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Calgary, Alberta–(Newsfile Corp. – March 4, 2025) – Baytex Energy Corp. (TSX: BTE) (NYSE: BTE) (“Baytex”) reports its operating and financial results for the three months and year ended December 31, 2024 (all amounts are in Canadian dollars unless otherwise noted).
“Our strong 2024 results speak to our disciplined, returns-based capital allocation philosophy that delivers increased per-share returns. In 2024, we generated 10% production per share growth and grew reserves per-share across all reserves categories. We executed our capital program on budget, generated meaningful free cash flow and returned $290 million to shareholders through our buyback program and quarterly dividend. For 2025, we will continue to prioritize free cash flow and shareholder returns,” commented Eric T. Greager, President and Chief Executive Officer.
2024 Highlights
- Reported cash flows from operating activities of $469 million ($0.60 per basic share) in Q4/2024 and $1,908 million ($2.38 per basic share) for 2024.
- Increased production per basic share by 10% in 2024, compared to 2023. Production for the full-year 2024 averaged 153,048 boe/d (85% oil and NGL), compared to 122,154 boe/d in 2023 (85% oil and NGL). Production in Q4/2024 averaged 152,894 boe/d (84% oil and NGL).
- Delivered adjusted funds flow(1) of $462 million ($0.59 per basic share) in Q4/2024 and $1,957 million ($2.44 per basic share) for 2024.
- Generated free cash flow(2) of $255 million ($0.33 per basic share) in Q4/2024 and $656 million ($0.82 per basic share) for 2024.
- Returned $290 million to shareholders in 2024 through our share buyback program and dividend. We repurchased 48.4 million common shares for $218 million, representing 6% of our shares outstanding. In addition, we declared four quarterly dividends of $0.0225 per share, totaling $72 million.
- Improved our cash cost structure (operating, transportation, and general & administrative expenses) in 2024 by 5% on a boe basis, as compared to 2023.
- Reduced net debt(1) by 5% in 2024 (13% in U.S. dollars) and maintained balance sheet strength with a total debt to EBITDA ratio(3) of 1.1x.
Reserves Highlights (4)
- Achieved strong per-share growth and reserves replacement across all three reserves categories, proved developed producing (“PDP”), proved (“1P”) and proved plus probable (“2P”).
- Increased PDP reserves per share by 8% and 1P and 2P reserves per share by 6%. PDP reserves total 187 MMboe, 1P reserves total 408 MMboe and 2P reserves total 660 MMboe.
- Replaced 102% of production on a 1P basis and 101% of production on a 2P basis, excluding acquisition and divestiture activity.
- Generated a strong PDP recycle ratio of 1.9x and a 1P and 2P recycle ratio of 2.7x based on a 2024 operating netback(2) of $40.67/boe, reflective of the efficiency of our capital program and high netback oil-weighted portfolio.
- Increased our net asset value at year-end 2024, discounted at 10% before tax, 13% to $7.27 per share ($6.41 per share at year-end 2023). This is based on the estimated 2P reserves value, net of long-term debt and working capital.
(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) Ratio is calculated as total debt at December 31, 2024 divided by EBITDA for the twelve months ended December 31, 2024. Total debt and EBITDA are calculated in accordance with our amended credit facilities agreement which is available on SEDAR+ at www.sedarplus.ca.
(4) Baytex’s year-end 2024 reserves were evaluated by McDaniel & Associates Consultants Ltd. (“McDaniel”), an independent qualified reserves evaluator, in accordance with National Instrument 51-101 “Standards of Disclosure for Oil and Gas Activities” (“NI 51-101”).
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, 2024 | September 30, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||||
| FINANCIAL (thousands of Canadian dollars, except per common share amounts) |
|||||||||||||||
| Petroleum and natural gas sales | $ | 1,017,017 | $ | 1,074,623 | $ | 1,065,515 | $ | 4,208,955 | $ | 3,382,621 | |||||
| Adjusted funds flow (1) | 461,886 | 537,947 | 502,148 | 1,956,518 | 1,594,350 | ||||||||||
| Per share – basic | 0.59 | 0.68 | 0.60 | 2.44 | 2.26 | ||||||||||
| Per share – diluted | 0.59 | 0.67 | 0.60 | 2.42 | 2.26 | ||||||||||
| Free cash flow (2) | 254,838 | 220,159 | 290,785 | 655,582 | 543,620 | ||||||||||
| Per share – basic | 0.33 | 0.28 | 0.35 | 0.82 | 0.77 | ||||||||||
| Per share – diluted | 0.33 | 0.28 | 0.35 | 0.81 | 0.77 | ||||||||||
| Cash flows from operating activities | 468,865 | 550,042 | 474,452 | 1,908,264 | 1,295,731 | ||||||||||
| Per share – basic | 0.60 | 0.69 | 0.57 | 2.38 | 1.84 | ||||||||||
| Per share – diluted | 0.60 | 0.69 | 0.57 | 2.36 | 1.84 | ||||||||||
| Net income (loss) | (38,477 | ) | 185,219 | (625,830 | ) | 236,597 | (233,356 | ) | |||||||
| Per share – basic | (0.05 | ) | 0.23 | (0.75 | ) | 0.29 | (0.33 | ) | |||||||
| Per share – diluted | (0.05 | ) | 0.23 | (0.75 | ) | 0.29 | (0.33 | ) | |||||||
| Dividends declared | 17,598 | 17,732 | 18,381 | 71,985 | 37,519 | ||||||||||
| Per share | 0.0225 | 0.0225 | 0.0225 | 0.090 | 0.045 | ||||||||||
| Capital Expenditures | |||||||||||||||
| Exploration and development expenditures | $ | 198,177 | $ | 306,332 | $ | 199,214 | $ | 1,256,633 | $ | 1,012,787 | |||||
| Acquisitions and (divestitures) | (29,718 | ) | (394 | ) | (125,822 | ) | 5,920 | (121,342 | ) | ||||||
| Total oil and natural gas capital expenditures | $ | 168,459 | $ | 305,938 | $ | 73,392 | $ | 1,262,553 | $ | 891,445 | |||||
| Net Debt | |||||||||||||||
| Credit facilities | $ | 341,207 | $ | 466,108 | $ | 864,736 | $ | 341,207 | $ | 864,736 | |||||
| Long-term notes | 1,980,619 | 1,856,869 | 1,597,475 | 1,980,619 | 1,597,475 | ||||||||||
| Total debt (3) | 2,321,826 | 2,322,977 | 2,462,211 | 2,321,826 | 2,462,211 | ||||||||||
| Working capital deficiency (2) | 95,346 | 170,292 | 72,076 | 95,346 | 72,076 | ||||||||||
| Net debt (1) | $ | 2,417,172 | $ | 2,493,269 | $ | 2,534,287 | $ | 2,417,172 | $ | 2,534,287 | |||||
| Shares Outstanding – basic (thousands) | |||||||||||||||
| Weighted average | 782,131 | 796,064 | 831,063 | 803,435 | 704,896 | ||||||||||
| End of period | 773,590 | 787,328 | 821,681 | 773,590 | 821,681 | ||||||||||
| BENCHMARK PRICES | |||||||||||||||
| Crude oil | |||||||||||||||
| WTI (US$/bbl) | $ | 70.27 | $ | 75.10 | $ | 78.32 | $ | 75.72 | $ | 77.62 | |||||
| MEH oil (US$/bbl) | 72.40 | 77.50 | 80.62 | 77.99 | 79.29 | ||||||||||
| MEH oil differential to WTI (US$/bbl) | 2.13 | 2.40 | 2.30 | 2.27 | 1.67 | ||||||||||
| Edmonton par ($/bbl) | 94.98 | 97.91 | 99.72 | 97.59 | 100.46 | ||||||||||
| Edmonton par differential to WTI (US$/bbl) | (2.39 | ) | (3.30 | ) | (5.10 | ) | (4.49 | ) | (3.18 | ) | |||||
| WCS heavy oil ($/bbl) | 80.77 | 83.98 | 76.86 | 83.56 | 79.58 | ||||||||||
| WCS differential to WTI (US$/bbl) | (12.54 | ) | (13.51 | ) | (21.88 | ) | (14.73 | ) | (18.65 | ) | |||||
| Natural gas | |||||||||||||||
| NYMEX (US$/mmbtu) | $ | 2.79 | $ | 2.16 | $ | 2.88 | $ | 2.27 | $ | 2.74 | |||||
| AECO ($/mcf) | 1.46 | 0.81 | 2.66 | 1.44 | 2.93 | ||||||||||
| CAD/USD average exchange rate | 1.3992 | 1.3636 | 1.3619 | 1.3700 | 1.3495 | ||||||||||
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, 2024 | September 30, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||||
| OPERATING | |||||||||||||||
| Daily Production | |||||||||||||||
| Light oil and condensate (bbl/d) | 64,661 | 69,843 | 70,124 | 66,894 | 53,389 | ||||||||||
| Heavy oil (bbl/d) | 42,227 | 42,759 | 39,569 | 42,313 | 35,460 | ||||||||||
| NGL (bbl/d) | 21,208 | 19,836 | 23,160 | 20,129 | 14,304 | ||||||||||
| Total liquids (bbl/d) | 128,096 | 132,438 | 132,853 | 129,336 | 103,153 | ||||||||||
| Natural gas (mcf/d) | 148,792 | 132,175 | 165,121 | 142,262 | 114,010 | ||||||||||
| Oil equivalent (boe/d @ 6:1) (1) | 152,894 | 154,468 | 160,373 | 153,048 | 122,154 | ||||||||||
| Netback (thousands of Canadian dollars) | |||||||||||||||
| Total sales, net of blending and other expense (2) | $ | 936,869 | $ | 1,022,721 | $ | 1,003,219 | $ | 3,945,012 | $ | 3,157,819 | |||||
| Royalties | (206,675 | ) | (223,800 | ) | (228,570 | ) | (880,086 | ) | (669,792 | ) | |||||
| Operating expense | (145,690 | ) | (167,119 | ) | (164,873 | ) | (653,949 | ) | (570,839 | ) | |||||
| Transportation expense | (33,110 | ) | (36,883 | ) | (29,744 | ) | (133,142 | ) | (89,306 | ) | |||||
| Operating netback (2) | $ | 551,394 | $ | 594,919 | $ | 580,032 | $ | 2,277,835 | $ | 1,827,882 | |||||
| General and administrative | (20,433 | ) | (17,895 | ) | (22,280 | ) | (81,746 | ) | (69,789 | ) | |||||
| Cash interest | (48,769 | ) | (50,109 | ) | (56,698 | ) | (206,104 | ) | (159,823 | ) | |||||
| Realized financial derivatives (loss) gain | (2,115 | ) | 331 | 12,377 | 1,447 | 36,212 | |||||||||
| Other (3) | (18,191 | ) | 10,701 | (11,283 | ) | (34,914 | ) | (40,132 | ) | ||||||
| Adjusted funds flow (4) | $ | 461,886 | $ | 537,947 | $ | 502,148 | $ | 1,956,518 | $ | 1,594,350 | |||||
| Netback per boe (2) | |||||||||||||||
| Total sales, net of blending and other expense (2) | $ | 66.60 | $ | 71.97 | $ | 68.00 | $ | 70.43 | $ | 70.82 | |||||
| Royalties (5) | (14.69 | ) | (15.75 | ) | (15.49 | ) | (15.71 | ) | (15.02 | ) | |||||
| Operating expense (5) | (10.36 | ) | (11.76 | ) | (11.17 | ) | (11.67 | ) | (12.80 | ) | |||||
| Transportation expense (5) | (2.35 | ) | (2.60 | ) | (2.02 | ) | (2.38 | ) | (2.00 | ) | |||||
| Operating netback (2) | $ | 39.20 | $ | 41.86 | $ | 39.32 | $ | 40.67 | $ | 41.00 | |||||
| General and administrative (5) | (1.45 | ) | (1.26 | ) | (1.51 | ) | (1.46 | ) | (1.57 | ) | |||||
| Cash interest (5) | (3.47 | ) | (3.53 | ) | (3.84 | ) | (3.68 | ) | (3.58 | ) | |||||
| Realized financial derivatives (loss) gain (5) | (0.15 | ) | 0.02 | 0.84 | 0.03 | 0.81 | |||||||||
| Other (3) | (1.29 | ) | 0.76 | (0.78 | ) | (0.63 | ) | (0.90 | ) | ||||||
| Adjusted funds flow (4) | $ | 32.84 | $ | 37.85 | $ | 34.03 | $ | 34.93 | $ | 35.76 | |||||
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 2024 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.
2025 Outlook
Baytex is a well-capitalized, North American oil-weighted producer with 60% of our production in the Eagle Ford in Texas and the balance in western Canada.
In 2025, the government of the United States of America announced tariffs on goods imported from Canada, including a 10% tariff on Canadian energy imports, effective March 4, 2025. We continue to monitor the impact of these tariffs and expect that our geographic diversification will provide a measure of insulation.
We are focused on disciplined capital allocation to prioritize free cash flow generation while maintaining a strong balance sheet. In the current commodity price environment this means moderating our growth profile and delivering stable crude oil production. We currently allocate approximately 50% of free cash flow(1) to the balance sheet and approximately 50% to shareholder returns, which includes a combination of share buybacks and quarterly dividend payments.
In 2025, we are targeting continued strong performance in the Eagle Ford, further progression of the Pembina Duvernay and capital efficient heavy oil development. We anticipate first quarter production of approximately 144,000 boe/d with volumes increasing over the balance of the year. During the first quarter, extremely cold temperatures across North America resulted in modest production disruptions across our operations. Our full year 2025 guidance is unchanged with exploration and development expenditures of $1.2 to $1.3 billion and production of 148,000 to 152,000 boe/d.
We expect to generate approximately $400 million of free cash flow in 2025 at US$70/bbl WTI. Based on our production profile and timing of capital expenditures, the majority of our free cash flow is expected to be generated in the second half of the year.
2024 Results
We delivered operating and financial results consistent with our full-year plan. Production and exploration and development expenditures were in line with full-year guidance and we improved our cash cost structure (operating, transportation, general & administrative expenses) by 5% on a boe basis, compared to 2023. Adjusted funds flow(2) totaled $2.0 billion ($2.44 per basic share) and we generated net income of $237 million ($0.29 per basic share).
We increased production per basic share by 10% in 2024, compared to 2023, with production averaging 153,048 boe/d (84% oil and NGL), up from 122,154 boe/d in 2023. Production in Q4/2024 averaged 152,894 boe/d (84% oil and NGL). Exploration and develo
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