FOCUSED DISCIPLINE. ENHANCED VALUE.
DECEMBER 22, 2025
ADVISORY
Baytex Energy Corp. ("Baytex") announced on November 12, 2025 that it has entered into a definitive purchase and sale agreement to sell its U.S. Eagle Ford assets (the
"Transaction"). The Transaction closed on December 19, 2025 for net proceeds of US$2.14 billion (approximately $2.96 billion in Canadian dollars) after closing adjustments.
In this presentation, we refer to certain specified financial measures which do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS"). While these measures are commonly used in the oil and natural gas industry, our determination of these measures may not be comparable with calculations of similar measures presented by other reporting issuers. This presentation also contains oil and gas disclosures, various industry terms, and forward-looking statements, including various assumptions on which such forward-looking statements are based and related risk factors. There is no representation by Baytex that actual results achieved will be the same in whole or in part as those referenced in the forward-looking statements. The future oriented financial information and forward-looking statements are made as of December 22, 2025 and Baytex disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. Please see the Company's disclosures located at the end of this presentation for further details regarding these matters.
All slides in this presentation should be read in conjunction with "Forward Looking Statements Advisory", "Specified Financial Measures Advisory", "Capital Management Measures
Advisory" and "Advisory Regarding Oil and Gas Information".
This presentation should be read in conjunction with the Company's consolidated interim unaudited financial statements and Management's Discussion and Analysis ("MD&A") for the period ended September 30, 2025.
All amounts in this presentation are stated in Canadian dollars unless otherwise specified.
BAYTEX ENERGY / NYSE / TSX BTE 2
BAYTEX OVERVIEW
Unlocking value through the Eagle Ford disposition
Corporate Profile
Net Cash
Balance Sheet
Industry-leading net cash position
Shares Outstanding (1) 768 million
Market Capitalization (2) $3.3 billion
Net debt (cash) (3) ($0.8 billion)
Quarterly dividend (4) $0.0225 per share
Dividend yield (5) 2.1%
Annual Production (6) 67 - 69 Mboe/d
Accelerated Shareholder Returns
Long-Term Value Creation
Significant portion of sale proceeds to be returned to shareholders
Disciplined, high-return growth focused on the Duvernay and heavy oil plays in Canada
Shares outstanding as at December 19, 2025.
Market capitalization based on closing share price on the Toronto Stock Exchange on December 19, 2025.
Net debt estimated as at December 19, 2025 and inclusive of working capital. Net debt is a capital management measure. Refer to the Capital Management Measures Advisory section in this presentation for further information.
Refer to the Dividend Advisory section in this presentation for further information.
Dividend yield is calculated by dividing the annualized per share dividend by the market share price for the applicable period.
Production represents 2026 guidance.
BAYTEX ENERGY / NYSE / TSX BTE 3
A STREAMLINED, HIGH-RETURN CANADIAN ENERGY PLATFORM
Enhanced flexibility to deliver long-term value
Portfolio Optimization
Focused on high-return Canadian assets for capital
efficiency and value creation
Premier Canadian Assets
Peace River / Peavine Heavy Oil
ALBERTA SASKATCHEWAN
Heavy Oil Expertise
Innovative development, strong track record of exploration success and value creation
Lloydminster Heavy Oil
Scalable Pembina Duvernay
Core land position and strong well results provide significant development potential
Pembina Duvernay Light Oil
Disciplined Growth Platform
Pro forma 2025 production of ~65,000 boe/d, with targeted 3-5% annual growth supported by over ten years development inventory
Viking Light Oil
BAYTEX ENERGY / NYSE / TSX BTE 4
CAPITAL ALLOCATION PRIORITIES
Capital Allocation Principles
Maximize asset value through disciplined investment
Maintenance capital to sustain production
Invest in long-term infrastructure to support organic growth
Pursue targeted exploration and strategic tuckin acquisitions to expand inventory and future opportunity
Maintain strong, flexible balance sheet Meaningful shareholder returns
2026 Prioritizes
Meaningful Shareholder Returns
Eagle Ford sale delivers net cash balance sheet
Significant portion of proceeds to be
returned to shareholders
Share buybacks prioritized:
Purchases under NCIB to commence post-transaction close
Current NCIB (expires July 1, 2026) authorizes up to 66.2 million shares
Substantial issuer bid under consideration
Dividend maintained at $0.09 per share (annualized)
BAYTEX ENERGY / NYSE / TSX BTE
Capex Breakdown ($MM) (1) | ||
Maintenance | 435 | |
Growth | 50 | |
Long-term Infrastructure | 50 | |
Exploration and Land | 50 | |
Total | 585 |
DISCIPLINED 2026 CAPITAL BUDGET
Efficient E&D capital program with flexibility to adapt to market conditions
Targets 3-5% annual production growth at US$60/bbl WTI
Significant value creation in the Pembina Duvernay
Consistent heavy oil performance delivers reliable returns
2026e Capital Expenditure
45%
Heavy Oil (91 net wells)
$550 - $625 MM2026e Production
11%
Natural Gas
55%Light Oil (85 net wells)
Production Profile (boe/d)
69,000 - 70,000
7%
NGLs
67,000 - 69,000
boe/d
68,000 - 69,000
Spring Break-Up
82%Crude Oil
Q1 2026 Q2 2026 Q3 2026 Q4 2026
(1) Represents mid-point of guidance range.
BAYTEX ENERGY / NYSE / TSX BTE
2026 CAPITAL ALLOCATION WATERFALL
Enabling growth, returns, and value creation
Capital Allocation ($MM) (1)
900
800
700
600
500
400
300
200
100
0
60
50
50
US$55 WTI
Covers Maintenance
+ Dividend
US$60 WTI
US$65 WTI
Excess Free Cash Flow (3)
available for share buybacks and/or incremental investment
US$70 WTI
435
50
Investment supports long-term growth and inventory expansion
2026 Adjusted
Funds Flow (2)
Maintenance Dividend Growth Long-Term
Infrastructure
Exploration &
Land
35% production growth in the Pembina Duvernay, with 50% increase in net wells as commercialization ramps
Strong, consistent returns across heavy oil portfolio
Pembina anchor oil batteries and water handling
Peace River gas conservation and road infrastructure
Stratigraphic and
step-out wells
Seismic
Land
Represents mid-point of capital guidance range.
Commodity price assumptions: WTI-WCS Differential - US$12.50/bbl, AECO Gas - $3.00/Mcf; Exchange rate (CAD/USD) = 1.4. Adjusted fuds flow sensitivities includes the impact of ARO and leasing expenditures.
Excess free cash flow is calculated as free cash flow less dividend payments.
BAYTEX ENERGY / NYSE / TSX BTE
3-YEAR OUTLOOK
Sustainable value creation at US$60 WTI
Heavy Oil 3-Year Outlook
Pembina Duvernay 3-Year Outlook
Production Profile (boe/d)
60,000
50,000
40,000
boe/d
30,000
20,000
10,000
0
2026 2027 2028
Production (LHS)
$500
$400
$300
$200
$100
$0
25,000
20,000
boe/d
15,000
10,000
5,000
0
2026 2027 2028
Production (LHS)
$250
$200
$150
$100
$50
$0
80,000
75,000
70,000
65,000
60,000
55,000
$MM
$MM
5% CAGR
3% CAGR
2025 YTD 2026 2027 2028
Net Operating Income (RHS)
Net Operating Income (RHS)
Heavy Oil: Stable portfolio generates substantial free cash flow to fund Duvernay growth; optionality for growth at higher WTI prices
Pembina Duvernay: > 30% production CAGR(2) over three years drives 80% increase in net operating income
3-5% Production CAGR(2): with optionality to accelerate growth at higher WTI prices
Balance Sheet: Net cash position maintained during plan period, excluding potential tuck-in acquisitions Shareholder Returns: Excess free cash flow available for share buybacks, dividends or incremental investment Drilling Inventory: ~ 25% of drilling inventory developed in 3-year outlook
Commodity price assumptions: WTI - US$60/bbl, WTI-WCS Differential - US$12.50/bbl, AECO Gas - $3.00/Mcf; Exchange rate (CAD/USD) = 1.4.
CAGR refers to the compound annual growth rate, representing the average yearly growth in production over a set period.
BAYTEX ENERGY / NYSE / TSX BTE
PEMBINA DUVERNAY - SIGNIFICANT VALUE CREATION OPPORTUNITY
Creating long-term value through scalable light oil growth
Pembina Duvernay Inventory
US$45/bbl Average Break-Even WTI Price (NPV10) (1)
ADDITIONAL INVENTORY
150
Unbooked locations targeting
the Duvernay formation
62
2P BOOKED
12
2026 Drills Pembina Duvernay
91,500 net acres
Highly concentrated core Duvernay position ~ 212 locations Supports growth to 20,000 - 25,000 boe/d Strong 2025 performance Record well results Transitioning to 1-rig program 12 wells in 2026; ~ 18 wells per year thereafter(1) Break-even WTI price is the minimum price required to cover all costs associated with drilling and operating a well discounting the future cash flow stream at a 10% discount rate.
BAYTEX ENERGY / NYSE / TSX BTE 9
EXECUTION AND PERFORMANCE IN THE PEMBINA DUVERNAY
Transition to commercialization with improved well economics
Enhanced drilling assembly
Improved completion uniformity
Tapered cluster design
Optimized pumping
schedule
25% Increase in Completed Lateral Length (CLL, feet)
Execution Improvements
11% Improvement in EUR (1)
(Boe per foot, CLL)
10,000
12,500
2024 2025
81
90
2024 2025
5% Improvement in Drilling Efficiency (ft/day)
10% Improvement in Completion Efficiency (Pumping hours/day)
11% Improvement in Well Cost (DCET, $/foot CLL)
1,325
1,400
17.5
19.5
$1,165
$1,040
2024 2025
Increased lateral length and improved efficiencies through pad development
2024 2025
Pumping efficiency hits 19 hours per day in 2025
2024 2025
Increasing EUR(1) at lower well costs (per foot)
(1) EUR refers to the estimated ultimate recovery of a well, an approximation of the quantity of oil or gas that is expected to be economically recoverable over its producing life.
BAYTEX ENERGY / NYSE / TSX BTE
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Disclaimer
Baytex Energy Corp. published this content on December 22, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on December 22, 2025 at 12:21 UTC.
