jet fuel, and petrochemical feedstocks. They are essential customers for crude oil producers.
• Midstream Companies: These companies specialize in the gathering, processing, storage, and transportation of oil and natural gas. They often purchase production at the wellhead and then market it further down the value chain to refiners, industrial users, or other distributors.
• Commodity Trading and Marketing Companies: These firms buy and sell large volumes of crude oil and natural gas in the wholesale market, facilitating the movement of commodities from producers to end-users or other market participants. They often leverage sophisticated logistics and market intelligence.

Since Baytex Energy does not publicly disclose the specific names of these individual customer companies, it is not possible to provide their stock symbols.

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Eric T. Greager President and Chief Executive Officer

Mr. Greager joined Baytex as President and CEO in November 2022. He 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. During his tenure at Bonanza Creek/Civitas, production per share more than doubled, and the company introduced a significant and increasing quarterly dividend. Before Civitas/Bonanza Creek, he was a Vice President and General Manager at Encana Oil & Gas, joining in 2006 and holding various management and executive positions. Prior to Encana, Mr. Greager spent time 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. He joined Baytex in September 2015 as Vice President, Finance. Before joining Baytex, Mr. Kalmakoff served as the Vice President, Finance and Chief Financial Officer at Kicking Horse Energy Inc. and Vice President, Finance and Chief Financial Officer at Corinthian Exploration Ltd. He also held several positions of increasing responsibility at Pace Oil & Gas Ltd. and its predecessors, including Chief Financial Officer and Vice President, Finance.

Chad E. Lundberg Chief Operating Officer

Mr. Lundberg joined Baytex in August 2018. Prior to joining Baytex as Vice President, Light Oil, Mr. Lundberg was Vice President, Operations with Raging River Exploration Inc. from 2016 to 2018. He also held various technical and management roles with Crescent Point Energy Corporation, Husky Energy, and as an independent consultant.

James R. Maclean Chief Legal Officer and Corporate Secretary

Mr. Maclean joined Baytex in April 2014 as in-house counsel and has since held positions of increasing responsibility. Prior to joining Baytex, he held positions with Petrominerals Ltd. and Pembina Pipeline Corporation and was an associate at a national law firm. He is a corporate lawyer with over 15 years of experience advising energy companies on significant transactions, corporate governance, and securities compliance matters.

Chris M.P. Lessoway Vice President, Finance and Treasurer

Mr. Lessoway was appointed Vice President, Finance and Treasurer of Baytex in June 2023, where he is responsible for financial reporting, corporate planning, and treasury functions. He joined Baytex in June 2017 as Financial Controller. Prior to joining Baytex, Mr. Lessoway held management positions at Kelt Exploration and Perpetual Energy. He began his career at KPMG LLP in 2009.

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The key risks to Baytex Energy's business are primarily driven by its exposure to the volatile energy sector and its financial structure.

1. Commodity Price Volatility: Baytex Energy operates within the inherently volatile energy sector, making its financial health highly susceptible to fluctuations in crude oil and natural gas prices. This includes the risk of widening price differentials for heavy oil, which can significantly impact revenue and cash flow.
2. Debt Levels and Financial Leverage: The company carries a significant amount of debt, with a debt-to-EBITDA ratio of 1.9x and a debt-to-equity ratio of 1.92 as of June 30, 2023, which is higher than the energy sector average. While Baytex actively manages its capital structure and has plans for debt reduction, high financial leverage can magnify the impact of commodity price downturns and limit operational flexibility.
3. Climate Change and Access to Capital: Baytex faces increasing risks related to climate change concerns, including the growing trend of financial institutions shifting investments and financing away from oil and gas sectors. This could lead to more stringent conditions for investments and financing in the future, potentially impacting Baytex's access to capital for operations and growth. The company is actively working to improve its climate-related disclosures and manage these risks.

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The accelerating global transition away from internal combustion engine (ICE) vehicles towards electric vehicles (EVs).

While the long-term shift towards EVs is known, the *pace* and *certainty* of this transition have intensified significantly, emerging as a clear threat. Many major economies, including several in the European Union, the United Kingdom, and various U.S. states, have established definitive targets or outright bans on the sale of new ICE vehicles within the next 10-15 years. Concurrently, major global automotive manufacturers are committing vast capital investments and setting aggressive internal deadlines for transitioning their product lines predominantly to EVs. This rapid, policy-backed, and industry-led shift directly threatens to accelerate the decline in global demand for gasoline and diesel fuels, which constitute a significant portion of crude oil demand. This erosion of core product demand at a potentially faster pace than anticipated directly impacts the long-term viability and profitability of oil and gas producers like Baytex Energy.

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Baytex Energy (symbol: BTE) operates primarily in the exploration, development, and production of crude oil and natural gas. Their main products include heavy oil, bitumen, light oil, natural gas, shale gas, and natural gas liquids (NGLs). Baytex Energy's operations are concentrated in the Western Canadian Sedimentary Basin (Alberta and Saskatchewan) and the Eagle Ford shale in the United States (Texas).

Crude Oil Market

• Global: The global crude oil market size was valued at approximately USD 739.88 billion in 2023 and is projected to reach USD 853.5 billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of 1.6% during the forecast period (2025-2032). In 2022, the world produced an average of 80.75 million barrels of oil per day, with the market size exceeding $2 trillion.
• North America: The North America oil exploration and production market size is valued at $936.21 million in 2024 and is forecasted to reach $1,256.85 million by 2031, with a CAGR of 4.30% from 2024 to 2031.
• United States: The U.S. Energy Information Administration (EIA) projects crude oil output in the United States to reach 13.2 million barrels per day (b/d) in 2024 and more than 13.4 million b/d in 2025. U.S. crude oil production increased to 13,794 thousand barrels per day (BBL/D/1K) in August 2025.
• Western Canada: Crude oil production in Western Canada has been growing, with Alberta reaching a record high of 4.53 million barrels per day (MMb/d) in December 2023. Total Canadian crude oil production is forecast to increase from 3.85 million b/d in 2016 to 5.12 million b/d by 2030.

Natural Gas Market

• North America: The North America natural gas market was valued at USD 435.26 billion in 2024 and is expected to reach USD 622.63 billion by 2030, with a CAGR of 6.15%. McKinsey's North American gas model indicates that demand will grow from 95 billion cubic feet per day (bcfd) to 125 bcfd by 2035. The market is expected to register a CAGR of greater than 5% during the forecast period.
• United States: The U.S. natural gas market was valued at USD 454.5 billion in 2024 and is projected to increase to USD 577.9 billion by 2032, advancing at a CAGR of 3.2% during 2025–2032. U.S. dry natural gas production is forecast to reach a record annual average of 105.2 billion cubic feet per day in 2025.
• Western Canada: Western Canadian natural gas production reached an all-time high in November 2022, averaging 17.9 billion cubic feet per day (Bcf/d). This production is forecast to grow from almost 18 Bcf/d in 2023 to over 25 Bcf/d by 2032. Total Canadian natural gas demand was approximately 13 Bcf/d in 2023.

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Here are 3-5 expected drivers of future revenue growth for Baytex Energy (BTE) over the next 2-3 years:

1. Increased Production from Key Assets: Baytex Energy anticipates a rise in production, with an outlook for average production to reach approximately 150,000 barrels of oil equivalent per day (boe/d) in the latter half of 2025. This growth is notably driven by its core assets, including the Pembina Duvernay and U.S. Eagle Ford. The company projects ramping up Pembina Duvernay production to 20,000 boe/d by 2029 and plans to bring 54 net wells onstream in the Eagle Ford in 2025.
2. Stable to Moderately Favorable Commodity Prices: While subject to market fluctuations, Baytex's 2025 budget is based on a WTI crude oil price of US$65/bbl, aiming for stable production. Analyst expectations indicate that at current strip prices (around US$66-US$67 WTI oil), Baytex is capable of generating significant free cash flow, suggesting that commodity prices at these levels or higher will contribute to revenue.
3. Operational Efficiency and Enhanced Well Productivity: Baytex has demonstrated robust operational performance, marked by impressive profitability metrics such as an EBITDA margin of 40.3% and a gross margin of 64.8%. The company's ability to capitalize on increased production and operational efficiencies, coupled with enhanced well productivity and asset optimization strategies, is expected to boost production and support stable free cash flow, thereby contributing to revenue growth.
4. Strategic Land Acquisitions and Asset Development: Baytex is actively engaged in strategic land acquisitions and property swaps to consolidate its position for future development, particularly in key areas. This includes plans for continued heavy oil production growth and the expansion of its core land base in Peace River and northeast Alberta, as well as advancing the Pembina Duvernay play.

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Share Repurchases

• Baytex Energy renewed its Normal Course Issuer Bid (NCIB), allowing for the repurchase of up to 66,244,464 common shares (10% of public float) between July 2, 2025, and July 1, 2026.
• In 2024, Baytex repurchased 48.4 million common shares for a total consideration of $217.9 million.
• In 2023, approximately $222 million was spent to repurchase 40.5 million common shares under the NCIB.

Share Issuance

• In June 2023, as part of the Ranger Oil Corporation acquisition, Baytex issued approximately 311.4 million common shares.

Outbound Investments

• Baytex Energy acquired Ranger Oil Corporation in June 2023 for an estimated $2.5 billion to $3.4 billion.
• The acquisition involved a cash payment of $732.8 million and the assumption of CAD $1.1 billion of Ranger's net debt.
• This strategic acquisition significantly expanded Baytex's U.S. oil production footprint, particularly in the Eagle Ford shale region.

Capital Expenditures

• For 2025, Baytex has budgeted exploration and development expenditures of $1.2 billion to $1.3 billion, with expectations to trend towards the lower end of this range.
• The 2025 capital program is focused 55% to 60% on U.S. Eagle Ford light oil assets and 40% to 45% on Canadian assets (equally split between light and heavy oil).
• In 2024, capital expenditures were approximately CAD$1.25 billion, and in 2022, they were around $300 million to $305 million.